The New Deal

Intro Due to a growing disapproval in the Republican party, Franklin Delano Roosevelt, the Democratic candidate, won overwhelmingly against Hoover, the Republican candidate, in the election of 1832. With the help of the “Brain Trust,” a group of academics, Franklin developed a series of domestic programs designed to remedy the Great Depression. These programs would come to be known as the New Deal and would set precedents for many U.S. policies today.

The First Hundred Days The Bank Holiday: a period between March 6-10, 1933, in which bank transactions were prohibited except for making change. Used to investigate banks for financial stability. Emergency Banking Act: gave additional power to the U.S. to regulate the banking system. Used to close down certain banks until they were financially sound. The Fireside Chats: A series of radio broadcasts in which Roosevelt persuaded many Americans into believing that the banks were secure. Tennessee Valley Authority Act: gave the government the authority to build dams to provide electricity to the local farmers.

The First Hundred Days(Cont.) The Agricultural Adjustment Act: this act gave subsidies to farmers who lowered their crop outputs. 21st Amendment: Ended Prohibition The Civilian Conservation Corps Act: this gave 3 million men, aged 18-25, temporary jobs on government project. National Recovery Administration: Established codes of fair competition. Glass-Steagall Act: created the Federal Deposit Insurance Corporation to insure bank deposits.

The Second New Deal(1935) Despite the programs implemented by the 1st New Deal, the depression still affects many Americans; a 2nd New Deal was made to further reduce the effects of the depression. Works Progress Administration (WPA): an organization that hires unemployed people to work in public sector jobs. Social Security Act of 1935: Gave retirement benefits to workers. The Wagner Act: Listed additional workers’ rights created the National Labor Relations Board to enforce these rights.

Resistance against the New Deal Although the New Deal programs were usually effective, many pivotal programs were declared unconstitutional by a largely Republican Supreme Court. In 1937, to subdue opposition against New Deal programs, FDR threatened to add enough liberal justices to the Supreme Court in order to control it. The conservative justices became more accepting of New Deal to avoid a “court-packing” but encouraged many politicians to go against FDR’s policies. FDR’s disapproval made it near impossible for him to pass any more policies led to the end of the New Deal in 1938.

Impact of the New Deal Decreased the unemployment rate significantly but did not reach pre-depression rates. Instituted the practice of social security in the U.S. Created a precedent at which the government could operate in opposition to free-market principles. Reformed the banks. Unions became more powerful. Created a large bureaucracy. Nearly doubled the national debt. Did little to close the gap between the rich and poor. Could not end the Great Depression.

Quiz 1. What was the purpose of the New Deal? 2. Which amendment ended Prohibition? 3. What were the 2 programs that hired millions of people to perform to do jobs for the government. 4. What did the Wagner Act create to enforce its rules? 5. What act set a U.S. precedent to provide retirement benefits for workers? 6. Did the New Deal end the Great Depression? 7. What act created the FDIC?

Citations http://www.u-s-history.com/pages/h1851.html http://study.com/academy/lesson/the-emergency-banking-relief- act-of-1933-definition-purpose.html http://www.ushistory.org/us/49.asp http://www.history.com/topics/new-deal http://www.britannica.com/event/New-Deal