1. The New Deal

2. Election of 1932 Hoover against FDR FDR wins by a landslide
Democrats win majority in both Congressional Houses
FDR does not take office until March
20th amendment not ratified until Feb. 1933
Picks his “Brain Trust” -> series of advisors
They begin to create the New Deal

3. The Hundred Days
Upon taking office FDR passes more than 15 major New Deal legislations over a span of 100 Days
First action was with the banks
Gives all banks a holiday on his first day in office
Administers the Banking Relief Act -> inspection of the country’s banks
Some would open back up immediately, others would get help, and some would be closed for good
Holds “Fireside Chats” on the radio to help improve citizens moral and faith in the banks (pg. 490)

4. More Banking Legislation
Glass-Steagall Act of 1933
Established the Federal Deposit Insurance Corp. (FDIC) -> insurance for accounts up to $5k
Federal Securities Act
Required corporations to provide complete information on all stock offerings and made them liable for any misrepresentations
Passed the 21st Amendment repealing prohibition

5. Relief for the American People
Wanted to help farmers and other Americans
Agricultural Adjustment Act (AAA)
Raise crop prices by lowering production
Created work projects:
Civilian Conservation Corps (CCC)
Young men (18-25) building roads, parks, and environmental conservation jobs
Aimed to prevent another Dust Bowl
National Industrial Recovery Act (NIRA)
Provided money to states to create jobs in the construction of schools and other community buildings

6. More Relief National Recovery Administration (NRA)
Set prices of many products and established standards
Home Owners Loan Corporation (HOLC)
Provided government loans to homeowner who faced foreclosure
Federal Emergency Relief Administration (FERA)
Provide direct relief for the needy
Aimed at states to be able to provide food and clothing

7. Everything Has Its Critics
FDR agrees to deficit spending
Spending more than the country is making
Opposition begins to grow because the New Deal does not immediately end the Depression
Did not go far enough to help the poor
Believed the federal gov’t got too much control over agriculture and industry

8. Court Action Two Supreme Court Cases NIRA ruled unconstitutional
The law gave legislative powers to the executive branch
AAA ruled unconstitutional
Agriculture is a local matter and should be regulated by the states

9. 3 Major Critics American Liberty League The Big 3:
Believe the New Deal violated respect for the rights of individuals and property
The Big 3:
Charles Coughlin
Favored guaranteed annual income and the nationalization of banks
Francis Townsend
Believed FDR wasn’t doing enough to help the poor and elderly -> founded a pension plan
Huey Long
Wanted to become president and proposed a nationwide social program called Share- Our-Wealth

10. The Second New Deal

11. 2nd Hundred Days FDR elected to 2nd term in 1936
FDR expected more gains than what happened
Production still lagged behind the 1920’s level
Calls on the gov’t to provide more relief to farmers and workers
Eleanor Roosevelt -> travels country and reminds FDR how much people are suffering

12. Helping Farmers
Mid 1930’s -> 2 of 5 farmers were mortgaged and thousands lost their farms
Soil Conservation and Domestic Allotment Act
Created after the AAA was shut down by the Supreme Court
Paid farmers for cutting production of soil depleting crops and rewarded those who practiced good soil conservation
Farm Security Administration (FSA)
Loaned more than $1 Bil. to help famers become land and home owners

13. More Relief Works Progress Administration (WPA)
Created jobs as quickly as possible for young men and women
National Youth Administration (NYA)
Provide education jobs, counseling, and recreation for young people
Also provided part time jobs to those who dropped out of school

14. Improving Labor Wagner Act National Labor Relations Board (NLRB)
Reestablished NIRA
Protected rights of workers and wage negotiation
Prohibited unfair labor practices
National Labor Relations Board (NLRB)
Hear testimony about unfair practices and hold elections to find out if workers wanted Union support
Fair Labor Standards Act
Limited work week to 44 hrs. and set a minimum wage at 25 cents/hr.

15. Social Security + Utilities
Social Security Act
3 major parts to this act
Old-age insurance for retirees 65+ and their spouses
Half the funds from worker other from employer
Unemployment Compensation System
$15 - $18 per week
Aid to families with dependent children and the disabled
Paid for by federal funds
Rural Electrification Administration (REA)
Financed and worked with electrical companies to bring electricity to isolated areas
Public Utility Holding Company Act
Outlawed the ownership of utilities by multiple holding companies

16. Impact of the New Deal

17. New Deal Results FDR hints of 3rd New Deal in his 2nd term
Economy had improved enough that people begin to feel the Depression is finally ending
Congress urges FDR to cut back New Deal programs
He does and it results in a drop of production and unemployment begins to rise again
FDR becomes worried about Hitler’s rise to power

18. Expanding Governments Role
Federal gov’t gains more control during FDR’s terms
Established many programs such as the FDIC and Securities and Exchange Commission (SEC)
Regulates banking and investment activity
New Deal did not end the depression
WWII plays major factor in the ultimate end

19. Social/Environmental Effects
Federal gov’t now accepts responsibility for the social welfare of its people
Social Security Act is perfect example
Supplied a lot of support for famers making sure they were able to earn money and keep their land/homes
Civilian Conservation Corps goes long way in restoring environment
Taught farmers many useful things
Tennessee Valley Authority (TVA)
Used water power to produce electricity and prevent flooding