Franklin D. Roosevelt • Democrat – Elected 1932 • “I pledge you, I pledge myself, to a new deal for the American people.” • The New Deal • Roosevelt’s set of programs and policies for ending the Great Depression
The New Deal • Three R’s – three goals of the New Deal • Relief – immediate action taken to help people hurt by the Depression. • Recovery – temporary programs designed to restart the flow of consumer demand; stimulate the economy. • Reform – permanent programs to avoid another depression and to insure citizens against economic disasters.
The Hundred Days • The Hundred Days – March 9-June 16, 1933 • FDR sent 15 bills to Congress to be passed – very quickly!
Emergency Measures • FDR declares a national “bank holiday” – temporarily closing all banks • Emergency Banking Relief Act – government inspects banks, reopens the ones that are sound • To get people to put their money back into banks, get money flowing
Securities and Exchanges Commission • Purpose: • Regulate stock market • Prevent fraud • Restore confidence in the economy • Impact today: still exists! • Companies must provide information to potential investors • Illegal: insider trading, providing false information
Federal Deposit Insurance Corporation • Government insurance for bank deposits up to a certain amount • Restored confidence in banking system. • Overall goal: • Prevent bank runs • Get money bank into banks and circulating in economy • Impact today: still exists!! • $250,000 per depositor, per insured bank
Agricultural Adjustment Administration • Goal: combat problem of overproduction of crops (which led to low prices) • Government paid farmers to not grow certain crops, like cotton, corn, wheat, and tobacco. • Also paid farmers to plow under crops and slaughter piglets : ( • Money raised by taxing companies that bought farm products and processed them. • Accomplished goal – surplus fell, prices rose, farm income rose • Supreme Court declares unconstitutional
Agricultural Adjustment Administration • Impact today: • Farm subsidies
National Recovery Administration • Set up voluntary rules for industries – “codes of fair competition” • Set prices • Minimum wage • Limited shifts so production could be spread to more businesses • Shorten work hours – create more jobs • Business owners who joined displayed blue eagle sign
National Recovery Administration • Did help in some industries, but many companies disliked codes • Difficult to administer, many ignored • Impact today: set precedent for government involvement in industry
Tennessee Valley Authority • Purpose: • Control floods • Conserve forestlands • Bring electricity to a very rural region • Provide jobs • Built 20 dams, employed thousands of workers • Impact today: still exists! • Provides electricity • People boat, ski, fish on lakes
Home Owners’ Loan Corporation • Goal: help people pay their mortgages (home loans) • Government bought mortgages, restructured with longer terms of repayment and lower interest rates • Only helped people who were employed • Also established clear guidelines to banks for loans
Farm Credit Administration • Help farmers refinance mortgages • Helped lower interest rates for farmers • Helped many people hold onto land, but probably didn’t help the economy as a whole.
Civilian Conservation Corps • Unemployed men 18-25 years old could work under National Forestry Service • Lived in camps, earned money • Planted trees, fought forest fires, built state parks
Civilian Conservation Corps • Impact today: • Parks, public places • http://www.alapark.com/cheaharesort/Park%20History/ • Mt. Cheaha, Oak Mountain State Park
Public Works Administration • Goal: create jobs • Series of construction projects – highways, dams, sewer systems, schools • Didn’t hire workers directly, but awarded contracts to construction companies. • Insisted the hiring of African-Americans. • Impact today: • Bay Bridge in San Francisco • Government buildings in DC • Miles of roads, schools • Many buildings on AU Campus
Civil Works Administration • Goal: provide jobs (PWA hadn’t done enough) • Hire workers directly for government • Build and improved airports, roads, schools, playgrounds, parks – very temporary • Roosevelt shut it down – spending too much money, didn’t want Americans to become used to it.
Works Progress Administration • Goal: create jobs • Part of “Second New Deal” • Roads, public buildings, parks, bridges, airports • “Federal Number One” • Employed artists, musicians, actors, writers, historians
National Labor Relations Board • Guaranteed workers the right to organize unions without interference from employers • Investigated employers for unfair practices • Impact today: still exists!
Social Security Administration • Goal: provide security for elderly and unemployed • Workers pay in – receive retirement benefits later • Temporary unemployment insurance • Modest welfare payments to needy people • Impact: still exists! • Established important precedent – federal government helping those who are unable to work