New Deal Era

Time for notes, do not redundantly write down all of the New Deal agencies. Instead write down the “new” information. New Deal Era FDR was willing to try new things to try to turn the economy around. Fireside chats: FDR’s regular talks with the American people via radio in the 30’s and 40’s – They suggested an intimate conversation – Demonstrated the president’s effective use of the new electronic political medium

FDR enlarged the role of the executive branch in initiating policy, giving the president more power He used his cabinet to formulate the policy after he would suggest/initiate it

First New Deal First hundred days Banking crisis was the largest problem for FDR at first This is what brought the depression to the middle class 9 million had lost their savings since beginning of depression By Jan. 1933, 38 states had closed their banks, and the other 10 were close

Banks were closed on March 5 th, not to open until March 13 th when an emergency banking bill was passed as long as the Treasury Department had enough in reserve Emergency Banking Act : FDR used the federal gov’t to investigate the nation’s banks and restored confidence in banks 4,000 banks failed in 1933, most before the bill passed 61 in 1934

This was the first of 15 pieces of legislation enacted by Congress in the first 100 days of Congress’ session Home Owners Loan Corporation established to refinance home mortgages Glass-Steagall Act separated investment banking from commercial banking and created the FDIC, which insured deposits up to $2,500 Civilian Conservation Corps (CCC) was developed, which sent young men to do reforestation and conservation work

Tennessee Valley Authority (TVA) government sponsored approval for innovation of government sponsored regional development and public energy FDR legalized alcohol in April th Amendment repealed in December 1933 Agricultural Adjustment Act: December 1933 – Agricultural overproduction – Business failures – Unemployment relief

AAA also established a system for 7 major commodities that provided cash subsidies to farmers who cut production The hope was that prices would go up because the subsidies would cause goods to become scarce Larger farms seemed to benefit most: – The large owners would reduce renter’s and sharecroppers’ acreage rather than their own – In the South, many sharecroppers were black, so there were racial overtones – Up to 200,000 tenant farmers were displaced, and moved largely to northern cities and to CA

National Recovery Administration Established a system of industrial self-gov’t to handle the problems of overproduction, competition, and price instability Each industry decided on a code for prices and quotas for production Established minimum wages and maximum hours and outlawed child labor Also gave workers the right to collective bargaining.

Unemployment Legislation FERA: Federal Emergency Relief Administration set up in 1933 by Harry Hopkins Offered federal money to the states for relief programs Allowed for people to have emergency money until they could find some money to survive Program lasted 2 years, and gave out over $1 billion in relief Generally a short-term fix for people in need

Other programs: Public Works Administration (PWA) Civil Works Administration (CWA)

What was another goal of these programs??? **to create price increases, an inflationary tactic Necessary to stimulate recovery and stop deflation Also to abandon the gold standard and allow its value to rise like other commodities It ultimately provided the Federal Reserve to promote stability! Stable prices and full employment w/o being tied to gold

Second New Deal Wagner Act Upheld the right of industrial workers to join a union and outlawed unfair labor practices – Ex: Firing workers for union activities -Established the National Labor Relations Board which protected workers from employer coercion, supervise elections for union representation, and guarantee the process of collective bargaining

Social Security Act: Provided pensions for most workers Domestics were not covered, which greatly affected poor African American women Pensions were financed by a federal tax that all employers and employees would pay Established a joint federal-state system of unemployment compensation

Works Progress Administration Harry Hopkins Main federal relief agency for remainder of depression WPA put federal relief workers directly on the payroll Built roads, public buildings, parks, airports, bridges

WPA employed 8.5 million people Did not pay well, but better than nothing Ended in 1943 when WWII produced full employment Harry Hopkins

Revenue Act of 1935 Increased estate and corporate taxes Instituted higher personal income tax rates in top income brackets

Using your notes, work on a good thesis statement, 3 topic sentences, and a list of OI from the following question: “ Discuss how the 2 nd New Deal responded to the demands of the left and how the New Deal’s conflict with the Supreme Court was resolved” These will be collected in 15 minutes.