The New Deal Chapter 16, section 1

1932 Election - Turning Point The choice of FDR over Hoover was an American choice for the federal government to provide relief for its citizens. THIS IDEA ABOUT OUR GOVERNMENT HAS NOT CHANGED SINCE THIS ELECTION.

The 1st Hundred Days Aka… “THE NEW DEAL” Pushed massive legislation through congress 1933 Purpose of the New Deal – Provide relief Create jobs Stimulate economy

March 5 th, Bank Holiday FDR orders all banks to close four 4 days to inspect their own financial health. Congress passes the Emergency Banking Act which authorizes Federal Gov’t to inspect all bank records to ensure banks are making good investments. 67% of banks reopen by March 15 th. Gov’t proclaims them safe & secure for Americans (even if not all of them were!!!!!) People begin bringing their money back to banks. Banks can begin loaning out money again.

New Deal Major Players Women and Minorities – FDR was the 1 st president to appoint women and African Americans to major government posts

“Brain Trust” – Group of Columbia Professors who advised FDR on policy.

Eleanor Roosevelt – Traveled the country doing PR for the President’s programs. (2 nd Bonus Army)

New Deal Criticisms – Programs had no immediate effect on the nation’s economy; Progressives: didn’t do enough for the little man Conservatives: Made the govt. too powerful.

Supreme court strikes down both the NIRA and the AAA as unconstitutional. New Deal is Unconstitutional!

2nd New Deal Goals More social welfare Stricter controls over business Stronger support for unions Higher taxes for the rich FDR was forced to cut back on 2 nd New Deal Programs because of a rising national debt because of deficit spending.

WPA – Playgrounds schools airfields artists writers

Rural Electrification – FDR sought to bring basic amenities to places that private industry would not. Eventually 98% of American farms got electricity thanks to FDR.

Labor Unions become more powerful Wagner Act – Legalized collective bargaining Closed Shop – made it legal for a place of business to hire only union workers

Social Security – Old age pension Unemployment insurance Aid for dependants and disabilities

Election of 1936 – Landslide victory for FDR. He carried every state except Maine. Showed Americans still thought FDR had the answers even though their lives had not improved much.

FDIC – Federal Deposit Insurance Corporation Created by the Glass-Stegall Act of Federal Government guarantees bank deposits. Gave Americans increased confidence in the U. S. banking system.

Securities Exchange Commission Regulates the Stock Market

Federal Emergency Relief Agency Work Projects and unemployment aid

Civilian Conservation Corps Work relief Soil conservation and other environmental projects

NIRA

Agricultural Adjustment Administration

TVA