The First New Deal: 1933-1934 Chapter 12 – The New Deal

The First New Deal In the 1932 election, Franklin Delano Roosevelt—or FDR— won a landslide victory, and Democrats took control of the House and Senate With Congressional support, he instituted a new set of policies that he called the “New Deal”

The First New Deal First step: reform banking many banks were closing causing widespread panic The new president tried to end the crisis by temporarily closing banks and passing a number of new laws Glass-Steagall Act: FDIC Federal Securities Act: SEC He attempted to calm and reassure the nation in a radio “fireside chat” that explained his policies

The First New Deal Step 2: help farmers and other workers The Agricultural Adjustment Act (AAA) raised food prices Raise prices by lowering production Farm subsidies $200m to destroy 10m acres of cotton 6m pigs slaughtered This angered Americans but did raise prices

The First New Deal Other agencies hired jobless workers for conservation or building projects Civilian Conservation Corps (CCC) The National Industrial Recovery Act (NIRA) promoted industrial growth Public Works Administration (PWA) Civil Works Administration (CWA) 40,000 Schools The Tennessee Valley Authority (TVA) brought flood control and electricity to a poor region.

The First New Deal Step 3: Food, clothing, and shelter Home Owners Loan Corporation (HOLC) Foreclosure Relief National Housing Act creates the Federal Housing Administration (FHA) Loans for mortgages and home repair Federal Emergency Relief Administration (FERA) $500m in direct aide to needy Primarily provided food, clothing and temporary shelter

The First New Deal The president’s actions were attacked by liberals as not enough and by conservatives as too radical When the Supreme Court overturned the NIRA and the AAA, Roosevelt proposed a legislative plan to gain the support of the Supreme Court The plan was called “Court-packing” Eventually (because of resignations) the Court backed the New Deal, but his court scheme cost him support.

The First New Deal Three critics of Roosevelt rose to prominence Father Charles Coughlin blasted the president on his popular radio show Favored nationalization of banks and minimum income Lost support due to anti-Semitic views Dr. Francis Townsend proposed a national pension for the elderly

The First New Deal Huey Long, a politician from Louisiana, proclaimed a plan called “Share Our Wealth” Wanted to win support for his own presidential bid Spotlighted the national debt ($252b, or $2000/person) For reference, 2009: $10.61t, or $34,000/person Last YEAR alone: $438b Everyone entitled to a home, food, clothing, and an education Assassinated before gaining the opportunity to run

The Second New Deal: 1935-1936 Chapter 12 – The New Deal

The Second New Deal During the first New Deal, the economy improved, but not enough Buoyed by Democratic gains in Congress, Roosevelt launched the Second New Deal to provide additional relief to farmers and workers. His wife is, Eleanor, is known as a driving force behind many of the Second New Deal’s Programs Deep humanitarian impulse Politically savvy Traveled the nation for crippled husband to gain support With her help, the president easily won re-election in 1936

The Second New Deal Roosevelt responds to Supreme Court defeats Helping Agriculture Won passage of a new law (Soil Conservation and Domestic Allotment Act) to replace the AAA aimed at conserving soil, providing loans, and offering mortgage relief Did not contain unconstitutional processing taxes Resettlement Administration: loans for farmers Farm Security Administration (FSA) Help tenant farmers become landowners Establish camps for migrant workers

The Second New Deal More help for Workers A new agency, the Works Progress Administration (WPA), was started to fund projects that would create jobs Between 1935 and 1943, it gave jobs to more than 8 million people They built public buildings, made clothes and constructed or repaired 651,000 miles of roads and streets. 850 Airports 125,000 public buildings National Youth Administration (NYA)

The Second New Deal More help for workers National Labor Relations Act (Wagner Act) Reestablished collective bargaining Protected workers rights to organize and join unions Prohibited unfair labor practices Established the National Labor Relations Boart (NLRB) Fair Labor Standards Act Max hours 44/week Minimum wage 25¢/hour, increasing to 40¢/hour by 1945 Rules for workers under 16 Banned some jobs for those under 18

The Second New Deal Direct Aid 1935 Social Security Act Social Security: insurance for retirees 65 and older Unemployment Insurance Aid to families with Children Aid to disabled individuals

The Second New Deal Infrastructure The Rural Electrification Administration It provided an electrical power grid in rural areas. 1935, 12.6% of farms have electricity 1945, 48% of farms have electricity 1949, 90% of farms have electricity Public Utility Holding Company Act Aimed at combatting corruption in utility industry Collusion raised prices Like the earlier railroad trusts

The Second New Deal