First New Deal

1932

• People vote Hoover out of office because people are suffering from lack of jobs, homes, food, hope

• FDR – Former governor from NY– Left politics for a time because of Polio

• 20th Amendment– Moved inauguration day from March 4 to January

20

First 100 Days

• Passed 15 major pieces of legislation • Called the NEW DEAL–Goals• Relief for the Needy• Economic Recovery• Financial Reform

Business Assistance & Reform

Emergency Banking Relief Act

Immediate purpose

• Authorized treasury to inspect & close banks

Long-term goal

• Restore public confidence in the banks

First Fireside Chat: Banking

• What: – Radio address from the president to the American People

• Goal:– FDR explained what happened with the banking system,

in words that everyone could understand• Result: – Helped restore confidence in the banks

• Longterm impact: – FDR holds other successful fireside chats– Obama – weekly Youtube address

Glass-Steagall Banking Act of 1933

Immediate purpose

• Established the FDIC (Federal Deposit Insurance Corp) which insured bank accounts up to 5,000 (now 250,000)

Long-term goal

• Restore confidence in banks

Federal Securities Act

Immediate purpose

• Required corporations to provide complete info on stocks

• SEC – Securities & Exchange Commission

Long-term goal

• Restore confidence in stock market

• Investigate whether companies are providing accurate information

National Industrial Recovery Act (NIRA)

Immediate purpose

• Set prices; established labor standards

Long-term goal

To ensure fair businesses practices, promote industrial growth

Farm Relief/Rural Development

Agricultural Adjustment Act (AAA)

Immediate purpose

• Paid farmers to lower production

Long-term goal

• To raise crop prices (and therefore farmers income

Tennessee Valley Authority (TVA)

Immediate purpose

• Built & repair dams and other projects in Tennessee Valley

Long-term goal

• Create prosperity in impoverished region of Tennessee Valley

Employment Projects

Civilian Conservation Corps (CCC)

Immediate purpose

• Put young men to work on road-building and conservation projects

Long-term goal

• Create jobs/Reduce unemployment

Federal Emergency Relief Administration (FERA)

Immediate purpose

• Provided Direct Relief for needy

Long-term goal

• Provide for basic needs of the people hit hardest by Depression

Public Works Administration (PWA)

Immediate purpose

• Provided money to states to create jobs

Long-term goal

• To reduce unemployment

Civil Works Administration (CWA)

Immediate purpose

• Provided 4 million immediate jobs

Long-term goal

• Create jobs/reduce unemployment

Housing

Home Owners Loan Corp (HOLC)

Immediate purpose

• Provided government loans to homeowners who faced foreclosure

Long-term goal

• Help families keep homes

Criticism of the New Deal

• Deficit Spending –Spending more money than the government receives in revenue– 21st Amendment –

• Repeal of Prohibition• Goal to raise money for the government by taxing alcohol

• Liberals – New Deal did not go far enough to help the poor

• Conservatives – Roosevelt spent too much on direct relief & gov control of business

Republicans Opposed the New Deal Because…

• Defied traditional American values • It was “detrimental to business & free

enterprise”• What does this mean?

Businessmen/WealthyOpposed the New Deal Because…

• High taxes cut into their income & inheritance– Higher estate & gift taxes

• “Union wages cut into profit margins”• Graduated corporate tax

Supporters of States RightsOpposed the New Deal Because…

• Federal government was trying to regulate businesses within states

• This is unconstitutional – NIRA, NRA, AAA

Supreme CourtOpposed the New Deal Because…

• Executive was trying to take power that belonged to states & the legislative branch

• Found 11 of 16 laws passed within the first 100 days unconstitutional

RadicalsOpposed the New Deal Because…

• Didn’t go far enough– Huey Long

• “Share the Wealth”• Limit peoples fortunes & income • Money would be sued to build schools, pay old-age pensions, &

guarantee wages

– Father Coughlin• Roosevelt didn’t do enough to take money from bankers & give

it to the people

– Francis Townsend• Wanted to start a plan to help elderly & stimulate the economy