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THE NEW DEAL

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THE NEW DEAL

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  1. THE NEW DEAL AMERICA GETS BACK TO WORK

  2. SECTION 1: A NEW DEAL FIGHTS THE DEPRESSION • The 1932 presidential election showed that Americans were clearly ready for a change • Republicans re-nominated Hoover despite his low approval rating • The Democrats nominated Franklin Delano Roosevelt

  3. ROOSEVELT WINS OVERWHELMING VICTORY • Democrat Roosevelt, known popularly as FDR, was a 2-term governor of New York • FDR was a distant cousin of Teddy Roosevelt • The Democrats also won huge victories in the house and senate • Greatest Democratic victory in 80 years FDR easily won the 1932 election

  4. FDR LAUNCHES NEW DEAL • FDR promised a “new deal” for the American people • The goal of the New Deal was to regulate the stock market • He took office with a flurry of activity known as “The Hundred Days” • The 100 Days lasted from March to June 1933

  5. CONGRESS GETS BUSY • FDR’s philosophy was to get people help and work through “deficit” spending • During the 100 Days, Congress passed more than 15 major pieces of legislation that significantly expanded government’s role in the nation’s economy and welfare

  6. TO DO LIST: #1- HELP BANKS • First order of business was to get the banking system in order • The first major action Roosevelt took as president was he closed all of the nation’s banks and ordered inspections. • On March 5, one day after taking office, FDR declared a bank holiday • He persuaded Congress to pass the Emergency Relief Act, which authorized the Treasury Department to inspect banks and to close those that were unsound, with the greater goal of restoring public confidence in the banking system. • Emergency Banking Relief Act provided for bank inspections by the Treasury Department and a means for making federal loans to solid banks.

  7. AMERICANS GAIN CONFIDENCE IN BANKS • Next, FDR passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation, with the greater goal of restoring public confidence in the banking system. • Federal Deposit Insurance Corporation was created through the Glass-Steagall Banking Act of 1933, this originally protected up to $5,000 (today = $100,000) of an individual’s bank account.

  8. MORE 100 DAYS ACTIVITY • Federal Securities Act: required corporations to provide complete information on all stock offerings, with the greater goal of restoring public confidence in the stock market. • Agricultural Adjustment Act: (AAA) Raised crop prices by lowering production • By decreasing farm surpluses, New Deal policies helped to raise the price of farm goods. • Raise prices of farm products was a main objective of the Agricultural Adjustment Act. • Agricultural Adjustment Act paid farmers to lower production and, in some cases to destroy crops, with the greater goal of raising crop prices and farm income. • Tennessee Valley Authority: (TVA) Focused on direct relief to hard hit area– created ambitious dam projects • Tennessee Valley Authority helped to create prosperity in a poverty-stricken region by providing funs to build and repair dams, flood control projects, and power plants. • Tennessee Valley Authority rebuilt dams and provided hydroelectric power to an impoverished region.

  9. TVA

  10. ALPHABET AGENCIES • CCC – Civilian Conservation Corps put young men to work • Men ages 18 to 25 worked building roads, parks, planting trees (200 million trees in Dust Bowl areas) • By 1942 three million men worked for the CCC • Civilian Conservation Corps put almost 3 million young men to work building roads, developing parks, and helping in soil-erosion and flood-control projects.

  11. ALPHABET AGENCIES • PWA – Public Works Administration was part of the NIRA (National Industrial Recovery Act) • National Industrial Recovery Act created an administration that set fair prices on many products and established labor standards, with the greater goal of ensuring fair business practices and promoting industrial growth. • The PWA provided money to states to construct schools and community buildings PWA workers construct a public building in Hartford, Connecticut

  12. ALPHABET AGENCIES • CWA – Civil Works Administration built 40,000 schools and provided salaries for 50,000 teachers in rural America • Also built 500,000 miles of roads CWA School in Woodville, CA

  13. ALPHABET AGENCIES • FHA – Federal Housing Administration provided home loans, home mortgages and repairs Repaired business in Childersburg, Alabama

  14. ALPHABET AGENCIES • FERA – Federal Emergency Relief Agency provided $500 million in direct relief to the neediest Americans • Federal Emergency Relief Administration provided direct relief in the form of food and clothing to the neediest people hit by the depression – the unemployed, the aged, and the ill. • The Federal Emergency Relief Administration was most helpful to the unemployed, the aged, and the ill. Citizens wait outside a FERA in Calipatria, CA for relief checks

  15. CRITICS EMERGE • Despite the renewed confidence of many Americans, critics from both political spectrums emerged • Liberals (left) felt FDR’s program was NOT doing enough • Conservatives (right) felt that government intervention was TOO much and interfered with our free market economy • The national debt reached a new high during Roosevelt’s first term as president because of deficit spending.

  16. WINSTON CHURCHILL“Any man who is under 30, and is not a liberal, has no heart; and any man who is over 30, and is not a conservative, has no brains.”

  17. SUPREME COURT REACTS • By the mid-1930s, the Supreme Court struck down the NIRA as unconstitutional (citing too much government control over industry) • National Industrial Recovery Act New Deal legislation was ruled unconstitutional by the Supreme Court. • The Court also struck down the AAA on the grounds that agricultural was a local matter -- not a federal matter • The Supreme Court ruled that the Agricultural Adjustment Act was unconstitutional on the grounds that its provisions were local matters and should be regulated by the states. The Supreme Court -- 1935

  18. FDR REGAINS CONTROL OVER SUPREME COURT • From the mid to late 1930s, FDR was able to appoint 7 new judges to the Supreme Court, thus assuring that his programs would carry on unabated • The reorganization of the Supreme Court was one of Roosevelt’s ideas that failed to become a law.

  19. MORE CRITICS • Every Sunday, Father Charles Coughlin broadcast radio sermons slamming FDR • He called for a guaranteed annual income and nationalized banks • At his height of popularity, Coughlin had 45 million listeners • His increasingly anti-Semitic remarks ultimately cost him support Coughlin

  20. ANOTHER CRITIC • Huey Long was a Senator from Louisiana who was a constant (and effective) critic of FDR • Long was setting up a run for president • Huey Long claimed that the New Deal policies were inadequate and proposed a social program called Share-Our-Wealth. • A lone gunman assassinated Long at the height of his popularity in 1935 Huey Long made effective use of radio to promote his views

  21. FDR EASILY WINS 2ND TERM • The Republicans nominated Alfred Landon, Governor of Kansas, while the Democrats (of course) nominated Franklin Delano Roosevelt • Again the Dems and FDR won an overwhelming victory in the presidential election and in both houses FDR wins in 1936 FDR wins 1936 election

  22. Section 1 A New Deal Fights the Depression New Deal – President Franklin Roosevelt’s program to alleviate the problems of the Great Depression, focusing on relief for the needy, economic recovery, and financial reform. Glass-Steagall Act – the 1933 law that established the Federal Deposit Insurance Corporation to protect individuals’ bank accounts. Federal Securities Act – a law, enacted in 1933, that required corporations to provide complete, accurate information on all stock offerings. Agricultural Adjustment Act (AAA) – a law enacted in 1933 to raise crop prices by paying farmers to leave a certain amount of their land unplanted, thus lowering production. Civilian Conservation Corps (CCC) – an agency, established as part of the New Deal, that put young unemployed men to work building roads, developing parks, planting trees, and helping in erosion-control and flood-control projects. National Industrial Recovery Act (NIRA) – a law enacted in 1933 to establish codes of fair practice for industries and to promote industrial growth. Deficit spending – a government’s spending of more money than it receives in revenue.

  23. SECTION 2: THE SECOND NEW DEAL • Although the economy had improved during FDR’s first term (1932-1936), the gains were not as great as expected • The role that Eleanor Roosevelt played in the Roosevelt Administration was that she was an important advisor on domestic policy. • Unemployment remained high and production still lagged

  24. THE SECOND HUNDRED DAYS • FDR launches the “Second New Deal” also called the “Second Hundred Days” • First priority was the farmers – FDR reinvigorated the AAA which provided aid for migrants, sharecroppers, and poor farmers • FDR authorized more than $1 billion to help tenant farmers become landowners

  25. Arkansas Tenant Farmers,1936

  26. WORKS PROGRESS ADMINISTRATION • Helping urban workers was critical to the success of the Second Hundred Days • The WPA set out to create as many jobs as possible as quickly as possible • Works Progress Administration was directly responsible for creating new jobs and putting people to work. • Works Progress Administration addressed the problems of unemployment and poverty by creating jobs that ranged from the construction of airports and libraries to the sewing of clothing for the needy. • Between 1935-1943, the WPA spent $11 billion to give jobs to 8 million workers

  27. WPA BUILDS AMERICA • WPA workers built 850 airports, 651,000 miles of roads and streets, and 125,000 public buildings • The WPA also hired artists, writers and photographers to create art The Davis Street School Extension in Atlanta under construction as part of the Works Progress Administration Program, November 2, 1936

  28. NATIONAL YOUTH ADMINISTRATION • The National Youth Administration (NYA) was created to provide education, jobs and recreation for young people • Getting young people off the streets and into schools and jobs was a high priority for the NYA

  29. CONGRESS PROTECTS WORKERS • In 1938, Congress passed the Fair Labor Standards Act which set maximum hours at 44 per week and minimum wage at 25 cents per hour • Fair Labor Standard Act set a national minimum hourly wage and prohibited factory labor for children under sixteen years of age.

  30. IMPROVING LABOR RELATIONS • In the Second New Deal FDR helped pass the National Labor Relations Act (NLRA) or Wagner Act. • This legislation protected workers, ensured collective bargaining, and preserved the right to unionize • The Wagner Act protected the right of workers to join unions and established the National Labor Relations Board to settle disputes between employers and employees. The NLRA was also called the Wagner Act

  31. SOCIAL SECURITY ACT • One of the most important achievements of the New Deal era was the creation of the Social Security System • The Social Security Act, passed in 1935, had 3 parts: • Old-Age Pension • Unemployment compensation • Aid to families with dependent children & disabled (welfare)

  32. Section 2 The Second New Deal Takes Hold Works Progress Administration (WPA) – an agency, established as part of the Second New Deal, that provided the unemployed with jobs in construction, garment making, teaching, the arts, and other fields. National Youth Administration – an agency that provided young Americans with aid and employment during the Great Depression. Wagner Act – a law—also known as the National Labor Relations Act—enacted in 1935 to protect workers’ rights after the Supreme Court declared the National Industrial Recovery Act unconstitutional. Social Security Act – a law enacted in 1935 to provide aid to retirees, the unemployed, people with disabilities, and families with dependent children.

  33. SECTION 3: NEW DEAL AFFECTS MANY GROUPS • First Lady Eleanor Roosevelt helped women gain higher political positions during the New Deal • Eleanor was influential in her role as advisor to the president • Frances Perkins became America’s first female cabinet member (Labor) • Frances Perkins was the first woman to serve in the cabinet. • Frances Perkins was the first woman cabinet member. As secretary of labor, she played a major role in creating the Social Security system and in crafting labor legislation. Eleanor & Franklin

  34. AFRICAN AMERICANS DURING THE NEW DEAL • The 1930s witnessed a growth of activism for black Americans • A. Philip Randolph became head of the nation’s first all-black union – the Brotherhood of Sleeping Car Porters

  35. AFRICAN AMERICANS GAIN POLITICAL POSITIONS FDR appointed over 100 African Americans to positions within the government • Mary McLeod Bethune headed the division of Negro Affairs of the NYA • Mary-McLeod Bethune, an African-American educator, was appointed head of the Division of Negro Affairs. She helped to organize a “Black Cabinet” of influential African-Americans to advise the Roosevelt administration on racial issues. • Despite these gains, FDR was never fully committed to Civil Rights Bethune

  36. NATIVE AMERICANS MAKE GAINS • Native Americans made advances during the 1920s & 1930s • Full citizenship granted in 1924 • The Reorganization Act of 1934 gave Natives more ownership of reservations • President Roosevelt appointed John Collier as Commissioner of Immigrant (Indian) Affairs. • Policy was moving away from assimilation towards autonomy

  37. Current locations of Native American reservations

  38. FDR WINS IN 1936 . . . AGAIN • FDR had wide appeal in the United States, especially in urban areas • The New Deal Coalition was an alignment of various groups dedicated to supporting the Democratic Party. • African Americans, Jews, Catholics and immigrants all supported the popular president • Rural Democrats, African Americans, Unionized industrial workers were likely to be part of the New Deal coalition. FDR & Eleanor campaign by rail in 1936

  39. Pro-labor legislation leads unions to donate money for FDR reelection 1933–1941, union membership grows from 3 million to over 10 million American Federation of Labor traditionally craft unions only Committee for Industrial Organization organizes industrial unions Expelled by AFL, becomes Congress of Industrial Organizations (CIO) The Congress of Industrial Organization (CIO) was organized in an attempt to unionize both skilled and unskilled laborers. Labor Unions Flourish

  40. Labor Disputes Sit-down strike important bargaining tactic of 1930s prevents owners from hiring strikebreakers NLRB forces Republic Steel to negotiate after clash with strikers FDR Wins in 1936 Political organizations in large Northern cities support FDR Urban, religious, ethnic groups also support FDR FDR appoints officials of urban-immigrant background Labor Disputes and the 1936 Election

  41. ROOSEVELT (RED) VS. LANDON (BLUE) 1936 ELECTION

  42. Section 3 The New Deal Affects Many Groups New Deal Coalition – an alliance of diverse groups—including Southern whites, African Americans, and unionized workers—who supported the policies of the Democratic Party in the 1930s and 1940s. Congress of Industrial Organization (CIO) – a labor organization expelled from the American Federation of Labor in 1938.

  43. SECTION 5: THE IMPACT OF THE NEW DEAL • The New Deal Ends • By 1937, economic improvement convinces many Depression is ending • Congress wants to cut back programs; by 1939, New Deal over • Supporters and Critics of the New Deal • The American public perceived many characteristics in President Roosevelt, but economic conservatism was probably not one of them. • Conservatives think FDR made federal government too large • stifled free enterprise, individual initiative • Liberals: didn’t do enough to socialize economy, end inequalities • Supporters: did help country recover from economic difficulties

  44. LEGACIES OF THE NEW DEAL • Expanding Government’s Role in the Economy • Federal government goes deeply into debt to create jobs, give aid • The federal deficit increased during the Roosevelt administration as the federal government enacted reforms to stabilize the economy. • FDR expands power of federal government, president • Federal Deposit Insurance Corporation (FDIC) regulates banking • The Federal Deposit Insurance Corporation (FDIC) was created through the Glass-Steagall Banking Act, which shored up the banking system by protecting people’s savings against loss in the event of a bank failure. • Securities and Exchange Commission (SEC) regulates investment • Securities and Exchange Commission was created to reform, and to restore confidence in, the stock market by providing a means to monitor the market and to enforce laws regarding the sales of stocks and bonds. • The Securities and Exchange Commission was created in 1934, and continues to monitor the stock market and enforce laws regarding the sale of stocks and bonds. • New Deal does not end Depression; does reduce suffering, give hope • Massive spending on equipment, supplies for WW II end Depression

  45. New Deal Reforms Endure • Protecting Workers’ Rights • New Deal laws set standards, ban child labor, permit unions • establish policies followed today • National Labor Relations Board (NLRB) still mediates labor disputes • National Labor Relations Board under the Wagner Act, this continues to act as a mediator in disputes between unions and employers. • Banking and Finance • SEC still monitors stock market, enforces laws on stock, bond sales • FDIC still protects individual investors in case of bank failure