New Deal Legacy

W/in months of the 1928 election (President Herbert Hoover) the stock market crashed –1 out of 4 people were out of a job –Hoover was disliked

The New Deal Franklin Roosevelt’s plan to end the depression. New Deal Social and economic programs to increase employment and security. The strength of the New Deal was that they were willing to take a chance.

“Brain Trust” FDR’s informal cabinet –Were willing to try new ideas –Best & Brightest professors and businessmen in their fields. –Created social programs to relieve the country from the depression.

FDR’s Inaugural Address “The only thing we have to fear is fear itself.” –Instilled confidence in his administration

FDR & Congress FDR’s 1st action> “Banking Holiday” March 6, 1933 –All banks in the U.S. were closed to stop the withdrawal of money –FDR called a special session of Congress

100 Days Congress (March June 1933) Emergency Banking Act- Government investigation of all banks –Banks that were found sound financially could reopen. –Those banks that were found unsound were closed permanently People regained trust in the government’s ability to act.

100 Days Congress (March June 1933) 15 major pieces of legislation New Deal=Alphabet soup

Problems and Solutions: Unemployment: –Civilian Conservation Corps (CCC) –Civil Works Administration (CWA) –4 million jobs were created in 2 months

Banking Glass-Steagall Act –Federal Deposit Insurance Corporation (FDIC) Gov’t agency would insure a bank deposit to a set amount

Agriculture Agricultural Adjustment Act (AAA) –Pay farmers subsidies to produce less thus eliminating the surplus

Industry National Industries Recovery Act (NRA) –Government establishes: codes to set prices/production quotas eliminate child labor, maximum number of hours a person could work a minimum wage right to have unions Public Works Administration (PWA) Public Works, bridges, roads, schools, etc

Fireside Chats FDR’s radio messages to the American public explaining his programs –1st address was used to explain the Banking Act »Result of address= $1 billion worth of deposits were placed back into the banking industry by the American public

The Second New Deal Permanent Reforms- “Still around” –Agricultural Adjustment Act –Tennessee Valley Authority –National Labor Relation Board –Securities and Exchange Commission –Social Security Act

Tennessee Valley Authority

Tennessee Valley Authority (TVA) Gov’t would provide Dams & power stations & control flooding from the Tenn. River. –This would provide electricity to the region

National Labor Relations Board (NLRB) Lasting reforms: –Minimum wage-$.25/hour –Maximum hours=40hours per week –Regulation of interstate commerce

Securities & Exchange Commission (SEC) Regulate & monitor the stock market activity. Investigate fraud & insider trading.

we do with What do we do with the aging?

Social Security Act  Retirement income (pension)  Provide enough money for the aging to survive.  Death benefits to dependent children  Unemployment insurance

New Deal comes under Supreme Court scrutiny NRA & AAA are declared unconstitutional –Congress passes new legislation Wagner Act & Fair Labor Standards Act Fair Labor Standards Act

1939=Death of the New Deal –What did the New Deal accomplish? Economic recovery for the Depression but not a long term recovery Lasting reforms

Changes that occurred during the New Deal –Labor unions became powerful CIO> John L. Lewis> Industry wide –Blacks become more involved in politics –Indians restored tribal control