1. Roosevelt and the New Deal

2. Lecture 4: The First New Deal
A. FDR Takes Office
1. Election of 1932
Republicans re-nominated Herbert Hoover
Democrats nominated Franklin Delano Roosevelt
FDR won pledging a “new deal for the American people”
2. FDR’s Administration
Cabinet was nicknamed “The Brain Trust”
FDR was willing to try any idea
FDR’s 3 Goals (aka the 3 R’s)
Relief – provide immediate relief to Americans (short term)
Recovery – improve/stabilize the economy
Reform – fix the economic problems that
led to the great depression (long term)

3. 1932 Presidential Election

4. B. Fixing the Banks and the Stock Market
1. Emergency Banking Relief Act
Temporarily closed banks
Re-opened when the govt. verified they were stable
Americans regained faith in banks and deposits outweighed withdrawal
2. “Fireside Chats”
FDR’s radio addresses that explained New Deal programs to Americans
3. Securities and Exchange Commission (SEC)
Regulated the stock market; stock prices reflected value of company selling stock
4. Glass-Steagall Banking Act
Set up the Federal Deposit Insurance Corporation (FDIC) that insured deposits in America’s banks; no more bank failures and bank runs

5. 1. Agricultural Adjustment Act (AAA)
C. Managing Farms and Industry
1. Agricultural Adjustment Act (AAA)
Paid farmers subsidy payments to not grow crops
Lowered supply which increased price of crops
2. National Industry Recovery Act (NIRA)
Suspended antitrust laws; made it easier for corporations to expand and make profits
Established NRA Codes : set prices, established minimum wages , production quality, etc…
D. Providing Debt Relief
1. Home Owners Loan Corporation (HOLC)
Govt. refinanced bank mortgages to a lower rate
Helped Americans keep their homes out of foreclosure

6. 1. Civilian Conservation Corps (CCC)
E. Relief Programs
1. Civilian Conservation Corps (CCC)
Employed 3 million young men ages in the forestry service
Lived in camps and earned $30 a mo.
2. Federal Emergency Relief Administration (FERA)
Gave $ to State govts to fund relief projects
Headed up by Harry Hopkins
3. Civil Works Administration (CWA)
Employed 4 million people in public works project
Built airports, schools, roads, playgrounds, parks and sports fields

7. F. Challenges to FDR and the New Deal
1. American Liberty League
Criticized New Deal/FDR for deficit spending in order to create programs
Concerned about the increased role and size of the federal govt.
2. Huey Long
Popular Governor from Louisiana who believed FDR did not go far enough
Promoted “Share our Wealth” plan (take from the rich and give to the poor)
3. Father Coughlin
Catholic priest and radio show personality
Supported heavy taxes on the rich
4. Dr. Francis Townsend
Promoted a plan to provide federal pensions for citizens over 60 years old
Believed it would increase spending and promote job creation

8. 1. Works Progress Administration (WPA)
G. The 2nd New Deal
1. Works Progress Administration (WPA)
Spent $11 Billion on 8.5 million workers
Built roads, highways, bridges and airports
Provided work for artist, writers, and stage actors
2. Supreme Court
Targeted and struck down the AAA and the NIRA
FDR retaliated against the Supreme Court through his
court packing plan
Asked older justices to retire, if they refused FDR could
appoint an additional justice to the Supreme Ct.
3. Social Security Act
Provided retirement pensions to Americans over the age of 65
Provided payments to the unemployed and disabled

9. 1. National Labor Relations Act (Wagner Act)
H. Rise of Labor
1. National Labor Relations Act (Wagner Act)
Supreme Ct. took away labor protections in the NIRA
Congress gave workers the legal right to organize unions
Unhappy workers could take their complaints against their employer to arbitration
Labor unions merged together to form the Congress of Industrial Organization (CIO)
CIO launch major strikes in the automobile and steel industry

10. I. Roosevelt’s 2nd Term 1. Election of 1936 2. Roosevelt Recession
Republicans nominated Alfred Landon
FDR was re-elected with 60% of the popular vote
2. Roosevelt Recession
Economy seemed on the verge of recovery and slumped again in 1937 (the Roosevelt Recession)
Cabinet promoted a solution based on the ideas of economist John Maynard Keynes
During an economic recession the govt. should spend more in order to jumpstart the economy
FDR/Congress approved spending $3.75 billion for the PWA, WPA, and other programs

11. 1936 Presidential Election

12. K. Legacy of the New Deal 1. Role of the Government J. Last Reforms
1. National Housing Act
Govt. spent $500 million to create low-income housing
2. Farm Security Act
Gave loans to tenant farmers to purchase farms
3. Fair Labor Standards Act
Provided protections to workers, abolished child labor, established a 40 hour work week
K. Legacy of the New Deal
1. Role of the Government
Govt. became permanently responsible
for providing a safety net for struggling Americans
Increased the size of the government (bureaucracy)