 On inauguration day 1933 FDR told the crowd, “The only thing we have to fear is fear itself.”  From March to June of 1933 FDR pushed reforms through.

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Presentation transcript:

 On inauguration day 1933 FDR told the crowd, “The only thing we have to fear is fear itself.”  From March to June of 1933 FDR pushed reforms through congress at a feverish pitch  Relief, Jobs and stimulate the economy  Used some of the programs from WWI which controlled the economy along with Hoover’s reforms and state reforms

 Banks were closed on March 6 th  Pushed the Emergency Banking Act Gave the government authority to check the financial health of banks FDIC insured deposits even if the bank failed Up to $5,000 March 15 th banks opened and for the first time in the Depression deposits exceeded withdrawals

 Civilian Works Administration  Employed workers to build and improve parks, roads and airports  Civilian Conservation Core:  Employed unmarried men for forest, beach and park restoration  Indian Reorganization Act:  Ended the sale of Indian Tribal Lands

 National Industrial Recovery Act  Tried to stop the decline of industrial prices  Set a minimum wage and other controls on industry  When prices rose due to higher wages and sales declined  Public Works Administration  Built the Grand Coulee Dam, Tribourough Bridge, the causeway between Florida and Key West

 Home Owners Loan Corporation  Refinanced mortgages for middle class Americans  Agricultural Adjustment Administration  Tried to raise farm prices Paid farmers not to raise certain crops.  Tennessee Valley Authority  Created jobs, dams, electrical grid and flood control in the Tennessee River Valley  This was one of the least modernized areas of the country

 Former President Hoover felt the reforms could lead to a “state-run state-controlled economic system”  The NRA and AAA were deemed unconstitutional by the Supreme Court  NRA president could pass laws on local commerce  AAA taxes paying farmers not to grow crops

 Due to the Supreme Court invalidation of New Deal FDR wanted to sway the court in his favor  The Constitution does not specify how many judges there could be  Last changes in 1869 to 9 justices  FDR said he wanted to lighten the load on the judges over 70  This would allow him to add six more justices  People saw through his scheme to pack the Supreme Court in his favor

 July 1935 NIRA is declared unconstitutional  Congress then passes the Wagner Act  Allows closed shops Only union members can work there  Collective bargaining Workers negotiate as a whole for benefits  Outlawed spying on unions and blacklisting union leaders  Sets up the National Labor Relations Board to enforce the law  1938 Fair Labor Standards Act Sets minimum wage and ends child labor

 The President is expected to solve problems  Government can no intervene in major problems  Wagner Act  Social Security  Farm Programs that pay farmers not to plant crops  Security and Exchange Commission  Public works projects

 FDR’s New Deal programs did help Americans but government spending was never enough to revitalize the economy  John Maynard Keynes believed that in times of economic stress large government spending should be used to bolster the economy  Keynesian economics is controversial even today  When Japan attacks Pearl Harbor on December 7 th 1941 increased government spending and the building of the American war machine finally pull America out the Depression.