15.1 – A New Deal Fights the Depression

A New President 1932: Franklin D. Roosevelt (Democrat) beats Hoover – Overwhelming victory Election = proof of people’s anger w/ Hoover Two-term governor of New York Known for reform and combating unemployment & poverty

Waiting & the Hundred Days FDR organizes the “Brain Trust” to set policies Creates the New Deal Hundred Days – intense activity to pass New Deal actions – Government’s role in economy expands Passes the Emergency Banking Relief Act – Revives public’s trust in banks Fireside Chats – Radio talks about public concern

Regulation Glass-Steagall Act: Establishes the Federal Deposit Insurance Corporation – $5k insurance for personal banks accounts Federal Securities Act: Corporations must provide accurate information on stocks Securities & Exchange Commission – Regulates the stock market 21 st Amendment: Repeals Prohibition

Rural Assistance Farmers = Hardest hit during the Depression Agricultural Adjustment Act – raises crop prices by lowering production Pay farmers to leave lands unseeded or destroy goods – Angers many, but raises prices & helps farmers Tennessee Valley Authority – Rebuilds infrastructure of the Tennessee River Valley & creates jobs

Work Projects Civilian Conservation Corps – Jobs for young men, free food, uniforms, & lodging – Plant millions of trees = soil erosion prevention National Industrial Recovery Act – creates the Public Works Administration – Money to build community buildings (fails) Civil Works Administration – provides 4m jobs (50k teachers), builds 40k schools, and roads

Fairness & Necessities National Recovery Administration – sets prices, limits production, & established standards Direct relief programs – Grants to states for food & clothing for the poor – Work programs created to support food & clothing relief efforts

New Deal Attacked New Deal operated under deficit spending – Spending > Making Depression not ended Conservatives: FDR trying to control business & socialize economy Supreme Court – NIRA labeled unconstitutional, AAA too 1937: FDR tries to appoint new court justices – Violation of separation of powers

Attacks Continue 1934: Conservative opponents form the American Liberty League Charles Coughlin – pushes for nationalization of banks Francis Townsend – wanted a pension plan for the elderly Huey Long – Strongest opponent: Share-Our- Wealth Program