1. Chapter 22
U.S. History 2

2. Roosevelt and the New Deal
23.1 Roosevelt Takes Office
23.2 Roosevelt’s First New Deal
23.3 The Second New Deal
23.4 The New Deal Coalition

3. 23.1 Roosevelt Takes Office
Roosevelt’s Rise to Power
Roosevelt is Inaugurated 

4. Roosevelt’s Rise to Power
The Republicans nominated Herbert Hoover to run for a second term as president.
The Democrats selected New York Governor Franklin Delano Roosevelt.
Roosevelt became the first to deliver an acceptance speech to a nominating campaign.

5. Roosevelt’s Rise to Power
Roosevelt’s policies to end the depression became known as the New Deal.
Roosevelt won the election in a landslide.
Roosevelt’s political career began in 1910, with a seat in the New York State Senate.
He supported progressive reform.
He opposed party bosses.
Video clip on New Deal

6. Roosevelt’s Rise to Power
He was appointed assistant secretary of the navy by Woodrow Wilson.
In 1920, he caught polio, a paralyzing disease with no cure.
His wife, Eleanor, kept his name prominent in politics.

8. Few people knew FDR was actually paralyzed.

12. Warm Springs, Georgia

13. Roosevelt’s Rise to Power
Roosevelt narrowly won the race for New York governor.
As governor, he used government power to help people deal with the economic challenges.
His popularity in New York paved the way for his run for president.

14. Roosevelt is Inaugurated
Franklin Roosevelt won the November 1932 presidential election.
His inauguration would not occur until March 1933.
During this time, unemployment continued to rise, bank runs increased, and people began converting their money into gold.

15. Roosevelt is Inaugurated
Some feared Roosevelt would end the gold standard, which would reduce the dollar’s value.
At that time, an ounce of gold equaled a set number of dollars.
To reduce the value of the dollar, the U.S. would have to stop exchanging dollars for gold.

16. Roosevelt is Inaugurated
People began taking gold and currency out of banks.
This resulted in over 4,000 banks collapsing by March 1933.
Many governors declared bank holidays, which closed the banks before bank runs could put them out of business.
Bank run

17. 23.2 Roosevelt’s First New Deal
The Hundred Days Begin
Fixing the Banks and the Stock Market
Managing Farms and Industry
Providing Debt Relief
Spending and Relief Programs

18. The Hundred Days Begin
Roosevelt sent many bills to Congress between March 9 and June 16, 1933.
This period is referred to as the Hundred Days,
Congress passed 15 major acts to help the economic crisis.
These programs made up the First New Deal.

19. The Hundred Days Begin
Roosevelt’s advisers were divided into three main groups.
The first group supported the “New Nationalism” of Theodore Roosevelt.
It believed government and business should work together to manage the economy.
The second group wanted government to run key parts of the economy.
The third group supported the “New Freedom” of Woodrow Wilson.
It believed government should restore competition to the economy.

20. Fixing the Banks and the Stock Market
Roosevelt wanted to restore confidence in the banking system first.
He called a national bank holiday and called Congress into special session.

21. Fixing the Banks and the Stock Market
Congress passed the Emergency Banking Relief Act.
It required federal examiners to survey the nation’s banks.
They issued Treasury Department licenses to financially sound banks.
FDR on banking

22. Fixing the Banks and the Stock Market
Roosevelt used fireside chats, where he spoke on the radio directly to the people.
In his first fireside chat, he assured Americans that the banks were secure.
The next day, deposits outweighed withdrawals, ending the banking crisis.
Video on FDR fireside chats

23. Fixing the Banks and the Stock Market
The new Securities Act of 1933 required companies that sold stocks and bonds to provide complete and truthful information to investors.
The Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent fraud.

24. Fixing the Banks and the Stock Market
The Glass-Steagall Act separated commercial banking from investment banking.
It no longer allowed depositors’ money to be risked on the stock market.
It created the Federal Deposit Insurance Corporation (FDIC) that provided government insurance for bank deposits up to a certain amount.

25. AHSGE Exam Alert!: Tennessee Valley Authority
Look on pages 684.
Read “Why it Matters.”
Summarize your reading in your own words in your notes.
This may be on your AHSGE Exam.

27. Managing Farms and Industry
Congress passed the Agricultural Adjustment Act.
The law was a plan that paid farmers not to raise certain crops to lower crop production.

28. Managing Farms and Industry
The act was administered by the Agricultural Adjustment Administration (AAA).
The plan reduced production, increased prices, and helped some farmers, especially large commercial farmers.
Thousands of tenant farmers remained unemployed or homeless.

29. Managing Farms and Industry
The National Industrial Recovery Act (NIRA) suspended antitrust laws.
It allowed business, labor, and government to cooperate to establish voluntary codes of fair competition.

30. Managing Farms and Industry
The program was run by the National Recovery Administration (NRA).
It urged consumers to buy only from companies who signed agreements with the NRA.
The Supreme Court declared it unconstitutional in 1935.

31. Providing Debt Relief
The Home Owners’ Loan Corporation (HOLC) bought the mortgages of homeowners behind on payments.
It restructured them for longer terms with lower interest rates.
The HOLC gave loans only to those employed.
Old headquarters

32. Providing Debt Relief
It foreclosed on property if payment could not be made.
The Farm Credit Administration (FCA) helped farmers refinance their mortgages.
The FCA loans helped farmers in the short term but may have slowed overall economic recovery.

33. Spending and Relief Programs
The Civilian Conservation Corps (CCC) gave unemployed men aged 18 to 25 the opportunity to
work with the national forestry service planting trees
fighting forest fires
building reservoirs
The CCC had employed three million men by 1942.
CCC building a road

34. Spending and Relief Programs
The Federal Emergency Relief Administration (FERA) channeled money to help state and local agencies fund relief projects.
In 1933, the Public Works Administration began a series of construction projects creating more jobs.
Public Works
Administration

35. Spending and Relief Programs
Harry Hopkins, the head of FERA, set up the Civil Works Administration (CWA).
It hired workers directly and put them on the government’s payroll.
Roosevelt shut it down because he feared too much money was being spent on the it.

36. Spending and Relief Programs
The most important aspect of the New Deal was the change in the spirit of the American people.
People became optimistic again.

38. 23.3 The Second New Deal Challenges to the New Deal
Launching the Second New Deal
The Rise of Industrial Unions
The Social Security Act

39. Challenges to the New Deal
Support of Roosevelt and his New Deal began to fade in 1935.
Many began to question the effectiveness of the New Deal.
Roosevelt used deficit spending to pay for his programs.

40. Challenges to the New Deal
He abandoned a balanced budget and borrowed money to pay for his programs.
The American Liberty League was created as businessmen and politicians from both parties organized to oppose the New Deal.

41. Challenges to the New Deal
Democratic senator Huey Long proposed a redistribution of wealth.
Father Charles Coughlin, a Catholic priest in Detroit, supported Huey Long through his popular radio broadcast.

42. Launching the Second New Deal
Roosevelt hoped the second New Deal would increase his chances of being re-elected in 1936.
The Works Progress Administration (WPA) was a federal agency headed by Harry Hopkins.
It spent $11 billion over several years, creating jobs for workers.

43. Launching the Second New Deal
Its most controversial aspect was offering work to artists, musicians, actors, and writers.
In Schechter v. United States, the Supreme Court struck down the National Industrial Recovery Act.

44. Launching the Second New Deal
The Court ruled that Congress could not delegate its powers to the executive branch.
It ruled the NIRA codes unconstitutional.

45. Launching the Second New Deal
Roosevelt feared that the Court would strike down the New Deal.
He ordered Congress to remain in session until his new bills were passed.
This was nicknamed the “second hundred days” by the press.

46. The Rise of Industrial Unions
In July 1935, the National Labor Relations Act (Wagner Act) was passed.
It guaranteed workers the right to organize unions without employer interference.
It set up the National Labor Relations Board (NLRB).

47. The Rise of Industrial Unions
The NLRB organized factory elections by secret ballot to determine if workers wanted a union.
Binding arbitration required a neutral party would listen to both sides and decide the issue.
In 1935, the Committee for Industrial Organization (CIO) organized industrial unions.

48. The Rise of Industrial Unions
Two union men were demoted at the General Motors auto-body plant in Cleveland.
Workers protested with a sit-down strike where they stopped working but refused to leave the plant.
Workers at the GM plant in Flint, Michigan, did the same.

49. The Rise of Industrial Unions
After violence broke out, the company gave in.
The United Auto Workers (UAW) was formed and quickly became one of the most powerful unions in the U.S.

50. The Social Security Act
In 1935, the Social Security Act helped the elderly, unemployed workers, and others.
The bill would provide a monthly retirement benefit and unemployment insurance.

51. The Social Security Act
Workers earned the right to receive the benefits by paying premiums.
It helped many people.
Initially, it left out many of the neediest members of society, such as farmers and domestic workers.

52. 23.4 The New Deal Coalition Roosevelt’s Second Term
The Last New Deal Reforms
The Legacy of the New Deal

53. Roosevelt’s Second Term
Before 1936, Democratic Party included mainly white Southerners.
It began to include farmers, laborers, blacks, immigrants, minorities, women, progressives, and intellectuals.
Eleanor Roosevelt persuaded FDR to include their concerns in his New Deal programs.

54. Roosevelt’s Second Term
His Secretary of Labor, Frances Perkins, was the first woman appointed to the cabinet.
Roosevelt won the 1936 election in a landslides.
The Supreme Court did not support the New Deal programs.

55. Roosevelt’s Second Term
In June of 1936, the Court declared the Agricultural Adjustment Act unconstitutional.
FDR attempted to change the political balance of the court with the court-packing plan.
He wanted to increase the number of justices on the Supreme Court.

57. Roosevelt’s Second Term
It was a political mistake and split the Democratic Party.
Americans felt it would give the president too much power.
In 1937 a sudden rise in unemployment further hurt Roosevelt’s popularity.

58. Roosevelt’s Second Term
Treasury Secretary Henry Morgenthau wanted to balance the budget and cut spending.
Others pushed for more government spending.

59. Roosevelt’s Second Term
They supported “Keynesianism,” the theories of British economist John Maynard Keynes.
He argued that the government needed to spend heavily to jump-start the economy.
In 1938 Roosevelt asked Congress for $3.75 billion for the PWA, WPA, and other programs.

60. The Last New Deal Reforms
His successes were limited in his second term in office.
Eleanor Roosevelt promoted the 1937 National Housing Act.
It created the United States Housing Authority to subsidize loans for builders willing to buy blocks of slums and build low-cost housing.

61. The Last New Deal Reforms
The Farm Security Administration gave loans to tenant farmers to purchase farms.
Congress kept appropriations low, believing that the plan made agricultural problems worse.

62. The Last New Deal Reforms
The Fair Labor Standards Act of 1938 gave:
protection to workers
abolished child labor
created a 40-hour workweek for workers.
Congress began to turn against the New Deal.
The New Deal era had ended by 1939.

63. The Legacy of the New Deal
The New Deal had limited success but gave Americans a stronger sense of security and stability.
The New Deal operated to balance competing economic interests.
The New Deal’s mediating role established the broker state, which helped work out conflicts among different interests.

65. The Legacy of the New Deal
The New Deal brought a new public attitude regarding the government.
The program gave Americans a safety net.
It provided safeguards and relief programs to protect them from economic disaster.

66. Test Tomorrow!

67. Test Tomorrow!