USHC- 6.4a Analyze President Franklin Roosevelt’s New Deal as a response to the economic crisis of the Great Depression, including the effectiveness of New Deal programs in relieving suffering and achieving economic recovery, in protecting the rights of women and minorities, and in making significant reforms to protect the economy such as Social Security and labor laws.

FDR Takes Over ***Franklin Delano Roosevelt (FDR) was elected in 1932 and was a great change for the nation. **His first fireside chats, on banks, explained a bank holiday that stopped the escalating collapse of the banking industry. When the banks reopened the panic had subsided. These chats helped bring hope to a nation battered by the depression. ***The New Deal- From his inauguration in March of 1933 until the following June Roosevelt pushed through program after program in an effort to provide economic relief and recovery. This time period became known as the first hundred days.

Roosevelt’s First New Deal ***SEC - The Security and Exchange Commission - Regulations were placed on the stock market to prevent the conditions that led to the crash. Deficit Spending- Most economists believed the economy would be fine if left alone. Roosevelt believed this policy had proven itself a failure and introduced a number of bills to help jump start the economy or “to prime the pump” Subsidies – to farmers to not grow crops WPA – Worker’s Progress Administration – provided work to thousands of writers and actors, and it established the precedent of federal support of the arts ***Direct Relief- Federal help to those hurting from the depression. Giving money to poor farmers and city workers. One example is welfare.

Roosevelt’s First New Deal (cont) Civilian Conservation Corps (CCC) ***1933- the CCC provided employment for unmarried men between the ages of 17 and 23. These young men worked in the national parks installing electronic lines, building fire towers, and planting new trees in deforested areas. Agricultural Adjustment Act (AAA) 1933- this act approved government loans to farmers and paid farmers not to grow certain crops in order to increase the price of agricultural products. Federal Deposit Insurance Corporation (FDIC) ***1933- Established to insure bank deposits of up to $100,000 in case of bank failure, Roosevelt wanted people to keep their money in the banks. National Industrial Recovery Act (NIRA) 1933- sought to bolster business prices to stop failing businesses. One part was the Public Works administration (PWA) which built dams, highways, bridges, and provided badly needed jobs. Tennessee Valley Authority (TVA) 1933- built hydroelectric dams to create jobs and bring electricity to parts of the South that did not have it before.

Liberal Criticism of the New Deal FDR was criticized for an unbalanced budget They claimed he was not doing enough to redistribute income and help the elderly and poor Labor unions demanded more recognition

Conservative Criticism of the New Deal The political right thought is was too expensive and socialist FDR was accused of taking too much power for federal government and executive branch. They compared him to the fascist leaders of Europe The conservative Supreme Court undermined New Deal programs by striking down legislation aimed to support laborers and farmers.

The Court-Packing Scheme In February of 1937 just after winning re-election Roosevelt proposed his ***Court Packing Scheme. ***Since the Constitution did not specify the number of Supreme Court Justices, Roosevelt wanted to increase the number from 9 to as many as fifteen and pack the court with people who would be favorable to his ideas. Although the court packing scheme promoted a backlash against FDR, afterwards the court did not overturn any subsequent New Deal legislation.