The New Deal: 1933-1939

1. Franklin D. Roosevelt and the New Deal “ I pledge to the American people a NEW DEAL….” “ We have nothing to fear but fear itself.” The New Deal: 1933-1939

3. Herbert Hoover and Franklin D. Roosevelt, 1932 Hoover , Republican Roosevelt, Democrat

4. WHAT WAS THE NEW DEAL???Phase I: The First Hundred Days • THE HUNDRED DAYS: Between March 9 and June 16 of 1933 FDR signed 15 historic bills for… • 1. Relief for the unemployed • 2. Reform of business practices • 3. Recovery of the economy during the Great Depression. • These programs came to be known as the “NEW DEAL”. • Many historians believe this to be one of the most creative periods in American political history and we still feel its impact today.

5. From the Great Depression to the New Deal: 1929-1930s • Cause: Great Depression=A severe economic crisis followed the rapid economic expansion and buying on credit that occurred in the 1920s. The economy collapsed and many Americans lost their jobs and homes, banks failed, and the depression spread around the globe. • Effect:New Deal=a set of programs put into place by the federal government to address the economic problems.

6. The Debate: What Caused the Great Depression? • Economists still disagree and argue about the causes of the Great Depression. • John Maynard Keynes believed that the government failed to act to stop the economic crisis by regulating the money supply. • Keynes recommended in hard times, the government should spend more money to keep people employed, EVEN IF THAT MEANT GOING INTO DEBT. This is a controversial economic theory also known as DEFICIT SPENDING.

7. FDR Takes Action—First Days in Office • 1. Two days after taking office, FDR declared a “Banks Holiday and passed the Emergency Banking Act. • 2. Uses the radio to communicate with the American people and gain their support …fireside chats • 3. Economy Act—assured Americans the government was going to balance the budget • 4. Legalized the manufacture and sale of beer

9. Prohibition Ends

10. Fireside Chats

12. New Deal Programs= “ALPHABET SOUP” • 1. AAA= Agricultural Adjustment Act, 1933 Provided subsidies to farmers to lower production and help raise commodity prices • 2. NRA=National Recovery Administration, 1933 Established codes to regulate wages and prices, encourage consumer spending and promote fair competition (Symbol was the blue eagle) • 3. TVA=Tennessee Valley Authority, 1933 Government funded a dam project to electricity and put people to work

15. What actions were taken to REFORM THE BANKING and FINANCIAL SYSTEMS? • 1. Roosevelt went off the gold standard • 2. Passed Banking Regulations FDIC=Federal Deposit Insurance to insure deposits in banks • SEC=Securities and Exchange Commission to police the stock market

16. Quiz Jan 30 • 1. Which president proposed an economic domestic policy called the “New Deal”? • 2. How did Franklin Roosevelt communicate with the American people? • 3. Which group of Americans was the AAA designed to help? • 4. List the primary goals of the New Deal (three “Rs”) • 5. Which government agency provided insurance for bank deposits?

17. Which New Deal Programs created Jobs for Americans? • 1. WPA=Works Progress Administration • 2. CCC=Civilian Conservation Corps • Both of these programs were designed to give Americans jobs ---not direct relief.

20. WPA workers at a zoo

21. WPA artist at work

22. ER at a WPA nursery

23. CCC workers at Rocky Mountain National Park, 1933

25. CCC workers building a road, 1933

26. CCC camps, tents were replaced by barracks

27. What was the Immediate Impact of the New Deal? (2 slides) • 1. Rescued the banking system and set up system of deposit insurance (FDIC) • 2. Regulated stock exchanges • 3. Saved the failing railroad system • 4. Went off the gold standard which raised farm prices • 5. Refinanced farm mortgages and rescued farmers.

28. Immediate Impact of the New Deal continued… • 6. Sent $500 million to the states for direct relief • 7. Saved a fifth of all homeowners from foreclosure • 8. Put millions of men and women to work on public works projects ……roads, dams, bridges, parks, schools, ….. • 9. Raised the moral of the American people

29. The Second New Deal IN 1935 Franklin Roosevelt introduced new programs to help unions, the elderly, and the unemployed.

30. Why were some Americans critical of the New Deal? • FDR had begun to spend more money than the government took in. Deficit spending occurs when the government has to borrow money to pay for programs. • Some believed the federal government expanding its power at the expense of the states’ rights. • Others believed the New Deal placed too many limits and regulations on businesses. • American Liberty League—opposed the New Deal

31. Who were the Critics of the New Deal? • 1. Conservative Republicans • 2. Huey Long “Share the Wealth” • 3. Supreme Court

32. Huey Long, governor of Louisiana suggested Americans should “Share Our Wealth”

33. http://www.history.com/videos/the-new-deal

34. What programs were put into place during the “Second New Deal”? • 1. Highest peacetime progressive tax rate (high taxes!) • 2. ***Wagner Act--Gave more power to labor and unions grew—there were 5,000 strikes in 1937 • 3. ***Social Security Act—created an unemployment system, disability insurance, old age pension, and child welfare benefits. • ***The Social Security Act established the principle that the federal government should be responsible for those, who through no fault of their own, were unable to work.

35. 4. WPA=Works Progress Administration –to end unemployment and create jobs 5. REA=Rural Electrification Administration – brought electricity to isolated rural areas 6.Banking Act –to strengthen the Federal Reserve

36. Putting America to Work

37. Rockefeller Center Under Construction

38. Men on A Girder, 1932, New York

39. Men Asleep on Girder

40. Election of 1936—FDR wins by landslide • FDR won by greatest margin in American history • Political loyalties of the American people had shifted to the Democratic Party • The Democrats will control government for 30 years • People will look to the government to solve problems

42. How did the New Deal Give More Power to Labor? (workers) • National Labor Relations Act (1935) –which is also called the Wagner Act—guaranteed workers the right to organize unions without interference from employers • Many people joined unions during this time and during the next two decades

43. Why did FDR attack on the Supreme Court? • In 1935, the US Supreme Court ruled that some of the New Deal programs were unconstitutional. • FDR tries to add justices to the Supreme Court to raise the number from 9 to 15 in order to gain support for his New Deal Programs. • There is a huge backlash against FDR by both Democrat and Republicans • FDR fails and the “Court Packing” scheme damages him politically

44. Eleanor Roosevelt with Marian Anderson

46. What was role of Women in the New Deal? • Frances Perkins was the first female cabinet member. She served as Secretary of Labor, but had very traditional ideas about the role of women in society.

47. Lorena Hickok travels across the nation

48. Eleanor Roosevelt

49. Federal Art Project: New Deal Art

50. ***What ended the Great Depression? • 1. Many believe THE NEW DEAL DID NOT END THE GREAT DEPRESSION but it did help stabilize the economy and kept the crisis from getting worse. • 2. WWII ended the economic crisis—war production and rearmament