The Great Depression and the New Deal

1. The Great Depression and the New Deal Chapter 34 by Skyler Burkhart

2. New Deal Acronyms Chart Because there are so many reforms and acts of legislation during the age of the "New Deal", here is a chart to assist you throughout the chapter. http://americanhistory.about.com/library/glossary/blglossnewdeal.htm

3. Election of 1932 • because of the rise in unemployment and poverty, President Hoover was becoming increasingly less popular • The Republican party nominated Herbert Hoover • The Democrats nominated Franklin Delano Roosevelt (FDR) • born into wealthy family • was the governer of New York state

4. FDR: Politician in a Wheelchair Franklin Delano Rooselvelt •  he had a very mature and wise presence •  he was considered "the premier American orator of the generation" (he was an extremely talented public speaker) Eleanor Roosevelt • wife of FDR • considered the "most active First Lady in history" • she fought for equality for the poor and oppressed

5. Presidential Hopefuls of 1932 • Roosevelt disliked the Republican Old Deal and sought to "preach a new deal for the forgotten man" in the Election of 1932 •  he wanted to settle the nation's economic issues •  also wanted to decrease "Hoovarian deficits" •  many Americans lost trust in Republicans because of the nation's failing economy, but Herbert Hoover still held onto hope that the worst of the Great Depression was over • Herbert Hoover fought for American businesses and individualism

6. Hoover's Humiliation in 1932 • Roosevelt beat Hoover by a landslide in the Election of 1932 • Blacks began to become a major part of the Democratic party, mostly located in the urban regions of the North Blue:  FDR Red:   Hoover

7. The Three R's: Relief, Recovery, and Reform • The Hundred Days Congress (Emergency Congress) • declared by FDR only 2 days after his inaguration • lasted from March 6-10, 1933 • the Congress decided to pass laws that would deal directly with the Great Depression •  Roosevelt's New Deal program (the 3 R's) • Relief • Recovery • Reform • Blank-Check Powers • given by Congress to give legislative power to the president • new progressive ideas emerged, such as a minimum wage, insurance for the elderly and unemployed, and conservation of natural resources.

8. "I pledge you, I pledge myself, to a new deal for the American people."                                                               -Franklin D. Roosevelt

9. Roosevelt Tackles Money and Banking • Emergency Banking Relief Act of 1933 • passed by Congress because of the dire need for a financial solution • this act gave the president a lot of financial power. For example, regulate transactions as well as foreign financial affairs. • "Fireside Chats" • given by Roosevelt  • these chats started to rebuild the American people's faith in banks

10. Roosevelt Tackles Money and Banking (cont.) Glass-Steagall Banking Reform Act created the...  • Federal Deposit Insurance Corporation (FDIC) • stated that individual banking accounts would be insured up to $5,000 • this ended the "banking failure epidemic" • Roosevelt encouraged paper currency and weaned the nation off of the gold standard • Roosevelt hoped for inflation  • would rid of debt burdens • would increase new production • Inflation = buying gold = increased gold price = increased $ price = more money in circulation

11. Creating Jobs for the Jobless • Civilian Conservation Corps (CCC) • gave jobs to about 3 million men in government camps • some of the jobs included fire fighting, flood control, and various public service duties • Federal Emergency Relief Act created the Federal Emergency Relief Administration (FERA) • led by Harry L. Hopkins • the agency granted about $3 billion to giving wages to workers for service jobs • Civil Works Administration (CWA, a branch of the FERA) • created in order to give temporary jobs during the winter • thousands of unemployed were given manual labor jobs (ex. raking leaves, etc) • Agricultural Adjustment Act (AAA) • helped farmers meet their mortgages by paying thousands of $$ • Home Owners' Loan Corporation (HOLC) • helped those who struggled to pay their mortgages

12. Camp Roosevelt Some of the men that worked at a Civil Conservation Camp

13. A Day for Every Demagogue • As with every presidency, there were some who greatly opposed Roosevelt's "New Deal". For example,  • Father Charles Coughlin  • would give "Anti-New Deal" radio broadcasts which were very anti-Semitic and harsh • he had to be taken off of the air • Senator Huey P. Long • creator of the "share the wealth" program • this program gave each U.S. family $5,000 • he was assassinated in 1935, ceasing the program • Dr. Francis E. Townsend • stated that every citizen over 60 years old would be granted $200/month • senior citizens <3'd the Doc • Works Progress Administration (WPA) • created in 1935 with the intention of employing many for "useful projects", such as construction • taxpayers did not favor this organization because they felt that they were paying people to do useless and unproductive jobs

14. A Helping Hand for Industry and Labor Several organizations were designed with the intention of assisting workers • National Recovery Administration (NRA) • assisted both laborers and the unemployed • also assisted organizations • minimum wage was established, as well as equal hours for more employees • employees were earning the right to establish a workplace of their choosing, as opposed to the company's choosing • the NRA failed in 1935 • Schechter Poultry Corp v. United States declared that legislative powers could not be granted to the president by Congress • Public Works Administration (PWA) • aimed to assist the unemployed as well as recover the industrial world • Harold L. Ickes lead PWA • over $4 billion was spent on public projects that would benefit citizens • 21st Amendment, prohibition, was appealed in 1933 in order to provide jobs and increase federal profit

16. Paying Farmers Not to Farm • Agricultural Adjustment Administration (AAA) • created by Congress • established "parity prices" (a set price for a product)  • farmers were paid to eliminate surpluses by reducing their crops. This increased unemployment •  in 1936, the Supreme Court declared the AAA unconstitutional • Soil Conservation and Domestic Allotment Act of 1936 • passed by the New Deal Congress • farmers were paid to plant soil-preserving crops • this led to the natural reduction of crops (eliminating surpluses) • Second Agricultural Adjustment of 1938 • basically stated that if farmers followed the previous acts, such as soil conservation, they would be rewarded with parity payments FDR signing the Soil Conservation and Domestic Allotment Act of 1936

17. Dust Bowls and Black Blizzards • Dust Bowl of 1933 • a drought that mostly affected the Mississippi Great Plains • caused by too many cultivated acres, as well as "dry farming techniques" • Frazier-Lemke Farm Bankruptcy Act, 1934 • intended to suspend mortgage forclosures for 5 years • the Supreme Court did not approve and shut it down in 1935 • Resettlement Administration, 1935 • created by Roosevelt • moved farmers to more prosperous lands in order to restart their farming career • Indian Reorganization Act of 1934 • an act that was passed to reignite and preserve the Native American culture • 77 tribes did not conform to the request under the law, but hundreds of other tribes agreed

18. Dust Bowl Video http://www.youtube.com/watch?v=x2CiDaUYr90

19. Battling Bankers and Big Business • Truth in Securities Act (aka, Federal Securities Act) • created by Congress to protect citizens from fraud • the act required that companies selling products had to swear to their information regarding their stocks and intentions • Securities and Exchange Commission (SEC) • created by Congress to be a "watchdog" agency • was passed in 1934

20. The TVA Harnesses the Tennessee River • Muscle Shoals was a location near the Tennessee River in which around 2.5 million of Americas impoverished lived. The government hoped to construct a dam on the Tennessee River, providing both energy and jobs for the poor in Muscle Shoals. • Tennessee Valley Authority (TVA) • created by the Hundred Days Congress in 1933 • was created to estimate the cost of both production and distribution of electricity • Muscle Shoals began to flourish rapidly as one of the most upcoming areas in the U.S. • countless jobs  • cheap electricity • low cost of living • restored soil and growing land

21. Dam on the Tennessee River

22. Housing Reform and Social Security • Federal Housing Administration (FHA) • created by Roosevelt to increase economic and housing recovery • United States Housing Authority (USHA) • created to lend money to communities for construction and rebuilding • Social Security Act of 1935 • retired workers were given payments from Washington • also provided for unemployment insurance • republicans strongly opposed the Social Security Act • the government was beginning to understand the concept of welfare for citizens

23. A New Deal for Unskilled Labor • Congress had sympathy for labor unions when the Supreme Court criticized the NRA • the National Labor Relations Act of1935 (Wagner Act) was created, in addition to the National Labor Relations Board • reassured that workers could self-organize and elect their own representatives • Committee for Industrial Organization (CIO), 1935 • lead by John L. Lewis • they striked several times, including the famous "sit-down strike" at General Motors automobile factory • Fair Labor Standards Act (Wages and Hours Bill), 1938 • minimum-wage and minimum-hour levels were established • children under 16 were forbidden to work • The CIO and the AFofL joined together in 1938 to create the Congress for Industrial Organizations. John Lewis continued to lead

24. Landon Challenges "the Champ" in 1936 • Election of 1936 • "New Dealers" had grown immensely popular and government was becoming appreciated by citizens • Republicans chose to run Alfred M. Landon against the Democratic re-nominee of Franklin D. Roosevelt • Roosevelt won because of his appeal to the "forgotten man" • included minorities such as blacks and the poor • his new ideas continued to appeal to most of the debt-stricken nation • his victory was considered "lopsided" Blue:  FDR Red:  Landon

25. Nine Old Men on the Supreme Bench • 20th Amendment -->the time between the election and the inauguration was shortened by 6 weeks, so Roosevelt took his inauguration early. • Roosevelt believed that since he was reelected, the American public must favor the "New Deal" philosophy • he declared that the Supreme Court must become one with public opinion in order to preserve American life • Roosevelt proposed a plan to Congress that requested legislative power to elect a new Supreme Court justice for every member 70 years+ that would not retire • the plan received a very negative response • this was to the surprise of many

26. The Court Changes Course • Roosevelt began to be taunted for his attempt to bust the checks and balances system within government • Justice Owen J. Roberts began to vote liberal, even though he was once a strong conservative • the Supreme Court began to uphold many laws and acts, such as • a minimum wage for women • the National Labor Relations Act • the Social Security Act • Roosevelt elected 9 new justices to court after many deaths and resignations • nearing the end of his presidency, FDR began to annoy and arouse many Conservatives. Not many New Deal reforms were passed after 1937.

27. The Twilight of the New Deal • although Roosevelt did assist in recovery from economic debt, his first term still ran an extremely high unemployment rate. • In 1937, the Social Security taxes began to create a downturn in the economy • Roosevelt often looked to assistance from British economist, John Maynard Keynes • "Keynesianism" was an economic program that intended to recover the economy with planned spending • Reorganization Act • gave FDR limited powers in administration, even in the executive branch in the White House • Hatch Act of 1939 • prohibited the use of government funds for political campaigning • restricted federal officials from actively campaigning

28. New Deal or Raw Deal? • criticizers of the New Deal claimed that FDR only increased the national debt by spending too much money on reform programs • the New Deal only temporarily covered up the wounds of the Great Depression, as opposed to actually solving the problems • high unemployment rates would not truly be solved until WWII

30. FDR'S Balance Sheet • Roosevelt was not hurt by the New Deal criticizers because he strongly believed in a government that simply managed the economy • According to FDR, the government was "morally bound" to provide for the citizens • In conclusion, Franklin D. Roosevelt favored big government but had a heart for the common man.