The New Deal

Election of 1932

• Franklin D. Roosevelt – Democrat – Governor of New York • Herbert Hoover – Republican – “Why not vote for Roosevelt and make it unanimous?” • Roosevelt wins in a landslide; Democrats also capture Senate and House of Representatives

The New Deal

• Roosevelt’s plan for dealing with the Great Depression • 3 general goals – Relief for the needy – Recovery of the economy – Reform of finances

The Hundred Days

• Roosevelt immediately takes action upon entering White House • Congress passes more than 15 major pieces of legislation • Expand government’s role in economy

Banks and Finance

• March 5, 1933 – Roosevelt closes all banks – Congress passes Emergency Banking Relief Act – Treasury Dep’t evaluates all banks – Those that were healthy could reopen – Those that weren’t could receive loans

Fireside Chats

• Roosevelt addresses nation over the radio • Instills confidence • Explains what the government is doing and why • Encourages Americans to begin to use banks

Programs

• FDIC – Provided government insurance of bank accounts of $5,000 or less • Federal Securities Act – Companies responsible for complete information with stock offerings • SEC – Regulates stock market

AAA (#8)

• Agricultural Adjustment Act – Raise prices by lowering supply – Paid farmers not to plant food and to destroy livestock – Many protest destruction of food while many were hungry

Jobs

• CCC (#11) • Civilian Conservation Corps – Hired men to do construction projects across the country – Buildings, parks, highways – Plant trees in the Dust Bowl area

• FERA (Federal Emergency Relief Act) #3 – Direct relief for needy – States given money to provide food, clothing and shelter • PWA (Public Works Administration) #1 – Provided money to states to create jobs building schools and other buildings • CWA (Civil Works Administration) #12 – Provided 4 million jobs

• NIRA (National Industrial Recovery Act) #9 – Established fair practice for industries • NRA (National Recovery Administration) #7 – Set prices to encourage fair competition – Established work standards such as working hours and banning child labor

• TVA (Tennessee Valley Authority) #4 – Focused on poverty stricken region – Provided jobs renovating and constructing dams • HOLC (Home Owners Loan Corporation) #6 – Provided government loans to those facing foreclosure

Election of 1936

Roosevelt beats Alfred Landon 523 electoral votes to 8 Democrats strengthen control of Congress

Second Hundred Days

• Democrats feel given a mandate by voters to continue reforms

WPA (Works Progress Admin) #10

– Create jobs as quickly as possible – Built airports – Road construction – Libraries, schools, and hospitals – Made clothes for the needy – Employed professionals to write guides to cities, collect slave narratives, paint murals and other projects

• NYA (National Youth Administration) #2 – Provides part-time jobs for high school and college students • National Labor Relations Act (Wagner Act) #5 – Federal gov’t supported right of workers to join unions and collectively bargain – Listed unfair practices that companies could not use

• National Labor Relations Board # – Hear testimony of unfair practices • Fair Labor Standards Act – Set maximum hours and minimum wages – Set maximum hour workweek

Social Security #13

• Created by Secretary of Labor Frances Perkins (first female cabinet member) – Old age insurance for retirees of 65 or older – Unemployment compensation – Aid to families with dependent children and the disabled

Critics

Supreme Court

• Declared NIRA and AAA unconstitutional • Roosevelt tries to pass court reform bill to allow for 6 more Supreme Court judges – Court packing bill – Rejected • Courts decisions start to shift in favor of New Deal

American Liberty League

• Wealthy business leaders • New Deal violated respect for rights of individuals and property • Roosevelt trying to establish dictatorship

Father Charles Coughlin

• Roman Catholic priest from Detroit • Favored guaranteed annual income and nationalization of banks • Broadcast weekly radio program • Lost support because of Anti-Semitic statements

Dr. Francis Townsend

• Roosevelt not doing enough to support poor and elderly • Stronger guaranteed pension plan

Huey Long

• Senator from Louisiana • New Deal not doing enough • Share Our Wealth program – “Every Man a King”

Impacts of New Deal

• Some argue went too far; others say not far enough • Expanded power of federal government • Government went into debt to provide programs • Government protects workers • Restored confidence in banks