The New Deal.

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Presentation transcript:

The New Deal

Fireside chats: Nightly radio program where FDR explained to the American people what was going on with the economy and the plan to fix it Franklin D. Roosevelt

New Deal Legislation: Three R's RELIEF Bank holiday – all banks closed, no deposits or withdrawals Relief to Farmers and Homeowners in the form of emergency loans to save their properties Relief for the Unemployed – CCC, WPA, PWA

The first 100 days Legislation was introduced and passed at a furious pace  Congress mostly acted as a rubber stamp.  Roosevelt called Congress into session and asked for executive power to wage war against poverty and pessimism.  He said he wanted a power "as great as the power that would be given me if we were in fact invaded by a foreign foe."

New Deal Alphabet Soup Civilian Conservation Corps (CCC) Put Americans to work doing environmental projects Planted trees, national parks, service building and public roadways in remote areas Public Works Administration (PWA) / Work Projects Administration (WPA) Large scale public works  construction agency Dams, bridges, hospitals, schools, roads, sidewalks

recovery Permanent programs to avoid another depression and insure citizens against economic disasters. Securities & Exchange Commission (SEC) Permanent Agency set up to monitor stock market activity and ensure that no fraud or insider trading was taking place Federal Deposit Insurance Corporation (FDIC) Permanent Agency designed to insure depositors money in savings banks. Originally insured up to $5,000 per depositor today it has increased to $250,000.

Recovery "Priming the Pump" The theory was that Government money in the hands of citizens would lead to more spending and improve the economy Based on the beliefs of economist John Maynard Keynes  it held that money should be invested in the people, the working class.  Spending would increase with new money in circulation.  Businesses would expand to meet the new demand and hire new workers --> spur on more spending and more growth.  This plan was the opposite of the Republican plan ascribed to by Hoover and earlier leaders.

More Alphabet Soup Agricultural Adjustment Act (AAA) Taxed food processors and gave the money directly to farmers as a payment for not growing food. This decreased supply so price would go up. Later Struck Down by the Supreme Court

Tennessee Valley Authority (TVA) Agency created to build dams in the Tennessee river valley. These dams provided more stable irrigation and cheap hydroelectric power.

FDR & The Supreme Court FDR thought that the justices were out of touch with the world and wanted to a justice for everyone. FDR wanted to add and additional justice for every one over the age of 70 During this time the justices currently on the court over 70. Congress denied FDR's demands because it would have given the executive branch too much power.