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Launching the New Deal Ch. 22, Section 1, pp. 698 - 708
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The Election of 1932 Stricken with polio at the age of 39. Stricken with polio at the age of 39. Paralyzed permanently from the waist down. Paralyzed permanently from the waist down. Rebounded to become governor of New York in 1929. Rebounded to become governor of New York in 1929. He launched a groundbreaking relief program to aid the state’s victims of the Great Depression. He launched a groundbreaking relief program to aid the state’s victims of the Great Depression.
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The 1932 Campaign Offered more public works programs. Offered more public works programs. The previous administration denied the distress of unemployment. The previous administration denied the distress of unemployment. Roosevelt received more than 57% of the popular vote. Roosevelt received more than 57% of the popular vote. Democrats gained control of both houses. Democrats gained control of both houses.
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A Political Partnership Effective communicator that used the radio for his fireside chats. Effective communicator that used the radio for his fireside chats. He made people feel better during their time of hardship. He made people feel better during their time of hardship. He believed that the government should take direct action to help people. He believed that the government should take direct action to help people.
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Eleanor Roosevelt Distant cousin and wife of FDR. Distant cousin and wife of FDR. Served as husband’s eyes and ears during his bout with polio. Served as husband’s eyes and ears during his bout with polio. Would later become her own political force after the death of FDR. Would later become her own political force after the death of FDR.
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Roosevelt Takes Action “The only thing we have to fear is fear itself.” “The only thing we have to fear is fear itself.” Temporarily closed all banks. Temporarily closed all banks. Pushed through the Emergency Banking Act. Pushed through the Emergency Banking Act. Corrected the problems of the bank or closed it. Corrected the problems of the bank or closed it. Glass-Stegall Act created the FDIC. Glass-Stegall Act created the FDIC. $1 billion in new deposits. $1 billion in new deposits.
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The Hundred Days Pushed through the “New Deal” Pushed through the “New Deal” Accomplish three goals: Accomplish three goals: Relief for those suffering. Relief for those suffering. Recovery for the economy. Recovery for the economy. Reforms would prevent from happening again. Reforms would prevent from happening again. Civilian Conservation Corps (CCC) gave young men jobs – ages 18-25. Plant trees or preserve parks.
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The Hundred Days Agricultural Adjustment Act (AAA) gave farmers a subsidy. Agricultural Adjustment Act (AAA) gave farmers a subsidy. Subsidy meant they could grow less crops. Subsidy meant they could grow less crops. Price of crops went up. Price of crops went up. Public Works Administration (PWA) Public Works Administration (PWA) Federal Securities Act – Companies had to share information. Federal Securities Act – Companies had to share information. Securities and Exchange Commission – Government’s watchdog over stock markets. Securities and Exchange Commission – Government’s watchdog over stock markets.
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Critics of the New Deal Huey Long – Senator of Louisiana. Huey Long – Senator of Louisiana. Set up the “Share Our Wealth Society”. Set up the “Share Our Wealth Society”. “Every man a King” – Every family given $5,000 to buy a home, plus an income of $2,500. “Every man a King” – Every family given $5,000 to buy a home, plus an income of $2,500. Heavy taxes on wealthy Americans. Heavy taxes on wealthy Americans. Father Charles Coughlin, a Catholic priest, called FDR a double-crosser in how he dealt with bankers. Father Charles Coughlin, a Catholic priest, called FDR a double-crosser in how he dealt with bankers. Dr. Francis Townsend – Provide pensions for people over 60. Dr. Francis Townsend – Provide pensions for people over 60.
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Beyond the Hundred Days Tennessee Valley Authority was created in May, 1933. Tennessee Valley Authority was created in May, 1933. Provided hydroelectric power to people and businesses. Provided hydroelectric power to people and businesses. The dams controlled floods and made it navigatable. The dams controlled floods and made it navigatable.
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New Deal Quiz 1. What are the three “R’s” of the New Deal? 2. Which Act created the New Deal? 3. Famous quote of FDR. 4. What does the CCC stand for? 5. What does PWA stand for? 6. What ages were the men who worked for the CCC? 7. What does the SEC do? 8. What did the Federal Securities Act do? 9. List three critics of FDR. 10. What does TVA mean? Which critic said, “Every Man a King.” Which critic said, “Every Man a King.”
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Second New Deal By 1935 federal judges had prevented the enforcement of almost every measure of the New Deal. By 1935 federal judges had prevented the enforcement of almost every measure of the New Deal. Oppose an expanded role of government. Oppose an expanded role of government. President could not be issued a blank check to turn over to private parties that would create or enforce codes. President could not be issued a blank check to turn over to private parties that would create or enforce codes. Extraordinary economic conditions did not justify an enlargement of constitutional powers. Extraordinary economic conditions did not justify an enlargement of constitutional powers.
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Defeat of the AAA Debtors could keep properties up to five years after bankruptcy. Debtors could keep properties up to five years after bankruptcy. Violation of the 5 th amendment, which prohibited the federal government’s taking of private property without just compensation. Violation of the 5 th amendment, which prohibited the federal government’s taking of private property without just compensation. Milk company attacked its processing tax, which the AAA used to finance its crop subsidies. Milk company attacked its processing tax, which the AAA used to finance its crop subsidies.
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Defeat of the AAA It was not a “true tax”. It was not a “true tax”. Roosevelt and his advisers began to draft new legislation that considered constitutional themes more carefully than before. Roosevelt and his advisers began to draft new legislation that considered constitutional themes more carefully than before.
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Wagner Act 600 unions had disbanded by 1935. 600 unions had disbanded by 1935. Eliminate inequalities in the bargaining powers of employees and employers. Eliminate inequalities in the bargaining powers of employees and employers. Outlawed company unions. Outlawed company unions. It threw the weight of the federal government behind the right of labor to collectively bargain. It threw the weight of the federal government behind the right of labor to collectively bargain.
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Sit-Down Strikes Workers at Goodyear and GM sat down on the job for weeks until they were recognized. Workers at Goodyear and GM sat down on the job for weeks until they were recognized. United Auto Workers was established. United Auto Workers was established. Committee for Industrial Organization was formed. Committee for Industrial Organization was formed. CIO became a political force and donated to the Democratic Party. CIO became a political force and donated to the Democratic Party.
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Fair Labor Standards Act Minimum wage was put into law and maximum hours and prohibited the employment of children. Minimum wage was put into law and maximum hours and prohibited the employment of children. Minimum wage was 25 cents per hour and 44 hour week which would decline to 40 in two years. Minimum wage was 25 cents per hour and 44 hour week which would decline to 40 in two years. Clerks, farmers, streetcar operators, fisherman, and domestic servants were excluded. Clerks, farmers, streetcar operators, fisherman, and domestic servants were excluded.
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WPA FDR realized that short term relief efforts had not ended the Great Depression. FDR realized that short term relief efforts had not ended the Great Depression. Was an effort to unite all emergency public works. Was an effort to unite all emergency public works. Quit the business of relief. Quit the business of relief. Responsibility for the unemployed would go back to state and local governments. Responsibility for the unemployed would go back to state and local governments.
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Expanding Workfare Henry Hopkins would lead the WPA. Henry Hopkins would lead the WPA. Maximum employment was the first priority. Maximum employment was the first priority. Paid a secure wage below the minimum wage. Paid a secure wage below the minimum wage. Suppose to leave the WPA as soon as better jobs were available. Suppose to leave the WPA as soon as better jobs were available. Demonstrate they were deserving of relief work. Demonstrate they were deserving of relief work.
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Workfare WPA was the employer of last resort. WPA was the employer of last resort. “Spend and spend, tax and tax, elect and elect”. “Spend and spend, tax and tax, elect and elect”. WPA employed 8 million people at one point between 1935-1943. WPA employed 8 million people at one point between 1935-1943. Added to the nation’s wealth in transportation infrastructure and the conservation of natural resources. Added to the nation’s wealth in transportation infrastructure and the conservation of natural resources.
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