The New Deal US HistoryMr. Velarde
The “Old Deal” What? • President Hoover’s reaction to the Great Depression President Herbert Hoover
The “Old Deal” What did he want to do? • Let the business cycle take care of things • Refused to create government programs until it was too late Children in one of the Bonus Army Camps
The Bonus Army 1932 • 25,000 WWI veterans Who? What? • Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945
The Bonus Army 1932 • Called out the troops and dispersed the army What did Hoover do?
The Election of 1932 What? • Roosevelt offers a “New Deal” for America Roosevelt wins with 60% of the vote
Roosevelt’s New Deal What? • Programs meant to help the country by getting the government involved in the economy Meant to do 3 things 1. Relief - help people out in the short term 2. Recovery - get the economy back on its feet 3. Reform - keep this from everyhappening again
1st new Deal To recover nations economy
Destitute • Alphabet Agencies • Industry The New Deal • Farming • Stock Market • Banking
Stock Market • Faith in Securities Act 1933 • Securities Act 1934 • Stricter control • Companies had to be honest New Deal
Industry • The New Deal introduced major breaks with traditional practices. • N.R.A. • Fair Labour Standards Act • Social Security Act • Wagner Act New Deal
Industry – Fair Labour Standards Act • Set new standards so that:- • Set a minimum wage of 40 cents an hour • Set a maximum working week of 40 hours • Banned child labour New Deal
Industry – Wagner and Social Security Acts • The Wagner Act stated that workers could join a trade union • The Social Security Acts established a contributory insurance. New Deal
Farming – First Agricultural Adjustment Act • Put up prices by creating artificial scarcity, ie killing livestock, ploughing up crops • This was considered by many to be unconstitutional and an extension of federal powers. New Deal
De destitute - Successes • Unique – a move away from laissez faire • Helped prevent starvation • Won political support for the Democrats from the poor • Lowered unemployment from 13 million to 6 million by 1941. New Deal
Bank Holiday - First Step Why? • Many banks had failed, wiping out families’ savings • People lost confidence in the banks Depositors Congregate Outside Closed Bank
Bank Holiday - First Step How? • Closed banks for four days to reorganize • President explains in a “fireside chat” • Confidence restored
“Alphabet soup”-New Deal 2nd new deal was to help out individuals who were desperate.
“Alphabet Soup” • In the first 100 days of his administration Roosevelt passes tons of legislation Hundred Days Alphabet Soup • The agencies he creates (like AAA)
Next Step - “Alphabet Soup” • 18-25 year old guys get jobs and send money home to their families CCC - Civilian Conservation Corps CCC workers in Lassen National Forest, California
Next Step - “Alphabet Soup” • Government pays farmers not to farm AAA - Agricultural Adjustment Administration • Meant to cause prices to rise and halt overproduction
Next Step - “Alphabet Soup” • Government runs a hydroelectric power plant TVA - Tennessee Valley Authority • Provides cheap power & fertilizer to the poor region Construction at Norris Dam, which was being built by the TVA on the Clinch River in Northeastern Tennessee
Next Step - “Alphabet Soup” • Insurance for the $ you put in banks FDIC - Federal Department Insurance Corp. • Protected people’s savings Bank Employee Checks Depositor's Account
Next Step - “Alphabet Soup” • Watchdog agency for the stock market SEC - Securities and Exchange Commission New York Stock Exchange
Next Step - “Alphabet Soup” • Gave direct relief ($) to those who needed it FERA - Federal Emergency Relief Admin. • Beginnings of a welfare program
Next Step - “Alphabet Soup” • Taxed people working now to give payments to the elderly Social Security Social Security Information Poster
His Greatest Mistake Packing the Supreme Court What? • Increase the # of Supreme Court justices from 9 to 15 Why? • Kept declaring his programs unconstitutional (including NRA, AAA, SEC, etc.)
His Greatest Mistake Packing the Supreme Court What did this cartoonist think about the Supreme Court? February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"
His Greatest Mistake Packing the Supreme Court Results? • Public grew angry (FDR taking too much power) • FDR passed much less legislation after this Supreme Court Exterior
Success or Failure? • Still 6 million out of work in 1941. • The numbers fell due to enlistment and rearmament in WW2. • Black people were segregated from white. • Women were excluded from the New Deal. • Tennessee benefited but many areas were still suffering. • Reduced unemployment by 7 million • Soil conservation schemes. • The Stock Market and banks recovered. • Transformed the Tennessee valley. • Roosevelt was re-elected.
African Americans Roosevelt’s administration also appointed many African Americans. William Hastie became the first black federal judge. A group of African Americans hired to fill government posts were known as the Black Cabinet, and they served as unofficial advisors to the president. The Black Cabinet met under the leadership of Mary McLeod Bethune, director of Negro Affairs in the National Youth Administration.
Problems • Severe discrimination Thousands of African American sharecroppers and tenant farmers were not helped by New Deal programs. Southern Democrats in Congress opposed efforts to aid African Americans. Many African American switch from the Republican Party to the Democratic Party during the 1930s.