3/8 Learning Target I can explain why some people did not like the New Deal and whether I would agree with it or not.

New Deal Programs The Works Progress Administration (WPA-1935)   12 to 16 Million Americans were out of work The Fed. Govt. made work projects, hired 8 mil. Building roads, schools and working in art and theater. The Civilian Conservation Corps (CCC-1933) Thousands of post high school aged young men lacked jobs, food, and clothing Over 3 million young men between the ages of 18-25 received food, clothing, shelter, and pay. They did conservation and other useful work in parks, forests, etc. The Home Owners Loan Corporations (HOLC-1933) 1,000 homes were being foreclosed every day. (Lost) Thousands of people were able to pay off their mortgages and keep their homes because of govt. loans The Farm Credit Administration (FCA-1933) 2 out of every 5 farmers were losing their farms Many farmers were able to save their farms by borrowing low interest loans The Fair Labor Standards Act (FLSA—1938) Was declared unconstitutional for wage and hour laws A national minimum wage was set at 25 cents. It also included a national maximum work week of 44 hours. The National Youth Administration (NYA-1935) Many young people had to quit school and go out and try to find jobs to help their families. Students were given paid tasks in and around schools. Gave students a chance to finish high school

The Agricultural Adjustment Act (AAA-1933)   Farmers had little or no income Farmers were able to cut production. Farmers paid to kill animals and plow up or not plant certain crops The National Industrial Recovery Act (NRA—1933) In business and industry there was a cycle of wage cuts, layoffs, and falling prices. Long hours and child labor too. This was a two year emergency measured to designed to help businesses. It was designed to provide codes for fair competition and limit production. Child Labor was also abolished. The Tennessee Valley Authority (TVA-1933) The economy of certain areas of the country were depressed. (locked business, jobs, and an inexpensive source of power) (flooding rivers) Dams were built along the Tennessee River. Provided flood control, jobs, and cheap power. The Wagner Act (1935) Workers weren’t given the right to collective bargain. A group was setup to hear the complaints of workers against industry. Also, guaranteed right to collective bargain. The Rural Electrification Administration (REA-1935) Many homes and farms in isolated rural areas didn’t have electrical power Many farmers and people who lived in rural areas received electric power for the first time. Forty Five Percent by 1945 and ninety percent by 1951.

The Federal Deposit Insurance Corporation (FDIC—1933 When the banks closed people lost their life savings.   Bank Deposits were now guaranteed by the Fed. Govt. up to $5,000. The Securities and Exchange Commission (SEC-1934) People who invested in the stock market lost millions of dollars to corruption and bad practices Businesses and stock borkers were required to give honest info. About stocks/bonds. Dishonest practices were outlawed The Social Security Act (SSA-1935) People had no basic financial security. This included unemployment compensation, retirement benefits, and disability protection. This Law provided unemployment insurance for people who lost their jobs. Plus old age pensions, aid to dependent children and help for the disabled. The Bank Holiday (no initials-1933) People didn’t trust banks and many closed. This made it hard to carry on business. The banks that remained open were solvent and didn’t lose money. This restored people’s faith in banks.

Franklin D. Roosevelt and the New Deal

1932 Presidential Election FDR was seen as a man of action Hoover was viewed as a “do-nothing president”

FDR Entered Office In March 1933, the country was virtually leaderless and the banking system had collapsed The Hundred Days

FDR Restored Confidence In his inaugural address, he said “The only thing we have to fear is fear itself….” http://www.history.com/topics/fireside-chats/speeches

Purposes of the New Deal Relief: to provide jobs for the unemployed and to protect farmers from foreclosure Recovery: to get the economy back into high gear, “priming the pump” Reform: To regulate banks, to abolish child labor, and to conserve farm lands Overall objective: to save capitalism

Sources of New Deal Ideas Brains Trust: specialists and experts, mostly college professors, idea men New Economists: government spending, deficit spending and public works, government should prime economic pump Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationist, anti-inflationist -- often conflicting, compromising, blending ideas

First New Deal (1933-1934) Emphasis: reform Political Position: conservative Primary aim: economic recovery Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity) Objectives: higher prices for agriculture and business Beneficiaries: big business and agricultural business

National Recovery Act (NRA) Purpose: recovery of industry Created a partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition

First Agricultural Adjustment Act (AAA) Purpose: the recovery of agriculture Paid farmers who agreed to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer

Federal Emergency Relief Admin (FERA) Purpose: relief Gave money to states and municipalities so they could distribute money, clothing, and food to the unemployed

Civilian Conservation Corp (CCC) Purpose: relief Gave outdoor work to unemployed men between the ages of 17 and 29 They received $30 per month, but $22 went back to the family

Second New Deal (1934-1941) Emphasis: reform Political Position: liberal Primary aim: permanent reform Philosophy: international economic cooperation and economic abundance Objectives: increased purchasing power and social security for public Beneficiaries: small farmers and labor

Social Security Act Purpose: reform Gave money to states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.

National Labor Relations Act Purpose: reform Put restraints on employers and set up a National Labor Relations Board to protect the rights of organized labor to bargain collectively with employers.

U.S. Housing Authority Purpose: recovery and reform Used federal funds to tear down slums and construct better housing.

The Significance of the New Deal

Criticisms of Conservative Opponents Conservative opponents said the New Deal went too far: Socialism (killed individualism) Increased national debt ($35 billion) encouraged idleness Violated the constitution Increased power of the Presidency

Senator Huey Long (LA) Said New Deal relief measures were mere crumbs Share the Wealth Plan minimum annual income Heavy taxes for wealthy 1%) Assassinated during height of popularity

Moderate Legislation FDR sponsored moderate legislation to silence radical opposition: Revenue Act of 1935 –Increased taxes on large incomes and corporations. Banking Act of 1935 – Extended federal control over private banking practices. Social Security Act of 1935 Included provisions for unemployables (dependent children, the disabled, blind), unemployment insurance, and old-age pensions.

The Election of 1936 The Election of 1936: Made the Democratic party the majority party Created a new Democratic coalition composed of both traditional elements and new elements Showed that the American people rejected radical solutions to depression

The Election of 1936 Candidate Party % Popular Vote Electoral Votes FDR Democratic 60.3% 523 Alfred E. Landon Republican 36.56% 8 William Lemke Radical 1.93% Norman Thomas Socialist 0.41% (2.21 in 1932) Earl Browder Communist 0.17 (0.25 in 1932)

Government Expenditures The total cost of the current bailout now exceeds $4.6 trillion dollars. It has cost more than all of these government expenditures combined. Figures in parentheses have been adjusted for inflation: Marshall Plan: Cost: $12.7 billion ($115.3 billion) Louisiana Purchase: Cost: $15 million ($217 billion) Race to the Moon: Cost: $36.4 billion ($237 billion) S&L Crisis: Cost: $153 billion ($256 billion) Korean War: Cost: $54 billion ($454 billion) The New Deal: Cost: $32 billion est.($500 billion est.) Invasion of Iraq: Cost: $551billion ($597 billion) Vietnam War: Cost: $111 billion ($698 billion) NASA: Cost: $416.7 billion ($851.2 billion) TOTAL: $3.92 trillion

Crash Course https://www.youtube.com/watch?v=6bMq9Ek6jnA