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FDR AND THE NEW DEAL
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The U.S. dumped Hoover in the 1932 election, and choose Franklin Delano Roosevelt. Roosevelt developed a plan known as the NEW DEAL. This was his plan to fix the Great Depression. This would expand the government’s role in the economy.
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March of 1933, FDR declared a bank holiday and closed all banks. The Federal government inspected the banks and allowed healthy banks to reopen. Failing banks could receive loans. The Glass-Steagall Act created the Federal Deposit Insurance Corporation. Provided insurance on individual bank accounts up to 5,000 (91,700) BANKING REFORM
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Informal radio talks by FDR about issues of public concern. These chats made people feel the president was talking directly to them. These chats provided people with confidence and increased support for the government and economy. FIRESIDE CHATS
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Agricultural Adjustment Act (AAA) – designed to raise prices by decreasing supply. The government paid people to not plant a certain amount of land. At first they also paid farmer to destroy food, but after outcry stopped. Civilian Conservation Corp (CCC) For men age 18-25 – worked to build roads, parts, plant trees, soil and flood control projects. Provided food, housing and pay. 3 Million participated by 1942. HELPING THE PEOPLE
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National Industrial Recovery Act (NIRA) Provided money to states to build schools and other public buildings. Created millions of jobs. Criticized as make-work and a waste of money. Other programs gave loans to people about to lose their homes. Others provided money to run soup kitchens, provided clothes, or paid for work relief programs.
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The New Deal required deficit spending or spending more money than the government earns. Liberals believe that New Deal did not do enough to help the poor. Conservatives believed that too much was being spent on direct relief and the government had too much power. CRITIQUES OF THE NEW DEAL
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The Supreme Court ruled that NIRA and AAA were unconstitutional. They gave the government power it did not have the right to. FDR wanted to “reform” the court. Proposed a bill to appoint 6 additional justices to the SC. It failed However, by the end of his 2 nd term FDR had replaced all but 1 justice. THE SUPREME COURT
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Works Progress Administration (WPA) Goal to create as many jobs as possible. Between 1935 and 1943 spent 11 billion dollars (1.7 trillion) Provided 8 million people with jobs. National Youth Administration (NYA) Provided education, jobs, counseling and recreation to young people. Student worked part time jobs while attending school. THE SECOND NEW DEAL
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The Wagner Act – Protected workers right to organize and collectively bargain. Prohibited unfair labor practices (threatening, firing workers for unionizing) Congress set the maximum hours per week to 44. Congress set the minimum wage at 25 cents. ($4.32) LABOR REFORMS
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The Social Security Act was passed in 1935. Old-age insurance for retirees (65) Unemployment compensation Aid to families with dependent children and the disabled. SOCIAL SECURITY
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The New Deal saw several women appointed to high level government positions. Women still faced discrimination in the workplace. 82% of people believed a wife should not work if her husband had a job. New Deal set lower minimum wage for women. Most programs hired fewer women than men, or did not allow women to apply. The percentage of women working raised slightly. EFFECT ON WOMEN
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Roosevelt appoint more than 100 Afr. Americans to key positions. Roosevelt was not committed to full civil rights. He did not sign an anti-lynching law or end the poll tax. Many New Deal agencies discriminated against Afr. Am. Favored whites and paid Afr. Am. less. In general African Americans supported him as the “best” option. EFFECT OF AFRICAN AMERICANS
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Received fewer benefits than Afr. Americans. Also discriminated against by New Deal Agencies. Often met with violence by employers or government authorities when protesting or attempting to unionize. EFFECT ON MEXICAN AMERICANS
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In 1933, the government moved away from a policy of forced assimilation, the process by which a person or a group's culture come to resemble those of another group. FDR supported increased Native American independence. Some reservation lands were returned to the tribes. Closed many boarding schools, allowed schools on reservations. Tribes were allowed to elected their own government. EFFECT ON NATIVE AMERICANS
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The New Deal did not end the Great Depression, but it relieved a great deal of suffering. Opinions on the New Deal, range from horrible to wonderful. Government’s role was greatly expanded. Many New Deal programs ended but many others still exist. What are your thoughts on the effectiveness of the New Deal? HINT HINT HINT HINT!!!!!!!!!!!!!!! IMPACT OF NEW DEAL
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