The New Deal

1. The New Deal US History Chapter 15

2. Section One A New Deal Fights the Depression • Electing FDR • Rep – Hoover, Dem – FDR. Won 23 million votes • Dems claimed House and Senate. • 20th Amendment – moved inauguration from March to January

4. “Brain Trust” – group of FDR’s advisors (professors, lawyers, journalists). • Before the inauguration he began working with them on his policies – called the New Deal – 3 goals – immediate relief for the poor/unemployed, economic recovery for businesses near bankruptcy, and financial reform that would prevent future depressions

5. The Hundred Days • March 9 – June 16, 1933 – period of intense activity when Congress passed 15 major pieces of legislation

6. Bank Holiday • March 5 – FDR declared a bank holiday – 4 days the banks closed to prevent withdrawals. Banks would receive over a billion dollars from the RFC. • Congress - Emergency Banking Relief Act – authorized inspections of the banks – allowed those that were safe to reopen under the supervision of the Federal Reserve. Those unsafe could not reopen. This revived confidence in banks b/c the banks that re-opened were supposed to be sound. • FDR - emergency power to regulate credit, currency, and foreign exchange.

7. Fireside Chats • Radio addresses that explained his New Deal policies – educated the public, calmed fears, restored confidence. • Encouraged people to return their savings to the banks. • Chats heard on 150 stations by 60 million Franklin D. Roosevelt's Fireside Chats

8. Regulating Banking and Finance • Glass-Steagall Act – established the Federal Deposit Insurance Corporation (FDIC) –federal insurance for individual bank accounts up to $5,000. • made people feel their money was safe. • banks didn’t risk losing the people’s money.

9. Federal Securities Act –regulate the stock market. • Required corporations to provide complete information on all stock offerings and made them liable for any misrepresentations. • Securities and Exchange Commission (SEC) –regulates the stock market – no insider-trading. • Regulates the purchase of stock on credit.

10. Rural Assistance • Agricultural Adjustment Act (AAA) – lower crop production to increase crop process. The government would pay farmers to leave a certain amount of land unseeded. • Also paid hog farmers to slaughter 6 million pigs. • Upset the public, but put money in farmers pockets.

11. Tennessee Valley Authority (TVA) –renovated 5 existing dams, constructed 20 new ones – created thousands of jobs, provided flood control and electricity.

13. Providing Work Projects • Civilian Conservation Corps (CCC) – most popular program – young men age 18 – 25 were put to work building roads and bridges, developing 800 state parks, planting trees (200 million planted in the Great Plains to prevent another Dust Bowl), flood control projects. The men were paid $30/month, with $25/month sent back home. Lodging/food provided.

14. Public Works Administration – PWA - $3.3 billion to states to create jobs in the construction of schools and other community buildings. Didn’t really work to relieve unemployment, so FDR established the • Civil Works Administration – CWA – Nov. 1933 – 4 million jobs during the winter of ’33 – ’34 – built 40,000 schools, many roads, etc.

15. Promoting Fair Practices • National Industrial Recovery Act – NIRA – industries – produce only as much as the consumers could afford to buy. • Created the National Recovery Administration – NRA – set prices of products (fair competition). Set working hours so that work could be spread out to more people and banned child labor - (16). Guaranteed rights to unionize and bargain collectively. • Blue Eagle was the symbol – Philadelphia Eagles got their name from this.

16. Food, Clothing, and Shelter • Home Owners Loan Corporation – HOLC –government loans to homeowners • Federal Emergency Relief Administration – FERA - $500 million in direct relief - money given to states – ½ for food and clothing to the unemployed, aged, and ill, ½ for work relief programs. • Headed by Harry Hopkins. This is the beginning of federal welfare

17. The New Deal Comes Under Attack • Deficit spending – spending more money than the government has coming in in revenue – putting money in the hands of the consumer so they can spend their way out of the depression. • Opposition growing to the New Deal. Liberals- New Deal didn’t go far enough to help the poor or to change the economic system. Conservatives – FDR had too much control over agriculture and industry.

18. The Supreme Court Reacts • 9 elderly Republican men – voting down New Deal programs. • 1935 – Schecter Poultry Co. vs. United States – NIRA ruled unconstitutional - executive branch stepped over its boundaries when regulating interstate commerce because it was involving itself in local business. • 1936 – AAA struck down, saying it’s a local matter that should be handled by states, not the federal govt.

19. “Court Packing Plan” • would allow FDR to appoint up to 6 new justices through a reorganization of the court – 1 for each justice over the age of 70. Senate voted it down. • FDR got his wish anyway w/o the reorganization. During his term he was able to appoint7 associate justices and a Chief Justice (Harlan Stone).

20. Three Fiery Critics • Father Charles Coughlin –– favored guaranteed annual income and nationalization of banks. • Dr. Francis Townsend – poor and elderly – provide monthly benefits • Huey Long – Senator from LA – “Share Our Wealth” – all people with incomes over $1 million would be heavily taxed with money given to the poor - $5,000/family.

21. Section Two The Second New Deal Takes Hold • The Second Hundred Days • Economy improving a little, but unemployment still high (11 million) and production still lagged behind. • 2nd New Deal, or 2nd Hundred Days – more extensive help for farmers and workers.

22. Eleanor Roosevelt • Eleanor Roosevelt – Most active first lady in history – gave speeches, traveled the country. • Social reformer – influenced FDR to support minorities and the less fortunate.

23. Eleanor Roosevelt - America's most influential First Lady blazed paths for women and led the battle for social justice everywhereBy DORIS KEARNS GOODWIN from http://www.time.com/time/time100/leaders/profile/eleanor.html • Eleanor shattered the ceremonial mold in which the role of the First Lady had traditionally been fashioned, and reshaped it around her own skills and her deep commitment to social reform. She gave a voice to people who did not have access to power. She was the first woman to speak in front of a national convention, to write a syndicated column, to earn money as a lecturer, to be a radio commentator and to hold regular press conferences.

24. Reelecting FDR • 1936 Election – Rep – Alfred Landon (Gov. of KS). FDR won big – won all states except Maine and Vermont. Dems also won large majorities in both houses. • First time Af-Am voted Dem and 1st time labor unions supported a candidate.

25. Helping Farmers • 2/5 mortgaged their farms, thousands of small farmers still losing their farms • 1938 – Second AAA – just like the first but didn’t include the tax that was ruled unconstitutional. • Resettlement Administration – loans to small farmers to buy land. Government gave equipment and seed to get them started.

26. Farm Security Administration – replaced the Resettlement Admin. – helped tenant farmers become landowners and provided camps for migrant workers.

27. Roosevelt Extends Relief • Works Progress Administration – (WPA ) - provide jobs as quickly as possible for youths, professionals, and other workers. • 8 million jobs to unskilled workers doing federal construction projects. 850 airports, 651,000 miles of roads, 125,000 buildings, women sewed garments for the poor. FL Keys bridge, Lincoln Tunnel connecting NY to NJ, Fort Knox, finished Hoover Dam. • Federal Writers Project –guides to cities, wrote slave narratives • Federal Arts Project –paint city murals • Federal Theater Project – actors toured cities performing

29. National Youth Administration – set up to provide jobs, education, counseling and recreation for youth. Students worked part time jobs at their schools, like typing – keep them in school and out of work force if possible. For drop-outs – found other work, like working on highways, parks, buildings.

30. Improving Labor • National Labor Relations Act, called the Wagner Act – reestablished the right to collective bargain, the right of workers to join a union, prohibited unfair labor practices (threatening workers, firing union members). Set up the National Labor Relations Board – NLRB – hear testimony about unfair practices and hold votes on union membership.

31. Fair Labor Standards Act – 1938 – set maximum hours at 44/week, 40/week after 2 years. Set minimum wage at $.25/hr, $.40/hr by 1945. Banned hazardous work under 18. Time and ½ for overtime.

32. The Social Security Act • 1935 – Social Security Act – 3 parts – • old-age insurance for retirees 65 or older and their spouses – ½ funds from worker and ½ for the employer. • Unemployment Compensation • aid to families with dependent children and the disabled – paid for by federal funds.

33. Expanding and Regulating Utilities • 12.6 % of farms had electricity. • Rural Electrification Administration – REA – worked with electric co-ops to get electricity to rural areas (low interest loans). By 1945 – 45%, 1949 – 90% had electricity. • Public Utility Holding Company Act – 1935 – outlawed ownership of utilities by multiple holding companies. Hard to enforce b/c of lobbying.

34. Section Three The New Deal Affects Many Groups • Women Make Their Mark: • Frances Perkins – first lady cabinet member – Secretary of Labor. • 2 female diplomats and a female federal judge. • Workplace – still discrimination. NRA even set lower wages for women. CWA hired few women, CCC only men.

35. African Americans: • 100 government positions to AF-Am. • Mary McLeod Bethune – head of the Division of Negro Affairs of the National Youth Administration – provide job training. She organized a “Black Cabinet” – gave FDR advice on racial issues.

36. Mexican-Americans: • Received few benefits, but hoped it would get better. • Native Americans: • Indian Reorganization Act of 1934 – moved away from assimilation and toward autonomy (independence), gave some reservations to tribal ownership.

37. New Deal Coalition • New Deal Coalition – alignment of diverse groups dedicated to supporting the Dem Party. The coalition – southern whites, urban groups, Af-Am, unionized industrial leaders.

38. Labor Unions Flourish • Union members – better working conditions thanks to Wagner Act – made FDR a “friend of labor.” • Unions grew to 10 million members. • Congress of Industrial Organization – CIO – skilled and unskilled workers.

39. Section Five The Impact of the New Deal • 1937 – beginning to see an end to the Depression. • 1939 – New Deal over, FDR watching Europe. • Shaping the economy: • FDIC – regulates banking. • SEC – regulates the stock market.

40. New Deal – didn’t end Depression – did create jobs, gave food, money to millions. Govt. did go deeply in debt to do it – deficit –increased $2.9 billion. • What ended the Depression? WWII

41. Social welfare of its citizens: • Social Security Act • The Environment: • CCC - planted trees, parks • TVA – used water power for electricity, prevent floods • Added national parks, wildlife refuges.