1. #10 Ch 15 Notes

2. #54 Ch 15 S 1 Details: Read & Notes Ch 15 S 1 ________________
Analyze the effects of and the controversies arising from New Deal economic policies and the expanded role of the federal government in society and the economy since the 1930s

3. Chapter 15: The New Deal Section 1: A New Deal Fights the Depression

4. Standards
11.6.4
Analyze the effects of and the controversies arising from New Deal economic policies and the expanded role of the federal government in society and the economy since the 1930s
Works Progress Administration
Social Security
National Labor Relations Board
farm programs
regional development policies
energy development projects such as the Tennessee Valley Authority, California Central Valley Project

5. Objectives:
Following lecture and reading of this section, students will be able to:
Summarize the initial steps Roosevelt took to reform banking and finance
Describe New Deal work programs
Identify critics of Roosevelt’s New Deal

6. Review Republican success led to election of Hoover
Under Hoover the economy fails (not his fault)
Risky business practices cause the failure of the stock market (Black Tuesday 10/29/29)
Stock prices become over inflated b/c how buying stocks
On margin
Speculation
Hoover does not offer direct government relief
Believes the economy is cyclical and will rebound
Does not want people to rely on government
Hoover eventually offers relief but it is too late

7. The New Deal 1932; FDR elected as president
Reformer; tried to solve poverty & unemployment
Roosevelt & the “Brain Trust” designed the New Deal while waiting for inauguration.
A set of policies to alleviate the problems of the great depression focused on:
Relief for the needy
Economic recovery
Financial reform
Providing jobs to get people back to work

8. The Hundred Days A period of intense action by FDR & Congress
15 major acts or laws passed
Significant expansion of the power of federal government in the economy
FDR declared a “Bank Holiday” after taking office
Along with Emergency Banking Relief Act, only banks that were inspected and sound could re-open…
Now people could re-deposit money knowing they could get it back!

9. Banking and Finance Glass-Steagall Act (1933)
Established the FDIC (federal deposit insurance co)
Federal insurance for deposits $5,000 today $250,000
People now knew their money was safe
Regulating the Stock Market
Federal Securities Act (1933)
Corporations had to provide complete information on all stock offerings and were liable for misrepresentations
Securities and Exchange Commission (SEC) [1934]
Prevent people with inside information from rigging the stock market (insider trading)
21st Amend.- 18th gone, allowed alcohol; taxed it

10. Fireside Chats Addresses by FDR to the nation:
Explained his policies and New Deal ideas
Clear and simple
His communication allowed people to see his plans and help the new president achieve them
People listened to the fireside chats via the radio
In his 1st chat he discussed the banking situation and how it was now safe to deposit money

11. New Deal Programs
Program
Purpose
Purpose Achieved

12. Agricultural Adjustment Act (AAA)
Purpose:
Raise crop prices by lowering production
Results:
Reduction in supply caused an increase in demand and price
Gov’t paid farmers to leave certain amount of land unseeded
Plow under crops already developed
Slaughter livestock w/o sale
Upset Americans, as many were going hungry and food was destroyed.

13. Tennessee Valley Authority (TVA)
Purpose:
Provide work and energy resources in the Tennessee Valley
Repaired & constructed dams
Provided:
Thousands of jobs
Flood control
Hydroelectric power
Results:
Provided jobs and developed energy resources for the Tennessee Valley

14. Hydroelectric Power

17. Civilian Conservation Corps
Purpose:
Provide economic relief through work projects and cash payments
Planting trees (200 million in the dust bowl area)
Building roads
Soil-erosion and flood control projects built.
Results:
Many men found work
Workers paid in cash; money sent back to families

18. Civil Works Administration
Purpose:
To fill in for the failures of the PWA, which was to provide $ to states so they could hire workers for projects
Results:
4 million jobs created
40,000 schools built
Salaries of 50,000 teachers in rural areas
½ million miles of roads

19. National Industrial Recovery Act
Purpose:
Promote industrial growth by establishing codes of fair practice for individual industries
Results:
Created the National Recovery Administration (NRA):
Set prices of products and established standards
Goal of the NRA- to promote recovery by interrupting the trend of wage cuts, falling prices, and layoffs
Limited production & established prices
Guaranteed worker’s right to unionize & bargain

20. Food, Clothing, & Shelter
Home Owners Loan Corporation (HOLC)
Purpose & Results:
Provided gov’t loans help people avoid foreclosure
Federal Housing Authority (FHA)
Federal loans for home mortgages and repairs
Federal Emergency Relief Administration
$500 million to provide direct relief to needy
½ given to states to provide food and clothing
½ given to states for work projects
For every $3 the state paid FERA paid $1

21. Liberals and Conservatives Attack the New Deal
Millions of Americans were helped by New Deal actions
Opposition to New Deal policies:
Many complained about deficit spending
More $ out, not enough $ in
FDR said it was a necessary evil
Conservatives: Concerned over gov’t interference in free-market economy
Liberals: Does not do enough to help those in need

22. Supreme Court Attacks the New Deal
The Supreme Court struck down 2 ND programs, NIRA and AAA
NIRA:
Gave legislative powers to executive branch
Enforcement went beyond federal power to regulate interstate trade
AAA:
Agriculture is a local matter and should be regulated by states not federal gov’t
Fearing the Supreme Court would dismantle all his ND policies, FDR proposed a bill; he would allow appoint six new justices to the Court (Court-packing” bill)
This aroused protests, but FDR got his way when two justices retired and he made his own appointments

23. Other Attacks on the New Deal
Roosevelt’s toughest critics:
Charles Coughlin
Catholic priest
Wanted guaranteed annual income & nationalization of banks
Francis Townsend
Did not think the ND did enough to help the elderly
Huey Long
Became a serious challenger to the New Deal and FDR as he was looking at a presidential run…
He was assassinated

24. #54 Ch 15 S 1
Details:
Read & Notes Ch 15 S 1
Study Guide ?s 1-11 (11)