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The New Deal

The New Deal

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The New Deal

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  1. The New Deal Ch.15

  2. Roosevelt’s New Deal • Four months elapsed between the election and FDR taking office • Worked with his advisors, the Brain Trust, on new policies that came to collectively be called the New Deal • Policies focused on 3 goals • Relief, recovery, and reform • Hundred Days • Congress passed legislation that expanded the government’s role in the economy • Bank Holiday- all banks were closed and only those that could repay their loans were opened

  3. Roosevelt’s New Deal • Fireside Chats • Radio chats about issues of public concern • Banking and Finance Regulation • Glass-Steagall Act (1933) established the Federal Deposit Insurance Corporation (FDIC) • Federal Securities Act (1933) • Securities and Exchange Commission (SEC)

  4. Helping the American People • Rural Assistance • Agricultural Adjustment Act (AAA) sought to raise crop prices by lowering production • Tennessee Valley Authority (TVA) renovated existing dams and built 20 new ones which provided jobs, flood control, and hydroelectric power to the region • Works Projects • Civilian Conservation Corps (CCC)- built roads, parks, planted trees, worked on soil-erosion and flood-control projects • National Industrial Recovery Act (NIRA)- constructed schools and other community buildings

  5. Helping the American People • Promoting Fair Practices • Codes limited production and established prices • Workers could unionize and bargain collectively • Food, Clothing, and Shelter • Federal Emergency Relief Administration (FERA) provided direct relief for the needy and work relief programs

  6. New Deal Under Attack • Deficit Spending • Spending more money than the government was taking in revenues • Roosevelt regarded it as a necessary evil • The New Deal did not end the Great Depression • Liberal critics said that FDR did not go far enough • Conservative critics said FDR was trying to socialize the economy

  7. New Deal Under Attack • Supreme Court Reacts • 1935 NIRA & 1936 AAA declared unconstitutional • Court-packing Bill • FDR wanted to add more judges to the Supreme Court because he thought the current ones were going to undo the New Deal • American Liberty League • Conservative New Deal critics who opposed legislation they believed violated individual rights and property rights

  8. Fiery Critics • Father Charles Coughlin • Roman Catholic priest; favored a guaranteed income and nationalization of banks • Dr. Francis Townsend • Believed Roosevelt wasn’t doing enough to help the poor and elderly • Huey Long • Senator from Louisiana who proposed Share-Our –Wealth to guarantee a home, food, clothing, and education • Assassinated in 1935

  9. Reform and Stalemate • Roosevelt Recession (1937-1938) • Industrial output increased to 1929 levels and unemployment was at 14% so FDR cut back on government spending • Congress then cut the WPA’s funding and the Federal Reserve raised interest rates • Keynesian Economics • British economist John Maynard Keynes argued that government intervention could smooth out the highs and lows of the capitalist economy • “pump priming”- deficit spending and manipulation of interest rates to regulate money supply

  10. Rise of Labor • American Federation of Labor (AFL) • Organized skilled workers by craft • Congress of Industrial Organizations(CIO) • Led by John L. Lewis • Broke off from AFL to organize non-skilled laborers

  11. Minorities in the New Deal • Women in Government • Frances Perkins- Sec. of Labor • Eleanor Roosevelt- held press conferences for female journalists and traveled the country • Black Americans • Last hired, first fired • Little support from the president • Mary McLeod Bethune • Established the Federal Council of Negro Affairs • Indian Reorganization Act (1934) • Repealed Dawes Act and returned land to tribal control

  12. Minorities in the New Deal • Mexicans and Asians • Mexicans living in major western cities received better treatment than in small towns • Overall, the Mexican population declined as many went to Mexico • 20% of Japanese immigrants went back to Japan • Chinese were excluded from most federal programs because they were still not allowed to become citizens

  13. New Deal Arts • Federal Art Project • Gave work for many young artists to create “art for the millions” • Federal Music Project • Government-sponsored orchestras; cataloged folk songs • Federal Writers Project • Collected oral histories; published state guidebooks • Federal Theater Project • Produced plays for the masses that were socially critical

  14. Legacies of the New Deal • Bureaucracy • Foundations of a social welfare state • Government intervention

  15. Discussion Questions • Pick one of the following to answer • How did Franklin Roosevelt change the role of the federal government? • How successful do you think Roosevelt was as a president? • How did the lives of minorities’ change during the Great Depression?