Chapter 10: Roosevelt and the New Deal Lesson 1: The First New Deal

Franklin Delano Roosevelt Distant cousin to Theodore Roosevelt Married to Eleanor Roosevelt NY State Senate Assistant Secretary of Navy Caught polio in 1921 Governor of New York 1932 Democratic Presidential Candidate Americans saw an energy and hope that gave them optimism despite tough economic times

The First New Deal Continuing bank runs made Roosevelt create Bank Holidays The First 100 Days: March 9-June 16 1933 Congress passed 15 major acts to resolve the economic crisis Emergency Bank Relief Act- required federal examiners to survey the nation’s banks to issue Treasury Department licenses to banks that were financially sound

The First New Deal (continued) The Federal Deposit Insurance Corporation (FDIC)- provides government insurance for bank deposits The Securities Act - required companies that sold stocks and bonds to provide complete and truthful information to investors. The Securities and Exchange Commission (SEC)- was created to regulate the stock market and stop fraud. This increased the public confidence in the banking system

The New Deal (continued) Home Owners Loan Corporation- bought mortgages of home owners who were behind in their payments, restructured loans for longer repayment times, for lower interest rates Farm Credit Administration (FCA)- helped farmers refinance their mortgages. These loans saved millions of farms from foreclosure.

The New Deal (continued) Agricultural Adjustment Administration (AAA)- pay farmers to grow certain crops, raise certain meats and create dairy products Farms got government $ to do so Unfortunately a majority of African Americans lost their jobs And it increased the cost of food National Recovery Act- (NRA) created voluntary rules and codes for workers in big business (max prices, min hours, min wages…etc) Only in effect for 2 years

The New Deal (continued) The Civilian Conservation Corps (CCC)- employed men for 6-12 months for forestry work to prevent a repeat Dust Bowl Men work and send $ home They learned to read and write Federal Emergency Relief Administration (FERA)- Gave $ to local agencies to fund their relief

The New Deal (continued) Public Works Administration (PWA)- building highways, dams, schools and other government facilities Civil Works Administration (CWA)-Offered jobs to the unemployed to help them through the winter. Roosevelt feared this would make people think they could expect the government to hand out jobs in the future (this was then shut down in the spring)

Chapter 10: Roosevelt and the New Deal Lesson 2: The Second New Deal

Launching the Second New Deal Deficit spending- spending borrowed money rather than rising taxes, usually in an attempt to boost the economy Works Progress Administration (WPA)- Public works projects, from building railroads to financing arts and musical programs

The Second New Deal (continued) National Labor Relations Act aka the Wagner Act- guarantee workers the right to unionize and bargain collectively National Labor Relations Board (NLRB)- investigates employers’ actions and stop unfair practices Committee for Industrial Organization (CIO)- organized unions by industry Sit down strikes GM first, then US Steel learned by example

The Second New Deal (continued) Social Security Act Provided financial security for older Americans, unemployed workers and other’s who, for any reason out of their control, could not work Workers earned the right to receive benefits because they paid special taxes to the federal government Welfare payments to people with disabilities and poor mothers with dependent children Retirement benefit to people over 65 when they stop working to supplement their incomes

Chapter 10: Roosevelt and the New Deal Lesson 3: The New Deal Coalition

Eleanor Roosevelt Supported women and African Americans through the New Deal Toured the Country to support the New Deal programs Sparked the Democratic Party Convention, consisting of White and African American Southerners, farmers, workers, immigrants, women, progressives and intellectuals. All supporting Roosevelt and the New Deal

Court Packing Social Security and the Wagner Act were pending Roosevelt wanted to change the Supreme Court’s balance, (to his benefit) Sent a bill that would increase the number of justices and allow the president to appoint additional justice if sitting justice who served 10 years did not retire within six months of reaching 70. (This would allow him to appoint 6 justices) so if you sat on the supreme court for 10 years and were 70 or older, and didn’t retire, the president could appoint a new member Social Security and Wagner Act were then passed This hurt his reputation

Keynesianism (Kayn-zee-uh-nih-zuhm) The thought that the government should spend heavily in a recession in order to jump start the economy

The New Deal Ends National Housing Act- $500 million to subsidize loans to builders willing to construct low-cost housing Farm Security Administration- give loans to tenant farmers so they could purchase their farms (as a result of the AAA many farm tenants had lost their lands ) Fair Labor standards Act- abolished child labor and limited the work week to 44 hours a week for most workers, set federal minimum wage 25 cents an hour By 1939 the New Deal came to an end

The New Deal’s Legacy The New Deal did not end the Depression, but it gave Americans a stronger sense of security and stability Broker state- role of the government to work out conflicts among competing interest groups Safety net- safeguards and relief programs that protected people against economic disasters The New Deal made the federal government more powerful in regards to recovering the economy.