Republicans must stay with Hoover or take blame for Depression

Election of 1932 • Republicans must stay with Hoover or take blame for Depression • Democrats choose Franklin D. Roosevelt • Hoover says F.D.R. will destroy the American economy

F.D.R. traveled 25,000 miles, promised to help “the forgotten man” - “New Deal” • F.D.R. wins - Inaugural Address - “The only thing we have to fear is fear itself. Reality was that he was the first to give the nation hope

Brain Trust • Group of intellectuals who advised the President • Raymond Moley - Law professor • Rexford Tugwell - Agriculture professor • Adolph Berle - Corporate finance lawyer and speech writer

"100 Days" • The first “New Deal” • March 9 - June 16, 1933 • Honeymoon period when the President told the Brain Trust “If all fails admit it frankly and try another, but above all try”

Emergency Relief Banking Act • Declared a “Bank Holiday” - fastest bill in history • Sec. of Treasury called in all gold in the country ($10,000 fine if you didn’t) • Examined all banks - sound ones were allowed to reopen

First “Fireside Chat” he says “I assure you it is safer to keep your money in a reopened bank than under a mattress” • By end of next week 3/4 of nations banks reopened • Emergency currency issued to halt bank runs

Glass-Stegal Act • Prohibited commercial banks from selling stock or financing corporations • Created Federal Deposit Insurance Corporation (FDIC) which insured investors up to $2,500

Gold Standard • F.D.R. had the U.S. taken off the gold standard in April, 1933 • By 1934, the dollar is worth 59 cents

National Recovery Administration • Goal was to see major businesses shortened hours and raised wages • “Codes of Fair Competition” - minimum wage, no child labor, and collective bargaining • Established N.I.R.A.

National Industrial Recovery Act • Effort to join the federal gov’t with business and labor to fight the depression • Set codes of fair competition • Headed by Hugh Johnson • Blue Eagle “We do our part”

People encouraged to only go to NIRA businesses • Small and large businesses didn’t like it (too pro-labor) • NIRA and NRA declared unconstitutional - can not establish codes of fair competition

Wagner Act • National Labor Relations Act - 1933 • Saved part of the NIRA • No coercion of employees • No firing due to union membership • Guarantee collective bargaining

Civilian Conservation Corps • CCC - March 31, 1933 • Provide employment for men age 18-25 • Built parks and battlefields • Paid $30.00/month, $25.00 had to be sent home

Agricultural Adjustment Administration • To advise and assist farmers • May 12, 1933 • Government paid farmers not to produce • Paid subsidies for unplanted land • By 1934 - size of Illinois

Federal Emergency Relief Administration • May 12, 1933, FERA • To provide direct relief to needy Americans. • System set up $5 million to state and local governments to directly help the needy

Tennessee Valley Authority • TVA, May 28, 1933 • To help develop the resources of the Tennessee Valley • 25,000 miles long, 25 dams, 7 states benefit from electricity provided • Encouraged industry in area

Home Owners' Loan Corporation • HOLC, June 13, 1933 • To help townspeople refinance their mortgages • Low interest rates and 15 years to pay mortgage • Helped middle and upper middle class homes

Public Works Administration • PWA, June, 13, 1933 • Provide employment on public works • Help business help people • Usually were construction jobs • Enterprise and Yorktowne

National Recovery Administration • June 13, 1933, NRA • To revive American business

Farm Credit Administration • FCA, June 16, 1933 • Set up credit system for farmers

Civil Works Administration • CWA, November 8, 1933 • Provided employment at federal expense • Rake leaves, pave roads, • Real goal was to get people through the Winter of 33-34 • Airports, schools $15.00/week

Securities and Exchange Commission • SEC, June 6, 1934 • Protected public and private investors in stocks

Federal Housing Administration • FHA, June 28, 1933 • Inside loans for home construction

Enemies of the New Deal

Dr. Francis Townsend • Wanted to pay every American over 60 $200/month • To be paid by 2% sales tax • Person could not hold a job • Had to spend money every month • Popular idea with the people • Cost $24 billion/year

Father Charles Coughlin • “Radio Priest” • Received more mail in 1934 than FDR - very popular • Wanted government ownership of banks, natural resources and public utilities

Huey P. Long • “Kingfish” • Proposed gov’t take money from the rich and give to the poor • Give every family a car, home, & a radio • College education if wanted • Tax the rich at 70% - he was assassinated

The Second New Deal

Works Progress Administration • WPA, April 8, 1935 • Provide jobs and training for 16-25 year olds • Accounted for over 1/2 of schools built in the 1930’s, 800 airports, 13,000 playgrounds, 2,500 hospitals • Kept artists and actors employed

National Labor Relations Board • NLRB, July 5, 1935 • Purpose was to guarantee rights to workers

Social Security Board • SSB, August 14, 1935 • To provide a sound social security system • Helped children, handicapped, and the aged • Every worker had to take part

Provided for unemployment compensation • Employers and employees made mandatory contributions out of wages • Idea came from Francis Perkins, first women to hold a cabinet position

Republicans must stay with Hoover or take blame for Depression