The New Deal

1. The New Deal

2. 1932 Election Herbert Hoover Franklin Delano Roosevelt

3. FDR • NY-D • Governor of NY • Wanted change • Fought unemployment & poverty • Likeable (unlike Hoover)

4. 1932 Election • Democrats DOMINATE • Senate – 2/3 majority • House – ¾ of seats • FDR • 472 votes • 57.4% • Hoover • 59 votes • 39.7%

5. New Deal • FDR works with lawyers, professionals, journalists • “Brian Trust” • Work to help solve Great Depression • Called New Deal • Promised a new deal for the American people

6. New Deal • 3 goals • Relief for the needy • Economic recovery • Financial reform

7. Hundred Days • March 9 – June 16 • Congress passes over 15 pieces of New Deal legislation • Expanded role of federal government

8. Bank Holiday • First order of business, reform banks & finance • March 5, declared bank holiday • All banks closes to prevent more withdrawals

9. Bank Holiday (con’t) • Emergency Banking Relief Act • Treasury can inspect banks • Sound banks (reliable) could reopen • Insolvent banks (can’t pay debts) stay closed • Troubled banks get loans • Revived confidence in banks

10. Fireside Chat • Radio talks about issues Americans worried about • Explained New Deal in simple language • Felt like he was talking to you

11. Fireside Chat “When you deposit money in a bank the bank does not put the money into a safe deposit vault. It invests your money….A comparatively small part of the money that you put in the bank is kept in currency – an amount which in normal times is wholly sufficient to cash the cash needs of the average citizen”

12. Fireside Chat • When too many people demand money in cash, banks will fail. • Next few weeks, most return $ to banks

13. Regulating Banks • Glass-Steagall Act • Federal Deposit Insurance Corporation (FDIC) • Insures bank accounts up to $5000 • Reassured customers that their $ was safe • Federal Securities Act • Corporations had to be open and honest about their stocks • Securities & Exchange Commission (SEC) • Regulated stock market

14. 21st Amendment • To raise revenue, FDR convinces Congress to allow the manufacture & sale of some alcohol • Leads to passage of 21st Amendment (ending Prohibition)

15. Helping Farmers • Agricultural Adjustment Act (AAA) • Raise crop prices by lowering production • Pay farmers to leave some land unseeded • Pro: • Raised prices to help farmers • Con: • Wasted food while many were starving

16. Tennessee Valley Authority • TVA • Renovated 5 dams • Built 20 new ones • Thousands of jobs • Flood control • Hydroelectric power

17. Works Projects • Civilian Conservation Corps (CCC) • Young men 18-25 worked • Roads, parks, trees (to prevent another dust bowl) • By 1942, helped 3 million men

18. Works Projects • National Industrial Recovery Act (NIRA) • Money to states to create schools & community buildings • Didn’t help unemployment • Creates Civil Works Administration • 4 million immediate jobs in Winter 1933-34 • 40k schools • 50k teachers • 500,000 miles of road

19. Works Projects • National Recovery Administration (NRA) • Created by NIRA • Set prices of many products • Stop wage cuts • Stop falling prices • Stop layoffs • Guaranteed workers rights to unionize

20. Food, Clothing, Shelter • Home Owners Loan Corporation (HOLC) • Gov’t loans to homeowners facing foreclosure • Federal Housing Authority (FHA) • Helped secure loans • Still around today)

21. Food, Clothing, Shelter • Federal Emergency Relief Administration (FERA) • Direct relief to the needy ($500 million) • Not just money to the poor, helped them get jobs

22. Use a Book • Why did the New Deal come under attack? • How did Liberal & Conservative critics differ in their opposition to the New Deal • How did the Supreme Court React? • What were the 3 largest critics of the New Deal? Explain their opposition to the New Deal.