THE NEW DEAL Goal 9 Part 5 Fighting the Great Depression

1932 Presidential Election Herbert Hoover (Rep) VS. *Why would Hoover NOT get elected?? Franklin Delano Roosevelt (Dem) - Main Goal: FIX the problems of the Great Depression! FDR’s formulation to fight the Great Depression = THE NEW DEAL 3 R’s = Relief, Recovery, Reform *Strengthen Democracy Lassies-Fairre = no longer working!

The 100 Days Period in which FDR’s administration launched legislation to fix the Great Depression! **Federal Government (During the New Deal) –took a more active role in shaping the economy! Very important: FIRESIDE CHATS: radio talks to America in plain and direct language / Americans thought he was speaking “directly” to them ***************************************** FDR / Fed. Government MUST reestablish the “credibility” or “confidence” back into their relationship with the American Public

FDR’S Goals 1 st Goal / Step: FIX the banking and finance system How????  Emergency Banking Act (1933) “Bank Holiday” Close down insolvent / “broke” banks and reopen them after “federal inspections” / cooling off period = 3 days  To fix banking and finance systems: Congress passed the *********************Glass-Steagall Act Act********************** Purpose: to fix the banking system Established the Federal Deposit Insurance Corporation (FDIC) – “insurance” for your money in the bank (up to a $100,000)

Reestablishing credibility between American people and the Stock market Fixing the Stock Market (1) Federal Securities Act (1933) – corporations had to provide “Complete” and “accurate” information on All stock options and made them liable for false information (business is failing = can’t trick someone into buying stock) (2) Securities and Exchange Commission (1933) – Created to monitor the stock market / To limit INSIDER TRADING

Helping American People Agricultural Adjustment Act (AAA) - raise crop prices by lowering production - federal government would pay farmers to leave some of their land “unseeded” - reduce crop surplus = boost prices of crops Result: Stability for farmers! Tennessee Valley Authority (TVA) - focused on the badly depressed Tenn. Valley – renovated dams, provided hydroelectric power and flood control! (still used today) * 11 Billion revenue in 2008

Helping American People Providing WORK (NEW JOBS)  Civilian Conservation Corps (CCC) year old men to work building roads, developing parks, landscaping Ended in 1942, but provided 3 million jobs Discrimination: women? National Industrial Recovery Act (NIRA) – provided money to states to create jobs! (Construction of schools and community buildings) Ex. “Make Work” project

New Deal UNDER ATTACK New Deal: caused America to agree to a policy known as “Deficit Spending” – (PAYS FOR NEW DEAL) spending more money than the government receives in revenue  Deficit Spending – Roosevelt = “Necessary Evil” Conservatives: spent too much money Liberals: New Deal didn’t go far enough ****BIGGEST CRITIC OF NEW DEAL (THE KINGFISH) – Governor of Louisiana / later Senator Huey Long (Socialist) (Share-Our-Wealth program = Socialism)

Supreme Court Reaction to New Deal Problem: Conservative Supreme Court / vetoing all New Deal programs!!! FDR’s Reaction = “COURT-PACKING BILL” / “Court Stacking” reorganize the Supreme Court and appoint 6 new (LIBERAL) justices that support the New Deal Natural Reaction = PROTEST!!!! / went against separation of powers End Result: Justices resigned…FDR got what he wanted!

Court Packing & Eleanor Roosevelt Humanitarian / Child and women welfare

2 nd New Deal Reasons: Take the New Deal further Main focus of 2 nd New Deal: (1)Youth and (2) Labor ** Works Progress Administration (WPA) - provided jobs all across America

Improving Labor National Labor Relations Board Wagner Act - protected the rights of workers! (1) gave LEGAL protection to labor unions (2) engaging in “collective bargaining” is legal (3) prohibited unfair business practices (ex. NO MORE threat of “firing” union members) Labor and management – imbalanced BEFORE the Wagner Act

Social Securities Act (still used today) Leader: Frances Perkins (FIRST FEMALE CABINET MEMBER) 3 Major parts: (1) Old Age insurance (Retirement / 65 years) (2) Unemployment compensation (3) Aid to families with dependent children

African American Activism (During the New Deal) A. Philip Randolph Brotherhood of the Sleeping Car Porters - first all African American labor union - collective bargaining worked!!! * Labor Union that “Accepted Everyone?”

Mary Bethune Appointed by FDR to organize The “BLACK CABINET” Purpose: to advise FDR on racial issues in America Vice President of NAACP

FDR’s view on Civil Rights / New Deal Coalition NEVER committed to full civil rights for African Americans! Reason: didn’t want to upset White Southern voters ****New Deal Coalition – an alignment of groups that dedicated their life to support the Democratic Party (whites, union leaders, African Americans) Result: Democrats dominated politics through the 30s and 40s

Native Americans Gain Support John Collier  Commissioner of Indian Affairs (appointed by FDR)  Indian Reorganization Act (1934) / Indian New Deal NO MORE ASSIMILATION – Native American SELF-GOVERNMENT!!! (reversed the Dawes Act)

New Deal Impact New Deal Programs that are STILL used today!!!!!! (1) FDIC (?) (2) TVA (?) (3) SS (?) (4) SEC (?) (5) FSA (?) (6) National Labor Relations Board (NLRB) - created the Wagner Act (labor unions and collective bargaining are legal) – boosted strength of Clayton Anti-Trust Act