By the time of the presidential election of 1932, Americans were ready for change and a way out of the Great Depression: many were out of work, hungry and out of hope. Herbert Hoover, the Republican nominee and current president was deeply unpopular as he did very little to ease the problems brought on during the depression. Franklin Delano Roosevelt, a Democrat and the Governor of New York, won in a landslide victory. He campaigned on a promise to give the American people a “New Deal” and offered them hope. The New Deal was a series of programs during Roosevelt’s presidency and put millions of Americans to work, and provided food, clothing and housing, as well as building roads, public buildings, parks and other infrastructure. THE NEW DEAL

Upon taking office, Roosevelt launched a period of rapid, intense activity known as the Hundred Days: from March 9 – June 16, This period of time saw 15 major pieces of legislation passed that were aimed at expanding the Federal Government’s role in the nation’s economy. March 5: Roosevelt convinced Congress to pass the Emergency Banking Relief Act. This allowed the Treasury Department to inspect the nation’s banks. Those banks that were stable were allowed to reopen, those that were insolvent (had no money) remained closed. Others that needed loans would receive loans. This measure helped to restore public confidence in the banking system. THE FIRST 100 DAYS

Fireside Chats: On March 12, 1933, Roosevelt gave the first of many “Fireside Chats.” He delivered these talks via radio. Millions of Americans would sit and listen to his speeches on the radio which he designed to be more like an informal chat that a formal speech. He used the first chat to explain to Americans the importance of supporting the government and the banking system…He explained in simple terms how the banking system worked and how the public’s money was used. He explained that the trust of the public helped to make the system work for everybody. He encouraged Americans to start depositing their money back into the banks, which many did. These Fireside Chats made the Federal Government seem more responsive to the people..that the President and the government cared about all Americans and was there to help. THE FIRST 100 DAYS

Glass-Steagall Act (1933): Named after two senators who helped pass the bill. This act established the Federal Deposit Insurance Corporation (FDIC) which provided federal insurance for individual bank accounts. At the time it was for accounts up to $5,000 – today it is up to $250,000. This act reassured Americans their money was safe in the bank, and also required banks to be careful how they used their customers’ money. Federal Securities Act (1933): Required corporations to provide complete information on all stock offerings and punished them for making any misrepresentations. Securities and Exchange Commission (1934): was created to regulate the stock market. Specifically: to prevent people with inside knowledge about companies from rigging or using the stock market to their benefit. FIRST 100 DAYS & REGULATING BANKING & FINANCE

Roosevelt sought to help out the agricultural sector which had suffered greatly during the Great Depression. Agricultural Adjustment Act (AAA): Sought to raise crop prices by lowering production. The government paid farmers to leave a portion of every acre of land unseeded. For crops that were already planted, farmers were paid to plow over (destroy) the crops. 6 million pigs were slaughtered to reduce supply. While many Americans were upset that food was being wasted while many were hungry, it did raise prices. The result was that while prices for food items went up..so did farmers’ income. Civilian Conservation Corps (CCC): Put almost 3 million young men between the ages of to work. The CCC built roads, bridges, developed parks, planted trees and helped prevent soil erosion. CCC workers lived in camps and were segregated by race. Accomplishments: Planted over 3 million trees, built 800 state parks and more than 46,000 bridges between 1933 and 1942 HELPING PEOPLE

The National Industrial Recovery Act (NIRA) established two programs to build infrastructure and create employment opportunities: Public Works Administration (PWA): Gave money to states for the building of schools and community buildings. Civil Works Administration (CWA): Provided an immediate 4 million jobs, and built some 40,000 schools, paid the salaries of some 50,000 teachers and built a million miles of road. National Recovery Act (NRA): Served to regulate business and make practices fair to workers and consumers. The NRA guaranteed the right of workers to unionize and to bargain collectively. HELPING PEOPLE

While some New Deal programs were designed to get people back to work, others were created to address issues of housing, clothing and food. Home Owners Loan Corporation (HOLC): Provided government loans to homeowners who faced foreclosure (losing their home) because they were unable to make their loan payments to the bank. The Federal Housing Administration (FHA): which still exists, gave loans to homeowners and helped provide money for home repairs. The Federal Emergency Relief Administration (FERA): was created to help the needy. Half the money in the program went to states to feed and clothe the unemployed, the elderly and disabled. The other half went to states to provide work relief programs (get people back to work). HELPING PEOPLE

John Maynard Keynes was a British economist. He promoted the idea of deficit spending as a way of stimulating economic recovery and getting a country out of depression. Deficit spending is when a government purposely spends more money than it takes in as revenue (taxes). The theory behind deficit spending is that by putting more money into the hands of consumers (such as by creating jobs..which means people get paid), consumers will then use that money to buy goods and services (such as food, clothing, household needs, entertainment) – thus consumers help the economy to recover by participating in economic activity. The money that governments spend gets made up by the growth in the economy when people are employed and start putting that money back into the economy themselves by buying things they need: goods and services. JOHN MAYNARD KEYNES & DEFICIT SPENDING

There was criticism of the New Deal: Many complained of President Roosevelt trying to “pack” the Supreme Court with justices who would favor his policies. Eventually Roosevelt would nominate over seven judges to the Supreme Court who did have more liberal views of the Constitution and tended to uphold his policies. Three critics: Father Charles Coughlin, Dr Francis Townshend and Senator Huey Long, all were one time supporters of the New Deal, but turned against Roosevelt claiming he did not do enough for the poor. CRITICS OF THE NEW DEAL

In 1935, the Roosevelt administration was looking at ways to build on and improve the programs begun in the first Hundred Days. The economy had improved during Roosevelt’s first two years in office, but not as great as had been hoped. Unemployment was still high despite government work programs, and productivity was still far behind the levels of the 1920s. The New Deal was still very popular, and President Roosevelt launched a Second New Deal during 1935, calling on Congress to provide more relief to farmers and workers. Eleanor Roosevelt (wife of President Roosevelt) was a social reformer who possessed great political skills herself. She pushed President Roosevelt to do still more and was partly responsible for the Second New Deal. During the election of 1936 the Second New Deal was already under way. President Roosevelt won reelection with a huge margin of victory, and the Democratic Party held the majority of seats in both houses of Congress. THE SECOND NEW DEAL

Congress passed the Soil Conservation and Domestic Allotment Act. Under the act, farmers were paid to cut production of crops that depleted soil, and to plant more soil friendly crops instead. Additionally, Roosevelt created by executive order the Resettlement Administration (1935) which gave loans to small farmers to buy land. The Farm Security Administration was created in 1937 and gave more than a billion dollars in loans to tenant farmers to help them become landholders. It also established camps for migrant workers who traditionally lived in poor conditions. The FSA also sent out photographers to take pictures of farms and farmers to show the true conditions and extent of the problems faced by farmers throughout the nation. HELPING FARMERS

As part of the Second New Deal, both the Roosevelt administration and Congress set about helping youths, professionals and other workers. The Works Progress Administration (WPA) set up in 1935 was one of the largest programs. Between it had spent some 1billion towards jobs for more than 8 million workers – the majority unskilled workers. These workers built over 850 airports throughout the nation, built or repaired over 651,000 miles of roads and constructed some 125,000 public buildings. Female workers in sewing groups made over 300 million garments for the needy. The WPA employed artists who painted murals on the sides of schools and public buildings, writers who wrote city guides, actors who performed in theater troupes, and employed women and minorities. Although some criticized the program as a make work program, it nevertheless gave millions jobs, and created lasting works that are still used to this day. EXTENDING RELIEF

DIEGO RIVERA WPA MURAL

The National Youth Administration was created to provide training, jobs, counseling, education and recreation for young people across the country. Student aid was provided to high school, college and graduate students. In exchange for the aid, students worked part time in their schools. EXTENDING RELIEF

The National Labor Relations Act (Wagner Act): Allowed workers to unionize and collectively bargain. Prohibited companies from threatening workers or firing them for unionizing. In 1938, the Fair Labor Standards Act was passed. It set the maximum work week to 44 hours. Minimum wage was set at 25 cents an hour. Rules were set for employing people under 16 years of age. The Social Security Act of 1935 was one of the most important accomplishments of the New Deal. It had three components: 1.) Old age insurance for retirees and spouses 65 and older. 2.) Unemployment compensation…it ranged from $15 -$18 per week. 3.) Aid to families with dependent children and disabled. OTHER REFORMS

The Second New Deal also included programs to promote electrification and to regulate public utilities. In 1935 only 12% of American farms had electricity. The Rural Electrification Administration worked to finance and bring electricity to rural areas of the country. The Public Utility Holding Act of 1935 aimed to get rid of corruption in the utility industry. It outlawed the holding of multiple utilities by one company. Tennessee Valley Authority: Congress set up the TVA to provide navigation, flood control, electricity, fertilizer manufacturing and economic development to the Tennessee valley, an area hit hard during the Great Depression. OTHER REFORMS

Food Drug and Cosmetic Act (1938): Congress gave the Food and Drug Administration the authority to oversee the safety of our food, drugs and cosmetics. Mostly known for such things as the 9 FD&C colors allowed in our foods. (Look at the ingredients of your candy or gum next time and you will likely see a color listed with a number next to it…that’s a FD&C allowed color.) The FD&C regulates what ingredients can be in your cosmetics (make up) for safety reasons, as well as what goes into your drugs and how they are labeled. OTHER REFORMS