18.1 FDR Offers Relief and Recovery Essential Question: How did the New Deal attempt to fix the problems of the Great Depression?

General Information Franklin D. Roosevelt nominated for presidency by the Democratic Party FDR was governor of NY and had never lived in poverty FDR married distant cousin Eleanor Roosevelt FDR wins election on platform of a “New Deal” to bring Amns out of the depression Focuses on having the gvmnt play an active role in providing relief to Americans

FDR’s Cabinet Press nicknamed them “Brain Trust” Nominated Republicans for his Secretary of Agriculture and Secretary of Interior

FDR’s First 100 Days Proposed and passed 15 bills Known as First New Deal 3 goals Relief Recovery Reform Emergency Banking Bill Gave president broad powers including the ability to declare a 4-day “bank holiday” Gave banks ability to get their accounts in order to reopen

FDR’s First 100 Days Spoke to public through radio Known as “fireside chats” Told the public what was going on and about his reforms Explained in the 1st fireside chat the concept of the “bank holiday”

Reforming the Financial System Federal Deposit Insurance Corporation (FDIC) Insured bank deposits up to $5,000 Securities and Exchange Commission (SEC) Regulated the stock market and made it safer for investments Restores confidence in banks b/c people wouldn’t lose their savings or investments in stock Helping Farmers Agricultural Adjustment Act (AAA) Ended overproduction and raised crop prices Provided financial aid, paid farmers subsidies not to plant part of their land and to excess kill livestock/destroy overproduction of crops All this allowed crop prices to rise

First 100 days con’t TVA Aids Rural Southerners Tennessee Valley Authority (TVA) Built a series of dams in TN River valley to control floods and generate electric power Gives people electricity, running water and proper sewage Replanted forests, built fertilizer plants, created jobs, attracted industries Critics called the TVA socialists b/c gave government direct control of business Private companies couldn’t compete b/c TVA didn’t pay taxes

Relief and Industrial Recovery Civilian Conservation Corps (CCC) Provided jobs for young men replanting forests, building trails, digging irrigation ditches, fighting fires Also available to minorities Federal Emergency Relief Act (FERA) Granted federal funds to state and local agencies to help unemployed Civil Works Administration (CWA) Provide jobs on public-works projects Homeowners Loan Corporation (HOLC) Loaned money at low interest rates to homeowners who couldn’t make mortgage payments Federal Housing Administration (FHA) Insured bank loans used for buildings and repairing homes

Relief and industrial Recovery con’t National Industrial Recovery Act Created the National Recovery Administration (NIRA) Worked with businesses and labor leaders to develop codes of fair competition to govern industries Established minimum wages and prices for goods Goal: increase wages of workers so they could buy more goods and raise prices so companies can make profit Public Works Administration (PWA) Built bridges, dams, power plants, and government buildings

Opposition to the New Deal Far Right (conservatives/Republicans) “made government too powerful” Accused the president of being socialist Government telling business how to operate and spend money Believed it undermined individualism and free enterprise Formed the American Liberty League Believed Roosevelt deserted the Democratic Party’s principles of limited federal government Far Left (liberals/Democrats) Believed gvmnt didn’t do enough Roosevelt only wanted to save the banks and ensure profits for big business Believed it to be a “capitalist ruse”