FDR’s Response to the Great Depression The NEW DEAL FDR’s Response to the Great Depression

In the midst of the Great Depression, on March 4, 1933, President Franklin Roosevelt told America, “This great Nation will endure as it has endured, will revive and will prosper. So first, let me assert my firm belief that the only thing to fear is fear itself…” With a fourth of the nation unemployed, Roosevelt vowed to “put people to work.” In a nation that had seen one bank failure after another, Roosevelt promised “strict supervision of all banking and credits and investments…an end to speculation with other people’s money, and…provision for an adequate but sound currency.”

The Banking Crisis Within 2 days of inauguration FDR closed all banks. Once reopened, he told Americans “that it is safer to keep your money in a reopened bank than under your mattress.” Money then began flowing back into the banks

THE NEW DEAL FDR started as soon as he got into office with new laws regulating the banking industry, gave relief to the poor, and managed farms. Foremost was getting people back to work

Civilian Conservation Corps Established in 1933 – ended in 1942 Within 9 years, flood control, reforestation, and other CCC projects employed at least 2.5 million people, primarily young men (ages 18-25). The men lived in work camps under a strict regime – the majority were racially segregated Accomplishments: planted over 3 billion trees, developed 800 state parks, and built more than 46,000 bridges

Tennessee Valley Authority (TVA) Created as a way to bring electricity to thousands of farms and homes in seven southern states

Fair Labor Standards Act (FLSA) FDR’s effort to regulate business practices by encouraging businesses to establish a minimum wage and abolish child labor

Agricultural Adjustment Act (AAA) Began in 1933 and provided relief to farmers in the form of crop subsidies. A subsidy is money paid by the government for a specific purpose. The purpose of the AAA was to keep farmers from overplanting to prevent another Dust Bowl and to keep produce prices high.

Social Security Admin/Act (SSA) Created in 1933 as retirement insurance for the elderly. The idea of redistributing tax dollars to the elderly was quite controversial at the time. 3 parts: Old-age insurance for retirees 65 or older and their spouses Unemployment compensation system Aid to families with dependent children and the disabled

Works Progress Administration (WPA) Began in 1935 and built buildings and roads and created employment for workers and artists. One job in particular were the slave narratives, a series of stories as told by elderly African Americans who recalled their days of enslavement prior to 1865

National Labor Relations Act (NLRA) or Wagner Act Passed in 1935, the law protected the right of laborers to form unions. It barred management, firing workers for joining unions, and protected collective bargaining (the ability to bargain as a group for workers’ rights) Also established the National Labor Relations Board to settle disputes between the labor unions and management. The Wagner Act paved the way for the formation of the United Steel Workers of America and the United Auto Workers

Critics of the New Deal Huey Long, Roosevelt’s political rival from Louisiana, put forth his “share the wealth” plan Called for taxing the rich and using those dollars to give everyone a home and annual income of $2,500 1935, the U.S. Supreme Court held the National Industrial Recovery Act (NIRA) to be unconstitutional 1936, Supreme Court declared provisions of the AAA unconstitutional At the same time, cases were pending against the Social Security Act and the TVA.

FDR’s response to critics/ “court-packing” Roosevelt responded by attempting to increase the number of Supreme Court justices from 9 to 15, with the intent of appointing justices supportive of the New Deal. Idea of “packing the court” was dropped after the U.S. Supreme Court upheld the constitutionality of the Social Security Act

First Lady Eleanor Roosevelt Viewed as a woman of great compassion Thousands of individuals wrote to Mrs. Roosevelt during the years of the Great Depression asking for money to pay the rent, help with the mortgage, buy a sweater, or buy “shoe skates” in 1930. Children promised to pay her back once they got a job She worked tirelessly to help the less fortunate, touring the country to assess the needs of the people She stood out at the time as a symbol of social progress and women’s activism