Chapter 23 The New Deal Section 1:Forging a New Deal

FDR’s message to the people “I pledge you, I pledge myself, to a new deal for the American people” ~Franklin D. Roosevelt *Didn’t know everything that his “new deal” would include, but he made the pledge that things would be different for the American people

Restoring the Nation’s Hope FDR’s Inaugural address of March 4, 1933 “Let me assert my firm belief that the only thing we have to fear is fear itself”

FDR and Eleanor FDR had polio Wife, Eleanor, had to be his “eyes, ears, and legs”

The First Hundred Days During his campaign, Roosevelt had promised bold changes for the economy and the nation; no one knew what they would be, but at least he was going to do something From March to June 1933 (the first Hundred Days), FDR pushed program after program through Congress to provide relief, create jobs, and stimulate recovery

“Fireside chats” make FDR “the man of the hour” FDR used the radio to restore confidence Had a series of evening radio talk called “fireside chats” Appealed to the people with words of encouragement and explanation Referred to listeners as “my friends” Explained his strategies and New Deal programs to make the average citizen a part of his team

Closing the Banks FDR’s first step in restoring public confidence in all the nation’s banks was to close them all so they could be inspected The legislation that made this possible was the Emergency Banking Act Congress also established the Federal Deposit Insurance Corporation (FDIC) which would insure deposits up to $5000 Bank Holiday – period of time when the banks were closed and being inspected to see if they could reopen Restores bank confidence

New Deal Programs Sometimes called “Alphabet soup” programs ; Americans wanted the government to take a greater role in helping people Goal: Restore confidence in the economy Focused on: Relief, Recovery, and Reform  Relief programs to help immediately  Recovery programs to help rebuild  Reform programs to prevent disaster from reoccurring

Providing Relief and Creating Jobs Federal Emergency Relief Administration – created to replenish the badly depleted local relief agencies, headed by Harry Hopkins The government also put money into public works programs – government funded projects to build public facilities (roads, bridges, schools, and hospitals)  Civil Works Administration and Public Works Administration – gave unemployed jobs building or improving roads, parks, airports, and other facilities (employed 4 million)  Civilian Conservation Corps – young, unmarried men worked to restore and maintain forests, beaches, and parks (employed 2.5 million) One of FDR’s favorite programs

A Helping Hand to Business In an effort to help industries, the National Industrial Recovery Act was passed to bolster prices and allowed trade associations to draw up codes to regulate wages, working conditions, production, and prices Public Works Administration – created to construct major public works projects, considered the best part of NIRA Federal Securities Act – required the full disclosure of information about stock offered for sale  Securities and Exchange Commission – established to regulate the stock market

Saving Homes and Farms Home Owner’s Loan Corporation – refinanced mortgages of middle-income home owners Agricultural Adjustment Administration – paid farmers not to raise certain crops or animals, hoping lower production would increase prices

Improving the Quality of Life Tennessee Valley Authority – helped farmers and created jobs in one of the country’s least modernized regions Provided cheap hydroelectricity and flood control

The End of the Honeymoon Originally, the New Deal pleased everyone, but when new programs failed to bring about significant economic improvement, the criticism began Many began to worry about the increasing power of the U.S. government In 1935, the Supreme Court rule that the NRA was unconstitutional because it gave the President law-making powers and regulated local, rather than interstate commerce The Court also ruled the tax that funded subsides for farmers in the AAA was unconstitutional

A Second New Deal FDR launched a new, even bolder legislative program in 1935 – The Second New Deal Included more social welfare benefits stricter controls over businesses, stronger support for unions, and higher taxes on the rich

New and Expanding Agencies Works Progress Administration – provided work for more than 8 million, constructed or improved more than 20,000 playgrounds, schools, hospitals, and airfields, and supported the creative work of artists and writers Resettlement Administration (later to be the Farm Security Administration) – helped small farm owners, share croppers, tenant farmers, and migrant workers

U.S. Statistical Data ( ) YearUnemployment Rate Real GDP (in billions of dollars) Federal Spending (in millions of dollars) %$951.7$3, %$862.1$3, %$788.8$3, %$682.9$4, %$668.6$4, %$719.8$6, %$778.2$6, %$888.2$8, %$932.5$7, %$890.8$6,840

New Labor Legislation New Labor Relation Act (aka the Wagner Act) – allowed closed shops, collective bargaining, and outlawed spying or union activities and blacklisting Also established the New Labor Relations Board to enforce the new laws

Social Legislation Social Securities Act – system that provided old-age pensions for workers, survivor benefits for the victims of industrial accidents, unemployment insurance, aid for dependent mothers and children, the blind, and the physically disabled

The Election of 1936 FDR won by a landslide, showing that a large portion of the population was in favor of the New Deal Legislation Carried every state except Maine and Vermont Won Defeated Kansas governor Alfred Landon