1. The Great Depression and The New Deal 1933-1939 Chapter 34

2. Hoover Loses Popularity  Unemployment and poverty blamed on Hoover  Republicans re- nominated Hoover in 1932

3. Franklin Delano Roosevelt  The Democrats nominated Gov. Franklin Roosevelt of New York

4. Eleanor Roosevelt  FDR’s wife, Eleanor, became the most active 1 st lady in history  Powerful influence over American politics

5. Election of 1932  FDR attacked Republican Old Guard  Promised to balance the budget and reduce deficit  FDR swept election in popular vote and Electoral College  Blacks become associated with Democratic Party and FDR

6. Hundred Days  FDR inaugurated March 4, 1933  1 st Hundred Days – FDR calls Congress into special session (Hundred Days/Emergency Congress) (Mar. 9 - June 16, 1933)  Mar. 6-10 – Banking Holiday – all banks closed until they were sound to open  3 R’s: relief, recovery, reform. Short-range goals were relief and immediate recovery, and long-range goals were permanent recovery and reform of current abuses.

7. Roosevelt Tackles Money and Banking  Emergency Banking Relief Act - (1933) - Gave president power to regulate banking transactions and foreign exchange and to reopen solvent banks.

8. Glass-Steagall Banking Reform Act  Created the Federal Deposit Insurance Corporation (FDIC). A reform program, the FDIC insured individual bank deposits up to $5,000, ending the epidemic of bank failures.

9. Gold and FDR  In order to protect the shrinking gold reserve, President Roosevelt ordered all private holdings of gold to be given to the Treasury in exchange for paper currency and then the nation to be taken off the gold standard  FDR wanted inflation which would reduce debtors’ burdens

10. Creating Jobs for the Jobless  Civilian Conservation Corps (CCC) - Provided employment for 3 million men.Their work included reforestation, fire fighting, flood control, and swamp drainage.

11. Federal Emergency Relief Act  FERA - headed by Harry L. Hopkins.  Hopkins’s agency granted about $3 billion to the states for direct relief payments or for wages on work projects  FDR’s chief administrator of relief

12. Civil Works Administration (CWA)  1933 – branch of the FERA  designed to provide temporary jobs during the winter emergency  Thousands of unemployed were employed at leaf raking and other manual-labor jobs

13. Agricultural Adjustment Act  1933  AAA – farmers were given relief  Made available millions of dollars to help farmers meet their mortgages.  Home Owners’ Loan Corporation (HOLC) assisted many households that had trouble paying their mortgages

14. Demagogues  Radical opponents to FDR emerged  Father Charles Coughlin – anti-New Deal radio program that was anti-semitic  Sen. Huey P. Long – “Share Our Wealth” would give $5000 to each family  Dr. Francis Townsend – everyone over 60 would get $200/month

15. Works Progress Administration  1935  Objective was to employ men on useful projects like the construction of buildings, roads, etc.  Taxpayers criticized the agency for paying people to do "useless" jobs such as painting murals

16. Industry and Labor  National Recovery Administration (NRA)  designed to assist industry, labor, and the unemployed  Industries were forced to lower their work hours so that more people could be hired; a minimum wage was also established  Workers were formally guaranteed the right to organize and bargain collectively through representatives of their choosing, not through the company’s choosing.

17. Schechter v. United States  Supreme Court case – the SC struck down the National Industrial Recovery Act as unconstitutional  The Court ruled that the Constitution did not allow Congress to delegate its powers to the executive branch  Sick chicken case

18. Public Works Administration  Intended for both industrial recovery and for unemployment relief.  Headed by Harold L. Ickes, the agency spent over $4 billion on thousands of projects, including public buildings and highways.

19. Prohibition Ended  In order to raise federal revenue and provide a level of employment, Congress repealed prohibition with the 21 st Amendment in late 1933.

20. Agricultural Adjustment Admin.  AAA - established “parity prices” for basic commodities. “Parity” was the price set for a product  The agency also paid farmers to reduce their crop acreage, eliminating surpluses, while at the same time decreasing unemployment.  The Supreme Court struck down the AAA in 1936, declaring its regulatory taxation provisions unconstitutional.

21. Dust Bowl  1933 - a prolonged drought struck the states of the trans-Mississippi Great Plains.  The Dust Bowl was partially caused by the cultivation of countless acres, dry-farming techniques, and mechanization.

22. Tennessee Valley Authority (TVA) 1933  Government construction of damming the Tennessee River  combine the immediate advantage of putting thousands of people to work with a long-term project for reforming the power monopoly.

23. Housing Reform and Social Security  Federal Housing Administration (FHA) set up in 1934 by FDR to speed recovery and better homes.  Social Security Act of 1935 - provided for federal-state unemployment insurance. To provide security for old age, specified categories of retired workers were to receive regular payments from Washington.  Republicans were strongly opposed to SS

24. Unskilled Labor  National Labor Relations Act of 1935 (Wagner Act) - created a powerful National Labor Relations Board for administrative purposes and reasserted the rights of labor to engage in self-organization and to bargain collectively through representatives of its own choice

25. John L. Lewis  Boss of the United Mine Workers.  He formed the Committee for Industrial Organization (CIO) in 1935.  The CIO led a series of strikes including the sit- down strike at the General Motors automobile factory in 1936.

26. Election of 1936  Republicans chose Alfred M. Landon to run against President Roosevelt.  The Republicans condemned the New Deal for its radicalism, experimentation, confusion, and “frightful waste.”  Roosevelt was reelected as president in a lopsided victory

27. The Court Packing Plan  Conservative justices on the Supreme Court were a threat to the New Deal  Roosevelt asked Congress to pass legislation to appoint one new justice to the Supreme Court for every member over 70 who would not retire  The maximum number of justices would be 15. This shocked both Congress and the public  plan received much negative feedback.

28. The Economy  John Maynard Keynes  British economist who said that when in recession, a government needs to spend heavily  FDR followed this economic policy  Conservatives wanted to cut spending and balance the budget

29. New Deal or Raw Deal ?  the national debt by 1939 was at $40,440,000,000  Foes of the New Deal charged the president of spending too much money on his programs