1. How does FDR try to fix the problems caused by Depression?
The New Deal
How does FDR try to fix the problems caused by Depression?

2. 1932 Election
Most Americans blame Hoover for making Depression worse
Franklin D. Roosevelt easily wins election
Democrats also win to fully control Congress

3. The New Deal
FDR & his cabinet (brain trust) create “the New Deal”, a program that focused on relief, recovery and reform
In the first 100 days of his administration 15 New Deal programs are passed
To “sell” his program to the public, FDR gave weekly radio addresses to the public known as fireside chats

4. New Deal: Banking
1) Emergency Banking Relief Act, 1933
Closes all banks and allows Treasury Dept. to inspect banks, only “sound” banks could re-open
2) Glass-Steagall Act, 1933
Established Federal Deposit Ins. Corp (FDIC)., provided insurance to all individual bank accounts (in “sound” banks)
Investment banks (stocks) must be separate from reg. banks
Discuss: Why do you think these programs are needed?

5. New Deal: Stock Market
Corporations must provide complete info. on stocks
Securities & Exchange Commission (SEC), 1934 regulated the stock market & prevented “insider” trading

6. New Deal: 21st Amendment
Prohibition (18th Am) is repealed, alcohol is legal & gov can collect tax on it

7. New Deal: Rural America
1) Agricultural Adjustment Act (AAA), 1933
Gov pays farmers to slow production, crop prices rise but many say unconstitutional
2) Tennessee Valley Authority (TVA), 1933
Fed gov builds 25 dams in Tenn. River Valley, creating jobs, flood control & power, small power companies say its unfair

8. New Deal: Industry & Labor
■ The National Industrial Recovery Act (NIRA), 1933
1) The National Recovery Administration (NRA)
Set prices, minimum wages, work standards
2) Public Works Administration (PWA)
-Provided money to build public projects

9. FDR Promotes the New Deal
Why was the NRA popular?
Who were FDR’s critics?
What did FDR say to his critics?
1: :03

10. FDR Faces Opposition- Liberal Democrats
Fr. Charles Coughlin: felt FDR had too much power
Dr. Francis Townsend: said FDR not doing enough for elderly
FDR Faces Opposition- Conservative Republicans
Deficit spending is hurting America, FDR is doing too much!
Some legislation is challenged in courts, Sup. Court rules NIRA & AAA are unconstitutional

11. Second New Deal : Social Security
■ 1935: Social Security Act (SSA) starts Second New Deal
1) Old-Age Insurance for 65 Years+: employee & employer pay tax that goes into retirement plan
2) Unemployment Insurance: employees could draw from this if out of work due to layoffs

12. Second New Deal: Unemployment Relief
Works Progress Administration (WPA), 1935 (replaces PWA)
1. $11 billion to build airports, roads & public buildings
2. Federal Arts Project gave work to writers & artists
3. NYA (National Youth Admin) for education & training for teens

13. 1936 Election
First lady Eleanor Roosevelt travels the country, tells FDR country still needs more reforms (esp for women & minorities)
FDR wins in landslide, incl. 1st time majority of Af-Americans & unions back a Democrat

14. Second New Deal: Labor Reform
SC ruled NIRA unconstitutional, FDR replaced it with
1)Wagner Act, 1936
Creates NLRB (Ntl. Labor Relations Board), regulates unfair labor & business practices
2)Fair Labor Standards Act, 1938
44 hour work week, 25 cents/hr, federal minimum wage
New rules for labor under 18

15. Discuss: What is cartoonist opinion of FDR’s court-packing plan?
End of the New Deal?
FDR upset Sup. Court struck down NIRA & AAA
- tries to increase # on Sup. Court, to “pack court” with his nominees, Congress says “NO”, need separation of powers
By 1937, most Americans convinced Depression was over, so Congress asks FDR to scale back or end some programs,
- when he does production drops, unemployment rises
Discuss: What is cartoonist opinion of FDR’s court-packing plan?