Transcript A New Deal Fights the Depression

1-17-08
Obj.- To summarize steps FDR
took to reform banking/finance
and provide relief to Americans,
via the New Deal
Focus:If you were president during
the Depression, how would you help
your citizens? Think about which
areas would be most important first.
How would you implement your
plans? Discuss.
A New Deal Fights the
Depression
Chapter 23 Section 1
Terms and Names
Franklin Delano Roosevelt
New Deal
Glass – Steagall Banking Act
Federal Securities Act
Agricultural Adjustment Act
Civilian Conservation Corps
National Industrial Recovery Act
Huey Long
Electing a President
Franklin Delano Roosevelt
(FDR)
Democrat
2 – Term Governor of New
York
“Can – do” attitude
Election of 1932
Roosevelt easily won the
election with 23 million votes
Americans blamed Hoover
for mishandling the Depression
The 20th Amendment
Roosevelt had to wait 4 months
before being inaugurated
The 20th Amendment
changed the inauguration
from March to January
Didn’t apply to Roosevelt, though
The Brain Trust
Roosevelt’s handpicked
group of advisers
Created the “New Deal”
Roosevelt promised “a new deal
for the American people”
Goals of the New Deal
1. Relief for the needy
2. Economic Recovery
3. Financial Reform
What did they do and why?
(Heart metaphor)
• Relief was the immediate effort to help the onethird of the population most affected by the
depression. (CCC and PWA)
• Recovery was the effort in many programs to
restore normal economic health.
• Reform was based on the idea that the Great
Depression was caused by market instability and
that government intervention was necessary to
balance the interests of farmers, business and
labor(AAA)
• (Source: Wikipedia 16 January 2008)
The Hundred Days
March 9 – June 16, 1933
Congress passed more than 15
major pieces of New Deal
legislation
Expanded the federal
government’s role in the
nation’s economy
Use the handout to keep track of
programs…
Program
Purpose
Results
I’ll start…Emergency
Banking Relief Act
Banks continued to fail after
FDR’s election
Most Americans lost faith in
the banking system
Declared March 5 a “bank
holiday” no one could
withdraw money
Emergency Banking Relief Act
The Treasury Department
inspected the country’s
banks
Banks that could pay their
debts could stay open
Fireside Chats
FDR boosted American
confidence by giving informal
radio talks about the
concerns of the public
FDR encouraged Americans to
support the government
and the banking system
“We have provided the machinery to restore the financial system.
It is up to you to support . . . it . . .”
Banking System Reforms
Glass Steagall Act of 1933
Established the FDIC
Money in banks is insured
up to $5,000.00
Watching the Stocks
Federal Securities Act
Required corporations to provide
information on stock offerings
Securities Exchange Commission
prevents people from “rigging” the
stock market
Helping the Farmers
Agricultural Adjustment Act
Raise crop prices by lowering
production
Positive:
Raised farm prices & put
money in farmers pockets
Negative: The government paid
farmers to destroy food
What’s happening?
Work Projects…complete
your chart w/ some
examples shown below
Civilian Conservation Corps
Federal Emergency Relief Admin.
Public Works Admin.
Civil Works Admin.
National Industrial Recovery Act
FDR’s Programs
Stands For
AAA
CCC
Agricultural
Adjustment Act
Purpose
Raise crop prices by lowering
production
Civilian Conservation Provide young men with work
Corps
opportunities
FERA
Federal Emergency
Relief Act
Provide direct relief to the
needy
PWA
Public Works
Administration
Provide money to states to
create jobs
CWA
Civil Works
Administration
Provided 4 million jobs during
the winter of ’33
NIRA
National Industrial
Recovery Act
Established codes for fair
practice for individual industries
And Finally…complete
chart for
closing…also,what are the
three goals of the New
Deal ?
Problem
Solution
Low Farm Prices
Paying farmers not to
raise crops.
The Supreme Court Reacts
FDR’s programs boosted the
confidence of the American
people
HOWEVER
Both conservatives and liberals
oppose New Deal policies
Liberal Complaints
1. Didn’t do enough for the
poor
2. Didn’t reform enough of
the economic system
Conservative Criticisms
1. Too much is spent on direct
relief
2. Policies tried to control
business and socialize the
economy
3. Felt the AAA and the NIRA
gave the government too
much control
The Supreme Court Reacts
Supreme Court rules the NIRA is
unconstitutional
Supreme Court says AAA should
be regulated by states not
the federal government
Court Packing
FDR proposes a bill that would
allow him to appoint 6 new
justices to the Supreme Court
Felt justices would be more
sympathetic to the New Deal
Accused of “court – packing”
FDR’s Critics
Father Charles Coughlin – favored
guaranteed annual income &
nationalization of banks
Dr. Francis Townsend – FDR isn’t
doing enough for the poor and
elderly
Senator Huey Long – wanted to
share the nation’s wealth