FDR’s “New Deal” Libertyville HS FDR and Eleanor, 1936

“The First Hundred Days” FDR’s emergency plan, approved by Congress Based on “3 Rs” –Relief (for banks & unemployed) –Recovery (for agr, industry, commerce, labor) –Reform (of economy) Relief –Emergency Bank Relief Act Bank holiday” closed all banks for four days Inspectors reopened only financially secure banks Restored confidence in banks

Relief Federal Emergency Relief Admin. (FERA) (1933): $3 billion in grants to states, for relief of destitute Public Works Admin(PWA) (1933): Ks to private firms to build public works Works Progress Admin (WPA) (1935): $6.3 billion to create (public) jobs (largest New Deal agency)

Relief Civil Conservation Corps (CCC)(1933): jobs for unemployed, focused on natural resource conservation National Youth Admin (NYA) (1935): part time jobs for HS, college men & women

Recovery Farm Credit Admin. (FCA) (1933): farmers refinanced mortgages Agricultural Adjustment Admin (AAA) (1933): created higher food prices through restrictions & subsidies –AAA Problem: favored farmers (1/4 of population) –Farmers purchase power up –Large farms = most benefit Relief

Recovery National Industrial Recovery Act (1933) (NRA) –Cooperation, not competition –Developed “code of practice” Pro NRA –Labor’s right to organize –Ended child labor –Ended unfair trade practices Anti NRA –Big business made codes –Codes enforced against small businesses –Costs passed on in higher prices –Stimulation of unionization Ruled unconstitutional, 1935

Recovery US and the gold standard –FDR ordered citizens to turn in all gold to Fed Reserve bank –Paid $20.67 / oz –Hoarding gold made a crime = ten years in prison –After confiscation of gold, gov’t set price of gold at $35 / oz –Effect = Dollar devalued by 40% –Gov’t also got gold from Europe

Reform Federal Deposit Insurance Corporation (FDIC)(1933): Insured bank deposits Fed. Savings & Loan Ins. Corp.: insured S&L acc’ts Securities & Exchange Commission (SEC): supervises securities, stock exchanges Home Owners Loan Corp. (HOLC)(1933): lent $ to people facing foreclosure

Reform Federal Housing Admin. (FHA) (1934): housing loans to middle inc. families Tennessee Valley Authority (TVA) (1933): provided power, flood control, conservation, employment in seven southern states –Objections: tax free monopoly, gov’t interfering in private sector

1934 Congressional Elections First opportunity to test popularity of New Deal Critics of FDR, from the Right –Cons. opposed to public relief, gov’t interference, financial interference Critics of FDR, from the Left –Senator Huey Long (LA): Populist: “Share the wealth” (100% tax over $1 million inc.) –Dr. Francis Townsend: radio personality; called for $200 / month pension for elderly (founded Union Party) –Al Smith, NY gov. & the Liberty League – pro bus, anti New Deal (former ally of FDR)

“Second New Deal” Tax changes –1935 Revenue Act created graduated tax system –$50k-$1 million = 31% –Over $1 million = 75% Public Utility Holding Co. Act (1935): regulated gas, electric companies

“Second New Deal” Social Security Act of 1935 –Tax to pay for direct aid (Unemployment, old age pensions, subsidies to certain groups) National Labor Relations Act (“Wagner Act”) (1935) –Guaranteed right to union organizing –Right to collective bargain agreements –Est. National Labor Relations Board

“Second New Deal” Impact of NLRA on Unions –AFL organized trade unions –New group, Committee of Industrial Organizations (CIO) formed to unionize industrial labor Competition between AFL, CIO –Jurisdictional strikes –NLRB mediated differences AFL & CIO merged, 1955