Chapter 22

1. Chapter 22 U.S. History 2

2. Roosevelt and the New Deal • 23.1 Roosevelt Takes Office • 23.2 Roosevelt’s First New Deal • 23.3 The Second New Deal • 23.4 The New Deal Coalition

3. 23.1 Roosevelt Takes Office • Roosevelt’s Rise to Power • Roosevelt is Inaugurated

4. Roosevelt’s Rise to Power • The Republicans nominated Herbert Hoover to run for a second term as president. • The Democrats selected New York Governor Franklin Delano Roosevelt. • Roosevelt became the first to deliver an acceptance speech to a nominating campaign.

5. Roosevelt’s Rise to Power • Roosevelt’s policies to end the depression became known as the New Deal. • Roosevelt won the election in a landslide. • Roosevelt’s political career began in 1910, with a seat in the New York State Senate. • He supported progressive reform. • He opposed party bosses. Video clip on New Deal

6. Roosevelt’s Rise to Power • He was appointed assistant secretary of the navy by Woodrow Wilson. • In 1920, he caught polio, a paralyzing disease with no cure. • His wife, Eleanor, kept his name prominent in politics.

8. Few people knew FDR was actually paralyzed.

12. Warm Springs, Georgia

13. Roosevelt’s Rise to Power • Roosevelt narrowly won the race for New York governor. • As governor, he used government power to help people deal with the economic challenges. • His popularity in New York paved the way for his run for president.

14. Roosevelt is Inaugurated • Franklin Roosevelt won the November 1932 presidential election. • His inauguration would not occur until March 1933. • During this time, unemployment continued to rise, bank runs increased, and people began converting their money into gold.

15. Roosevelt is Inaugurated • Some feared Roosevelt would end the gold standard, which would reduce the dollar’s value. • At that time, an ounce of gold equaled a set number of dollars. • To reduce the value of the dollar, the U.S. would have to stop exchanging dollars for gold.

16. Roosevelt is Inaugurated • People began taking gold and currency out of banks. • This resulted in over 4,000 banks collapsing by March 1933. • Many governors declared bank holidays, which closed the banks before bank runs could put them out of business. Bank run

17. 23.2 Roosevelt’s First New Deal • The Hundred Days Begin • Fixing the Banks and the Stock Market • Managing Farms and Industry • Providing Debt Relief • Spending and Relief Programs

18. The Hundred Days Begin • Roosevelt sent many bills to Congress between March 9 and June 16, 1933. • This period is referred to as the Hundred Days, • Congress passed 15 major acts to help the economic crisis. • These programs made up the First New Deal.

19. The Hundred Days Begin • Roosevelt’s advisers were divided into three main groups. • The first group supported the “New Nationalism” of Theodore Roosevelt. • It believed government and business should work together to manage the economy. • The second group wanted government to run key parts of the economy. • The third group supported the “New Freedom” of Woodrow Wilson. • It believed government should restore competition to the economy.

20. Fixing the Banks and the Stock Market • Roosevelt wanted to restore confidence in the banking system first. • He called a national bank holiday and called Congress into special session.

21. Fixing the Banks and the Stock Market • Congress passed the Emergency Banking Relief Act. • It required federal examiners to survey the nation’s banks. • They issued Treasury Department licenses to financially sound banks. FDR on banking

22. Fixing the Banks and the Stock Market • Roosevelt used fireside chats, where he spoke on the radio directly to the people. • In his first fireside chat, he assured Americans that the banks were secure. • The next day, deposits outweighed withdrawals, ending the banking crisis. Video on FDR fireside chats

23. Fixing the Banks and the Stock Market • The new Securities Act of 1933 required companies that sold stocks and bonds to provide complete and truthful information to investors. • The Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent fraud.

24. Fixing the Banks and the Stock Market • The Glass-Steagall Act separated commercial banking from investment banking. • It no longer allowed depositors’ money to be risked on the stock market. • It created the Federal Deposit Insurance Corporation (FDIC) that provided government insurance for bank deposits up to a certain amount.

25. AHSGE Exam Alert!:Tennessee Valley Authority • Look on pages 684. • Read “Why it Matters.” • Summarize your reading in your own words in your notes. • This may be on your AHSGE Exam.

27. Managing Farms and Industry • Congress passed the Agricultural Adjustment Act. • The law was a plan that paid farmers not to raise certain crops to lower crop production.

28. Managing Farms and Industry • The act was administered by the Agricultural Adjustment Administration (AAA). • The plan reduced production, increased prices, and helped some farmers, especially large commercial farmers. • Thousands of tenant farmers remained unemployed or homeless.

29. Managing Farms and Industry • The National Industrial Recovery Act (NIRA) suspended antitrust laws. • It allowed business, labor, and government to cooperate to establish voluntary codes of fair competition.

30. Managing Farms and Industry • The program was run by the National Recovery Administration (NRA). • It urged consumers to buy only from companies who signed agreements with the NRA. • The Supreme Court declared it unconstitutional in 1935.

31. Providing Debt Relief • The Home Owners’ Loan Corporation (HOLC) bought the mortgages of homeowners behind on payments. • It restructured them for longer terms with lower interest rates. • The HOLC gave loans only to those employed. Old headquarters

32. Providing Debt Relief • It foreclosed on property if payment could not be made. • The Farm Credit Administration (FCA) helped farmers refinance their mortgages. • The FCA loans helped farmers in the short term but may have slowed overall economic recovery.

33. Spending and Relief Programs • The Civilian Conservation Corps (CCC) gave unemployed men aged 18 to 25 the opportunity to • work with the national forestry service planting trees • fighting forest fires • building reservoirs • The CCC had employed three million men by 1942. CCC building a road

34. Spending and Relief Programs • The Federal Emergency Relief Administration (FERA) channeled money to help state and local agencies fund relief projects. • In 1933, the Public Works Administration began a series of construction projects creating more jobs. Public Works Administration

35. Spending and Relief Programs • Harry Hopkins, the head of FERA, set up the Civil Works Administration (CWA). • It hired workers directly and put them on the government’s payroll. • Roosevelt shut it down because he feared too much money was being spent on the it.

36. Spending and Relief Programs • The most important aspect of the New Deal was the change in the spirit of the American people. • People became optimistic again.

38. 23.3 The Second New Deal • Challenges to the New Deal • Launching the Second New Deal • The Rise of Industrial Unions • The Social Security Act

39. Challenges to the New Deal • Support of Roosevelt and his New Deal began to fade in 1935. • Many began to question the effectiveness of the New Deal. • Roosevelt used deficit spending to pay for his programs.

40. Challenges to the New Deal • He abandoned a balanced budget and borrowed money to pay for his programs. • The American Liberty League was created as businessmen and politicians from both parties organized to oppose the New Deal.

41. Challenges to the New Deal • Democratic senator Huey Long proposed a redistribution of wealth. • Father Charles Coughlin, a Catholic priest in Detroit, supported Huey Long through his popular radio broadcast.

42. Launching the Second New Deal • Roosevelt hoped the second New Deal would increase his chances of being re-elected in 1936. • The Works Progress Administration (WPA) was a federal agency headed by Harry Hopkins. • It spent $11 billion over several years, creating jobs for workers.

43. Launching the Second New Deal • Its most controversial aspect was offering work to artists, musicians, actors, and writers. • In Schechter v. United States, the Supreme Court struck down the National Industrial Recovery Act.

44. Launching the Second New Deal • The Court ruled that Congress could not delegate its powers to the executive branch. • It ruled the NIRA codes unconstitutional.

45. Launching the Second New Deal • Roosevelt feared that the Court would strike down the New Deal. • He ordered Congress to remain in session until his new bills were passed. • This was nicknamed the “second hundred days” by the press.

46. The Rise of Industrial Unions • In July 1935, the National Labor Relations Act (Wagner Act) was passed. • It guaranteed workers the right to organize unions without employer interference. • It set up the National Labor Relations Board (NLRB).

47. The Rise of Industrial Unions • The NLRB organized factory elections by secret ballot to determine if workers wanted a union. • Binding arbitration required a neutral party would listen to both sides and decide the issue. • In 1935, the Committee for Industrial Organization (CIO) organized industrial unions.

48. The Rise of Industrial Unions • Two union men were demoted at the General Motors auto-body plant in Cleveland. • Workers protested with a sit-down strike where they stopped working but refused to leave the plant. • Workers at the GM plant in Flint, Michigan, did the same.

49. The Rise of Industrial Unions • After violence broke out, the company gave in. • The United Auto Workers (UAW) was formed and quickly became one of the most powerful unions in the U.S.

50. The Social Security Act • In 1935, the Social Security Act helped the elderly, unemployed workers, and others. • The bill would provide a monthly retirement benefit and unemployment insurance.