Chapter 12, Section 1 Launching the New Deal

FDR won the election of 1932 by a landslide He reached out to Americans with a series of radio talks These “fireside chats” explained in simple terms how he would fight the Depression FDR’s mobility was limited, so Eleanor attended rallies, tours & reported to him Before becoming elected, he recruited experts to advise him The brain trust FDR addressed the banking crisis Only healthy banks were allowed to reopen

May ’33: Congress established the Federal Emergency Relief Administration, giving $ to states for direct aid to the homeless June ‘33, Congress passed Glass-Steagall Act It prevented banks from investing in the stock market Also created the FDIC to insure depositors’ savings FDR began a policy of deficit spending to keep agencies open Banks reopened & deposits exceeded withdrawals

As confidence grew, the banking crisis ended Roosevelt sent a flurry of proposals to Congress This session (Hundred Days), much of FDR’s program was passed without debate FDR called his plan the New Deal He had no clear plan of how to end the Depression It was a series of measures quickly drawn up to attack Depression in many ways at once Relief for victims Recovery of the economy Reform to prevent a crisis in the future

1933-35, goals were recovery & relief June,’33: Public Works Administration, offered jobs instead of handouts PWA built highways, dams, schools, public buildings Civil Works Administration also hired jobless for construction projects ‘33-34: CWA hired 4 million, 300,000 women May ’33: Congress created the Tennessee Valley Authority (employed over 40,000)

TVA built dams & power plants in seven-states CCC was most admired New Deal agency It provided outdoor work to jobless single men 3 million planted trees, fought fires, & prevented soil erosion

Tennessee Valley Authority dam construction and a finished dam

’34: Indian Reorganization Act, gave to tribal ownership Native lands previously open to sale The National Industrial Recovery Act was passed to control production NIRA shortened work hours to create more jobs It limited factories to 2 shifts per day National Recovery Administration created to direct the program Some wanted more active gov.; others thought the gov. interfered too much

One critic was Father Charles E One critic was Father Charles E. Coughlin, a priest with a popular radio show He called for heavy taxes on the wealthy and a guaranteed income for everyone Another rival was Louisiana Senator Huey Long He proposed taking property from the rich & giving every family a home & $2,000 a year A third critic was Dr. Francis Townsend He called for a $200 per month pension for all Americans over age 60

Father Charles E. Coughlin Senator Huey Long