Section 1 A New Deal Fights the Depression Chapter 15 The New Deal Section 1 A New Deal Fights the Depression

I. Americans get a New Deal

Electing Franklin Delano Roosevelt Democrats nominate NY governor Franklin Delano Roosevelt — reform-minded; projects friendliness, confidence Democrats overwhelmingly win presidency, Senate, House

Waiting for Roosevelt to Take Over With “Brain Trust,” FDR formulates policies to alleviate problems. New Deal—relief for needy, economic recovery, financial reform, and regulate the stock market.

New Deal Coalition – Rural Democrats African Americans Unionized industrial workers

The Hundred Days 1st Major action as president – he closed all of the nation’s banks and ordered inspections. FDR passes over 15 major New Deal laws.

Emergency Banking Relief Act – this provided for bank inspections by the Treasury Department. A means for making federal loans to solid banks.

An Important Fireside Chat FDR gives fireside chats—radio talks explaining New Deal measures First chat discusses need for public support of government, banks

Regulating Banking and Finance Glass-Steagall Act establishes Federal Deposit Insurance Corporation (FDIC). — insures / protects individual bank accounts.

Federal Securities Act—companies must give complete and truthful information on stocks Securities and Exchange Commission created to regulate stock market and monitor the stock market.

21st Amendment repeals prohibition by end of 1933

II. Helping the American People

Rural Assistance Agricultural Adjustment Act (AAA) main obj – to raise prices of farm goods by decreasing farm surpluses. Supreme Court ruled that the AAA was unconstitutional on the grounds that it was a state issue rather a federal.

Tennessee Valley Authority (TVA) – rebuilt dams and provided electricity to the impoverished South.

Providing Work Projects Civilian Conservation Corps (CCC)—public works jobs for young - single men. CCC reflected FDR’s concern for the natural environment.

Public Works Administration (PWA)—money to states to create jobs

Civil Works Administration (CWA) builds rural schools, pays teachers

Promoting Fair Practices Nation Industrial Recovery Act (NIRA) establishes codes of fair practice for industries. (Supreme Court found unconstitutional) — creates National Recovery Administration (NRA) NRA sets standards, prices, limits production

Food, Clothing, and Shelter Home Owners Loan Corporation (HOLC) gives loans to prevent foreclosures

Federal Housing Administration (FHA) gives loans for mortgages, repairs

Federal Emergency Relief Administration (FERA)—direct relief to needy. Most helpful to the unemployed, the aged, and the ill.

III. The New Deal Comes Under Attack

Opposition to the New Deal Deficit spending—spending more money than government takes in. (national debt reached a new high) — funds New Deal

Liberals New Deal does not do enough to help poor, fix economy

Conservatives New Deal used to control business, socialize economy

The Supreme Court Reacts Supreme Court strikes down NIRA. FDR proposes “Court-packing bill”; Congress, press protest. (FDR proposed law failed to become law)

Starting in 1937, justices retire; FDR appoints seven new ones

Three Fiery Critics # 1 - Father Charles Coughlin withdraws initial support of New Deal — wants guaranteed income, banks nationalized

# 2 - Dr. Francis Townsend devises pension plan for elderly

# 3 - Presidential hopeful, Senator Huey Long claimed that the New Deal policies were inadequate and proposed his popular social program – Share – Our – Wealth.