1. FDR and the New Deal

2. Warm up
Why do you think a squirrel is used for this particular cartoon/message?
What does this tell us about American faith in the banking system?
What can be done to restore American faith in banks/government?

3. 1932- FDR
Unlike Hoover, FDR wanted the government to play a big role in relief & recovery
FDR believed in “Direct Relief” for the people.
This change is what the people voted for

4. The 1st 100 Days
The New Deal: 3 goals were to provide relief, recovery, and reform
In his 1st 100 days, FDR would pass 15 bills and get the New Deal underway

5. FDR Reassures the Nation
Called for a “bank holiday”
Banks close for 4 days
Stops people from panicking
Helps banks get re-organized
When banks reopened, there was no longer a rush to withdraw funds

6. FDR Reassures the Nation
FDR utilized radio
“fireside chats” on the radio to reassure people, inform the people what was being done to solve issues

7. FDR Reforms the Financial System
Federal Deposit Insurance Corporation (FDIC)
Bank deposits insured up to $5k
Securities Exchange Commission (SEC)
Outlawed insider trading
Made the stock market more fair
Goals: Restore confidence in the banks and economy

8. Farmers Agricultural Adjustment Act (AAA) Financial Aid to farmers
Paid farmers to not grow or kill portion of livestock
Goal: Decrease supply of crops to raise prices
Invited industries in search of cheap energy

9. FDR Helps Rural Southerners
Tennessee Valley Authority (TVA)
Built dams to control flooding and generate electricity
Goal: Bring relief to the poor in these regions and provide jobs
Invited industries in search of cheap energy
Con: Govt owned agency (Socialist?)

10. FDR Provides Relief and Recovery
Civilian Conservation Corps (CCC)
Provided 2 million jobs for young men
Replant forest, build trails, fight fires
Goal: Help young men find work
Included Minorities (Mexican Americans

11. FDR Provides Relief and Recovery
Public Works Administration (PWA)
Created jobs, improved infrastructure
Federal Emergency Relief Act (FERA)
Federal $ sent to local governments to help with unemployment
Civil Works Administration (CWA)
Provided jobs on Public works projects
Goal: To provide money to help with unemployment

12. FDR Provides Relief and Recovery
National Recovery Administration (NRA)
Est minimum wages
Est minimum prices
Goal: To govern industry in a manner that is fair to both workers and management
This gives people more $ to spend while allowing businesses to reap larger profits

13. Opposition To the New Deal
Conservatives thought the New Deal made the government too powerful
Liberals thought New Deal did not go far enough

14. Opposition To the New Deal
Townsend: Wanted those over 60yrs to receive $200/month
Father Coughlin: Priest who thought FDR needed to do more
Huey Long: “Share our Wealth”
High taxes on wealthy and big businesses
Redistribute that money to the poor

15. The 2nd New Deal

16. Social and Economic Reforms
Goals of the 2nd New Deal ( ): Help the elderly, poor, and unemployed
Providing More Jobs
Works Progress Administration (WPA)
Public works program, opportunities for artists
Appalachian Trail

17. Social and Economic Reforms
This all costs money, and the govt went into debt (Deficit spending)
FDR called this a “necessary evil”
John Maynard Keynes said that to end the depression, the govt needed to spend money

18. Social and Economic Reforms
Social Security Act: Provided a pension for the elderly and others
Unemployment insurance for workers as well as those injured on the job
Supplies aid to poor mothers and the disabled

19. Social and Economic Reforms
Rural Electrification Agency (REA)
Provided $ to build power lines that could reach rural areas
Goal: To bring electricity to farms (90% were without it)
By 1950, 80% of farmers had electricity

20. Labor Unions Find Support
Wagner Act
Employees’ right to join a union
Employees’ right to collective bargaining
Fair Labor Standards Act
Minimum wage and max hours/week
Outlawed child labor
Goal: FDR wanted to raise the standard of living for industrial workers. This would strengthen the economy
Congress of Industrial Organizations (CIO)
This invited unskilled industrial workers in
Conducted sit-down strikes
Union membership increases as well as union effectiveness

21. More Challenges To the New Deal
Supreme Court was FDR’s main challenge
Had shot down many New Deal programs, labeling them unconstitutional

22. More Challenges To the New Deal
FDR asked Congress to add 6 justices to the SC (said it would relieve the workload on the judges)
Critics called this “court packing” and an abuse of power
However, FDR would not need to do this…

23. More Challenges To the New Deal
The SC began to turn in favor of New Deal programs
Also, the retirement of judges allowed FDR to appoint new justices friendly to the New Deal
Critics do emerge however, citing FDR’s abuse of power

24. More Challenges To the New Deal
1938- another economic downturn renewed problems
Republicans gain strength in Congress
Unemployment rose back up to 20%