1 / 11

The New Deal

The New Deal. the first phase of the New Deal dealt exclusively w / economic reform. S tep 1 – bank protections : BANKING HOLIDAY - banks were shut down and subject to gov't inspection; allowed to open when deemed "healthy” FDIC – Federal protection of people’s deposits

ellis
Download Presentation

The New Deal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The New Deal

  2. the first phase of the New Deal dealt exclusively w/ economic reform. • Step1 – bank protections: • BANKING HOLIDAY- banks were shut down and subject to gov't inspection; allowed to open when deemed "healthy” • FDIC – Federal protection of people’s deposits • BANKING ACT of 1933 – Glass-Steagall: Banks can no longer invest their clients’ savings into the stock market. Either you’re a deposit bank, or you’re an investment bank – not both. • people's confidence returned; they re-deposited, giving banks cash to invest in the economy

  3. Step 2 - stock market reform • Security Exchange Commission: to police the NYSE • first chairman: Joseph P. Kennedy • practice of buying on margin was regulated • Step 3 – put more cash in circulation • FDR went off the GOLD STANDARD • gov't could print more $, so put more in circulation, wages and prices increased • Inflation gave gov't spending power

  4. NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) • NATIONAL RECOVERY ADMIN (NRA) • established to end animosity between labor and business. • fair labor codes established • Minimum wages, no child labor, shortened work hours • business people challenged the NRA, • claiming it was communist: • they formed the LIBERTY LEAGUE • Under LL pressure, the Supreme Court • overturned the NIRA & NRA in 1935, claiming that • the fed. gov. exceeded its authority • (by interfering in state jurisdictions) • National Labor Relations ACT (NLRA): 1935 • Also called Wagner Act • Fixed the problems with NIRA – protected Union Organizing SPECIFIC PIECES OF LEGISLATION(“Alphabet Soup”)

  5. TVA - TENNESSEE VALLEY AUTHORITY used to promote hydroelectric power, control flooding lower electric rates boosted private industry (nationalization v. privatization) WPA – WORKS PROGRESS ADMINISTRATION • employed millions of unskilled workers to carry out public works (infrastructure) projects: • construction of public buildings • Roads • operated large arts, drama, media, and literary projects.

  6. CCC – CIVILIAN CONSERVATION CORPS • Provided unskilled manual labor jobs related to the conservation and development of natural resources • provided employment for young men in relief families • in nine years, 2.5 million young men participated.

  7. AAA – AGRICULTURAL ADJUSTMENT ACT • passed in 1933 to aid formers • to restore farmers' purchasing power and to restore the family farms • had farmers cut back on crop production by paying them SUBSIDIES (paid not to produce) • Bad side: • food production went down when millions were starving • Black sharecroppers were hurt: white landowners got rid of Black tenant formers because they were being paid NOT to farm • in 1935, AAA was declared unconstitutional by courts (too much control over individual states), so it was revised and introduced as new legislation: • EX: Food Stamp Act of 1939 - gave away surplus food to poor, also guaranteed (small) farmers a market

  8. NYA – NATIONAL YOUTH ADMINISTRATION • created jobs for young in urban areas • Provided vocational education for young men and women SSA – SOCIAL SECURITY ACT • feared by opponents as "creeping socialism” • Provided unemployment insurance, old age pensions • Problem: it took some $ out of circulation (payroll deductions) at a time when purchasing power was already low- also, it only covered the unemployed

  9. ELECTION OF 1936 • FDR won easily • (v. Republican Alf Landon, Kansas governor) • this victory gave FDR a mandate to continue his New Deal policies • first objective: to reorganize that obstructionist Supreme Court!! • FDR proposed packing the Court with 15 justices • Such great opposition,FDR withdrew the proposal • BUT judges were chastened & several retired • FDR appoint new justices that approved all New Deal legislation

  10. The Late 1930’s • FDR concerned more with international issues • 1939: he proposed no new major domestic reform measures (1st time in his pres.) • ELECTION OF 1940: FDR broke with tradition & ran a 3rd time • FDR (v. Wendell Wilkie) • Big issue was American support of the Allies, now embroiled in WWII v. Nazi Germany • both U.S. pol. parties wanted to support Britain but to remain neutral • both parties approved of (most) New Deal legislation & wanted an isolationist foreign policy

  11. Isolation won’t last long…

More Related