Chapter 26 APUSH Mrs. Price “When you get to the end of your rope, tie a knot and hang on.” – Franklin Delano Roosevelt

Franklin D. Roosevelt Elected in 1932 Projected optimism 1st president to use radio – fireside chats Close relationship with press

Eleanor Roosevelt Important asset FDR’s eyes & ears

Brain Trust FDR’s advisors Intellectuals young

The New Deal Based on Keynesian economics Takes US off the gold standard The 3 Rs: Relief, Recovery, & Reform

Hundred Days March 9 – June 16, 1933 FDR pushed through several pieces of legislation Congress very accommodating

Saving the Banks Bank Holiday (March 6, 1933 for 4 days) Emergency Banking Act: Treasury Dept inspects banks Glass-Steagall Banking Act: created the FDIC

Dealing with Want: Federal Emergency Relief Act $3 billion to states for relief payments or work projects To keep people from starving

Saving America’s Farms: Agricultural Adjustment Act System to provide cash subsidies to farmers who cut production Displaced sharecroppers (white & black)

Restarting the Factories: National Recovery Administration Codes for production, prices & labor Established minimum wage ($13 a week) & 40 hr work week Outlawed child labor (under age of 16) Ruled unconstitutional in 1935 (Schechter v. U.S.)

Putting People Back to Work Civilian Conservation Corps: young men; reforestation & conservation work Public Works Administration Civil Works Administration: temporary work projects

Ending Rural Poverty & Electrifying the Nation Tennessee Valley Authority: 20 dams Rural Electrification Administration: 10% of farms to 40%

Stock Market Fixes Securities & Exchange Commission (SEC): to police stock market Truth in Securities Act of 1933: companies have to give full & accurate info

Critics of the New Deal American Liberty League - Formed in August 1934 by Al Smith & John Davis - Wealthiest opponents of FDR - Northern industrialists - believed New Deal was violation of personal & property rights

Critics of the New Deal Dr. Francis Townsend Pension plans for elderly Over 60 would get $200/month if they retired Helped build support for Social Security

Critics of the New Deal Father Charles Coughlin Catholic priest w/radio show Created National Union for Social Justice Proposed monetary reforms: back to silver standard, nationalize the banking system

Critics of the New Deal Senator Huey Long From Louisiana Share-Our-Wealth Plan: wealth redistribution Tax the wealthy & give $ to the poor

Minorities & New Deal Many programs were for whites only AAA displaced over 200,000 black tenant farmers Mexican Americans were denied access Efforts to help Native Americans were not implemented

2nd New Deal Launched in spring 1935 Response to political pressures & continuing economic crisis

Works Progress Administration 1935 Led by Harry Hopkins Work relief Built public buildings, roads & bridges Employed artists & writers Kept 2.1 million workers employed

WPA Sewage Project

WPA Projects

Social Security Act 1935 Assistance for elderly: need-based or for retirement ($22/month) Unemployment insurance Aid to disabled people & dependent children

National Labor Relations Act Aka Wagner Act (1935) Created the National Labor Relations Board Employers had to recognize & bargain with unions FDR supported law to get labor support

Revenue Act 1935 Raised tax rates on annual income above $50,000 Raised taxes on corporations

Court Packing Plan Feb 1937 FDR proposed adding up to 6 new justices to the Supreme Court Angry about the court declaring New Deal laws unconstitutional Congress refused to go along w/FDR Court began to uphold New Deal laws

Impact of the New Deal WWII ended the Depression, not the New Deal Did not re-distribute wealth Restored public confidence New groups gained influence Economic development of West & South Created Federal Welfare State