Quick write: At the height of the Great Depression, 1933, thousands of banks and businesses have failed, and 25% of the adult population is out of work. A new president takes office, promising to bring relief to the ailing economy. Question: How would you begin to revive the economy? Respond in a ½ page response

A New Deal Fights the Depression

Franklin Delano Roosevelt Governor of New York Fifth cousin of TR Married to Eleanor Roosevelt (niece of TR and distant cousin of FDR) Crippled by polio Viral infection Elected president in 1932

Eleanor Roosevelt Wife to FDR Outspoken first lady Interested in child welfare, housing reform, equal rights for women and minorities Influential figure in FDR’s political decision making

FDR’s “New Deal” New Deal: Program of domestic reform launched by FDR Veered from capitalism in that the government took on more economic responsibility

The 3 R’s: Relief, Recovery, Reform-- The Focus of the New Deal Immediate relief for the needy Recovery: Immediate economic recovery Reform: Overall long term financial reform

FDR’s Hundred Days FDR’s “Hundred Days” March 9-June 16, 1933 FDR given extraordinary powers by Congress Moved quickly to try and repair the economy 15 pieces of legislation were passed, expanding the federal government’s role in the nation’s economy Targeted industrial and agricultural recovery “Bank Holiday” Closed banks until Congress enacted the Emergency Banking Act to provide federal loans to distressed banks Utilized “fireside chats” to speak to the nation Radio talks about issues of public concern

Regulating Banking and Finance Glass-Steagall Act (1933) Established the Federal Deposit Insurance Corporation (FDIC) Federal insurance for individual bank accounts up to $5,000 Impact: reassured Americans their money was safe and required banks to protect their customer’s money Federal Securities Act (1933) Stock Market regulation Corporations had to provide complete info on all their stocks and were liable for any misrepresentations

Alphabet Soup Agricultural Adjustment Act (AAA): Raise crop prices by lowering production- reduced supply would boost prices. Civilian Conservation Corps (CCC): young men ages 18-25 lived in work camps -public works (roads, parks, planting trees, flood- control projects etc…) Public Works Administration (PWA): Create jobs in construction (schools/community buildings)

Opposition to the New Deal 1) Fiscal Conservatives considered the New Deal programs as being “reckless spending” and “socialistic” Northern Republicans (wealthy industrialists) & form the American Liberty League Membership numbered about 150,000 FDR’s response: “The forces of organized money are unanimous in their hatred for me, and I welcome their hatred”

2) Dr. Francis Townsend Townsend Plan California physician EPIC (End Poverty in CA) Upton Sinclair’s role Had 5 million followers Townsend Plan “Old Age Revolving Pension Plan” $200 per month for everyone over 60 years old, provided they spent it all within the month to stimulate the economy Financed by sales tax Foreshadowed social security

3) Father Charles E. Coughlin Catholic Priest Radio orator Originally supported FDR; eventually became a foe Attacked Jews and FDR National Union for Social Justice Issue greenbacks Nationalize banks Re-monetization of silver

4) Senator Huey P. Long of Louisiana (aka: “Kingfish”) “Share Our Wealth” Plan to make “Every Man a King” Populist movement Redistribution of wealth Higher taxes on the rich; income subsides for the poor Limit income to $1 million per year Limit inheritance to $5 million per year Guarantee every family: A homestead $5,000 Annual wage $2,500 Free college education

FDR’s Response: 2nd New Deal (1935 on) 1) Raised taxes on the rich 75% income; 70% inheritance 2) Social Security Act of 1935 $15/month for destitute $10 to $85/month beginning in 1942 Unemployment insurance 3) Works Progress Administration Total of 8.5 million will be employed 4) In 1937 FDR cuts government spending 5) Takes the U.S. off the gold standard