The New DealThe New Deal

Forging a New DealForging a New Deal

Restoring the Nation’s HopeRestoring the Nation’s Hope

Second Bonus MarchSecond Bonus March WWI Veterans marched on Washington WWI Veterans marched on Washington

again.again. FDR provided camp sites for them.FDR provided camp sites for them. Eleanor visited w/them in the camps.Eleanor visited w/them in the camps.

Fireside ChatsFireside Chats Regular radio addresses by the PresidentRegular radio addresses by the President Reassured the peopleReassured the people

First Hundred DaysFirst Hundred Days FDR had Promised “Bold, persistent FDR had Promised “Bold, persistent

experimentation”experimentation” During his First Hundred Days in office he During his First Hundred Days in office he

pushed relief, job, and economic stimulation pushed relief, job, and economic stimulation programs through Congress.programs through Congress.

Restoring the BanksRestoring the Banks March 5, 1933, FDR ordered a ‘bank holiday’ in which March 5, 1933, FDR ordered a ‘bank holiday’ in which

all banks closed for four days.all banks closed for four days. During the ‘holiday’ Congress passed the Emergency During the ‘holiday’ Congress passed the Emergency

Banking Act which authorized the government to Banking Act which authorized the government to inspect the financial health of all banks.inspect the financial health of all banks.

June 1933—Congress established the Federal June 1933—Congress established the Federal Deposit Insurance Corporation (FDIC) which insured Deposit Insurance Corporation (FDIC) which insured bank deposits up to $5K.bank deposits up to $5K.

Americans began to put more money in banks and Americans began to put more money in banks and banks could begin to loan money again.banks could begin to loan money again.

Relief and Job CreationRelief and Job Creation May 1933—Congress established the Federal May 1933—Congress established the Federal

Emergency Relief Administration (FERA)Emergency Relief Administration (FERA)• FERA gave money to overburdened local relief FERA gave money to overburdened local relief

agenciesagencies• FERA oversaw and gave money to other federal FERA oversaw and gave money to other federal

relief programs.relief programs. November 1933—Civil Works Administration November 1933—Civil Works Administration

(CWA)(CWA)• Gave jobs building or improving:Gave jobs building or improving:

RoadsRoads ParksParks AirportsAirports Other public facilitiesOther public facilities

March 1933—Civilian Conservation Corps March 1933—Civilian Conservation Corps (CCC) (CCC) • Employed 2.5 million single menEmployed 2.5 million single men• Restored and maintained forests, beaches, and Restored and maintained forests, beaches, and

parks. parks.

Helping BusinessHelping Business June 1933 Congress passed the National June 1933 Congress passed the National

Industrial Recovery Act (NIRA) which Industrial Recovery Act (NIRA) which established the National Recovery established the National Recovery Administration (NRA)Administration (NRA)

The NRAThe NRA• Sought to balance the economy through sensible Sought to balance the economy through sensible

planningplanning• Established codes regulating:Established codes regulating:

Wages (set minimum wage)Wages (set minimum wage) Working conditionsWorking conditions ProductionProduction PricesPrices NRA policies initially worked, but soon proved ineffectiveNRA policies initially worked, but soon proved ineffective

NIRA also established the Public Works NIRA also established the Public Works Administration (PWA) which built dams and Administration (PWA) which built dams and bridgesbridges

May 1933 Federal Securities Act—required May 1933 Federal Securities Act—required companies to provide financial information if companies to provide financial information if they offered stock.they offered stock.

1934—Congress established the Securities 1934—Congress established the Securities and Exchange Commission (SEC) to regulate and Exchange Commission (SEC) to regulate the stock market.the stock market.

1934—Congress gave the Federal Reserve 1934—Congress gave the Federal Reserve power to regulate buying stocks on marginpower to regulate buying stocks on margin

Helping Homes and FarmsHelping Homes and Farms 1933—Home Owners’ Loan Corporation (HOLC)1933—Home Owners’ Loan Corporation (HOLC)

• Refinanced or reshaped terms of mortgages to make Refinanced or reshaped terms of mortgages to make payments manageablepayments manageable

1933—Agricultural Adjustment Administration (AAA)1933—Agricultural Adjustment Administration (AAA)• Tried to regulate farm prices through subsidies.Tried to regulate farm prices through subsidies.• Paid farmers not to raise certain crops / animals.Paid farmers not to raise certain crops / animals.

May 1933—Tennessee Valley Authority (TVA)May 1933—Tennessee Valley Authority (TVA)• Helped farmers (?)Helped farmers (?)• Created JobsCreated Jobs• Provided cheap electricityProvided cheap electricity• Provided flood controlProvided flood control• Provided recreational opportunitiesProvided recreational opportunities

Eleanor RooseveltEleanor Roosevelt

Took an active role in supporting the New Took an active role in supporting the New DealDeal

Toured the country and visited workers Toured the country and visited workers and programs.and programs.

Wrote her own news column.Wrote her own news column. Redefined the role of the First LadyRedefined the role of the First Lady

The New Deal FaltersThe New Deal Falters

The New Deal did not bring significant economic The New Deal did not bring significant economic improvement.improvement.

Many worried it gave the federal government too Many worried it gave the federal government too much power.much power.

1935—The US Supreme Court declared NIRA 1935—The US Supreme Court declared NIRA unconstitutional b/c it gave the President unconstitutional b/c it gave the President lawmaking power and b/c it regulated local lawmaking power and b/c it regulated local commercecommerce

1936—The Court ruled that the tax funding the 1936—The Court ruled that the tax funding the AAA subsidies was unconstitutional.AAA subsidies was unconstitutional.

The Second New DealThe Second New Deal

OverviewOverview Launched in 1935Launched in 1935 More social welfare benefitsMore social welfare benefits Stricter business controlsStricter business controls Stronger union supportStronger union support Higher taxes on the richHigher taxes on the rich

New AgenciesNew Agencies Works Progress Administration (WPA)Works Progress Administration (WPA)

• Hired 8 million and citizensHired 8 million and citizens• Built playgrounds, schools, hospitals, and airfields.Built playgrounds, schools, hospitals, and airfields.

Labor LegislationLabor Legislation July 1935 Wagner Act (National Labor Relations Act)July 1935 Wagner Act (National Labor Relations Act)

• LegalizedLegalized Collective BargainingCollective Bargaining Closed ShopsClosed Shops

• OutlawedOutlawed Spying on unionsSpying on unions Blacklisting Blacklisting

• Established the national Labor Relations Board (NLRB) to Established the national Labor Relations Board (NLRB) to enforce the act.enforce the act.

Social Security ActSocial Security Act Purpose—provide security in the form of Purpose—provide security in the form of

payments to people who could not support payments to people who could not support themselves.themselves.

Three Types of InsuranceThree Types of Insurance• Old-age pensions and survivors benefits.Old-age pensions and survivors benefits.• Unemployment insuranceUnemployment insurance• Aid for dependent children, the blind, and the Aid for dependent children, the blind, and the

physically disabled.physically disabled.

Election of 1936Election of 1936

Republicans nominated Alfred M. Landon.Republicans nominated Alfred M. Landon. Democrats nominated FDR.Democrats nominated FDR. FDR won the Electoral College by a FDR won the Electoral College by a

landslide 523-8landslide 523-8

Critics of the New DealCritics of the New Deal

““If you could get around the country as I have and seen the distress forced If you could get around the country as I have and seen the distress forced

upon the American people you would throw your darn NRA and AAA, and upon the American people you would throw your darn NRA and AAA, and every other . . . A into the sea.”—Letter to FDRevery other . . . A into the sea.”—Letter to FDR

Limits of the New DealLimits of the New Deal

Brought little permanent relief.Brought little permanent relief. Labor provisions only covered 25% of the Labor provisions only covered 25% of the

workers.workers. The minimum wage was set at $0.25/hr.—lower The minimum wage was set at $0.25/hr.—lower

than most made.than most made. Women were legally paid less.Women were legally paid less. No provisions were made to help females in the No provisions were made to help females in the

home.home. African Americans were kept out of skilled jobs African Americans were kept out of skilled jobs

and paid less than whites.and paid less than whites.

Political CriticsPolitical Critics Republicans and others felt the New Deal went Republicans and others felt the New Deal went

too far.too far. New Deal programs like TVA were said to be New Deal programs like TVA were said to be

socialisticsocialistic Social Security Act was seen by some as Social Security Act was seen by some as

penalizing successful hardworking people.penalizing successful hardworking people. SSN’s were seen as a move toward a militaristic SSN’s were seen as a move toward a militaristic

society.society. The wealthy regarded FDR as their enemy.The wealthy regarded FDR as their enemy. Progressives and socialists felt the New Deal Progressives and socialists felt the New Deal

had not went far enough.had not went far enough.

Other CriticsOther Critics

The DemagoguesThe Demagogues Father Charles E. CoughlinFather Charles E. Coughlin

• Radio PriestRadio Priest• Initially supported FDRInitially supported FDR• Later called him Franklin Double-crossing Later called him Franklin Double-crossing

Roosevelt.Roosevelt.• Issued openly Anti-Jewish statementsIssued openly Anti-Jewish statements• Praised Hitler and MoussoliniPraised Hitler and Moussolini

Huey LongHuey Long Senator from LASenator from LA Initially supported FDRInitially supported FDR Broke with FDR and began pushing for his Broke with FDR and began pushing for his

“Share the Wealth Program” which would limit “Share the Wealth Program” which would limit income and redistribute wealth to the poor income and redistribute wealth to the poor through taxes.through taxes.

The Court-Packing SchemeThe Court-Packing Scheme

The Supreme Court had caused FDR the most The Supreme Court had caused FDR the most frustrationfrustration

Feb. 1937—FDR proposed a court reform billFeb. 1937—FDR proposed a court reform bill The bill would have enabled FDR to appoint 6 The bill would have enabled FDR to appoint 6

additional justices.additional justices. FDR claimed he wanted to ease the burden of FDR claimed he wanted to ease the burden of

the Court.the Court. Most realized FDR was trying to pack the Court Most realized FDR was trying to pack the Court

with judges who would favor the New Deal.with judges who would favor the New Deal. FDR was forced to withdraw his reform bill.FDR was forced to withdraw his reform bill.

Last Days of the New DealLast Days of the New Deal

Recession of 1937Recession of 1937

The economy collapsed again in 1937.The economy collapsed again in 1937. Caused in part by the new Social Security Caused in part by the new Social Security

taxtax FDR had to cut back expensive programs.FDR had to cut back expensive programs. The national debt had rose from $21 billion The national debt had rose from $21 billion

in 1933 to $43 billion in 1940.in 1933 to $43 billion in 1940.

Unions TriumphUnions Triumph

Unions gained much strength during the Unions gained much strength during the New DealNew Deal

The American Federation of Labor (AFL) The American Federation of Labor (AFL) represented skilled workers.represented skilled workers.

Congress of Industrial Organizations (CIO)Congress of Industrial Organizations (CIO)—sought to organize unskilled labor—sought to organize unskilled labor

Strikes—used by unions to gain strength Strikes—used by unions to gain strength against employers and to have demands against employers and to have demands met.met.

New Deal Effects on CultureNew Deal Effects on Culture

LiteratureLiterature Pearl Buck—Pearl Buck—The Good EarthThe Good Earth

• Plight of peasants in China b/4 the revolution.Plight of peasants in China b/4 the revolution. John Steinbeck—John Steinbeck—The Grapes of WrathThe Grapes of Wrath

• Journey of Dust Bowl victims to California in Journey of Dust Bowl victims to California in search of work.search of work.

Radio and MoviesRadio and Movies• Comedy shows became popularComedy shows became popular• First Soap Operas emergedFirst Soap Operas emerged

• Movies focused on optimistic themesMovies focused on optimistic themes Mr. Smith Goes to WashingtonMr. Smith Goes to Washington The Wizard of OzThe Wizard of Oz

• Walt Disney produced cartoonsWalt Disney produced cartoons

Lasting New Deal AchievementsLasting New Deal Achievements

Public Works—many of the bridges, dams, Public Works—many of the bridges, dams, tunnels, buildings, and hospitals still stand.tunnels, buildings, and hospitals still stand.

Social Security SystemSocial Security System TVA, FDIC, SECTVA, FDIC, SEC Legacy of Hope—reestablished a sense of Legacy of Hope—reestablished a sense of

hope in the US among the people.hope in the US among the people.