The New DealThe New Deal

Franklin Delano RooseveltFranklin Delano Roosevelt

Saves the Day!Saves the Day!

1932 – FDR is Elected1932 – FDR is Elected Hoover was blamed for doing nothing Hoover was blamed for doing nothing

about the Depression.about the Depression. Democrats nominated Democrats nominated the governor of New the governor of New York, FDR (cousin of York, FDR (cousin of Theodore Roosevelt)Theodore Roosevelt) Democrats won the Democrats won the majority in the House majority in the House and Senateand Senate

The Brain Trust The Brain Trust Presents…Presents…The New DealThe New Deal FDR’s cabinet was made up of professors, FDR’s cabinet was made up of professors,

lawyers, and journalists “The Brain Trust”lawyers, and journalists “The Brain Trust”

• They developed policies that would provide relief for those in need, economic recovery, and financial reform.

The First 100 DaysThe First 100 Days New legislation.New legislation. Roosevelt closed all Roosevelt closed all

banks.banks.

Emergency Banking Relief Act – Gov’t. Emergency Banking Relief Act – Gov’t. gained ability to authorize banks to gained ability to authorize banks to open.open.

Fireside chats – FDR gave weekly radio Fireside chats – FDR gave weekly radio addresses to the public.addresses to the public.

Glass-Steagall ActGlass-Steagall Act

Established the FDICEstablished the FDIC Federal Deposit Insurance Federal Deposit Insurance

CommissionCommission– Provided insurance toProvided insurance to

individual bank accountsindividual bank accounts

Federal Securities ActFederal Securities Act The SEC, Securities The SEC, Securities

Exchange Commission Exchange Commission was created to was created to increase confidence in increase confidence in the stock market.the stock market.– Practices must be open Practices must be open

to the public.to the public.– No insider trading.No insider trading.

2121stst Amendment Amendment

Roosevelt hoped to increase revenue Roosevelt hoped to increase revenue by legalizing some alcohol sales by legalizing some alcohol sales

(sin taxes).(sin taxes).

What are some ways sin taxes are What are some ways sin taxes are used today to fund local, state, or used today to fund local, state, or federal finances?federal finances?

Help is on the Way!Help is on the Way!

The Agricultural Adjustment Act – The Agricultural Adjustment Act – farmers were paid to slow down farmers were paid to slow down production, which would raise production, which would raise prices.prices.

The Civilian Conservation Corps The Civilian Conservation Corps – Built roads, parks, planted trees, and Built roads, parks, planted trees, and

developed flood control.developed flood control.

And More…And More…

The Public Works Administration / The Public Works Administration / National Industrial Recoveries ActNational Industrial Recoveries Act– Built schools and government buildingsBuilt schools and government buildings– Built roads and bridgesBuilt roads and bridges

The National Recovery The National Recovery AdministrationAdministration– Set prices and minimum wagesSet prices and minimum wages

And Still More…And Still More…

National Housing Act & National Housing Act & The Federal Housing CommissionThe Federal Housing Commission

– Home Owners Loan Corporation Home Owners Loan Corporation provided loans to homeowners in provided loans to homeowners in defaultdefault

The Federal Emergency Relief The Federal Emergency Relief AdministrationAdministration– Provided funds for direct relief to Provided funds for direct relief to poor / needypoor / needy

FDR Faces OppositionFDR Faces Opposition

Critics say his Big Government has Critics say his Big Government has gone too far…gone too far…

The courts strike down FIRA and The courts strike down FIRA and AAA.AAA.

He is accused of assuming He is accused of assuming legislative powers.legislative powers.

FDR has an answer – let’s get a FDR has an answer – let’s get a new supreme court in here…new supreme court in here…

He’s On a Roll!He’s On a Roll!

Congress did not Congress did not grant his request for a grant his request for a new panel of judges new panel of judges (court packing), but (court packing), but for various reasons he for various reasons he ended up nominating ended up nominating seven new judges seven new judges over his term in office.over his term in office.

The 1The 1stst 100 Days… 100 Days…AgainAgain 1936 – FDR was re-elected.1936 – FDR was re-elected. The Soil Conservation and Domestic The Soil Conservation and Domestic

Allotment Act – rewarded farmers for Allotment Act – rewarded farmers for good farming practices.good farming practices.

A second draft of the AAA was A second draft of the AAA was passed.passed.

The Resettlement Administration The Resettlement Administration allocated over $1 billion inallocated over $1 billion in

loans to small farmers.loans to small farmers.

Works Progress Works Progress AdministrationAdministration

1935 – 1943, $11 billion spent to 1935 – 1943, $11 billion spent to create jobs.create jobs.– 850 airports850 airports– 651,000 miles of roads651,000 miles of roads– 125,000 public buildings125,000 public buildings

National Youth National Youth AdministrationAdministration

Provided education, jobs, Provided education, jobs, counseling, and recreation to counseling, and recreation to young people.young people.– Issued part time jobs for studentsIssued part time jobs for students– Found work for drop-outsFound work for drop-outs

The Wagner Act & Fair The Wagner Act & Fair Labor Standards ActLabor Standards Act

National Labor Relations Act National Labor Relations Act (Sponsored by Senator Robert (Sponsored by Senator Robert Wagner)Wagner)– Supported union rightsSupported union rights– Prohibited firing of union membersProhibited firing of union members

Fair Labor Standards ActFair Labor Standards Act– Reduced work week to 44 hoursReduced work week to 44 hours– Minimum wage – 25 cents Minimum wage – 25 cents

(40 cents by 1945)(40 cents by 1945)

– Banned hazardous work for minorsBanned hazardous work for minors

Social Security ActSocial Security Act

Old Age Insurance – employee Old Age Insurance – employee paid half and employer paid half.paid half and employer paid half.

Unemployment Insurance – Unemployment Insurance – employees could draw from this if employees could draw from this if out of work.out of work.

Aid to Families w/Dependent Aid to Families w/Dependent Children and the DisabledChildren and the Disabled