1. Chapter 15 The New Deal

2. Section 1  A New Deal Fights the Depression

3. Americans Get a New Deal  1932 Democratic Presidential candidate Franklin Delano Roosevelt won the Presidency over Herbert Hoover  FDR was the 2 term governor of New York and a distant cousin of Theodore Roosevelt  He won by a large margin because Hoover was the current President and Americans were upset about the state of life during the Great Depression  FDR was elected in November and not inaugurated as President until March because the 20 th Amendment which set the Presidential inauguration to January 20 th was not passed until 1933  Democrats took over Washington winning 2/3 in the Senate and nearly ¾ in the House

4. Americans Get a New Deal  FDR recruited a group of experts to form a “brain trust” to implement his New Deal Program he wanted to put into place in order to fight the depression  The New Deal focused on 3 basic goals:  Relief for the needy  Economic recovery  Financial reform

5. Americans Get a New Deal  Once he took office he implemented a program known as the 100 days which lasted from March 9 – June 16, 1933  Congress passed more than 15 major pieces of legislation in this time period  The 1 st step was to reform banking issues  He did this by declaring a bank holiday closing banks and forming the Emergency Banking relief Act allowing the US treasury department to inspect banks and setting guidelines for them to follow in order ot be sound financially and remain open  He notified the nation of banking reform by way of a fireside chat “national public address to the nation by way of radio”

6. Americans Get a New Deal  1933 they also passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation (FDIC) which served as an insurance to individual bank accounts  He reformed the stock market by creating the Federal Securities Act requiring corporations to provide complete information on all stock offerings and made them liable for any misrepresentations  He also passed the 21 st amendment repealing the 18 th amendment allowing the sale of alcohol in order to gain tax money for the government for it.

7. Helping the American People  He also worked to assist American farmers with the Agricultural Adjustment Act (AAA) by working to raise crop prices by lowering the number of crops produced.  The Government would pay farmers not to produce so much crops  They also worked with the Tennessee Valley Authority (TVA) to fix existing and create new dams in turn creating thousands of new jobs

8. Helping the American People  Civilian Conservation Corps (CCC) was created in order to create jobs with small wages doing civil works around the country which by the time the program ended in 1942 almost 3 million young men had worked for this program at some point and time or another  The Public Works Administration (PWA) was created to provide jobs for people in states building schools and other community buildings  This provided 4 million immediate jobs in 1933-34 and it built more than 40,000 schools and paid the salary of more than 50,000 school teachers.

9. Helping the American People  They also wanted to establish industrial growth so they put into place the fair practice codes.  They created the National Recovery Administration (NRA) in order to establish standards and promote recovery of businesses nationwide.  They guaranteed workers the right to unionize and bargain collectively in industries

10. Helping the American People  They also established programs for the basic necessities food, clothing, and shelter.  The Home Owner Loan Corporation (HOLC) – provided government loans to homeowners who face foreclosure  They also created the Federal Housing Administration (FHA) which is still in effect today on providing assistance to home owners in financial problems  The Federal Emergency Relief Administration (FERA) gave direct relief to the needy with ½ going to the states for grants for to provide assistance with the other ½ to work relief programs for people without jobs  Harry Hopkins headed this program up

11. The New Deal Comes Under Attack  FDR agreed to deficit spending (spending money you don’t have) but he tried very hard not to do it  The New Deal did a lot of good things but it did not put an end to the depression and many people grew opposed to the New Deal  Liberals said it did not go far enough and Conservatives said it went to far.  In 1935, the Supreme Court declared the NIRA unconstitutional claiming it gave legislative powers to the executive branch giving them to much power in the checks and balances system  FDR proposed they reorder the Judiciary branch in order to appoint new Supreme Court justices and eventually got his way on this.

12. The New Deal Comes Under Attack  In 1934 the conservatives formed the American Liberty league in order to oppose the new deal because they felt it violated the rights of individuals and property  3 of the biggest critics of the New Deal were as follows:  Charles Coughlin – A priest in Detroit area broadcast radio sermons that opposed FDR and the New Deal  Dr. Francis Townsend – He was from California and he wanted more done for health care for poor and elderly people which went against FDR  Huey Long – A senator from Louisiana ran for President under the slogan “Every man a King”. He was assassinated in 1935 at his height of popularity

13. Section 2  The Second New Deal Takes Hold

14. The Second Hundred Days  In order to gain a big spurt of growth in the economy FDR launched his 2 nd 100 days program  He asked Congress to provide more extensive relief for farmers and workers  FDR had his 2 nd new deal program in place by the time the 1936 election came up and he won the election convincingly over the Republicans.  This election marked the 1 st time most black voters voted Democratic over Republican

15. Helping Farmers  FDR then spent most of his time focusing on farmers and fixing that issue in America  He passed the AAA Agricultural Administration Act after it was originally struck down by Congress in order to assist farmers  The 2 nd New Deal also tried to help share croppers, migrant workers, and many other poor farmers

16. Roosevelt Extends Relief  The (WPA) Works Progress Administration – was headed by Harry Hopkins and was setup to assist youths, professionals, and other workers  Between 1935 and 1943 they spent $11 Billion to give jobs to more than 8 million workers  The National Youth Administration (NYA) was created specifically to provide education, jobs, counseling, and recreation for young people

17. Improving Labor and Other Reforms  In order to improve worker conditions the Wagner Act replaced the NIRA which the Supreme Court deemed unconstitutional  The Wagner Act reestablished collective bargaining and unions  This prohibited unfair worker practices against union members  1938 they passed the Fair Labor Standards Act which set a maximum of 44 hour work weeks decreasing to 40 hours after 2 years on the job.  It set a minimum wage at 25 cents an hour  It set working age limits

18. Improving Labor and Other Reforms  In 1935 they passed the Social Security Act which had 3 major parts  Insurance for retirees 65 or older and their spouses  Unemployment compensation system  Aid to families with dependent children abd people with disabilities

19. Improving Labor and Other Reforms  They regulated public utilities and rural area electrification of homes  In 1935 12.6% of American homes had electricity  In 1949 90% of American homes had electricity  It also outlawed pyramiding (ownership of utilities by multiple holding companies)

20. Section 3  The New Deal Affects Many Groups

21. The New Deal Brings New Opportunities  The New Deal was key in naming several women to important government positions  Francis Perkins became the U.S.’s 1 st female cabinet person (Secretary of labor)  Eleanor Roosevelt was very key in influencing FDR in promoting women in the workplace  In 1936 a poll stated that 82% of Americans believed women should not be in the workforce and should be at home 

22. African-American Activism  A. Phillip Randolph organized the nations 1 st all black trade union and he laid the ground work for the Civil Rights movement  FDR also promoted many blacks into key government positions which also was a 1 st in American history  Mary McLeod Bethune was made head of the Division of Negro Affairs of the National Youth Administration and she worked to ensure minorities got jobs and proper job training  She also organized a “black cabinet” to advise FDR on racial issues  FDR promoted racial equality but was never really committed to civil rights because he was afraid of upsetting southern voters in the South

23. Mexican American and Native Americans and the New Deal  Mexican Americans also supported the New Deal  In 1924 Native Americans received full citizenship in the US  FDR appointed John Collier as in charge of Indi9an affairs  Collier helped create the Indian Reorganization Act of 1934 which was a major step in autonomy for Native Americans  This act mandated 3 major changes:  Economic – Native American lands would belong to an entire tribe allowing them more control over their lands  Cultural- Children could attend schools on the reservations as opposed to just going to boarding schools  Political – Tribes were given permission to elect tribal councils to govern their reservations

24. FDR Creates the New Deal Coalition  Most minorities supported the New Deal regardless if it helped them a lot or not  FDR created the New Deal coalition- which was an alignment of diverse group of dedicated supporters of the Democratic party. This allowed Democrats to dominate national politics throughout the 1930’s and 40’s  Union membership grew rapidly in the US making working conditions for Americans much better  The American Federation of Labor (AFL) was split in 1938 due to varying opinions on what they should do with their members. They split and formed the Congress of Industrial Organization (CIO) and this split lasted until 1955

25. Labor Disputes  A major bargaining tactic of the labor movement was sit ins. Workers would go to work and sit there and refuse to work in order to prevent owners from bringing in any outside workers or being able to have any production whatsoever.  Memorial Day 1937 there was a violent labor dispute outside the Republic Steel plant in Chicago between police and strikers.  10 people were killed and 84 wounded in this incident  In 1936 FDR ran for re-election and won easily carrying the 12 major cities in America.

26. Section 4  Culture in the 1930’s

27. The Lure of Motion Pictures and Radio  The 1930’s were difficult for most Americans but the motion-picture and radio industries flourished during this time period  Radio sales increased by the millions throughout the decade  There were more movie theatres than banks throughout the country  Clark Gable, Marlene Dietrich, and James Cagney were mega Hollywood stars during this time period  Gone With the Wind was one of the most popular movies ever made and it was made in 1939 during this era  Fred Astaire and Ginger Rogers starred in Flying down to Rio (1933)  The Wizard of Oz (1939) Snow White and the Seven Dwarfs (1937) were also produced during this time period

28. The Lure of Motion Pictures and Radio  Many other movies and radio shows were produced during this time period as they gave Americans an opportunity to escape harsh reality of their life  Families would spend several hours daily sitting by radios listening to shows  Orson Wells “War of the Worlds” was one of the most renown radio broadcasts of all time  Bob Hope, Jack Benny, and the duo of Burns and Allen made their name in radio and then eventually moved into television. 

29. The Arts in Depression America  Art was opposite of radio and movie in that it was sober, serious and depicted real life issues  The WPA had a program that would pay artists a daily living in order to produce public art  Grant Wood was a famous painter who produce the famous painting “American Gothic” in 1930  Woody Guthrie was a famous musician that wrote songs of his experiences in in the Dust bowl

30. Writers in the Great Depression Era  The Federal Writers program was another WPA program that supported writers in order to encourage them to produce more literature.  Richard Wright, John Steinbeck, and William Faulkner were notable authors who benefited from this. 

31. Section 5  The Impact of the New Deal

32. New Deal Reforms Endure  During his 2 nd term FDR had hinted at launching a 3 rd New Deal  By 1937 the economy was doing a lot better and Congress urged FDR to scale back the New Deal and he did and unemployment rose over the next 2 years  The New Deal did not end the depression it only turned it in the right direction moving forward.  The New Deal was controversial it drew high praise from some and harsh criticism from others.  The President struck a balance with the New Deal by making it

33. New Deal Reforms Endure  FDR expanded the role of the Federal Government giving it a much bigger role in shaping the economy  The Federal Government also created agencies that could regulate banking and business practices.  The Federal during this time period went into major debt in order to provide a lot of jobs for people  During the 1930’s the deficit rose to as high as $2.9 billion during World War II it rose to as high as $54 billion in 1943

34. New Deal Reforms Endure  The workers rights policies passed in the New Deal have endured through today protecting the rights of workers.  Same goes for banking regulations while they have grown with the increase in people and currency the regulations put into place have shaped our economy to what it is today.  The FDIC which started at $5000 insurance on bank accounts is now at $250,000 today.

35. Social and Environmental Effects  Social Security was probably one of the most important pieces of legislation passed because it assumed the social welfare of it’s citizens  The farm industry was greatly impacted because quotas were set on what farmers could produce to better fix the supply and demand factor  This gave farmers a more steady income  Programs were put into play that greatly effected the environment planting trees, creating walking trails, building fire look out towers along with other measures to protect the wildlife of the US  The TVA was greatly improved in producing electricity and preventing floods in areas.