The New deal fights the depression Franklin Delano Roosevelt implemented government programs that still impact American lives.

Americans Get A New Deal The 1932 presidential election showed that Americans were ready for political change. The American voter hoped that Democrat Franklin Delano Roosevelt – a two term Governor of New York would have the skill and the ideas that would finally stabilize the economy and return a sense of financial security to many Americans Roosevelt was inaugurated in March 1933. Upon taking office Roosevelt immediately went about the business of battling the Depression

The New Deal Roosevelt offered the America public a New Deal. This plan had three main goals: Relief for the Needy Economic Recovery Financial Reform On taking office Roosevelt’s administration set about implementing the New Deal Legislation. These new laws expanded the role played by the federal government in the American economy.

The First Hundred Days The first thing that Roosevelt did was declare a three day bank holiday. The banking holiday was designed to shore up the ailing financial sector. The Emergency Banking Relief Act – sent inspectors out to determine which banks should remain closed, which banks should be loaned money to continue operating, and which banks were healthy. The banking holiday went a long way in helping Americans regain trust in the U.S. banking industry.

Fireside Chats Roosevelt, unlike Hoover was eager to reassure the American people that better days were coming. Throughout his presidency Roosevelt took to the airways to directly address public concerns. The Fireside chats were informal speeches that explained the steps that the government was taking to fight the depression, and later in his presidency to explain American foreign policy or other important public concerns. By speaking directly to the American people Roosevelt was able to build public support for his controversial ideas and to help Americans gain confidence that things would get better.

New Deal Legislation: Regulating Finance Glass Steagall Act of 1933 – established the F.D.I.C. it went a long way in reassuring bank customers that their money was safe. The F.D.I.C. insured deposits up to $5,000.00. Today the F.D.I.C. insures deposits up to $250,000.00. It further strengthened the banking industry. Federal Securities Act – Required corporations to provide complete information about all stock offerings. It was designed to regulate the stock market and prevent insider trading -- which artificially inflated stock prices and helped to cause the crash of 1929.

The 21st Amendment Roosevelt convinced Congress that the government could raise revenue to support the F.D.I.C. by taxing alcohol. A low alcohol beer became available again in April1933. The 21st Amendment officially repealed the 18th Amendment on December 5, 1933. America’s failed experiment with prohibition was officially over.

Helping farmers While working to improve the Nation’s financial situation Roosevelt also hoped to provide relief to farmers and other workers hardest hit by the Depression. The Agricultural Adjustment Act (AAA) was meant to raise crop prices and stabilize production, however the policy was not without criticism. Americans resented the fact that farmers were being paid to not plant crops, and that surplus produce was actually destroyed instead of used to ease the suffering of hungry people.

Putting Americans back to work Reducing unemployment was a key to ending the Depression. Civilian Conservation Corps was an environmental program designed to put young men to work. The Public Works Administration and the Civil Works Administration were works programs designed to improve infrastructure and improve education by building roads, bridges, schools, and other public buildings. National Industrial Recovery Act fixed prices and helped to establish regulations for fair competition and helped to manage labor relations. Tennessee Valley Authority created thousands of jobs, provided flood control and electricity to one of the poorest parts of the country.

Preventing foreclosures Home Owners Loan Corporation offered loans to Americans in danger of losing their homes to foreclosure. Federal Housing Authority & National Housing Act provided mortgages and funds for housing repairs. The Federal Housing Authority is still helping Americans today.

The New Deal Comes under Attack Conservatives criticized New Deal programs. Many claimed that they were too expensive and that some programs like the Agricultural Adjustment Act gave the government too much power. Others criticized the New Deal for not going far enough to help the poor or reform the nation’s economic system.

Critics of the New Deal Father Charles Coughlin: Catholic Priest with a large Radio following – he criticized the New Deal for not going far enough to help those in the most need but his Anti-Semitism damaged his arguments. Huey Long: Called The Kingfish – demanded that the government not only ensure work, but also financial security for the American citizen. His motto was every man a “king.” Dr. Francis Thompson: Wanted the government to establish an age related pension for the elderly. He believed that this would help to reduce unemployment and reduce the stress of having to care for individuals who could no longer work to care for themselves.

The Supreme Court and the new Deal Critics of the New Deal charged that some the legislation was un-American and undemocratic. They sued the federal government. These cases made their way through the courts of appeal until they were heard by the U.S. Supreme Court. The Court found the NIRA program to be Unconstitutional and struck down the legislation. Roosevelt feared that the court would find parts of the Agricultural Adjustment Act to be unconstitutional. He proposed legislation that would have added judges to the court – proposal became known as the court packing bill and was rejected as a violation of the separation of powers clause in the Constitution.

Business Assistance & Reform Federal Program What was its Immediate Purpose? What was its long-term Goal? Business Assistance & Reform 1. Emergency Banking Relief Act (EBRA) Authorized the Treasury Dept. to inspect and close banks. Restore public confidence in American banks 2. Glass-Steagall Banking Act of 1933 Established the F.D.I.C. which insured deposits for individuals up to $5000.00 Restore confidence in American banking system 3. Federal Securities Act Regulated the stock market. It was designed to eliminate artificial stock inflations. Prevent dramatic crashes like the one that occurred in 1929. 4. National Industrial Recovery Act (NIRA) Established labor relations regulations and provided funds for public works projects like schools and community buildings. Also called for a minimum wage and set prices. Regulate labor relations, and prevent sweeping unemployment.

5. Agricultural Adjustment Act (AAA) Farm Relief/Rural Development What was its immediate purpose? What was its long term goal? 5. Agricultural Adjustment Act (AAA) Limited crop production to reduce surpluses and raise commodities prices Help farmers avoid losing their farms due to a drop in commodities prices. 6. Tennessee Valley Authority (TVA) Put thousands of unemployed men and poor farmers to work building dams and roads in the Tennessee River Valley Modernize the Tennessee River Valley by bringing electricity, roads, and telephone service to the region.

7. Civilian Conservation Corps (CCC) Put men 18 to 25 to work Employment Projects What was its immediate Purpose? What was its long-term goal? 7. Civilian Conservation Corps (CCC) Put men 18 to 25 to work To prevent future dust bowls by creating soil remediation programs in the great plains. 8. Federal Emergency Relief Act (FERAP) Provided 500 million dollars in direct aid to those most in need of financial relief To create a work-relief program that would help people regain their confidence and eventually remove the need for direct relief. 9. Public Works Administration (PWA) Created jobs in the construction field building schools, libraries, and other community buildings. Improve community infrastructure by improving schools and other public facilities. 10. Civil Works Administration Created 4 million immediate jobs in 1933. Improve infrastructure by building more local roads & improving education by putting 50,000 teachers back into classrooms.

11. Home Owners Loan Corporation (HOLC) Housing 11. Home Owners Loan Corporation (HOLC) Provided government loans to home owners who faced foreclosure Prevent homelessness for millions of Americans