1. The First New Deal:
Chapter 12 – The New Deal

2. The First New Deal
In the 1932 election, Franklin Delano Roosevelt—or FDR— won a landslide victory, and Democrats took control of the House and Senate
With Congressional support, he instituted a new set of policies that he called the “New Deal”

3. The First New Deal First step: reform banking
many banks were closing causing widespread panic
The new president tried to end the crisis by temporarily closing banks and passing a number of new laws
Glass-Steagall Act: FDIC
Federal Securities Act: SEC
He attempted to calm and reassure the nation in a radio “fireside chat” that explained his policies

4. The First New Deal Step 2: help farmers and other workers
The Agricultural Adjustment Act (AAA) raised food prices
Raise prices by lowering production
Farm subsidies
$200m to destroy 10m acres of cotton
6m pigs slaughtered
This angered Americans but did raise prices

5. The First New Deal
Other agencies hired jobless workers for conservation or building projects
Civilian Conservation Corps (CCC)
The National Industrial Recovery Act (NIRA) promoted industrial growth
Public Works Administration (PWA)
Civil Works Administration (CWA)
40,000 Schools
The Tennessee Valley Authority (TVA) brought flood control and electricity to a poor region.

6. The First New Deal Step 3: Food, clothing, and shelter
Home Owners Loan Corporation (HOLC)
Foreclosure Relief
National Housing Act creates the Federal Housing Administration (FHA)
Loans for mortgages and home repair
Federal Emergency Relief Administration (FERA)
$500m in direct aide to needy
Primarily provided food, clothing and temporary shelter

7. The First New Deal
The president’s actions were attacked by liberals as not enough and by conservatives as too radical
When the Supreme Court overturned the NIRA and the AAA, Roosevelt proposed a legislative plan to gain the support of the Supreme Court
The plan was called “Court-packing”
Eventually (because of resignations) the Court backed the New Deal, but his court scheme cost him support.

8. The First New Deal Three critics of Roosevelt rose to prominence
Father Charles Coughlin blasted the president on his popular radio show
Favored nationalization of banks and minimum income
Lost support due to anti-Semitic views
Dr. Francis Townsend proposed a national pension for the elderly

9. The First New Deal
Huey Long, a politician from Louisiana, proclaimed a plan called “Share Our Wealth”
Wanted to win support for his own presidential bid
Spotlighted the national debt ($252b, or $2000/person)
For reference, 2009: $10.61t, or $34,000/person
Last YEAR alone: $438b
Everyone entitled to a home, food, clothing, and an education
Assassinated before gaining the opportunity to run

10. The Second New Deal:
Chapter 12 – The New Deal

11. The Second New Deal
During the first New Deal, the economy improved, but not enough
Buoyed by Democratic gains in Congress, Roosevelt launched the Second New Deal to provide additional relief to farmers and workers.
His wife is, Eleanor, is known as a driving force behind many of the Second New Deal’s Programs
Deep humanitarian impulse
Politically savvy
Traveled the nation for crippled husband to gain support
With her help, the president easily won re-election in 1936

12. The Second New Deal Roosevelt responds to Supreme Court defeats
Helping Agriculture
Won passage of a new law (Soil Conservation and Domestic Allotment Act) to replace the AAA aimed at conserving soil, providing loans, and offering mortgage relief
Did not contain unconstitutional processing taxes
Resettlement Administration: loans for farmers
Farm Security Administration (FSA)
Help tenant farmers become landowners
Establish camps for migrant workers

13. The Second New Deal More help for Workers
A new agency, the Works Progress Administration (WPA), was started to fund projects that would create jobs
Between 1935 and 1943, it gave jobs to more than 8 million people
They built public buildings, made clothes and constructed or repaired 651,000 miles of roads and streets.
850 Airports
125,000 public buildings
National Youth Administration (NYA)

14. The Second New Deal More help for workers
National Labor Relations Act (Wagner Act)
Reestablished collective bargaining
Protected workers rights to organize and join unions
Prohibited unfair labor practices
Established the National Labor Relations Boart (NLRB)
Fair Labor Standards Act
Max hours 44/week
Minimum wage 25¢/hour, increasing to 40¢/hour by 1945
Rules for workers under 16
Banned some jobs for those under 18

15. The Second New Deal Direct Aid 1935 Social Security Act
Social Security: insurance for retirees 65 and older
Unemployment Insurance
Aid to families with Children
Aid to disabled individuals

16. The Second New Deal Infrastructure
The Rural Electrification Administration
It provided an electrical power grid in rural areas.
1935, 12.6% of farms have electricity
1945, 48% of farms have electricity
1949, 90% of farms have electricity
Public Utility Holding Company Act
Aimed at combatting corruption in utility industry
Collusion raised prices
Like the earlier railroad trusts

17. The Second New Deal