The New Deal

FDR’s plan to end the Great Depression. A series of government programs that FDR put through Congress to boost the U.S economy.

The First 100 Days/ The First New Deal FDR put together a team to fight the Depression FDR plans to pass legislation (laws/act) to turn the economy around.

The Banking Crisis Panic caused Americans to pull their money from the bank. Thousands of banks closed their doors. Lack of trust

Fixing the Banks FDR declared a “Bank Holiday” closed all banks. Banks that were financially stable could open Trust in banks increased, crisis over.

FDIC Federal Deposit Insurance Corporation (FDIC): The government would insure your bank accounts Helped restore faith in the banks

Relief FDR greatly increased “relief” money to those that needed it. Americans would gain skills and pride if they had to work for it.

Civilian Conservation Corps (CCC) Put young men to work. Environmental projects. (national parks, trail construction, flood control… Lived in camps Paid 30 a month/25 sent home to parents Benefit: Lowered unemployment/gave young people work experience.

Public Works Administration (PWA) Put Americans to work on public works projects Dams, Roads, Bridges, buildings….. Benefit:Benefit: These projects lowered unemployment Workers had money to buy stuff. Gave many job skills

Fixing Industry NRA National Recovery Administration Set codes for minimum wages, price controls, unionize, shorter work days Forced Co’s to hire more workers Companies that complied were given benefits. (could display the Blue eagle)

FDR’s Fireside Chats FDR would use radio addresses to reassure Americans that things were getting better.

Eleanor Roosevelt First Lady Opened Roosevelt's eyes to plight of the poor.

Fixing the Farming Industry AAA Paid farmers not to produce as much. Less production would increase demand and prices would increase. Farmers destroyed some of their crops. Also help end soil erosion. Farm income rose by 50%

Tennessee Valley Authority (TVA) Program would construct a series of dams in the Tenn. Valley. Dam construction would create jobs. Dams would create electricity for entire area. Also created lakes/tourism

Criticism of the TVA Dams flooded farms. Businesses felt the TVA’s low rates was unfair competition.

Works Progress Administration WPA Program that created projects to put people to work. Primarily construction jobs around the country. Hired artist, actors, writes, and other entertainers.

The Federal Art Project WPA program that paid artists to produce public art. Put thousands of artists to work. Boost public appreciation for art. Promote positive images of American Society.

Coit Tower, San Francisco, Ca.

Coit Tower, San Francisco, Ca

Indiana

Social Security Act 1935, Social Security Act passed Gave security (money) for elderly and unemployed. Employers pay in throughout they careers Workers got money back in the form of monthly retirement checks.

Reactions to the New Deal

Public Reaction to the New Deal Public confidence in the nations future improved. It seemed that unemployment was going down Faith in the countries economy improved

Critics of the New Deal Liberal critics claimed that the New Deal did not go far enough. Felt government should do more Conservative critics claimed the New Deal went to far. Government was interfering with our free market economy.

Father Coughlin Roman Catholic Priest Wanted the Gov. to do more -Gov. to take over the banks -Redistribute the wealth of the few to the many. Used a weekly radio show to reach the masses.

Huey Long U.S. Senator for Louisiana. Long felt he had a better plan, “Share-our-wealth” All income over 5 mill would go to the poor. Long’s plan was very popular Huey Long was assassinated.

The Biggest Critics Many conservative businessmen banded together; known as The American Liberty League.

The Second New Deal FDR started another series of New Deal programs. Hoped to put more Americans to work.

The Supreme Court Reacts The U.S. Supreme Court began declaring FDR’s New Deal Programs unconstitutional NIRA 1936, AAA

FDR’s Court Packing Plan FDR feared that the Courts would dismantle his New Deal Programs. 1937, FDR purposed a court-reform bill that would re-organize the Supreme Court Allow FDR to appoint 6 more judges. These judges would support FDR, and tip the court in his favor.

The People React to FDR The Press and Congress protest FDR on his court-packing bill. Charge him with violating separation of powers. FDR’s image tarnished.

The Legacy of the New Deal

New Regulations Glass-Steagall Banking Act: Banks can no longer invest peoples savings in the stock market. Securities and Exchange Commission: Government group that regulates the stock market.

The New Deal & Women FDR appointed Frances Perkins as Secretary of Labor. First woman in a cabinet job. Women still faced discrimination at work. Paid lower wages.

New Deal & African Americans FDR worked closely with the African American community. The Black Cabinet: group of African American community leaders that advised FDR on important issues New Deal programs aided African American communities.

New Deal & African Americans FDR did little to eliminate unfair hiring practices. Some ND programs segregated workers. FDR did not pass an anti-lynching law Failed to abolish the poll tax

Expanding the Role of Government Federal government greatly expanded: -Assumed the responsibility for the welfare of individuals -Millions were working on government jobs Millions getting government relief Greatly increased federal spending.

Deficit Spending The government is spending more than it is taking in. Keynesian economics: Money invested in working class people. These workers would spend more; demand for goods would rise. Demand goes up, business expand and hire more workers.

The Legacy of the New Deal Expanded the U.S government Government created a safety net for workers Union membership rose sharply Workers and Unions fought back with sit down strikes