How does FDR try to fix the problems caused by Depression? The New Deal How does FDR try to fix the problems caused by Depression?

1932 Election Most Americans blame Hoover for making Depression worse Franklin D. Roosevelt easily wins election Democrats also win to fully control Congress

The New Deal FDR & his cabinet (brain trust) create “the New Deal”, a program that focused on relief, recovery and reform In the first 100 days of his administration 15 New Deal programs are passed To “sell” his program to the public, FDR gave weekly radio addresses to the public known as fireside chats

New Deal: Banking 1) Emergency Banking Relief Act, 1933 Closes all banks and allows Treasury Dept. to inspect banks, only “sound” banks could re-open 2) Glass-Steagall Act, 1933 Established Federal Deposit Ins. Corp (FDIC)., provided insurance to all individual bank accounts (in “sound” banks) Investment banks (stocks) must be separate from reg. banks Discuss: Why do you think these programs are needed?

New Deal: Stock Market Corporations must provide complete info. on stocks Securities & Exchange Commission (SEC), 1934 regulated the stock market & prevented “insider” trading

New Deal: 21st Amendment Prohibition (18th Am) is repealed, alcohol is legal & gov can collect tax on it

New Deal: Rural America 1) Agricultural Adjustment Act (AAA), 1933 Gov pays farmers to slow production, crop prices rise but many say unconstitutional 2) Tennessee Valley Authority (TVA), 1933 Fed gov builds 25 dams in Tenn. River Valley, creating jobs, flood control & power, small power companies say its unfair

New Deal: Industry & Labor ■ The National Industrial Recovery Act (NIRA), 1933 1) The National Recovery Administration (NRA) Set prices, minimum wages, work standards 2) Public Works Administration (PWA) -Provided money to build public projects

FDR Promotes the New Deal Why was the NRA popular? Who were FDR’s critics? What did FDR say to his critics? https://www.youtube.com/watch?v=N4YRq_IqUWc http://www.pbs.org/wgbh/americanexperience/films/fdr/player/ 1:59.20-2:03

FDR Faces Opposition- Liberal Democrats Fr. Charles Coughlin: felt FDR had too much power Dr. Francis Townsend: said FDR not doing enough for elderly FDR Faces Opposition- Conservative Republicans Deficit spending is hurting America, FDR is doing too much! Some legislation is challenged in courts, Sup. Court rules NIRA & AAA are unconstitutional

Second New Deal : Social Security ■ 1935: Social Security Act (SSA) starts Second New Deal 1) Old-Age Insurance for 65 Years+: employee & employer pay tax that goes into retirement plan 2) Unemployment Insurance: employees could draw from this if out of work due to layoffs

Second New Deal: Unemployment Relief Works Progress Administration (WPA), 1935 (replaces PWA) 1. $11 billion to build airports, roads & public buildings 2. Federal Arts Project gave work to writers & artists 3. NYA (National Youth Admin) for education & training for teens

1936 Election First lady Eleanor Roosevelt travels the country, tells FDR country still needs more reforms (esp for women & minorities) FDR wins in landslide, incl. 1st time majority of Af-Americans & unions back a Democrat

Second New Deal: Labor Reform SC ruled NIRA unconstitutional, FDR replaced it with 1)Wagner Act, 1936 Creates NLRB (Ntl. Labor Relations Board), regulates unfair labor & business practices 2)Fair Labor Standards Act, 1938 44 hour work week, 25 cents/hr, federal minimum wage New rules for labor under 18

Discuss: What is cartoonist opinion of FDR’s court-packing plan? End of the New Deal? FDR upset Sup. Court struck down NIRA & AAA - tries to increase # on Sup. Court, to “pack court” with his nominees, Congress says “NO”, need separation of powers By 1937, most Americans convinced Depression was over, so Congress asks FDR to scale back or end some programs, - when he does production drops, unemployment rises Discuss: What is cartoonist opinion of FDR’s court-packing plan?