The new deal

Franklin Roosevelt Becomes president in 1932 Campaign speech promised a “new deal for the American people.” THREE GOALS: relief for the needy, economic recovery, financial reform

Early Accomplishments (first 100 days) Declared a bank holiday on his first day in office Emergency Banking Relief Act – Treasury Department inspected banks Glass-Steagall Act – Established the FDIC ($5,000) Federal Securities Act – Established the SEC to regulate the stock market

Fireside Chats Radio talks about public concerns Explained his New Deal in plain, clear, simple language Designed to be informal Tried to explain the role of the average person within the American economy Spoke as if he was talking to you face to face

AAA – Agricultural Adjustment Administration Intent was to raise crop prices by lowering production Government paid farmers to leave a portion of every acre unseeded Cotton – too far advanced – government paid $200 million to plow under 10 million acres of land 6 million pigs slaughtered.

Agricultural Adjustment Administration poster

CCC – Civilian Conservation Corps Put 18-25 year old men to work building roads, developing parks, planting trees, and helping in soil-erosion and flood control projects. 3 million trained by 1932 Wage was $30/month and $25/month was sent straight home to your family

Civilian Conservation Corps poster

NIRA – National Industrial Recovery Act Created the PWA Provided money to states to create jobs in the construction of schools and community buildings

CWA – Civil Works Administration Addressed unemployment that was not covered by the NIRA and the PWA Immediately provided 4 million jobs during the winter of 1933/34. Built 40,000 schools Built 500,000 miles of roads Paid 50,000 teachers

HOLC (home owners loan corp) and the FHA (federal housing administration) Provided government loans to homeowners who faced foreclosure Furnish loans for home repairs The FHA is still with us today

Notice the eagle in the middle

FERA – Federal Emergency Relief Fund $500 million to provide direct relief for the needy Half was given to states as direct grants to help furnish food and clothing to the unemployed, aged, and ill The rest went to support work relief programs

Deficit Spending President Roosevelt agreed to spending more money than the government was receiving in revenue. FDR believed deficit spending was a necessary evil only to be used in a time of crisis. Keynes – and influential British economist promoted this idea

Deficit Spending Millions of American benefitted Public confidence rebounded DEFICIT SPENDING – the government spends more than it receives in revenue LIBERALS – the New Deal is too small CONSERVATIVES – spending too much and creating socialism

THE SECOND NEW DEAL FDR called on congress to provide more extensive relief for both farmers and workers Eleanor had deep humanitarian impulses and also influenced him Reelected in 1936

WPA (works progress admin) Spent $11 billion dollars to create 8 millions jobs for mostly unskilled workers. Built 850 airports Constructed or repaired 651,000 miles of road Erected 125,000 public buildings Women sewed 300 million garments for the needy

NYA (National Youth Admin.) Created specifically to provide jobs, education, counseling, and recreation for young people. Provided student aid to high school, college and graduate students In exchange students worked part time at their schools

NYA Journalism Students

NYA Auto mechanics

CRITICS Huey Long is considered to be the most serious critic Senator from Louisiana who was running for president “Share-Our-Wealth” clubs 1935 – 27,000 S.O.W clubs with 7.5 million members Long was assassinated by a lone gunman

Lasting Effects Reformed banking and finance Government takes a more active role in the economy Workers benefit from labor standards Social security provides for the needy Conservation efforts preserve the environment

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