U.S. History 30 November 2015

Warm-up New Deal Federal Securities Act Agricultural Adjustment Act Civilian Conservation Corps National Industrial Recovery Act Deficit Spending

Objective Summarize New Deal Programs Identify critics of FDRs New Deal programs.

THE NEW DEAL AMERICA GETS BACK TO WORK

A NEW DEAL FIGHTS THE DEPRESSION Chapter 15 Section 1

THE ELECTION OF 1932 The 1932 presidential election showed that Americans were clearly ready for a change Republicans re- nominated Hoover despite his low approval rating The Democrats nominated Franklin Delano Roosevelt

FDR LAUNCHES NEW DEAL “The Hundred Days” - March to June 1933 Flurry of activity The Congress passed more than 15 major pieces of the New Deal The role of the federal government in economy expanded significantly.

CONGRESS GETS BUSY

NEW DEAL PROGRAMS Regulating Banking and Finance Employment Projects Business Assistance and Reform Farm Relief & Rural Development Housing Labor Relations Retirement

TO DO LIST: #1- HELP BANKS First order of business was to get the banking system in order On March 5, one day after taking office, FDR declared a bank holiday – (why?) He persuaded Congress to pass the Emergency Banking Relief Act, which authorized the Treasury Department to inspect the nation’s banks – “sound”, “insolvent”

FIRESIDE CHATS were informal talks that FDR gave over the radio in order to instill confidence in the American people. 30 fireside chats in his presidency The first – explained how banks work.

AMERICANS GAIN CONFIDENCE IN BANKS Next, FDR passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation The FDIC insured account holders up to $5,000 and set strict standards for banks to follow.

REGULATING BANKING AND FINANCE Federal Securities Act: Required stock info to be accurate and truthful Securities and Exchange Commission (SEC) – regulated the stock market. Still working. To prevent people with inside information from “rigging” the stock market for their own profit.

BUSINESS ASSISTANCE Banking Act of 1935 – created a seven- member board to regulate the nations money supply and the interest rates on loans. (FDC) Food, Drug & Cosmetic Act – required listing ingredients in each.

BUSINESS ASSISTANCE National Industrial Recovery Act (NIRA) National Recovery Administration (NRA) Goal: to promote recovery by stopping the wage cuts, layoffs, and falling prices. How: by establishing codes, standards, and prices on many products for fair competition Guaranteed the right to unionize.

FARM RELIEF AND RURAL DEVELOPMENT Agricultural Adjustment Act: (AAA) Raised crop prices by lowering production Tennessee Valley Authority: (TVA) Focused on direct relief to hard hit area– created ambitious dam projects

TVATVA

EMPLOYMENT PROJECTS CCC – Civilian Conservation Corps put young men to work Men ages 18 to 25 worked building roads, parks, planting trees (200 million trees in Dust Bowl areas) By 1942 three million men worked for the CCC

EMPLOYMENT PROJECTS PWA – Public Works Administration was part of the NIRA (National Industrial Recovery Act) The PWA provided money to states to construct schools and community buildings PWA workers construct a public building in Hartford, Connecticut

EMPLOYMENT PROJECTS CWA – Civil Works Administration built 40,000 schools and provided salaries for 50,000 teachers in rural America Also built 500,000 miles of roads CWA School in Woodville, CA

FOOD, CLOTHING, SHELTER HOLC) Home Owners Loan Corporation – loaned money at low interest to home owners who could not meet mortgage payments. FHA – Federal Housing Administration provided home loans, home mortgages and repairs. Still working FERA – Federal Emergency Relief Agency provided $500 million in direct relief to the neediest Americans

Objective: To understand the impetus ( driving force ) for FDR’s New Deal legislations and the impact of these policies on the American nation. What are we going to learn: What is Keynesian economics? What was “Court – packing bill”? Why was the New Deal criticized?

DEFICIT SPENDING Keynesian economics (John Maynard Keynes, 1936) Government should spend great amounts of money to help economy grow again. Goal: put money in the hands of consumers and reduce taxes to increase spending. They buy goods, which fuels economic growth. Problem: Where to find money?

CRITICS EMERGE Despite the renewed confidence of many Americans, critics from both political spectrums emerged Liberals (left) felt FDR’s program was NOT doing enough Conservatives (right) felt that government intervention was TOO much and interfered with our free market economy

WINSTON CHURCHILL WINSTON CHURCHILL “Any man who is under 30, and is not a liberal, has no heart; and any man who is over 30, and is not a conservative, has no brains.”

SUPREME COURT REACTS By the mid-1930s, the Supreme Court struck down the NIRA as unconstitutional (citing too much government control over industry) The Court also struck down the AAA on the grounds that agricultural was a local matter -- not a federal matter The Supreme Court

FDR REGAINS CONTROL OVER SUPREME COURT “Court-packing bill” – to appoint 6 new justices. Storm of protest! From the mid to late 1930s, FDR was able to appoint 7 new judges to the Supreme Court, thus assuring that his programs would carry on unabated.

MORE CRITICS Every Sunday, Father Charles Coughlin broadcast radio sermons slamming FDR He called for a guaranteed annual income and nationalized banks At his height of popularity, Coughlin had 45 million listeners His increasingly anti-Semitic remarks ultimately cost him support Coughlin

ANOTHER CRITIC Huey Long was a Senator from Louisiana who was a constant (and effective) critic of FDR Long was setting up a run for president A lone gunman assassinated Long at the height of his popularity in 1935 Huey Long made effective use of radio to promote his views

Analyzing Political Cartoons Examine the political cartoon on page 493 What compass did Roosevelt want to change? How does the cartoonist portray Roosevelt’s attitude toward his power as president?

This week’s theme The more you take responsibility for your past and present, the more you are able to create the future you seek.

This week’s theme It is not enough to have a good mind; the main thing is to use it well.

This week’s theme Be more concerned with your character than your reputation, because your character is who you are while your reputation is merely what others think you are.