The First Hundred and the Second Hundred FDR's New Deal The First Hundred and the Second Hundred

1932 Presidential Election Franklin Delano Roosevelt beats the incumbent Herbert Hoover It was clear that Americans were miserable and needed a change

"a new deal for the American people."-FDR Three general goals: Relief for the needy Economic recovery Financial reform

Reforming Banking and Finance Bank Holiday Closed banks to prevent withdrawals Persuaded Congress to pass the Emergency Banking Relief Act Treasury Department inspects banks stable banks could reopen insolvent (could not pay their debts) would remain closed needed help would get government loans to reopen Restored public faith in banks and people deposited their money again

Reforming Banking and Finance Glass-Steagall Banking Act of 1933 Established the Federal Deposit Insurance Corporation (FDIC) to provide federal insurance for bank accounts of less than $5k Federal Securities Act Regulated the stock market Required corporations to provide complete info on stock offerings and were liable for misrepresentation Created the Securities and Exchange Commission (SEC) to prevent people from rigging the stock market

Generating Revenue FDR convinced Congress to pass the 21st amendment in 1933 Repealed prohibition Allowed the manufacture and sale of alcohol Allowed federal government to add an extra tax

Helping Farmers Agricultural Adjust Act (AAA) Raise crop prices by lowering production Paid farmers a certain amount for every acre they didn’t farm Paid hog farmers to slaughter 6 million pigs Led to protests because food was wasted when people were going hungry But it put money back in the pockets of farmers

Providing Jobs Civilian Conservation Corps (CCC) Put young men (18-25 yo) to work building roads, developing parks, planting trees, stopping soil erosion, control flood plains Paid $30/ month and $25 was sent directly back to families Provided free food and uniforms

Providing Jobs Federal Emergency Relief Administration (FERA) Provided $500 million in direct relief for the needy States given money to provide food and clothing to the unemployed, elderly, and ill

Providing Jobs Public Works Administration (PWA) Gave states money to create jobs Construction projects (schools, community centers, etc.) Did not make a significant dent in unemployment

Providing Jobs Civil Works Administration (CWA) provided 4 million jobs Built schools, roads, and paid the salary of rural teachers

Providing Jobs Tennessee Valley Authority (TVA) Renovated 5 existing dams Constructed 20 new ones Created jobs, provided flood control, hydroelectric power

Protecting Labor and Consumers National Industrial Recovery Act (NIRA) Established codes of fair practice for industries and promoted growth Created the National Recovery Administration (NRA) Set prices on products to ensure fair competition Banned child labor and established fair working standards Allowed workers to unionize and bargain collectively Met with businesses to limit production, establish prices

New Deal Comes Under Attack 1935 SCOTUS says NIRA is unconstitutional because executive branch does not have legislative power 1936 SCOTUS strikes down AAA because agriculture is a state matter not a federal concern

POTUS Responds 1937 FDR convinces Congress to pass a bill to expand SCOTUS so he can appoint more justices who would favor his New Deal court-packing bill Protests against POTUS overreach But resignations happen and FDR appoints new justice in favor of the New Deal

The Second New Deal Goal was the help farmers Soil Conservation and Domestic Allotment Act paid farmers for cutting production on soil-depleting crops like cotton and wheat

The Second New Deal Works Progress Administration (WPA) Created jobs Employed unskilled workers Built airports, schools, libraries, hospitals Built and repaired roads Hired women to make clothes for the needy Hired teachers, writers, artists, actors, musicians to create art/murals and music, collect slave narratives

The Second New Deal National Youth Administration (NYA) Employed high school and college students Part-time clerical positions at their schools

The Second New Deal Wagner Act Passed after NIRA was deemed unconstitutional by SCOTUS Reestablished ability to unionize and bargain collectively Listed unfair labor practices Set up the National Labor Relations Board (NLRB) to hear testimony of unfair practices

The Second Deal Fair Labor Standards Act (FLSA) Established maximum work hours and minimum wages Set minimum work age as well

The Second New Deal Social Security Act (SSA) Old-age insurance for retirees 65 or older and their spouses Unemployment compensation system Aid to families with dependent children and the disabled

The Second New Deal Rural Electrification Administration (REA) Worked to bring electricity to areas that never had it before

Let’s Review

New Deal Alphabet Soup TVA FERA CWA CCC NRA PWA FHA AAA Wagner Act REA FDIC WPA NYA SSA SEC Glass-Steagall NIRA FLSA