1. Franklin D. Roosevelt and the New Deal
Redefined Democracy:
Political Rights  Economic Security  Social Justice

2. Causes of the Great Depression
Agricultural overproduction
Industrial overproduction
Unequal distribution of wealth
Over-extension of credit
International economic situation

3. Franklin D. Roosevelt’s Appeal
In 1932 presidential election, FDR was perceived as a man of action.
Hoover was viewed as a “do-nothing president.”
Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.

4. Purposes of the New Deal
Relief: to provide jobs for the unemployed and to protect farmers from foreclosure
Recovery: to get the economy back into high gear, “priming the pump”
Reform: To regulate banks, to abolish child labor, and to conserve farm lands
Overall objective: to save capitalism

5. First New Deal (1933-1934) Emphasis: reform
Political Position: conservative
Primary aim: economic recovery
Objectives: higher prices for agriculture and business
Beneficiaries: big business and agricultural business

6. Financial Programs & Reform
Glass–Steagall Act
Separated commercial and investment banking
Securities and Exchange Commission (SEC)
Regulated the stock market and attempted to stop fraud.
Government can bring civil enforcement actions against individuals or companies alleged to have committed accounting fraud, provided false information, or engaged in insider trading
Federal Deposit Insurance Corporation (FDIC)
provides deposit insurance

7. Public Works Programs Civilian Conservation Corps (CCC) ~ 1933
Hired men for the forestry service
Men worked planting trees, fighting fires, and building reservoirs
Tennessee Valley Authority (TVA) ~ 1933
Works project centered on lands in and around the Tennessee Valley
Built dams to provide electricity, control flooding, and conserve forest land
Civil Works Administration (CWA)
Build or improved roads, airports, schools, and parks while employing 4 million people (300,000 of them women)

8. National Recovery Act (NRA)
Purpose: recovery of industry
Created a partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition

9. Second New Deal (1934-1941) Emphasis: reform
Political Position: liberal
Primary aim: permanent reform
Objectives: increased purchasing power and social security for public
Beneficiaries: small farmers and labor

10. Social Security Act Purpose: reform
Gave money to states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.

11. Criticisms from Right and Left
Criticism from the Right
Too much government regulation over business
Federal Government has too much power over states
Criticism from the Left
More economic intervention by government
Shift wealth from rich to middle class and poor Americans
Supreme Court
1935 struck down FDR’s National Recovery Administration (NRA)
Threats of striking down other New Deal Programs

12. Court Packing FDR wanted to protect New Deal accomplishments
Court-Packing Plan To address the Supreme Court
Increase number of justices
Allow a new justice to be appointed by the president if an old one didn’t resign
Did not pass
Hurt FDR’s rep
Scared judges into going along with New Deal

13. Decline of New Deal Reform after 1937
Reasons for decline of New Deal reform after 1937:
Court-packing plan made Congress irritable.
Recession of weakened confidence in New Deal measures.
Republicans gained strength in both houses.
Increasing focus on foreign affairs.

14. Significance of the New Deal
Revitalization of politics
Strengthened executive branch
Reasserted presidential leadership
Made citizens more dependent on government services
Strengthened the federal government in its relationship with the states.