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The New Deal Fights the Depression

The New Deal Fights the Depression. Main Idea - After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression After this section, we should be able to: Summarize the initial steps Roosevelt took to reform banking and finance

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The New Deal Fights the Depression

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  1. The New Deal Fights the Depression

  2. Main Idea - After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression • After this section, we should be able to: • Summarize the initial steps Roosevelt took to reform banking and finance • Describe New Deal work programs Main Idea and Objectives

  3. Franklin Delano Roosevelt • Republicans knew that President Hoover wasn’t going to win re-election – too many people blamed him for problems • Democrats nominated Franklin Delano Roosevelt • Can-do attitude • Air of friendliness and confidence • Roosevelt won election of 1932 easily

  4. During the waiting period between his election and inauguration, FDR collected a group of advisers known as his “Brain Trust” to formulate policies for his presidency • Roosevelt proposed a new set of policies to alleviate the problems of the Depression • programs would be known as the New Deal Roosevelt Takes Over

  5. In his first 100 days as president, FDR helped Congress pass 15 major pieces of his plan • By 1933, many Americans had lost faith in the banking system – FDR wanted to restore that • Emergency Banking Relief Act authorized Treasury Department to inspect banks and let them re-open if they were sound The First 100 Days

  6. Fireside Chats • FDR started giving fireside chats radio addresses, to help restore people’s confidence • FDR spoke in clear, simple language to explain the problems with the banks • Banks didn’t hold all the money in cash • People should not lose confidence in the banks because of this • Over the next few weeks, people began to return their money to the banks

  7. Glass-Steagall Act established the Federal Deposit Insurance Corporation (FDIC) • government would insure accounts of up to $5,000 • Securities and Exchange Commission (SEC)regulate stock market • FDR also persuaded Congress to allow the sale of some alcoholic beverages • Goal was to raise money through taxes Other Banking and Finance Changes

  8. Agricultural Adjustment Act paid farmers to grow less produce and lower the supply • Farmers plowed under acres of crops or destroyed other produce • Many people angered by the destruction of food when many Americans were starving • However, it helped raise farm prices and put more money in farmers’ pockets Helping Americans - Rural Assistance

  9. Providing Work • Civilian Conservation Corpsput young men to work building roads, parks, planting trees, etc. • Public Works Administration (created as part of the National Industrial Recovery Act)gave states money to create jobs in construction of schools and other community buildings

  10. The Home Owners Loan Corporationprovided government loans to homeowners who faced foreclosure • Federal Housing Administration still helps people get loans for home mortgages and repairs today • Federal Emergency Relief Administrationprovided direct relief to the needy Food, Shelter, and Clothing

  11. By 1935, the first New Deal programs had improved the economy, but not as much as FDR had hoped • Unemployment still high • Production still lagged behind 1920 levels • First New Deal had been very popular • Election of 1936 was a landslide victory for FDR The Second New Deal

  12. Roosevelt Extends Relief • Works Progress Administration set out to create jobs for youths, professionals, and other workers • Used $11 billion to create jobs for more than 8 million workers • Built 850 airports, constructed or repaired 651,000 miles of roads and streets, and put up more than 125,000 public buildings • Many women worked in sewing groups to create clothes for the needy • Helped restore dignity for a lot of people – they worked, they got paid

  13. Roosevelt Extends Relief (Part II) • National Youth Administration created to provide education, jobs, counseling, and recreation for young people • Provided aid to high school, college, and graduate students • In exchange, students worked at part time jobs at their schools

  14. National Labor Relations Act or Wagner Act – reestablished the right for unions to engage in collective bargaining with employers • They could discuss new contracts with their employers together • Employers couldn’t threaten workers, fire union members, or interfere with unions Improving Labor and Other Reforms

  15. Fair Labor Standards Act (1938) • Set maximum work hours at 44 per week, decreasing to 40 after two years • Set minimum wage at 25 cents per hour, increasing to 40 by 1945 • Set rules for employment of people under 16 and banned hazardous work for anyone under 18 Labor (Continued)

  16. Social Security Act (1935)created the social security system • Old-age insurance for retirees 65 years and older and their spouses • Unemployment compensation system • Aid to families with dependent children and the disabled • Provided substantial benefits to many Americans Social Security Act

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