The New Deal Franklin D. Roosevelt Saves the Day (?) And Expands the Federal Gov’t 1 st Term:

Short-Term Effects of G.D. 1. UNEMPLOYMENT 2. HOOVERVILLES/ SHANTYTOWNS 3. BANKS & SCHOOLS CLOSE 4. POOR GLOBAL ECON. 5. HOOVER (REP.) = OUT F. ROOSEVELT (DEM.) = IN

1932 – FDR is Elected Hoover was blamed for doing nothing about the Depression. Gov. of NY, FDR wins Demos win maj. in House & Senate

The Brain Trust Presents… The New Deal “The Brain Trust”: FDR’s cabinet was made up of professors, lawyers, and journalists “The Brain Trust”: FDR’s cabinet was made up of professors, lawyers, and journalists relief recovery reform They developed policies that would provide relief for those in need, economic recovery, and financial reform. new deal “A new deal for the American people”

What to do 1 st ? Roosevelt declares a “bank Roosevelt declares a “bank holiday” & closes all banks holiday” & closes all banks Emergency Banking Relief Act, 1933 – Gov’t. Treasury Dept. gained ability inspect banks Emergency Banking Relief Act, 1933 – Gov’t. Treasury Dept. gained ability inspect banks –Only “sound” banks could re-open –Effect: build faith in banking system Fireside chats – FDR gave weekly radio addresses to the public. Fireside chats – FDR gave weekly radio addresses to the public.

Regulating the New Banking System Glass-Steagall Act, 1933 Glass-Steagall Act, 1933 –Est. the Federal Deposit Ins. Corp. –Provided ins. to all individual bank accounts Fed. Securities Act, 1933 Fed. Securities Act, 1933 –Required corporations to provide complete info. on stocks Securities & Exchange Commission, 1934 Securities & Exchange Commission, 1934 –Regulated the stock market & prevented “insider” trading $5,000 then $250,000 today

Federal Securities Act

21 st Amendment 21 st Amendment passes, which brings back alcohol 21 st Amendment passes, which brings back alcohol –Creates extra revenue for gov’t –Sin tax

Help is on the Way: Farms & Agriculture The Agricultural Adjustment Act, 1933 –f–f–f–farmers were paid to slow down production = raise crop prices Tennessee Valley Authority, 1933 –R–R–R–Rebuilt & built 25 dams in Tenn. River Valley –P–P–P–Provided jobs, flood control, CHEAP hydroelectric power –P–P–P–Problem: private power co’s couldn’t compete w/ prices A A A T V A

Work Projects The Civilian Conservation Corps, 1933 –B–B–B–Built roads, parks, planted trees, & developed flood control. Public Works Admin., 1933 –P–P–P–Provided $ to states to construct schools & community buildings Civil Works Admin., 1933 –B–B–B–Built more schools, paid teachers’ salaries, built 500,000 miles of roads C C C P W A C W A

Promoted Fair Practices The National Recovery Administration The National Recovery Administration –Set prices, minimum wages, standards ■ The National Industrial Recovery Act, established codes of fair practice for industries -- guaranteed workers’ right to unionize NIRA NRA

Housing & Relief Home Owners Loan Corporation, 1933 – p– p– p– provided loans to homeowners in default The Federal Housing Commission, 1934 –A–A–A–Approved loans for mortgages & repairs The Federal Emergency Relief Administration, 1933 –P–P–P–Provided funds for direct relief to poor / needy HOLC FHC FERA

FDR Faces Opposition- Democrats New Deal doesn’t go far enough! Fr. Charles Caughlin: wanted a guaranteed annual income & nationalization of banks Dr. Francis Townsend: developed a pension plan for the elderly Huey Long: developed “Share-Our-Wealth” social program

FDR Faces Opposition- Conservatives Critics say his BIG gov’t has gone too far… DEFICIT SPENDING! Critics say his BIG gov’t has gone too far… DEFICIT SPENDING! –Spending more $ than what is being taken in The Supreme Court disallows NIRA and AAA The Supreme Court disallows NIRA and AAA –Too much gov’t interference. –Exec. Branch overstepping powers

FDR’s Court Packing FDR tries to change the rules re: appointing new Supreme Court justices FDR tries to change the rules re: appointing new Supreme Court justices –(sep. of powers?) Congress did not grant his request for a new panel of judges (court packing) Congress did not grant his request for a new panel of judges (court packing) For various reasons he ends up nominating seven new judges during his years in office. For various reasons he ends up nominating seven new judges during his years in office.