1. CHAPTER 24
The New Deal

2. CHAPTER OUTLINE
First New Deal ( ) Reactions Second New Deal ( ) Legacies

3. Learning Goals
What were the goals of the New Deal? What policies were implemented and what institutions were created to meet those goals? What were the reactions to those policies and institutions? What are some of the legacies of the New Deal and Great Depression?

4. THE FIRST NEW DEAL
General goals: relief, recovery, and reform Not much of anything had improved in over 3 years Do not forget the mentality of the American people (and politicians) that is the backdrop of the decade

5. THE FIRST NEW DEAL Relief
Works Projects Administration Focused on relatively small projects like roads and employed creative artists Public Works Administration Focused on relatively big projects like dams, hospitals, and airports

6. Table 24.1 Emergency Workers During the Great Depression

7. THE FIRST NEW DEAL Recovery
National Recovery Administration Antitrust laws were suspended Allowed for formal agreements to set prices and output Identified as one of the crown jewels of the New Deal

8. THE FIRST NEW DEAL Reform Part 1: Financial Sector
Federal Deposit Insurance Corporation & Federal Savings and Loan Insurance Corporation Insured depositors Glass-Steagall Act Separated commercial and investment banking

9. THE FIRST NEW DEAL Reform Part 1: Financial Sector
Securities and Exchange Commission Regulated securities (i.e. Wall St) Federal Reserve System Created Fed Board of Governors, located in Washington

10. THE FIRST NEW DEAL Reform Part 2: Agricultural Sector
Agricultural Adjustment Administration Attempted to limit supply to increase prices What were primary and secondary effects?

11. Table 24.2 Farm Prices and Incomes in the Depression, Selected Years

12. REACTIONS
Many policies were not warmly received But, the idea that something was being tried was generally well received by the public The fireside chats were great tools

13. REACTIONS From Labor Groups
Labor was very supportive National Recovery Act provided new powers to unions to strike and organize free of employer interference After NRA was declared unconstitutional, the National Labor Relations Act (Wagner Act) provided even more support for union activity

14. REACTIONS From Labor Groups
The Fair Labor Standards Act creates many of the laws we deal with today:
Minimum wage
Rules for overtime pay
Child labor laws

15. Table 24.3 Wages During the Great Depression

16. Table 24.4 Union Membership, 1930–1955

17. REACTIONS From the Supreme Court
The Court supported some but not all of the New Deal policies
Ruled unconstitutional:
National Recovery Act
Agricultural Adjustment Act
Ruled constitutional:
Fair Labor Standards Act

18. REACTIONS From the Supreme Court
1937 is argued to be a major turning point in American history with regard to the powers of the federal government

19. THE SECOND NEW DEAL
General goal: social insurance The attitude of the country towards social insurance changed dramatically after 1932

20. THE SECOND NEW DEAL
Two major plans: Social Security Unemployment Insurance

21. THE SECOND NEW DEAL Social Security
Was “sold” to the public as insurance with employee and employer equally sharing in contributions Recall burden of taxes from Micro principles

22. LEGACIES
It is perhaps impossible to separate the Great Depression, FDR, and WWII