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The New Deal23
CHAPTER OBJECTIVE
To understand the impetus for FDR’s New Deal legislations and the impact these policies had on the American nation
1A New Deal Fights the Depression
OVERVIEW
After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression.
Americans still benefit from programs begun in the New Deal, such as bank and stock market regulations and the Tennessee Valley Authority.
MAIN IDEA WHY IT MATTERS NOW
TERMS & NAMES
HOME
• Franklin Delano Roosevelt
• Glass-Steagall Act
• Federal Securities Act
• National Industrial Recovery Act (NIRA)
• Civilian Conservation Corps (CCC)
• Agricultural Adjustment Act (AAA)
• Huey Long
• deficit spending
• New Deal
ASSESSMENT
MAP
23W I T H H I S T O R Y
I N T E R A C T
How would you begin to revive the economy?Examine the Issues
It is 1933, the height of the Great Depression. Thousands of banks and businesses have failed, and a quarter of the adult population is out of work. Now a new president takes office, promising to bring relief to the ailing economy.
• What can be done to ease unemployment?• How can the government help failing industries?
HOME
• What would you do to restore public confidence and economic security?• How would you get money to pay for your proposed recovery programs?
The New Deal
What Should Be Done to Cure the Depression?
Read each of the following suggested ways to fix the economy.
Pick the top three ideas that you think are best and label them 1, 2, &3
Pick the three ideas you think are the worst and label them 8, 9, & 10.
Election of 1932
Franklin Delano Roosevelt
Democratic Candidate
reformer
Herbert Hoover
Republican Candidate
Incumbent (residing) President
Who won the Election of 1932?Who were the two presidential
candidates in the 1932 election?
Who won the election of 1932?
Which political party was the winning candidate apart of?
Why might this candidate have won by such a large majority?
Franklin Delano Roosevelt
Thirty-Second President
1933-1945
Suffered from polio & was partially paralyzed from the waist down.
He was able to stand with the help of leg braces.
Campaigned vigorously to prove he could undertake the job of President despite his disability
Brain Trust
A group of carefully picked advisers including professors, lawyers, & journalists that helped FDR set policies to alleviate the problems of the Depression.
New Deal
Goals of the New Deal:
1. relief for the needy
2. economic recovery
3. financial reform
FDR’s programs designed to alleviate the problems of the Great Depression.
First Hundred Days
What month is the president elected in?
When is the president inaugurated (sworn in) into office today?
First 3 months of Roosevelt’s administration (March-June 1933)
A burst of congressional legislation (laws) to address problems of the Depression.
Significantly expanded the federal government’s role in the nation’s economy.
A Wise Economist Asks A Question 1. What do squirrels do
with acorns in the summer & fall?
2. Did the man “squirrel” away his money?
3. What happened to his savings?
4. What does this cartoon tell us about Americans faith in the banking system?
5. What can be done to restore Americans confidence?
FDR Fireside Chat
How does FDR use the fireside chat?
What type of language does he use?
What was the focus of his first talk?
http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000760&oid=ob_000064
http://www1.teachertube.com/viewVideo.php?title=FDR_Fireside_Chat&video_id=89365&vpkey=
Banking Reform
Widespread bank failures had caused Americans to loose faith in the banking system.
March 5, 1933 Roosevelt declared a “Bank Holiday”
Closed the banks to prevent further withdrawals & reorganization
Exit Ticket Complete the, “Let’s Make A Deal” Worksheet.
Identify the specific problems Roosevelt will need to address as president.
Brainstorm possible solutions to each problem.
1A New Deal Fights the Depression
OVERVIEW
After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression.
Americans still benefit from programs begun in the New Deal, such as bank and stock market regulations and the Tennessee Valley Authority.
MAIN IDEA WHY IT MATTERS NOW
TERMS & NAMES
HOME
• Franklin Delano Roosevelt
• Glass-Steagall Act
• Federal Securities Act
• National Industrial Recovery Act (NIRA)
• Civilian Conservation Corps (CCC)
• Agricultural Adjustment Act (AAA)
• Huey Long
• deficit spending
• New Deal
ASSESSMENT
MAP
Group Activity Insert make your own fireside chat or New Deal
program poster.
See rubric for evaluation criteria.
Emergency Banking Relief Act:
Authorized the Treasury Department to inspect the country’s banks. Sound could reopen, insolvent-remain closed
How does this help to cure the economy?
Restored confidence in banks
Glass-Steagall Act
Established the FDIC Federal Deposit Insurance Corporation to provide federal insurance for individual bank accounts.
Regulating Banking & Finance
Federal Securities Act- required corporations to provide complete information on all stock offerings and made them liable
Securities & Exchange Commission (SEC)-regulate the stock market and prevent insider trading.
21st Amendment
Repealed prohibition so that government could raise revenue by taxing alcohol.
Rural Assistance
Agricultural Adjustment Act (AAA)- sought to raise crop prices by lowering production which the government achieved by paying farmers to leave a certain amount of land unseeded.
Agricultural Adjustment Act (AAA)
Government provided subsidies for limits on production of corn, wheat, cotton, pork, & tobacco
If farmers reduced their supply then prices would increase
Slaughtered 6 million hogs
In return for withdrawing land, farmers received “rental” payments from the AAA
Paid $200 million to plow under 10 million acres of cotton
Agricultural Adjustment Act
http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000759&oid=ob_000064
declared unconstitutional in 1936
Revived in 1938 with modifications to meet Court challenge
Tennessee Valley AuthorityTVA
Designed to develop & improve the Tennessee River Valley region
Created thousands of jobs & other benefits to an impoverished region
Which seven states benefit most directly from TVA projects?
Built damns to prevent floods
Constructed hydroelectric power plants to attract more industry and provide electricity to homes
Power companies didn’t like the government production and sale of power they claimed it was unfair
Civilian Conservation Corps Put almost 3
million young men aged 18-25 to work building roads, developing parks, planting trees, & helping prevent soil erosion and flood control projects.
http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000755&oid=ob_000064
Planted 200 million tress in the Great Plains to prevent another Dust Bowl
Public Works Administration
Created in 1933 when Depression was at its most severe and economic system of U.S. was near “complete collapse”
Provided money to states to create jobs chiefly in the construction of schools & community buildings
Funded $3.3 billion to put people to work building roads, public buildings, improving waterways, and other projects
34,000 public projects
The poster claims that P.W.A. efforts were aimed at turning relief into what?
What examples of P.W.A. activities are found in Texas?
What primary activity was taking place off the west and east coast of the U.S.?
What public-works activity involved the Mississippi River?
National Industrial Recovery Act (NIRA)
Established codes of fair business practices
Set prices of products to ensure fair competition
Established standards for working hours & a ban on child labor
Guaranteed workers rights to unionize and bargain collectively.
Home Owners Loan Corp (HOLC)
Provided government loans to homeowners who faced foreclosure because they couldn’t make their loan payments.
Federal Housing Administration (FHA)
Furnishes loans for home mortgages and repairs
Federal Agency Emergency Relief (FERA)
$500 million to provide direct relief for the needy
Food & clothing for the unemployed, aged, & ill
Keynesian Economics
Deficit Spending- spending more money then the government takes in to stimulate the economic recovery by putting money in the hands of consumers to make it possible for them to buy goods & services and thus fuel economic growth
British economist
John Maynard Keynes
Opposition to the New Deal New Deal
isn’t doing enough!- liberals
New Deal is doing too much!-conservatives
Opposition from the Supreme Court
New Deal Isn’t Doing Enough!
Many Americans were still desperately poor
Worst off were blacks & farmers
Key figures were:
Huey Long
Father Coughlin
Dr. Francis Townsend
New Deal Critic: Dr. Francis Townsend
Retired California Physician
Suggested a $200 per month pension for people over 60
Open jobs for younger unemployment
Funded by a national transaction sales tax
New Deal Critic: Father Charles Coughlin
Catholic radio priest in Detroit Michigan in 1930’s
10 million listeners
Criticized FDR in weekly radio program
Critical of New Deal
International conspiracy of bankers
Fascist; Anti-Semitic overtones
National Union for Social Justice
Every person capable of work should receive a fair, living, annual wage
Nationalizing some public resources
Private ownership of property but controlling it for public good
Right for workers to form unions & govt support & protection
Human rights over property rights
Father Charles Coughlin
New Deal Critic: Huey Long
Governor of Louisiana & U.S. Senator
Populist who championed the working class & the poor
“The Kingfish”
Critic of FDR’s New Deal for not doing enough to redistribute wealth
Promoted “Share the Wealth” program
Shot & killed by Dr. Carl Weiss in 1936
http://www.youtube.com/watch?v=hphgHi6FD8k&feature=related
“Share Our Wealth” 1. Federal govt give every family an allowance of not less than
1/3 the average family wealth of the country
No family have a fortune more than 100-300 times the average family fortune
Capital levy tax on income over $1 million
2. No person have an income less than $2,000-$2,500 annually
3. Limit/regulate working hours to prevent overproduction and allow workers time for recreation, education, etc.
4. Old Age Pension for people over 60 years old
Guarantee all citizens a car, a house, a pension, & an education
Popular with the poor
The New Deal is Doing Too Much!
Business Community & Republicans
ND too complicated, too many codes & regulations
Govt shouldn’t support unions & wages, that is the job of the market
ND like Stalin’s 5 year Plan
Wealthy worked hard, high taxes discourage people from working hard, & gave money to people who did little for it.
The New Deal is Doing Too Much!
Govt schemes like TVA unfair competition since private companies aren’t funded by govt
What is FDR wearing?
What does his clothing represent?
What is FDR pointing at?
What compass did FDR want to change? Why?
How might the cartoonist feel about FDR’s power as president?
•FDR is behaving like a dictator
1A New Deal Fights the Depression
1. List problems that President Roosevelt confronted and how he tried to solve them.
continued . . .
Massive unemployment
Bank holiday; treasury inspection; deposit insurance
Federal work programs
Paying farmers to slow crop production
Lack of confidence in banks
Low crop prices
HOME
Problems Solutions
MAP
ASSESSMENT
1A New Deal Fights the Depression
2. Of the New Deal programs discussed in this section, which do you consider the most important?Think About:
ANSWER
POSSIBLE RESPONSES:• The FDIC boosted confidence in banks• The CCC provided aid for unemployment and helped
the environment.
• the type of assistance offered by each program• the scope of each program• the impact of each program
HOME
ASSESSMENT
continued . . .
MAP
1A New Deal Fights the Depression
3. Do you think Roosevelt was wrong to try to “pack” the Supreme Court with those in favor of the New Deal?
ANSWER
POSSIBLE RESPONSES:
• No: Given the crisis of the Depression, it was necessary for FDR to restructure the Court.
• Yes: FDR’s proposed “Court-packing bill” would violate principles of judicial independence and the separation of powers.
HOME
ASSESSMENT
continued . . .
MAP
1A New Deal Fights the Depression
4. The New Deal has often been referred to as a turning point in American history. Cite examples to explain why.
ANSWER
The New Deal helped the failing banking system, restored people’s hope in the future, provided assistance to farmers and those in need of housing, and provided people with jobs.
HOME
ASSESSMENT
End of Section 1
MAP
Election of 1936
Democratic convention in Philadelphia overwhelmingly re-nominated Roosevelt
Governor Alfred M. Landon of Kansas was nominated as the candidate for the Republican Party
William Lemke ran as a third party candidate
Election of 1936
Kansas Governor Alfred Landon
Moderate Republican
Follower of Teddy Roosevelt, supported some regulation of business
A poor speaker compared to the charm and political astuteness of Franklin Roosevelt
Eleanor Roosevelt
A social reformer who combined her humanitarian impulses and her political skills
Served as an important advisor to FDR in domestic policy
She traveled the country observing social conditions & reminding the president about the suffering of the nation’s people
She urged FDR to appoint women to government positions
Unemployment still highProduction still laggingFDR called on Congress to provide more relief for both farmers and workers
Second New Deal
Farm Security Administration (FSA)
Loaned more than $1 billion to help tenant farmers become landholders
Established camps for migrant farm workers
Hired photographers to take pictures of rural towns & farms & their inhabitants
Wagner Act Created in 1935
Named after its sponsor Robert F. Wagner
Federal government protected the rights of workers to join unions& use collective bargaining
Government could investigate employers, issue cease & desist orders if unfair practices were brought to light.
Fair Labor Standards Act Set maximum
number of working hours at 44 hours/week
Set minimum wages
Banned hazardous work for those under 18
Set rules for employment of workers under 16 years old
• In 1935, only 12.6% of American farms had electricity
• Government financed & worked with electrical companies to bring electricity to isolated areas.
• By 1949, 90% of America’s farms & rural areas had electricity
Rural Electrification Administration (REA)
Federal Art Project Paid artists a living
wage to produce public art and sought to increase public appreciation of art.
Artists created posters, taught art in schools, and painted murals on walls of public buildings
Gains Made by African Americans Increased political
voice through greater access to the president
Organizations created for tenant farmers
Mary McLeod Bethune advisor to FDR on minority affairs
William H Hastie and Robert C Weaver appointees to Department of Interior
Problems Faced by African Americans
Segregation
Racial violence
Racism
Discrimination in all areas of life
Poll taxes
FDR not committed to full civil rights, afraid of upsetting white democratic voters
FDR refused to approve anti lynching law
Mexican Americans
Mexican Americans worked on farms in Texas, California, & ArizonaValued for their low cost labor during the 1920’s. Became targets of hostility during the Great Depression.During the 1930s, 400,000 persons of Mexican decent, many U.S. citizens, were deported to Mexico.Why do you think Mexican Americans were met with hostility during the Depression?Why did white workers accuse minorities of taking their jobs?
John Collier Appointed by FDR
as commissioner of Indian affairs
Helped create the Indian Reogranization Act which allowed for autonomy instead of assimilation
Helped restore reservation lands to tribal ownership
Gains Made by Labor Unions
Better working conditions because of Wagnner Act and other prolabor legislation
Increased bargaining power
Dramatic increase in union membership from 3 million in 1933 to 10 million in 1941
Labor unions pledged votes to FDR relection
Problems of Unions Strike violence (i.e.
Memorial Day Massacre in Chicago 1937)
Big business opposition to labor unions
Sit down strikes prevented owners from calling in strike breakers called scabs to work, shut down factory production
Coalition Groups
Southern whites
Urban groups in Northern cities like Boston, NY, Philadelphia, Chicago
Immigrants
Religious and ethnic groups (Catholics, Jews, Italians, Irish, Polish, & Slavic)
Supported Roosevelt
New Deal labor laws and work-relief programs aided urban poor
FDR made persuasive appeals to urban voters
FDR appointed many officials of urban-immigrant backgrounds to important government positions
What are some ways in which pop culture is spread?
What are attitudes, values, & beliefs?
23
The United States The World
1940 President Roosevelt is elected a third time.
1935 Congress passes the Social Security Act. 1935 Mussolini leads Italian invasion of Ethiopia. British Parliament passes the Government of India Act.
1937 Labor unions begin using sit-down strikes. 1937 Japan invades Northern China. Hindenburg disaster
1939 The Wizard of Oz is released in movie theaters.
1939 Germany invades Poland.
TIME LINE
HOME
1933 Franklin Delano Roosevelt is inaugurated. 1933 Hitler and the Nazi party come to power in Germany.
1936 President Roosevelt is reelected. 1936 Civil war begins in Spain.
1938 Route 66 is completed, linking Chicago, Illinois, to Los Angeles, California.
1934 Congress creates the SEC to regulate the stock market. Indian Reorganization Act is passed.
The New Deal