The New Deal Chapter 33 Revised 8/09
‘______________’ • Election to inauguration • President elect – no constitutional power • Current president – no political power • Hoover - lame duck (November of 1932 to March of 1933)
_______________ • 1932 – 1933 circumstances warranted immediate action, but hands were tied • 20th Amendment changed the inauguration date from
Brain Trust • While waiting, FDR gathered the foremost experts in their fields at his estate in Hyde Park, NY • They mapped out an ambitious plan for relief, recovery, and reform • ______– immediate direct payments for the needy and jobs for the unemployed • ______ – assist the economy to recover; new jobs will mean increased demand, which will lead to more new jobs • _______– regulation of industry and the stock market to prevent the next crash and depression • (See chart on page 774)
New Deal programs nicknamed “_______________________” for the many acronyms used.
Executive Appointments • Frances Perkins • 1st female member of cabinet • Secretary of Labor • Mary McLeod Bethune • Appointed Director of Negro Affairs of the National Youth Administration • One of over a hundred African Americans FDR appointed
First 100 Days:Banking Plan _____________ *Closed all banks for reorganization ___________________ *Federal audit of banks *Only those in sound condition could reopen
First 100 Days:Banking Plan • 1st Fireside chat • Urged people to deposit instead of withdrawing money • Deposits increased by $
First 100 Days:Banking Plan • Up to $2500 guaranteed • Low interest, long term loans to homeowners • Low interest, long term loans to farmers
First 100 Days:Direct Relief • Federal Emergency Relief Administration (FERA) • Gave money to state and local relief agencies from 1933-1935 • Headed by Harry Hopkins
First 100 Days:Direct Relief • Locally run employment of young men and women (1933-1934) • Built airports, bridges, painted park benches, raked leaves, etc.
First 100 DaysRecovery • National Industrial Recovery Act (NIRA) • National Recovery Administration (NRA) encouraged businesses to cooperate with each other to set prices, output, etc. • Businesses had to allow ___________
First 100 DaysRecovery (NIRA) • Most unpopular program in New Deal • Price controls, limiting output, etc. were too similar to Socialism • Regulations confusing; owners feared the loss of control of their businesses • Parts found unconstitutional by Supreme Court
Part of NIRA • 1933-1941 • Led by Harold Ickes from 1933-1939 • Gave billions to state and local governments to build dams, bridges, airports, and other government buildings • 70% of all schools constructed in 1930’s were funded by the PWA
“__________________” • Gave employment to millions exponentially • Built infrastructure in 1930’s • Helped win war in 1940’s • Backbone of post-war industrial boom in 1950’s • Infrastructure sadly lacking today both in new projects and maintenance of existing structures
First 100 Days:Direct Relief • ______________________. • Gave people clean, safe living quarters • Fed them 3 meals a day • Earned wages • Families had one less person to feed • ¾ of paychecks were sent home to their families • Not competing for jobs with older men (Cont.)
First 100 Days:Direct Relief • _________________________. • Literacy programs, recreation, and time to spend with other young adults • National parks and forests received many improvements • Program helped the most volatile group in society – males age 18 to 25
First 100 Days:Direct Relief • ______________________. • Lived in camps in rural areas • $30 a month but $25 was sent home to their families. • Planted over 3 billion trees, cleared forests, built levees, etc. • (1933 to 1939, phased out by 1942)
First 100 Days:Direct Relief • Civilian Conservation Corp. • Few women in 45 separate camps • African-Americans, Hispanics, Native Americans in segregated camps • Offered to veterans from 2nd Bonus Army
First 100 DaysAgricultural Recovery • Paid farmers to • Raised prices and incomes for farmers. • Hurt consumers and tenant farmers. • Struck down by Supreme Court in 1935 • Re-established in 1936 by changing wording
(1936) _________________________ • Revised to give money to farmers for _______________________. • Established the Farm Security Administration to aid tenant farmers to buy land • Established migrant camps for shelter and medical care
First 100 DaysRecovery • ____________________________ • 6 dams and power plants on the Tennessee River and its tributaries in 13 states.
Tennessee, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas, Missouri, Illinois, Indiana, and Kentucky
TVA is only New Deal program still around and operated by the federal government. Part of the area is still very poor and the TVA works to improve the standard of living there.
Second New Deal • New Deal failed to end the Depression • Critics included Herbert Hoover • Supreme Court heard cases from people that questioned the constitutionality of the programs • However, the public indicated that they wanted change • Mid-term elections in 1934 supported democrats • Gave Roosevelt thumbs up
Provided electricity to rural areas and Regulated interstate electricity and gas
Second New Deal: (1935) • Millions of bricklayers, carpenters, writers, artists, etc. employed by the federal government. • National Youth Administration • Provided jobs to young adults, 16-25 • Division of Negro Affairs • Provided jobs for African Americans
Second New Deal: • Pensions to people 65 and older • Payments to the disabled, widows, and their children • Unemployment benefits • Stabilizing influence on the economy • Paid for with taxes on employers and employees
(1935) Wagner-Connery Act (Labor Relations Act) • Guaranteed unions the right to organize and negotiate • Right to collective bargaining and closed shops
Eleanor Roosevelt • FDR’s eyes and ears • Visible sign of hope and compassion • Visited with 2nd Bonus Army and other groups • Traveled the country and spoke to common people • Gained support for the New Deal
Stood up for women, African-Americans, and other minorities Marion Anderson sang at the White House in 1936. When she was denied the use of ___________________________, Mrs. Roosevelt arranged for her to appear on the steps of the _______________________.
1936 election was a landslide for Roosevelt Carried every state but Vermont and MaineShowed wide-spread support for the New Deal
Roosevelt’s Critics • _____________ – wanted a return to laissez faire. • Protested against increased taxes and government interference in business. • ___________ – didn’t think Roosevelt went far enough.
Roosevelt’s Critics • _______________- pension plan for Americans over age 60 • _______________- nationalize banks and return to silver standard (increase the supply of money, cause inflation, which means repaying loans with inflated dollars) • ________________ - Share-Our-Wealth. Take from the rich and give to the poor. Assassinated in 1935.
Roosevelt’s Recession • Roosevelt stopped introducing new programs and tried to scale back some programs because it appeared that the economy was recovering. • Cutbacks were too soon and contributed to a downward swing in 1936-1937. • Funding was increased in 1938.
Roosevelt’s Court Packing Scheme • 6of the 9 Supreme Court judges were conservative and all 6 were over 70 • Can not remove a Supreme Court justice except for high crimes and misdemeanors • Constitution does not specify how many justices sit on the court • President nominates judges; senate ratifies them • Roosevelt asked Congress to pass legislation to • Congress denied his request and the newspapers and public spoke out against his “court-packing scheme’.
FAIR LABOR STANDARDS ACT(Reform) • (1938) Last major piece of New Deal legislation • Maximum hour standards (established the 40-hour work week) • Severely curbed the use of child labor • Did not apply to domestics, farmers and other jobs that paid less than .25 an hour
How successful, if at all, was the New Deal? • New Deal goals: • End unemployment • Increase Gross Domestic Product • Improve living and working conditions nationwide • Prevent a new “Great Depression” from occurring
Consumer spending was 80 billion in 1929; 46 billion in 1933; 72 billion in 1940.
1860 1918 1944 1968 1990 Expenditures per capita, 1800-1990, measured every 12 years. *Note: we spent less on the Depression than on WWI
*Amount spent on Public Works increased by 1934 but not dramatically. Amount spent by the private sector decreased drastically from 1931 to 1933 and only increased again slowly.