The New Deal How does FDR try to end the Depression while expanding the Federal Gov’t?

1932 Election Roosevelt wins 42 of 48 states in election, Democrats also win majorities in both houses of CongressRoosevelt wins 42 of 48 states in election, Democrats also win majorities in both houses of Congress Hoover challenged in 1932 by NY Gov Franklin RooseveltHoover challenged in 1932 by NY Gov Franklin Roosevelt Although most don’t blame Hoover for starting the Depression, they blame him for not doing anything & making it worseAlthough most don’t blame Hoover for starting the Depression, they blame him for not doing anything & making it worse

The New Deal “ The Brain Trust”: FDR’s cabinet was made up of professors, lawyers, and journalists “ The Brain Trust”: FDR’s cabinet was made up of professors, lawyers, and journalists They develop domestic policies called “the New Deal”, which will focus on relief, recovery and reform In the first 100 days of his administration Congress & FDR had 15 pieces of New Deal legislation passed

New Deal: Banking & Finance 1) Passes Emergency Banking Relief Act, 1933 (Relief) Closes all banks and allows Treasury Dept. to inspect banks, only “sound” banks could re-open Closes all banks and allows Treasury Dept. to inspect banks, only “sound” banks could re-open 2) Glass-Steagall Act, 1933 (Reform) a. Established Federal Deposit Ins. Corp (FDIC), provided insurance to all individual bank accounts (in “sound” banks) b. Investment banks (stocks) must be separate from reg. banks

3) Fed. Securities Act, 1933 (Reform) Required corporations to provide complete info. on stocks Required corporations to provide complete info. on stocks 4) Securities & Exchange Commission (SEC), 1934 (Reform) Regulated the stock market & prevented “insider” trading Regulated the stock market & prevented “insider” trading

Fireside Chats FDR gave weekly radio addresses to the public known as fireside chats FDR gave weekly radio addresses to the public known as fireside chats Chats were to assure public by explaining crisis & plan to fix it Chats were to assure public by explaining crisis & plan to fix it Q1: What does he want to tell the people? Q2: What does FDR say about “our money in banks”? Q3: What hurt “sound” banks? utube.co m/watch ?v=z9C BpbuV3 ok

New Deal: 21 st Amendment (Relief/Reform) 21 st Amendment repeals 18 th Amendment (Prohibition), alcohol is legal & taxed!! 21 st Amendment repeals 18 th Amendment (Prohibition), alcohol is legal & taxed!!

New Deal: Farms & Rural America 1) Agricultural Adjustment Act (AAA), 1933 (Rel) Farmers paid to slow production Crop prices rise but big business & sharecroppers don’t like plan 2) Tennessee Valley Authority (TVA), 1933 (Rec) Built/fixed 25 dams in Tenn. River Valley Plan provided jobs, flood control, hydroelectric power but private companies upset they have to compete with govt

New Deal: Industry & Labor 1) The National Recovery Administration (NRA) –Set prices, minimum wages, standards ■ The National Industrial Recovery Act (NIRA), 1933 (recovery) - creates two new agencies that will establish fair codes of practice for business, create new jobs, right to unionize 2) Public Works Administration (PWA) -Provided money to build public projects

New Deal: Work Projects 1) Civilian Conservation Corps (CCC), 1933 (recovery) Men to build roads, parks, plant trees, flood control 2. Creates Civil Works Administration (CWA) Help put those getting direct relief to work 2) Federal Emergency Relief Admin (FERA), Direct relief by providing money the poor & needy (welfare)

New Deal: Housing 1) Home Owners Loan Corporation (HOLC), 1933 (relief) Provided loans to homeowners in danger of forclosure 2) Federal Housing Administration (FHA), 1934 (recovery) Low interest loans for new mortages and repairs

FDR Faces Opposition- Liberal Democrats Fr. Charles Coughlin: guarantee annual income/nationalize banks Dr. Francis Townsend: wants a pension plan for the elderly Sen. Huey Long: “Share our Wealth” program Deficit spending is hurting America, FDR is doing too much! Deficit spending is hurting America, FDR is doing too much! Challenged New Deal in courts, Sup. Court rules NIRA & AAA are unconstitutional Challenged New Deal in courts, Sup. Court rules NIRA & AAA are unconstitutional FDR Faces Opposition- Conservative Republicans

FDR Promotes the New Deal 1. What was FDR’s approach to his new programs? 2. What did the NRA encourage? 3. According to FDR, what were critics saying about his programs? 4. How did he get his message across to the people? 5. How did FDR feel about the Presidency & why? player/