FDR and the New Deal

Warm up Why do you think a squirrel is used for this particular cartoon/message? What does this tell us about American faith in the banking system? What can be done to restore American faith in banks/government?

1932- FDR Unlike Hoover, FDR wanted the government to play a big role in relief & recovery FDR believed in “Direct Relief” for the people. This change is what the people voted for

The 1st 100 Days The New Deal: 3 goals were to provide relief, recovery, and reform In his 1st 100 days, FDR would pass 15 bills and get the New Deal underway

FDR Reassures the Nation Called for a “bank holiday” Banks close for 4 days Stops people from panicking Helps banks get re-organized When banks reopened, there was no longer a rush to withdraw funds

FDR Reassures the Nation FDR utilized radio “fireside chats” on the radio to reassure people, inform the people what was being done to solve issues

FDR Reforms the Financial System Federal Deposit Insurance Corporation (FDIC) Bank deposits insured up to $5k Securities Exchange Commission (SEC) Outlawed insider trading Made the stock market more fair Goals: Restore confidence in the banks and economy

Farmers Agricultural Adjustment Act (AAA) Financial Aid to farmers Paid farmers to not grow or kill portion of livestock Goal: Decrease supply of crops to raise prices Invited industries in search of cheap energy

FDR Helps Rural Southerners Tennessee Valley Authority (TVA) Built dams to control flooding and generate electricity Goal: Bring relief to the poor in these regions and provide jobs Invited industries in search of cheap energy Con: Govt owned agency (Socialist?)

FDR Provides Relief and Recovery Civilian Conservation Corps (CCC) Provided 2 million jobs for young men Replant forest, build trails, fight fires Goal: Help young men find work Included Minorities (Mexican Americans

FDR Provides Relief and Recovery Public Works Administration (PWA) Created jobs, improved infrastructure Federal Emergency Relief Act (FERA) Federal $ sent to local governments to help with unemployment Civil Works Administration (CWA) Provided jobs on Public works projects Goal: To provide money to help with unemployment

FDR Provides Relief and Recovery National Recovery Administration (NRA) Est minimum wages Est minimum prices Goal: To govern industry in a manner that is fair to both workers and management This gives people more $ to spend while allowing businesses to reap larger profits

Opposition To the New Deal Conservatives thought the New Deal made the government too powerful Liberals thought New Deal did not go far enough

Opposition To the New Deal Townsend: Wanted those over 60yrs to receive $200/month Father Coughlin: Priest who thought FDR needed to do more Huey Long: “Share our Wealth” High taxes on wealthy and big businesses Redistribute that money to the poor

The 2nd New Deal

Social and Economic Reforms Goals of the 2nd New Deal (1935-1938): Help the elderly, poor, and unemployed Providing More Jobs Works Progress Administration (WPA) Public works program, opportunities for artists Appalachian Trail

Social and Economic Reforms This all costs money, and the govt went into debt (Deficit spending) FDR called this a “necessary evil” John Maynard Keynes said that to end the depression, the govt needed to spend money

Social and Economic Reforms Social Security Act: Provided a pension for the elderly and others Unemployment insurance for workers as well as those injured on the job Supplies aid to poor mothers and the disabled

Social and Economic Reforms Rural Electrification Agency (REA) Provided $ to build power lines that could reach rural areas Goal: To bring electricity to farms (90% were without it) By 1950, 80% of farmers had electricity

Labor Unions Find Support Wagner Act Employees’ right to join a union Employees’ right to collective bargaining Fair Labor Standards Act Minimum wage and max hours/week Outlawed child labor Goal: FDR wanted to raise the standard of living for industrial workers. This would strengthen the economy Congress of Industrial Organizations (CIO) This invited unskilled industrial workers in Conducted sit-down strikes Union membership increases as well as union effectiveness

More Challenges To the New Deal Supreme Court was FDR’s main challenge Had shot down many New Deal programs, labeling them unconstitutional

More Challenges To the New Deal FDR asked Congress to add 6 justices to the SC (said it would relieve the workload on the judges) Critics called this “court packing” and an abuse of power However, FDR would not need to do this…

More Challenges To the New Deal The SC began to turn in favor of New Deal programs Also, the retirement of judges allowed FDR to appoint new justices friendly to the New Deal Critics do emerge however, citing FDR’s abuse of power

More Challenges To the New Deal 1938- another economic downturn renewed problems Republicans gain strength in Congress Unemployment rose back up to 20%