The New Deal

Election of 1932 Hoover against FDR FDR wins by a landslide Democrats win majority in both Congressional Houses FDR does not take office until March 20th amendment not ratified until Feb. 1933 Picks his “Brain Trust” -> series of advisors They begin to create the New Deal

The Hundred Days Upon taking office FDR passes more than 15 major New Deal legislations over a span of 100 Days First action was with the banks Gives all banks a holiday on his first day in office Administers the Banking Relief Act -> inspection of the country’s banks Some would open back up immediately, others would get help, and some would be closed for good Holds “Fireside Chats” on the radio to help improve citizens moral and faith in the banks (pg. 490)

More Banking Legislation Glass-Steagall Act of 1933 Established the Federal Deposit Insurance Corp. (FDIC) -> insurance for accounts up to $5k Federal Securities Act Required corporations to provide complete information on all stock offerings and made them liable for any misrepresentations Passed the 21st Amendment repealing prohibition

Relief for the American People Wanted to help farmers and other Americans Agricultural Adjustment Act (AAA) Raise crop prices by lowering production Created work projects: Civilian Conservation Corps (CCC) Young men (18-25) building roads, parks, and environmental conservation jobs Aimed to prevent another Dust Bowl National Industrial Recovery Act (NIRA) Provided money to states to create jobs in the construction of schools and other community buildings

More Relief National Recovery Administration (NRA) Set prices of many products and established standards Home Owners Loan Corporation (HOLC) Provided government loans to homeowner who faced foreclosure Federal Emergency Relief Administration (FERA) Provide direct relief for the needy Aimed at states to be able to provide food and clothing

Everything Has Its Critics FDR agrees to deficit spending Spending more than the country is making Opposition begins to grow because the New Deal does not immediately end the Depression Did not go far enough to help the poor Believed the federal gov’t got too much control over agriculture and industry

Court Action Two Supreme Court Cases NIRA ruled unconstitutional The law gave legislative powers to the executive branch AAA ruled unconstitutional Agriculture is a local matter and should be regulated by the states

3 Major Critics American Liberty League The Big 3: Believe the New Deal violated respect for the rights of individuals and property The Big 3: Charles Coughlin Favored guaranteed annual income and the nationalization of banks Francis Townsend Believed FDR wasn’t doing enough to help the poor and elderly -> founded a pension plan Huey Long Wanted to become president and proposed a nationwide social program called Share- Our-Wealth

The Second New Deal

2nd Hundred Days FDR elected to 2nd term in 1936 FDR expected more gains than what happened Production still lagged behind the 1920’s level Calls on the gov’t to provide more relief to farmers and workers Eleanor Roosevelt -> travels country and reminds FDR how much people are suffering

Helping Farmers Mid 1930’s -> 2 of 5 farmers were mortgaged and thousands lost their farms Soil Conservation and Domestic Allotment Act Created after the AAA was shut down by the Supreme Court Paid farmers for cutting production of soil depleting crops and rewarded those who practiced good soil conservation Farm Security Administration (FSA) Loaned more than $1 Bil. to help famers become land and home owners

More Relief Works Progress Administration (WPA) Created jobs as quickly as possible for young men and women National Youth Administration (NYA) Provide education jobs, counseling, and recreation for young people Also provided part time jobs to those who dropped out of school

Improving Labor Wagner Act National Labor Relations Board (NLRB) Reestablished NIRA Protected rights of workers and wage negotiation Prohibited unfair labor practices National Labor Relations Board (NLRB) Hear testimony about unfair practices and hold elections to find out if workers wanted Union support Fair Labor Standards Act Limited work week to 44 hrs. and set a minimum wage at 25 cents/hr.

Social Security + Utilities Social Security Act 3 major parts to this act Old-age insurance for retirees 65+ and their spouses Half the funds from worker other from employer Unemployment Compensation System $15 - $18 per week Aid to families with dependent children and the disabled Paid for by federal funds Rural Electrification Administration (REA) Financed and worked with electrical companies to bring electricity to isolated areas Public Utility Holding Company Act Outlawed the ownership of utilities by multiple holding companies

Impact of the New Deal

New Deal Results FDR hints of 3rd New Deal in his 2nd term Economy had improved enough that people begin to feel the Depression is finally ending Congress urges FDR to cut back New Deal programs He does and it results in a drop of production and unemployment begins to rise again FDR becomes worried about Hitler’s rise to power

Expanding Governments Role Federal gov’t gains more control during FDR’s terms Established many programs such as the FDIC and Securities and Exchange Commission (SEC) Regulates banking and investment activity New Deal did not end the depression WWII plays major factor in the ultimate end

Social/Environmental Effects Federal gov’t now accepts responsibility for the social welfare of its people Social Security Act is perfect example Supplied a lot of support for famers making sure they were able to earn money and keep their land/homes Civilian Conservation Corps goes long way in restoring environment Taught farmers many useful things Tennessee Valley Authority (TVA) Used water power to produce electricity and prevent flooding