Standard Addressed: 11.6 Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the federal government. Learning Objectives: Section 1 – A NEW DEAL FIGHTS THE DEPRESSION 1. Summarize the initial steps Roosevelt took to reform banking and finance. 2. Describe New Deal work programs. 3. Identify critics of FDR’s New Deal.

A BULLDOG ALWAYS Commitment Attitude CARES Respect Encouragement Safety

A New Deal Fights the Depression Section 1 A New Deal Fights the Depression After becoming president, Franklin Delano Roosevelt uses government programs to combat the Depression. NEXT

AMERICA GETS BACK TO WORK THE NEW DEAL AMERICA GETS BACK TO WORK

A New Deal Fights the Depression 1 SECTION A New Deal Fights the Depression Americans Get a New Deal Electing Franklin Delano Roosevelt Democrats nominate NY governor Franklin Delano Roosevelt - reform-minded; projects friendliness, confidence Democrats overwhelmingly win presidency, Senate, House Waiting for Roosevelt to Take Over • With “Brain Trust,” FDR formulates policies to alleviate problems • New Deal—relief for needy, economic recovery, financial reform Continued . . . NEXT

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

Electing Franklin Delano Roosevelt Democrats nominate NY governor Franklin Delano Roosevelt reform-minded; projects friendliness, confidence Democrats overwhelmingly win presidency, Senate, & House

ROOSEVELT WINS OVERWHELMING VICTORY Waiting for Roosevelt to Take Over With “Brain Trust,” FDR formulates policies to alleviate problems Election in November inauguration in March New Deal—relief for needy, economic recovery, financial reform FDR easily won the 1932 election

An Important Fireside Chat 1 SECTION continued Americans Get a New Deal The Hundred Days FDR launches Hundred Days; passes over 15 major New Deal laws Emergency Banking Relief Act permits Treasury Dept. to inspect banks - decides which are insolvent, sound, or need loans - public confidence in banks revived An Important Fireside Chat FDR gives fireside chats—radio talks explaining New Deal measures First chat discusses need for public support of government, banks Continued . . . NEXT

FDR LAUNCHES NEW DEAL FDR promised a “new deal” for the American people He took office with a flurry of activity known as “The Hundred Days” The 100 Days lasted from March to June 1933

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

An Important Fireside Chat FDR gives fireside chats—radio talks explaining New Deal measures First chat discusses need for public support of government, banks

Regulating Banking and Finance 1 SECTION continued Americans Get a New Deal Regulating Banking and Finance • Glass-Steagall Act establishes Federal Deposit Insurance Corporation - insures individual bank accounts, regulates banking practices • Federal Securities Act—companies must give all information on stocks • Securities and Exchange Commission created to regulate stock market • FDR gets law allowing production of some alcoholic beverages • 21st Amendment repeals prohibition by end of 1933 NEXT

TO DO LIST: #1- HELP BANKS First order of business was to get the banking system in order On March 5, one day after taking office, FDR declared a bank holiday He persuaded Congress to pass the Emergency Banking Relief Act, which authorized the Treasury Department to inspect the nation’s banks

Guided Reading: Business Assistance and Reform Federal Program What was its immediate purpose? What was its long-term goal? Emergency Banking Relief Act Authorized the Treasury Department to inspect and close banks To restore public confidence in banks

MORE 100 DAYS ACTIVITY Regulating Banking and Finance Glass-Steagall Act establishes Federal Deposit Insurance Corporation - insures individual bank accounts, regulates banking practices

AMERICANS GAIN CONFIDENCE IN BANKS Next, FDR passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation The FDIC insured account holders up to $5,000 and set strict standards for banks to follow (today = $400,000)

Guided Reading: Business Assistance and Reform Federal Program What was its immediate purpose? What was its long-term goal? 2. Glass-Steagall Banking Act of 1933 Established the FDIC To restore public confidence in banks

MORE 100 DAYS ACTIVITY Federal Securities Act companies must give all information on stocks Securities and Exchange Commission created to regulate stock market FDR gets law allowing production of some alcoholic beverages 21st Amendment repeals prohibition by end of 1933

Guided Reading: Business Assistance and Reform Federal Program What was its immediate purpose? What was its long term goal? 3. Federal Securities Act Required corporations to provide complete information on all stock offerings To restore public confidence in the stock market

Promoting Fair Practices 1 SECTION continued Helping the American People Promoting Fair Practices • NIRA establishes codes of fair practice for industries - creates National Recovery Administration (NRA) • NRA sets standards, prices, limits production Food, Clothing, and Shelter Home Owners Loan Corporation gives loans to prevent foreclosures Federal Housing Administration gives loans for mortgages, repairs Federal Emergency Relief Administration—direct relief to needy NEXT

MORE 100 DAYS ACTIVITY Promoting Fair Practices • NIRA establishes codes of fair practice for industries - creates National Recovery Administration (NRA) • NRA sets standards, prices, limits production

Guided Reading: Business Assistance and Reform Federal Program What was its immediate purpose? What was its long term goal? 4. National Industrial Recovery Act Set prices, established labor practices To ensure fair business practices and promote industrial growth

Helping the American People 1 SECTION Helping the American People Rural Assistance • Agricultural Adjustment Act (AAA) raises food prices, lowers supply • Tennessee Valley Authority creates jobs renovating, building dams Providing Work Projects • Civilian Conservation Corps—public works jobs for young men • Public Works Administration—money to states to create jobs • Civil Works Administration builds rural schools, pays teachers Continued . . . NEXT

MORE 100 DAYS ACTIVITY Agricultural Adjustment Act: (AAA) Raised crop prices by lowering production Paid farmers not to farm Paid farmers to burn/destroy crops

Guided Reading: Farm Relief / Rural Development Federal Program What was its immediate purpose? What was its long term goal? AAA Paid farmers to lower production To raise crop prices and thus farm income

MORE 100 DAYS ACTIVITY Tennessee Valley Authority: (TVA) Focused on direct relief to hard hit area– created ambitious dam projects

TVA

Guided Reading: Farm Relief / Rural Development Federal Program What was its immediate purpose? What was its long term goal? Tennessee Valley Authority TVA Built and repaired dams and other projects in the Tennessee Valley To create prosperity in the impoverished Tennessee Valley region

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

Guided Reading: Farm Relief / Rural Development Federal Program What was its immediate purpose? What was its long term goal? CCC To give jobs to young men immediate Build up the nations roads, parks and infrustructure

Citizens wait outside a FERA in Calipatria, CA for relief checks ALPHABET AGENCIES FERA – Federal Emergency Relief Agency provided $500 million in direct relief to the neediest Americans Citizens wait outside a FERA in Calipatria, CA for relief checks

Guided Reading: Employment Projects Federal Program What was its immediate purpose? What was its long term goal? FERA To provide direct relief for the needy To provide for the basic needs of the people hit hardest by the Depression

PWA workers construct a public building in Lawndale, California ALPHABET AGENCIES PWA – Public Works Administration was part of the NIRA (National Industrial Recovery Act) The PWA provided money to states to construct schools and community buildings PWA workers construct a public building in Lawndale, California

Guided Reading: Employment Projects Federal Program What was its immediate purpose? What was its long term goal? PWA To provide money to states to create jobs To reduce unemployment

CWA School in Woodville, CA 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

Guided Reading: Employment Projects Federal Program What was its immediate purpose? What was its long term goal? CWA To provide 4 million immediate jobs To reduce unemployment

The New Deal Comes Under Attack 1 SECTION The New Deal Comes Under Attack Opposition to the New Deal • Deficit spending—spending more money than government takes in - funds New Deal • Liberals: New Deal does not do enough to help poor, fix economy • Conservatives: New Deal used to control business, socialize economy The Supreme Court Reacts Supreme Court strikes down NIRA, AAA as unconstitutional FDR proposes “Court-packing bill”; Congress, press protest Starting in 1937, justices retire; FDR appoints seven new ones Continued . . . NEXT

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

SUPREME COURT REACTS By the mid-1930s, the Supreme Court struck down the NIRA as unconstitutional (citing too much government control over industry) The Court also struck down the AAA on the grounds that agricultural was a local matter -- not a federal matter The Supreme Court -- 1935

FDR REGAINS CONTROL OVER SUPREME COURT From the mid to late 1930s, FDR was able to appoint 7 new judges (Justices) to the Supreme Court, thus assuring that his programs would carry on unabated

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.”

1 SECTION continued The New Deal Comes Under Attack Three Fiery Critics Some conservative opponents form American Liberty League Think measures violate respect for personal rights, property Father Charles Coughlin withdraws initial support of New Deal - wants guaranteed income, banks nationalized Dr. Francis Townsend devises pension plan for elderly Presidential hopeful, Senator Huey Long has popular social program NEXT

Critics of FDR and the New Deal Originally a supporter of the New Deal, Coughlin turned against Roosevelt when he refused to nationalize the banking system and provide for the free coinage of silver. Coughlin turned openly anti-Semitic, blaming the Great Depression on an international conspiracy of Jewish bankers. Coughlin formed the National Union for Social Justice and reached a weekly audience of 40 million radio listeners. Father Charles Coughlin, leader of the antisemitic Christian Front, delivers a radio broadcast. Detroit, United States, March 11, 1935.

Critics of FDR and the New Deal Francis Townsend, a doctor from Long Beach, California. Townsend proposed the Old Age Revolving Pension. This plan called for every American over the age of sixty to retire to open up jobs for the younger unemployed. The retirees would receive a monthly check for $200, a considerable income during the Depression. There was one catch. The recipients had to agree to spend the entire sum within a month. Townsend argued that this plan would ignite the economy, as well as provide for a proper pension for those who had worked so hard for so long.

Critics of FDR and the New Deal Considered the greatest political threat. Long became governor of Louisiana in 1928. He was elected to the United States Senate in 1930. In 1934, he started a movement called "Share Our Wealth." With the motto "Every Man a King," Long proposed a 100% tax on personal fortunes exceeding a million dollars. The elderly would receive pensions. The poorest Americans were promised an estate worth no less than $5000, with a $2500 yearly minimum income guaranteed. Democrats worried that a Long bid for the Presidency might steal votes from FDR in 1936, but an assassin's bullet ended the Kingfish's life in 1935. Advocating a program to "share the wealth," U.S. Senator from Louisiana Huey "Kingfish" Long in August 1935 announced his intention to run for President against FDR, but an assassin's bullet ended his life less than a month later

FDR EASILY WINS 2ND TERM The Republicans nominated Alfred Landon, Governor of Kansas, 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

Repaired business in Childersburg, Alabama ALPHABET AGENCIES FHA – Federal Housing Administration provided home loans, home mortgages and repairs Home Owners Loan Corporation Repaired business in Childersburg, Alabama

Guided Reading: HOUSING Federal Program What was its immediate purpose? What was its long term goal? HOLC To provide government loans to homeowners who faced foreclosures To help families keep their homes

Chapter 15: Section 1 MAIN IDEA QUESTIONS A – What plans did Roosevelt make in the four months waited to take office? FDR began to formulate a set of policies to alleviate the problems of the Depression

Chapter 15: Section 1 MAIN IDEA QUESTIONS B – How successful were FDR’s fireside chats? It was very successful. Many Americans returned their savings to banks, showing increased confidence in the banking system.

Chapter 15: Section 1 MAIN IDEA QUESTIONS C – How did New Deal programs affect various regions of the United States? The TVA developed an impoverished area by providing flood control and power and by building dams. Members of the CCC planted trees to help prevent another dust bowl.

Chapter 15: Section 1 MAIN IDEA QUESTIONS D – How did the New Deal support labor organizations? It guaranteed workers’ right to unionize and to bargain collectively.

Chapter 15: Section 1 MAIN IDEA QUESTIONS E – How did liberal and conservative critics differ in their opposition to the New Deal? Liberals- New Deal did not go far enough in helping the poor and reforming the nation’s economic system Conservatives- New Deal spent too much money on direct relief and was trying to control business and socialize the economy.