The Great Depression & the New Deal Part II

The Hundred Days FDR’s New Deal had three goals: Provide relief for the needy Economic recovery Financial Reform FDR’s first one hundred days were a flurry of activity, which expanded the federal government’s role in dealing with the nation’s economy.

The Hundred Days FDR immediately declared a bank holiday & closed the nation’s banks The Emergency Banking Relief Act allowed the Treasury department to inspect banks to determine if they were financially sound This measure restored confidence in the nation’s banking system

The Hundred Days The Glass-Steagal Act (1933) established the Federal Deposit Insurance Corporation (FDIC), which insured individual bank accounts up to $5,000 Regulating the Stock Market: The Federal Securities Act (1933) made corporations liable for misrepresenting stock info The Securities & Exchange Commission (1934) was created to prevent insiders from gaining to much control over the market

Providing Relief Relief to Farmers: The Agricultural Adjustment Act (AAA) raised crop prices by lowering farm production The government paid farmers to produce less in the hope that reduced supply would boost prices The Tennessee Valley Authority (TVA) renovated dams, created jobs, & provided flood control to the Tennessee River Valley

Providing Relief The Civilian Conservation Corps (CCC) provided young men from the ages of 18 to 25 work building roads, cultivating parks, & planting trees The Public Works Administration (PWA) created jobs to construct school & community buildings The Civil Works Administration (CWA) constructed school houses & roads

Providing Relief The Federal Housing Administration (FHA) provided home mortgage loans & money for home repairs The Federal Emergency Relief Administration (FERA) provided direct relief to help furnish food & clothing to the unemployed, old, & sick

Question to Consider Of the New Deal programs reviewed so far, which do you consider the most important? Explain

The New Deal ended the Great Depression New Deal Opposition True or False: The New Deal ended the Great Depression False Because the New Deal did not end the depression, Roosevelt became open to criticism

New Deal Opposition Liberal critics argued that the New Deal did not provide enough relief Conservative critics argued that too much direct relief & control over business had brought socialism to the United States

New Deal Opposition The Supreme Court declared some New Deal legislation unconstitutional Roosevelt responded with a “Court Packing” Bill to add six justices to the Supreme Court in order to ensure support for New Deal legislation The retirement of an elderly justice & the appointment of a liberal justice allowed rulings to favor the New Deal after 1937

“Kingfish” Louisiana Senator Huey Long provided the most serious challenge to Roosevelt. Campaigning for President, Long proposed a social program called Share-Our-Wealth, which would make “Every Man A King” At the height of his popularity he was assassinated

Other Important Happenings FDR held fireside chats, which were radio addresses about issues during the Great Depression The 20th Amendment (1933) moved a President’s inauguration to January The 21st Amendment (1933) repealed the 18th Amendment ending Prohibition

Why were FDR’s fireside chats successful? Questions to Consider Why were FDR’s fireside chats successful? Besides the obvious (jobs, homes, money – the obvious), what did FDR’s New Deal programs provide to the American People?

The Second New Deal FDR launched a second new deal or second hundred days because despite gains made, unemployment remained high & production low The Second New Deal focused on farmers & workers The resettlement administration, which was eventually replaced by the Farm Security Administration (FSA) provided loans for farmers to buy land

The Second New Deal The Works Progress Administration (WPA) created jobs building airports, constructing or repairing roads, & employed professionals in the arts The National Youth Administration provided young people education, jobs, & recreation

Reforming Labor The Wagner Act created the National Labor Relations Board (NLRB), which protects the rights of workers to join unions & participate in collective bargaining The Fair Labor Standards Act helped establish maximum hours & minimum wages for workers

Social Security The Social Security Act (1935) had three major parts: Old-age insurance for those over the age of 65 Unemployment compensation Aid for those with dependent children & the disabled

Questions to Consider Why is the Social Security Act considered the New Deal’s most important achievement? Why do some think our country has a Social Security crisis?

Election of 1936 Roosevelt is re-elected to a second term in 1936. His reelection shows the popularity of his New Deal & the increased involvement of the Federal Government in providing relief to the people.

Results of the New Deal The New Deal did not end the depression, but provided economic security to people who never had it before Americans came to expect that the federal government would ensure the health of the nation's economy and the welfare of its citizens. Roosevelt’s & our nation’s attention began to turn to foreign threats