The New Deal

What is the New Deal? President FDR’s policies designed to end the depression

The First Hundred Days Roosevelt sent many bills to Congress (which created departments to deal with different areas of relief) Congress passed 15 major acts to help the economic crisis Every president since has been compared to FDR’s 100 days (called the “honeymoon period”)

Roosevelt’s Advisors They did not always agree; Roosevelt wanted to have all opinions and viewpoints represented 1.Believed government and business should work together to manage the economy 2.Distrusted big business and wanted government planners to run key parts of the economy 3.Felt it was the government’s responsibility to restore competition to the economy

FDR Had to Restore Confidence Established national bank holidays Securities and Exchange Commission was created to regulate the stock market and prevent fraud FDIC – government insurance for bank deposits

“Fireside Chats”

Second New Deal New policies created after the policies of the original New Deal failed to completely fix the American economy Wagner Act – established “collective bargaining” rights for workers –Led to increase in industrial unionism.

The Social Security Act Provided security for the elderly, unemployed workers, and other needy people Helped a lot of people (except farmers and domestic workers) Con: some people felt that the payroll deductions were hurting them more

Agencies Created Under Roosevelt Agricultural Adjustment Administration (AAA) National Recovery Administration (NRA) Home Owners’ Loan Corporation (HOLC) Farm Credit Administration (FCA) Civilian Conservation Corps (CCC) Federal Emergency Relief Administration (FERA) Civil Works Administration (CWA) Tennessee Valley Authority (TVA)

Tennessee Valley Authority People living in the Tennessee River valley suffered greatly from the Depression – Frequent flooding The TVA was created to control flooding, building 20 dams (creating jobs and electricity).

Eleanor Roosevelt Played a large role in FDR’s presidency Persuaded him to address concerns by women and minorities Traveled across the US speaking on behalf of the New Deal

Challenges to the New Deal The Supreme Court declared many of FDR’s programs unconstitutional Roosevelt attempted to change the political balance with the court- packing bill (wanted to add more justices to the Supreme Court) – Congress refused to pass

Challenges to the New Deal Some people questioned the effectiveness of the New Deal Deficit spending (spending money you don’t have) Democratic Senator Huey Long proposed taking property from the rich and dividing it up amongst the poor (wanted to run for president and was feared that he might hurt FDR’s reelection)