The New Deal

Background 1929-Stock Market Crash Unemployment skyrocketing Bank failures, businesses close Rising poverty Hoover’s actions ineffective

Hoover’s Response Cut taxes, lower interest rates, create public works projects Localism Volunteerism Trickle down economics (RFC)

Franklin Delano Roosevelt Political up-and-comer from New York From a rich family Elite education Assistant Sec. of Navy Sound familiar?

New Deal “The country needs… and demands bold, persistent experimentation. It is common sense to take a method and to try it. If it fails, admit it frankly and try another. But above all, try something!” During campaign he was vague on what this “New Deal” would mean

Differing philosophies Hoover: ◦State and local agencies key to recovery ◦ business cycle and role of business to lead the US out of Depression FDR: ◦Federal government must take bold action ◦Diverse Cabinet:“The Brain Trust” ◦Calming influence on the people

First Hundred Days Relief, Recovery, and Reform Big Problems need Big Solutions “Fireside chats” Bank holiday FDIC: ( Federal Deposit Insurance Corp.) SEC: ( Securities and Exchange Commission )

More Help AAA (Agricultural Adjustment Act) TVA (Tennessee Valley Authority) CCC (Civilian Conservation Corp) FERA (Federal Emergency Relief Act) NIRA/NRA ( National Industrial Recovery Act/ National Recovery Administration) PWA (Public Works Admin)

Hollywood Bowl

Lincoln Tunnel

Hoover Dam

“Machinery” Paul Kelpe

You Can’t Please Everyone Republicans/Conservatives ◦Gov’t too powerful ◦Destroy free enterprise ◦Limited individual freedom American Liberty League ◦Business leaders, Republicans, & Democrats Liberals say not enough! ◦Father Charles Coughlin, Francis Townsend, and Huey Long (Share Our Wealth Program)

2 nd New Deal WPA (Works Progress Administration) SSA (Social Security Admin.) ◦Unemployment insurance ◦Pension for elderly ◦Workman’s compensation ◦Aid for poverty stricken mothers and children, the blind, and disabled All of these keep money in circulation and purchasing power up! More help to farmers and transforming the West through water and power projects

FDR and the Supreme Court Many big projects ruled unconstitutional ◦NIRA/NRA, AAA FDR tried to “pack” the court ◦Age limits ◦More justices ◦Tried to push his agendas through ◦FDR very popular but couldn’t supersede the law

Effects of the New Deal Eleanor Roosevelt ◦“The First Lady of Main Street” ◦Promoted rights of women, minorities, & kids Frances Perkins ◦Sec. of Labor ◦1 st female Cabinet member Black Cabinet Indian New Deal

New Deal Coalition Massive change in voting patterns FDR had widespread support ◦He was elected 4 times! Huge gains for Democrats Brought country together, ease some of the social and ethnic divides

The Long Term Effects Larger Government (for good or evil) ◦Many programs still in use today…and popular Gov’t in the economy Welfare state (not quite European, though) ◦“a country where no one is left out.” Restoring the Environment A more powerful President