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The New Deal
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FDR’s Inaugural address
“This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” *Wins by over 7 million votes
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Active role in ending the depression
First 100 Days- “Hundred Days” Active role in ending the depression
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Brain Trust Roosevelt’s advisers Recommended solutions
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Bank Holiday Temporary shutdown of all banks
Reorganized the bank system and federally insured deposits
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Bank Holiday Bank records inspected “Healthy” banks reopened
People now lined up to deposit Within 2 weeks the banking system was resolved Stabilized banks
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Roosevelt talked to the American People via Radio
Fireside chats
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Reassured them, told them what was going on
Fireside chats Reassured them, told them what was going on
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Significance of FDR’s 1st 100 Days
*New programs were created to help the people *Many bills passed
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New Deal Goals: Relief Recovery Reform
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Fair Labor Standards Act
*Minimum Wage *9-5 work day
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Retirement benefits & unemployment insurance
Social Security Act Retirement benefits & unemployment insurance
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Insures the money in banks
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Securities and Exchange Act
regulate the stock market
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WPA & CWA Created Jobs
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CCC- Constructed Parks and Recreation areas
Kyle Canyon CCC Camp
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The New Deal’s Critics
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The New Deal’s Limitations
African Americans: -Relief programs reinforced segregation & racism. -Not offered jobs at professional level. -Receive lower pay for same work. -Discrimination continues Women: -Relief & job programs have strong preference for men & boys. -Lower Wages Republicans: -Some in Congress felt FDR was leading the U.S. towards a more socialist society. -Many Progressives thought that the New Deal should do more to help the poor.
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Senator Huey Long (Louisiana)
Wanted to put heavy taxes on the rich “Share the Wealth” plan-redistribute wealth in the U.S.
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Father Charles Coughlin
He criticized FDR on his radio show for not taking stronger action against bankers and rich investors.
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Dr. Francis Townsend -He proposed giving every American over age 60 a pension of $200 per month. -Influenced Social Security Act of 1935 However, people receiving the pension would have to retire, freeing up the job for a younger American. In addition, every person that received the pension would be required to spend it immediately in order to spur the economy.
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American Liberty League
Organization believed New Deal interfered too much with business & the lives of people.
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Court Packing Scheme FDR was frustrated that two New Deal programs were declared unconstitutional by the Supreme Court. FDR’s plan: add one justice to the Supreme Court for every justice that was over the age of 70. Would have increased the Supreme Court from 9 justices to 15 justices.
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The Conflict · The Supreme Court ruled that many New Deal laws were unconstitutional.
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The Proposal · After winning the 1936 presidential election, FDR proposed increasing the number of Supreme Court Justices from 9 to 15. * This would allow FDR to appoint 6 new pro-New Deal Justices to the Supreme Court.
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The Decision
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Court Packing Scheme Both the Supreme Court and Congress attacked FDR for this idea and thought it was a violation of checks and balances. FDR eventually backed down. · Many Americans, including New Deal supporters, felt that FDR was unfairly trying to control the Supreme Court.
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Was the overall impact of the New Deal Good or Bad?
Negative (-) Positive (+) -Reduced unemployment and gave immediate relief to those without food and shelter. -Completed valuable public works projects (roads, buildings, dams, bridges). -Established a safety net to protect Americans from financial ruin. -Introduced new agencies to protect depositors from bank failures. -Established the principle the US Government should oversee the running of the economy. -Increased the nation’s debt. -Increased taxes to pay for the new programs. -Established the precedent that the national government could lower unemployment by spending taxpayer money. -Interfered with the free market with federal regulation of business. -Increased the size of the federal bureaucracy (gov’t) -Reduced the incentive to work. SUPPORTERS: New Deal programs were necessary for the public good. They believed that industries needed to be regulated by the government in order to prevent another depression. CRITICS: People worried about the increased power of the government. The New Deal used deficit spending, causing a large increase in the national debt. Business leaders thought that unions had become too powerful.
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