1. The New Deal Problems: Failing industries Unemployment No public confidence or security What should the Government do about these?

2. A New Deal Fights the Depression To combat the lack of work, food & hope: –Franklin Delano Roosevelt (FDR) Distant cousin of TR Reform minded Gov NY –4 months– Hoover: Lame Duck. No action taken –FDR established the New Deal Program

3. 1 st 100 days Mar- June: more than 15 new laws –1. Bank Holiday: closed banks until they could prove solvency (emergency banking relief act) –2. Fireside chat: to explain how banking works and that the system is fixed. –3. Glass-Steagall Act: set up FDIC; insured deposits up to 5k –4. Federal Securities Act: (corps must report Truth abo. Stocks) –5. Securities & Exchange Commission (SEC) to regulate market –6. Beer & Wine Act: made some alcohol legal; employed many

4. Helping People: Farmer Relief: –Agricultural Adjustment Act (AAA) ltd production, to raise prices Farmers paid not to grow/ destroy crops –Tennessee Valley Authority (TVA) fixed & built dams, created thousands of jobs, supplied cheap electricity to 5 state region

5. Work Projects Civilian Conservation Corps (CCC) –Men, 18-25, in camps- drain swamps, built parklands, forests etc; food & tents, pay to send home Public Works Admin (PWA) $$$ to states to make jobs- construction Civil Works Admin (CWA) set up 4 mill jobs immediately, “make work program”- pd teachers, construction, etc

6. Fair Business Practices: National Industrial Recovery Act: (NIRA) regulated business’ production, wages, prices –Under National Recovery Administration (NRA) Set up codes for each industry

7. Food, Clothing, Shelter Home Owners Loan Corp. (HOLC) refinanced mortgages Federal Housing Administration (FHA) cheap loans for home repairs, etc Federal Emergency Relief Admin (FERA) $$$ to states for direct relief, jobs, clothes, food

8. Attacking the New Deal Conservatives charged it cost too much (deficit spending) –Esp. hated giving farmers money, NRA regulations on businesses Liberals charged it didn’t help the poor enough or reform the economy enough –Huey Long & socialists wanted equal wealth for all

9. Supreme Court Case struck down NIRA- codes were beyond executive power; (congress can regulate interstate commerce) Case struck down AAA- grounds that agriculture is a local matter & should be regulated by the states, not fed gov. –FDR proposed a Court Reform bill: 6 new justices; one for each current Justice over age 70. To help with work load. Seen as ‘court packing’ Cost FDR much public support But some old Justices retired; were replaced with FDR appointments Decisions began to favor the New Deal more

10. Other Critics: Father Coughlin: radio priest; Catholic, at first supported, then criticized New Deal; grew more and more anti-Semitic & supported Hitler. –Huge following in US Dr. Charles Townsend wanted poor and elderly to get a pension of $200 month –His ideas led to est. of Social Security program