A New Deal Fights the Depression Ch 23 Sec 1 (p. 694-700)

Election of 1932 Republicans nominate Hoover again Democrats nominate Franklin Delano Roosevelt (FDR) 3 term governor of New York

FDR wins Roosevelt won in a landslide. Won pop. vote by 7 million Democrats gained seats in the House and the Senate.

FDR was active during the “lame duck” period Carefully picked his advisers – the “Brain Trust” Designed a plan to alleviate the country’s troubles. Called the “New Deal” (from a campain promise)

The New Deal Focused on 3 R’s Relief Recovery Reform

Hundred Days FDR’s administration very active after taking office

Banking Reform FDR declares “bank holiday” 1 day after taking office Emergency Relief Banking Act - Authorized Treasury Dept. to inspect banks Glass-Steagall Act (1933) – established Federal Deposit Insurance Corporation (FDIC) – insured individual bank accounts. Federal Securities Act – required corporations to provide info on stocks Securities and Exchange Commission (SEC) – regulates stock market

Help for Farmers Agricultural Adjustment Act (AAA) – tried to raise crop prices by lowering production. Upset some. Later struck down by Supreme Court

AAA Goal was “Parity” to purchasing power that was enjoyed 1909-1014 “subsidized scarcity” did raise farm income but met a lot of criticism

Rural Assistance Tennessee Valley Authority (TVA) – assisted Tennessee River Valley. Provided flood control, electricity, and jobs.

Fontana Dam – Western NC

Work Projects Civilian Conservation Corps (CCC) – put young men aged 18-25 to work building roads, developing, parks, planting trees, other env. projects National Industrial Recovery Act (NIRA) – gave money to states to create jobs in school and community construction. Civil Works Administration (CWA) – teachers, etc.

Fair Labor Practices National Recovery Administration (NRA) - set prices of many products and est. standards for labor NIRA guaranteed workers’ right to unionize and bargain collectively.

Help for Homeowners Homeowners’ Loan Corporation (HOLC) and Nat’l. Housing Act assist Homeowners in paying mortgages.

Federal Emergency Relief Association (FERA) - $500 million in direct relief to the needy.

Deficit Spending Spending more $ than the government receives in revenue.

National Debt as of 2/27/06

Each citizen’s share of national debt $27,652.30 Daily Increase: $2.17 billion per day

New Deal Critics Conservatives think government takes too much power Liberals don’t think government does enough

The New Deal: Hamiltonian or Jeffersonian?

The New Deal and the Supreme Court The Supreme Court declared the NIRA and the AAA unconstitutional.

Court-Packing FDR gets Congress to reorganize the judiciary so that he can appoint six new Supreme Court Justices (a little like Adams’ Midnight Judges)

Court Packing Caused a rift among many Roosevelt supporters First of FDR’s bills to be defeated by Congress

Critics of the New Deal Father Charles Coughlin Dr. Francis Townsend – benefits for the aged Huey Long – assassinated (“Every Man a King”)