Chapter 12.1 The First New Deal Pgs. 422 – 431

Roosevelt’s Rise to Power He was from an elite family Long political career Progressive Contracted polio, never walked on his own Eleanor kept him in peoples minds Won Governor of NY in 1928 Re-elected by huge margin Gave people hope Pg 423 New Deal vs. Old Hoover

The Hundred Days A Waiting game The New Deal Begins Election & inauguration Gold standard (again?) Everyone wanted their money In gold of course Mini holidays Banks closed, 25% unemployment… good luck “The only thing we have to fear…” The New Deal Begins The first Hundred Days

Cont. A Divided Administration Roosevelt picked adversaries He had the final say (sound familiar?) Everyone agrees they need to do something But what? 3 ideas Work with big business Run important pieces Break up big business

Banks & Debt Relief Banking first The FDIC & SEC People must have faith National bank holiday Government examine banks & approve reopening “Fireside Chat” People must trust him They did The FDIC & SEC SEC – Securities & Exchange Commission Glass-Steagall Act FDIC – Federal Deposit Insurance Corporation

Cont. Mortgage & Debt Relief People spent money on debt not new stuff Home Owner’s Loan Corporation (HOLC) Gov. bought & refinanced peoples mortgage No farmers & must have job Helped 1 in 10 people Farm Credit Administration (FCA) Aid to farmers Did it really help?

Farms & Industry The AAA Agricultural Adjustment Administration Farm prices are to low from overproduction Farmers were paid not to farm It worked Farm prices rose, so did farmers incomes What’s the problem with higher farm prices? Farm products are also called food

Cont. The NRA National Recovery Administration Established industry codes Wages, hours, prices etc. Little real progress Favored big companies Helped unions (owners hated this) Owners disliked minimum wages Hard to enforce rules Declared Unconstitutional in 1935

Relief Programs The CCC FERA & the PWA The Civilian Conservation Corps Men 18 – 25 years old Worked in forest & land management Planted trees, fought forest fires etc. Paid $30 but had to send $25 of it home They were in camps and were provided food/shelter FERA & the PWA Federal Emergency Relief Agency Sent $$$ to state/local relief agencies Public Works Administration Increased spending on contracting public works projects Discouraged discrimination

Cont. The CWA Success of the First New Deal Civil Works Administration Hired workers directly to the government Continued with public works projects Spent over $1 billion in 5 months Roosevelt shut it down due to high costs Success of the First New Deal Lots of new legislation Banks, homes, farms & jobs People had hope The Depression is still going on