THE NEW DEAL AMERICA GETS BACK TO WORK

TOPIC: A NEW DEAL FIGHTS THE DEPRESSION Learning Objectives: A New Deal Fights the Depression 1. Summarize the initial steps Roosevelt took to reform banking and finance. 2. Describe New Deal work programs. 3. Identify critics of FDR’s New Deal.

SECTION 1: A NEW DEAL FIGHTS THE DEPRESSION The 1932 presidential election showed that Americans were clearly ready for a change Republicans re- nominated Hoover despite his low approval rating The Democrats nominated Franklin Delano Roosevelt

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

ROOSEVELT WINS OVERWHELMING VICTORY Waiting for Roosevelt to Take Over With “Brain Trust,” FDR formulates policies to alleviate problems New Deal—relief for needy, economic recovery, financial reform FDR easily won the 1932 election

FDR LAUNCHES NEW DEAL FDR promised a “new deal” for the American people He took office with a flurry of activity known as “The Hundred Days” The 100 Days lasted from March to June 1933

CONGRESS GETS BUSY FDR’s philosophy was to get people help and work through “deficit” spending During the 100 Days, Congress passed more than 15 major pieces of legislation that significantly expanded government’s role in the nation’s economy and welfare

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

Business Assistance and Reform 1. Emergency Banking Relief Act Authorized the Treasury Department to inspect and close banks To restore public confidence in banks 2. Glass-Steagall Banking Act of 1933 Established the FDICTo restore public confidence in banks 3. Federal Securities Act Required corporations to provide complete information on all stock offerings To restore public confidence in the stock market 4. National Industrial Recovery Act Set prices, established labor practices To ensure fair business practices and promote industrial growth

TO DO LIST: #1- HELP BANKS First order of business was to get the banking system in order On March 5, one day after taking office, FDR declared a bank holiday He persuaded Congress to pass the Emergency Banking Relief Act, which authorized the Treasury Department to inspect the nation’s banks

AMERICANS GAIN CONFIDENCE IN BANKS Next, FDR passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation The FDIC insured account holders up to $5,000 and set strict standards for banks to follow (today = $200,000)

MORE 100 DAYS ACTIVITY Regulating Banking and Finance Glass-Steagall Act establishes Federal Deposit Insurance Corporation - insures individual bank accounts, regulates banking practices

MORE 100 DAYS ACTIVITY Federal Securities Act companies must give all information on stocks Securities and Exchange Commission created to regulate stock market FDR gets law allowing production of some alcoholic beverages 21st Amendment repeals prohibition by end of 1933

MORE 100 DAYS ACTIVITY Promoting Fair Practices NIRA establishes codes of fair practice for industries - creates National Recovery Administration (NRA) NRA sets standards, prices, limits production

Farm Relief / Rural Development AAAPaid farmers to lower production To raise crop prices and thus farm income TVABuilt and repaired dams and other projects in the Tennessee Valley To create prosperity in the impoverished Tennessee Valley region

MORE 100 DAYS ACTIVITY Agricultural Adjustment Act: (AAA) Raised crop prices by lowering production

MORE 100 DAYS ACTIVITY Tennessee Valley Authority: (TVA) Focused on direct relief to hard hit area– created ambitious dam projects

TVATVA

Employment Projects CCCPut young men to work on road-building and conservation projects To reduce unemployment FERATo provide direct relief for the needy To provide for the basic needs of the people hit hardest by the Depression PWATo provide money to states to create jobs To reduce unemployment CWATo provide 4 million immediate jobs To reduce unemployment

ALPHABET AGENCIES CCC – Civilian Conservation Corps put young men to work Men ages 18 to 25 worked building roads, parks, planting trees (200 million trees in Dust Bowl areas) By 1942 three million men worked for the CCC

ALPHABET AGENCIES FERA – Federal Emergency Relief Agency provided $500 million in direct relief to the neediest Americans Citizens wait outside a FERA in Calipatria, CA for relief checks

ALPHABET AGENCIES PWA – Public Works Administration was part of the NIRA (National Industrial Recovery Act) The PWA provided money to states to construct schools and community buildings PWA workers construct a public building in Hartford, Connecticut

ALPHABET AGENCIES CWA – Civil Works Administration built 40,000 schools and provided salaries for 50,000 teachers in rural America Also built 500,000 miles of roads CWA School in Woodville, CA

CRITICS EMERGE Despite the renewed confidence of many Americans, critics from both political spectrums emerged Liberals (left) felt FDR’s program was NOT doing enough Conservatives (right) felt that government intervention was TOO much and interfered with our free market economy

WINSTON CHURCHILLWINSTON CHURCHILL “Any man who is under 30, and is not a liberal, has no heart; and any man who is over 30, and is not a conservative, has no brains.”

SUPREME COURT REACTS By the mid-1930s, the Supreme Court struck down the NIRA as unconstitutional (citing too much government control over industry) The Court also struck down the AAA on the grounds that agricultural was a local matter -- not a federal matter The Supreme Court

FDR REGAINS CONTROL OVER SUPREME COURT From the mid to late 1930s, FDR was able to appoint 7 new judges to the Supreme Court, thus assuring that his programs would carry on unabated

MORE CRITICS Every Sunday, Father Charles Coughlin broadcast radio sermons slamming FDR He called for a guaranteed annual income and nationalized banks At his height of popularity, Coughlin had 45 million listeners His increasingly anti-Semitic remarks ultimately cost him support Coughlin

ANOTHER CRITIC Huey Long was a Senator from Louisiana who was a constant (and effective) critic of FDR Long was setting up a run for president A lone gunman assassinated Long at the height of his popularity in 1935 Huey Long made effective use of radio to promote his views

FDR EASILY WINS 2 ND TERM The Republicans nominated Alfred Landon, Governor of Kansas, while the Democrats (of course) nominated Franklin Delano Roosevelt Again the Dems and FDR won an overwhelming victory in the presidential election and in both houses FDR wins 1936 election FDR wins in 1936

ALPHABET AGENCIES FHA – Federal Housing Administration provided home loans, home mortgages and repairs Home Owners Loan Corporation Repaired business in Childersburg, Alabama

HOUSING Home Owner Loan Corporation –(HOLC) –To provide government loans to homeowners who faced foreclosures –To help families keep their homes

Chapter 15: Section 1 MAIN IDEA QUESTIONS A – What plans did Roosevelt make in the four months waited to take office? –FDR began to formulate a set of policies to alleviate the problems of the Depression

Chapter 15: Section 1 MAIN IDEA QUESTIONS B – How successful were FDR’s fireside chats? –It was very successful. Many Americans returned their savings to banks, showing increased confidence in the banking system.

Chapter 15: Section 1 MAIN IDEA QUESTIONS C – How did New Deal programs affect various regions of the United States? –The TVA developed an impoverished area by providing flood control and power and by building dams. Members of the CCC planted trees to help prevent another dust bowl.

Chapter 15: Section 1 MAIN IDEA QUESTIONS D – How did the New Deal support labor organizations? –It guaranteed workers’ right to unionize and to bargain collectively.

Chapter 15: Section 1 MAIN IDEA QUESTIONS E – How did liberal and conservative critics differ in their opposition to the New Deal? –Liberals- New Deal did not go far enough in helping the poor and reforming the nation’s economic system –Conservatives- New Deal spent too much money on direct relief and was trying to control business and socialize the economy.