The Three R’s Relief, Recovery and Reform “We Have Nothing to Fear, but Fear itself” The New Deal The Three R’s Relief, Recovery and Reform

The First 100 Days FDR’s first 3 months in office resulted in the passage of more than 15 major pieces of legislation which became known as the New Deal. These “New Deal” acts and others that followed significantly expanded the role of the Federal Government in the economy and society. Many critics of FDR argued that he was turning our nation into a socialist economy with too much federal control in people’s private lives.

Impact of the Great Depression Bread lines and Soup Kitchens

Malnutrition among children

25 – 30 Percent Unemployment

New Deal

Bank Holiday FDR closed all banks for four days and ordered the Federal Reserve to move 4 billion dollars to into the local banks to calm peoples fears. When the banks opened four days later, people began to have faith in their banks and deposits increased.

Public Works Administration PWA Government built schools, hospitals, roads and other public facilities To provide jobs and improve the infrastructure.

Social Security Act National pension plan to provide government payments to the elderly and disabled people.

Securities and Exchange Commission (SEC) Government Agency that monitors the Stock Market to ensure fairness and enforces laws that regulate the stock market.

Federal Deposit Insurance Corporation (FDIC) Federal insurance company that insures peoples money in banks up to $100,000.

Agricultural Adjustment Act (AAA) Government paid farmers to not produce farm products. This would reduce supply and raise the price of crops.

Civilian Conservation Corps (CCC) Provided jobs to young men working in parks and national forests. Some of their pay had to be sent home to help the family get by.

Works Progress Administration (WPA) Provided construction jobs on hospitals, bridges, parks. Also hired actors and artists to put on plays, and paint mural on public buildings

National Industrial Recovery Act (NIRA) or (NRA) Government created production codes and established minimum wages and maximum working hours. Declared unconstitutional by the Supreme Court.

Tennessee Valley Authority (TVA) Government built hydro-electric power dams along the Tennessee River. This provided electric power to several states including NC.

Federal Emergency Relief Act (FERA) Federal Government provided direct payments to the unemployed to provide financial relief for families

Court Packing Scheme After the Supreme Court ruled that the AAA and the NRA were unconstitutional, FDR tried to add 6 more judges to the Supreme Court, but Congress would not allow it. They said that Roosevelt was trying to take over the Supreme Court by putting his supporters on the court. This is known in history as the Court Packing Scheme.

Critics of the New Deal Father Coughlin criticized FDR for not doing enough for the poor and unemployed Dr. Francis Townsend criticized FDR for not doing enough to help the elderly popoulation

Critics of New Deal Continued Huey Long, senator from Louisiana wanted to tax the rich and have the government guarantee every American family a car, house and a radio. He was planning to run for president against FDR in 1936, but was killed by an assassin.

Critics of New Deal Continued Many political opponents of FDR such as Republicans and conservatives argued that FDR’s New Deal programs were turning America into a socialist/communist society. They argued that FDR was becoming too powerful and that the Federal Government was too large. The New Deal would be bad for business, cause taxes to increase and take people’s freedom away. They also argued that FDR was disregarding the Constitutional limits on presidential powers.

New Deal Evaluated In the end, the New Deal did help employ millions of unemployed Americans, reformed the banking system and provided support for labor unions, and gave hope to many who had lost faith in the government and themselves. The biggest criticism of the New Deal was that it did not end the Great Depression. World War II will do that as war production and government spending in the 1940s will bring about full employment and the economic recovery of the United States Japanese planes attack the American naval base at Pearl Harbor, Hawaii pushing the United States into WWII in December 1941

Impact of New Deal The size and power of the Federal government grows. The Federal government has more control over the economy. People now expect the government to provide the poor and elderly with financial support. Taxes increase to pay for the government programs. Deficit spending by the government becomes commonplace. The government borrows money each year to pay for the social programs. Since New Deal, other government programs to help the elderly and poor have been passed such as Medicaid and Medicare and Obamacare (Afordable Care Act)