1. The New Deal
Chapter 19
Objective 9.5 Assess the impact of New Deal reforms in enlarging the role of the federal government

2. “The only thing we have to fear is fear itself”
Franklin D. Roosevelt
His inauguration speech
Struck with polio which crippled his legs (in his mid adult life) – he worked hard at exercising his legs to gain muscle control and was finally able to walk with braces on his legs with the help of a cane
Elected Governor of NY where he became known as a political official who made reforms to help Americans in need
By the time he was inaugurated, most of the nation’s banks had closed – 1 in 4 were unemployed & economy was in shambles
“The only thing we have to fear is fear itself”

3. The Election of 1932 Worst year of the Depression to that point.
Democrats & Franklin Roosevelt carried all but 6 Republican states (60% vote).
FDR promised a “new deal” for the American people= *New Deal became the name of his policies to end the Depression.
** The 3 R’s of the New Deal: Relief, recovery, & reform.
*FDR’s advisor’s- “the brain trust”

4. FDR THE MAN
Only child of a wealthy NY family– cousin to Theodore Roosevelt
Educated at Harvard & Columbia Law School
1920- VP candidate on Democrat ticket & lost
1921- diagnosed with Polio; eventually had to wear leg braces & used a wheel chair.
1928- Elected Governor of NY
Eleanor Roosevelt- his wife= most active first lady in US History (had a weekly Newspaper column, traveled the country, took up causes of the underprivileged.

5. Roosevelt’s Administration
Eleanor Roosevelt
Helped bring changes in the White House & the Democrat party – change in demographics
The Black Cabinet
Included several African Americans he appointed
Frances Perkins – 1st Woman Cabinet member - Secretary of Labor
Prior to the Great Depression most Democrats were white Southerners & Irish immigrants
After Roosevelt entered the office the Democrats grew to include African Americans, laborers, ethnic minorities, women & progressives

6. In the 1920s, which economic factor was the key cause of the Great Depression?
Lack of investment in the stock market
Attempts by the US to promote free trade
Failure to develop new consumer goods industries
Overproduction of farm products and manufactured goods

7. 1st 100 Days *Bank Holiday Emergency Banking Relief Act
Closed banks until Congress could pass legislation that would aid banks
Emergency Banking Relief Act
Required federal officials to survey banks & approve their financial soundness
*Fireside Chats
Weekly radio address
Let Americans know what the government was doing to help the economy
Meant to instill confidence in Americans again
He was able to push through more legislation than most presidents did in their full terms
Presidents today still give a weekly radio address

8. 1st 100 Days – Stock Market & Banks
Securities Act
Required companies to provide complete & truthful information to investors
*Securities & Exchange Commission (SEC)
Created to regulate the stock market & prevent fraud
*Glass Steagall Act
Separated commercial banks & investment banks
Commercial banks couldn’t invest deposited money in stock market
*Federal Deposit Insurance Corporation (FDIC)
Provides government insurance for bank deposits up to $100,000
Results:
Greatly increased American confidence in banks

9. After a terrible drought struck, the Great Plains became known as what?Oz
The Breadbasket
The Dust Bowl
The Oakies

10. 1st 100 Days - Farms Agricultural Adjustment Administration
Government would pay farmers a subsidy to not raise certain livestock
Effect – farm surplus fell greatly, prices rose & farmers income rose by 50%
Large farms benefit but sharecroppers became homeless because owners took their land out of production first

11. 1st 100 Days - Manufacturing
National Industry Recovery Act (NIRA)
Suspended antitrust laws
Allowed business, labor & government to set up rules for each industry
National Recovery Administration (NRA)
Blue eagle
Industrial recovery
Consumers urged to buy products with the eagle
This pressured companies to go along with their policies
Effect – Lost support as manufacturing businesses failed – Supreme Court declared it unconstitutional in 1935

12. 1st 100 Days – Relief Programs
Homeowners Corporation
Bought mortgages of homeowners behind in their mortgages & restructured them at lower interest rates
Farm Credit Administration (FCA)
Helped farmers refinance their loans
Civilian Conservation Corp (CCC)
Offered young men jobs in forestry keeping up national parks & reservoirs
CCC - Shelter Belt – 200 million trees planted from Texas to North Dakota to prevent a repeat of the Dust Bowl – also taught their recruits to read & write – closed down in 1942 – put 3 million men to work – helped 80,000 Native Americans reclaim land they owned – 250,000 veterans were among the CCC – also known as Roosevelt’s Tree Army

13. 1st 100 Days – Relief Programs
Federal Emergency Relief Administration (FERA)
Sent money to state & local governments for relief projects
Public Works Administration
Began a series of construction projects – highways, dams, sewage, water & schools
Civil Works Administration
Hired government workers to build airports, roads, schools, playgrounds, parks & athletic fields
Civil Works Administration ended after it spent too much money
Effect of 1st 100 days:
Change in the spirit of the American people

14. The Second New Deal More programs & reforms to speed up recovery
Launched by Roosevelt in 1935 right before the election to help get him reelected

15. Criticisms of the New Deal
Republicans
Too many regulations on businesses
Expansion of federal government at expense of states’ rights
Deficit Spending – no balanced budget
Democrats
Roosevelt hadn’t gone far enough
Wanted shift of wealth from rich to poor
The economy showed only slight improvement under the New Deal after 2 years – criticism started to grow
Republicans have always wanted a balanced budget

16. Other Criticisms American Liberty League Huey Long Father Coughlin
Business leaders organized to oppose New Deal
Huey Long
Governor of Louisiana
Created programs to help the poor but became corrupt
Threatened to run against Roosevelt
Father Coughlin
Catholic priest in Detroit
Popular radio show
Thought the New Deal was too moderate

17. Which of the following is not a New Deal reform that exists today?
Social Security
Securities & Exchange Commission
Project #1
FDIC

18. The Townshend Plan Dr. Francis Townshend
Government should pay citizens over 60 years old a pension of $200/month & in return those citizens should retire
Idea was to get older Americans to give up their jobs so more jobs would be available to younger people

19. The Supreme Court & the New Deal
May 1935 Schecter Poultry Company v. US- Supreme Court unanimously struck down authority of NRA.
Court ruled that Constitution did not allow Congress to delegate its powers to the president.
FDR was worried that the Supreme Court would eventually strike down all of his New Deal!
FDR decided to push through a series of 2nd New Deal programs.

20. Programs of 2nd New Deal *Works Progress Administration
Built roads, highways, public buildings & parks
Federal Project Number One
Division of WPA offered work to artists, musicians, actors & writers
*Social Security Act
Unemployment system, retirement & disability pensions, child welfare benefits
Federal Project Number One – controversial – Why? - things that weren’t needed
- Also known as Project #1
- Slave Narratives funded by this program

21. *The Wagner Act (1935) AKA National Labor Relations Act
Guaranteed workers the right to organize unions & to bargain collectively (through union reps).
Set up the National Labor Relations Board to supervise union elections, investigate employers.
Set up binding arbitration- union members could take complaints to a neutral third party, third party listened to both sides then made a decision.

22. Industrial Unions National Labor Relations Board
Certified unions
Authorized to investigate employer actions
Committee for Industrial Organization (CIO)
Organized industrial unions
Focused on steel & auto workers
Sit down strikes
Workers sat down on the job
Workers actually would stop working and sit down
Flint, Michigan – GM workers sit down & strike – 44 days stayed in the plants – Dec. 30, 1936 – Feb. 11, 1937
Women workers were sent out when the sit-down started but were integral in their actions as picketers, cooks and members of the Women’s Emergency Brigade that was dispatched for union support at hot spots. At times, these women used themselves as human shields between police and strikers

23. What prevented banks from being closed completely because of bank runs?
New Deal
Bank holiday
Gold standard
Fireside chats

24. The New Deal Coalition
19 Sec. 3--FDR wins a 2nd Term

25. The Election of 1936
Republican Alfred Landon (Gov. of Kansas)- liked some New Deal programs but, felt businesses were being shackled by government.
Democrat Franklin Roosevelt- voters liked the New Deal- remained popular= WON REELECTION!!
WON 60% OF POPULAR VOTE; CARRIED ALL BUT 2 STATES
** New Deal Coalition- FDR won with help a Blacks who joined working class whites, farmers, ethnic minorities, women, new immigrants, progressives, & intellectuals.
* Blacks shift from voting Republican to Democrat
Jan Supreme Court declared the AAA unconstitutional; FDR feared other New Deal programs would be struck down.

27. Court Packing Plan
Supreme Court declared some of FDR’s legislation unconstitutional
FDR’s Plan- for every justice over age 70- FDR could appoint a new justice (possible to add 6 justices)
Many people (Republican & Democrat) opposed his plan- seen as a power grab.
Court backed off his programs & the plan died
Hurt FDR’s reputation
Encouraged Conservative Democrats to start working with Republicans
Roosevelt claimed it was only 9 justices in the way of what the American people wanted
Why would he want more justices on the Supreme Court?

28. Unemployment (% labor force)
Economics
Unemployment (% labor force)
Year
Lebergott
Darby[61]
1933
24.9
20.6
1934
21.7
16.0
1935
20.1
14.2
1936
16.9
9.9
1937
14.3
9.1
1938
19.0
12.5
1939
17.2
11.3
1940
14.6
9.5
1941
8.0
1942
4.7
1943
1.9
1944
1.2
1945
Recession of 1937
FDR cut spending programs that
put people to work.
Surge in unemployment
Balance budget or create jobs?
John Maynard Keynes
Keynesian economics
Government should spend heavily to jump start the economy
Roosevelt brought back programs
Keynes became the leading influencer of economics in the western world – even made the cover of Time Magazine in 1965

29. Last New Deal Reforms National Housing Act
Provided money for builders to build low cost housing
Farm Security Administration
Gave loans to sharecroppers to purchase farms
Fair Labor Standards Act
Provided more protection for workers, abolished child labor & established a 40 hour work week, & minimum wage 25 cent/hour.
1938- Southern Democrats & Republicans began blocking any new programs= New Deal Ends.
Former programs created problems for sharecroppers as they were kicked off land by the owners

30. New Deal Legacy By 1939 – New Deal ends The Broker State
Federal government expected to step in & settle disputes, look after Americans & protect citizens’ interests
Creation of a safety net for average Americans in times of economic crisis
Increased Federal power
1939 – Congress began fighting the New Deal
Critics argue the New Deal made the government too powerful