The New Deal FDR Vows to Save the Day

Review 0 Hoover Struggles: 0 No Direct Government Relief! 0 + Hoover Dam 0 - Bonus Army 0 - RFC- loaned businesses $805 million to “Trickle Down” 0 Hoovervilles

The New Deal ~Reforming America

Franklin Delano Roosevelt- FDR 0 Elected 32 nd president 0 4 terms 0 Married to Eleanor 0 Vowed to “defeat the Great Depression from the bottom up” 0 Put faith in the man at the bottom of the economic pyramid.

The 1 st New Deal 0 New Deal: FDR’s plan for helping nation get out of the Great Depression 1. Relief for needy 2. Economic Recovery 3. Financial Reform 0 Calmed people’s fears through Fireside Chats 0 Radio program- spoke in soothing, trusting voice to explain what the plan was- gained public’s trust 0 Link to Chat Link to Chat

Restructuring Finances 0 Bank Holiday- all banks closed temporarily- officials created Emergency Banking Act 0 Gave government more power to supervise bank activities 0 Banking Act of FDIC- Federal Deposit Insurance Cooperation- 0 restored confidence in banks, limited banks freedom to trade in stocks/bonds 0 SEC- Securities & Exchange Commission 0 Required companies to publish the important facts about their businesses. 0 Regulated activities of stock brokers and other investors

Economic Recovery Experiments 0 NIRA- National Industrial Recovery Act Goals: increase production while boosting wages and prices (make more goods available and to give consumers more money to buy them with.) 0 NIRA targeted 3 groups to help: 0 Businesses-government helped to create codes for fair competition- standardization- NRA- National Recovery Administration 0 Labor Unions- NIRA guaranteed workers the right to organize & bargain collectively- government supported minimum wages and maximum hours 0 Unemployed- PWA- Public Works Administration- created to oversee construction projects ($33 billion from Gov’t)- hoped to create jobs and restart the economy

Helping the Farmers 0 AAA- Agricultural Adjustment Administration- 0 Aid farmers to reduce crop production & raise prices 0 Less supply, increases demand 0 AAA provided loans to farmers so they could pay their mortgages and stay on their land

More Government Programs 0 TVA- Tennessee Valley Authority- 0 Built series of dams to provide hydroelectric power, end erosion & deforestation 0 Helped serious problems, created jobs, encouraged businesses to develop there 0 HOLC- Home Owners Loan Corporation- provided loans to help ppl meet their mortgage payments 0 FHA- Federal Housing Administration- insured mortgage loans up to 80%- protected banks/construction industries

FDR’s promise to remember the “Forgotten Man” 0 Relief programs designed to help ordinary Americans as they struggled to survive 0 CCC- Civilian Conservation Corps- gave young men jobs planting trees 0 FERA- Federal Emergency Relief Administration- sent $ to state governments who gave $ to needy 0 Chipped in to buy food/clothing for poor 0 1 st time in history Federal Government gave DIRECT relief to the unemployed.

New Deal Criticisms 0 Right Wing Conservatives- New Deal went too far in expanding role of federal government 0 Left Wing Liberals- give more aid to the needy

2 nd New Deal 0 Fireside Chat- “Are you better off than you were last year” – most Americans said yes! 0 Shifted focus from recovery toward reforms 0 Aimed to provide Americans with relief, stability, & security 0 Congress passes FDR’s Emergency Relief Appropriation Bill 0 “Big Bill” bc it called for nearly $5 billion in new spending

2 nd New Deal Programs 0 REA- Rural Electrification Administration 0 REA established publicly owned electrical cooperatives 0 90% of US farms now had access to power 0 WPA- Works Progress Administration- work relief organization 0 Put more than 3 million Americans to work in its 1 st year 0 Built thousands of bridges, parks, public buildings, art projects 0 WPA employed 7% of US workforce

Supreme Court Attacks New Deal 0 Review Branches of Government 0 Role of Judicial Branch? 0 President had more power than Congress 0 Declared some acts “Unconstitutional” 0 National Industrial Recovery Act (NIRA) 0 Ended Agricultural Adjustment Act (AAA) 0 Roosevelt Pushes On 0 Wagner Act- guaranteed workers “the right to self-organize, to form, or join labor unions” 0 FLSA- banned “oppressive child labor”, set minimum wage and maximum work week.

Economic Security for Americans 0 Social Security Act- created a social insurance act program 0 Roosevelt said “we can never insure 100% of the population against 100% of unexpected changes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age” 0 2 benefits- retirement and disability 0 Government finances this act by taxing working Americans 0 Program makes payments to unemployed workers for period of time

Unemployment

Lasting Impact Programs Still Around Today Banking regulation – FDIC Investment regulation- SEC Workers’ rights – FSLA Provide support & benefits to people – SSA Set quotas for farm production to control surplus – AAA Protecting nation’s natural resources, conservation – CCC New energy sources & land protection – TVA (Tennessee River Valley Authority )

Lasting Impact Government Women Executive branch gains more power Increased government involvement Increased regulations throughout financial world & businesses Eleanor Roosevelt: forever changed role of the 1 st lady; became a bigger impact in country ◦Traveled country to get closer to the people ◦Hear their problems Francis Perkins: 1 st women to be apart of the Presidential cabinet ◦women become more active in government

Was the New Deal an overall good thing or did it put too much power in the government?