Transcript Economics - SharpSchool
US History
The New Deal (1933–1941)
Standard USHC-6.4
Analyze President Franklin Roosevelt’s New Deal as a response to the economic crisis of the Great Depression, including the effectiveness of New Deal programs in relieving suffering and achieving economic recovery, in protecting the rights of women and minorities, and in making significant reforms to protect the economy such as Social Security and labor laws.
Essential Questions 6.4
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What was the New Deal? Describe the First New Deal? What new policy did FDR believe would help “jump start” the economy? Describe the Second New Deal? What impact did the New Deal have on minorities? How did the government feel about Labor Unions? Why did FDR try to “pack” the Supreme Court?
Standard 6.4 Terms-Define
• • • • • • • • • • • 21st Amendment Agricultural Adjustment Act Bank Holiday Brain Trust CCC FDIC Fireside Chats First Hundred Days Franklin Roosevelt • • • • • • • • • • Great Depression National Labor Relations Act National Recovery Act New Deal NLRB Recession Roosevelt's Three Rs Rural Electrification Act SEC Social Security TVA WPA
Roosevelt and The New Deal
Restoring Hope and the First Hundred Days
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In the first hundred days of his presidency, Roosevelt pushed many programs through Congress to provide relief, create jobs, and stimulate the economy.
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FDR promised “a new deal for the American people,” The term New Deal came to refer to the Relief, Recovery, and Reform programs of FDR’s administration. were aimed at combating the Great Depression Progressives figured prominently, inspiring New Deal legislation or administering programs
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Franklin Delano Roosevelt (FDR) wanted to restore a sense of hope and build public confidence.
was essential to calming panic and creating support for the President’s plans.
Areas of New Deal Reform (Alphabet Soup) Stabilizing Financial Institutions Providing Relief and Creating Jobs FDR wanted to restore public confidence in the nation’s banks.
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Emergency Banking Act Bank Holiday authorized the government to inspect the financial health of all banks.
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Glass-Steagall Banking Act of 1933 This act established a insure bank deposits.
Federal Deposit Insurance Corporation (FDIC) to
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Securities Exchange Act of 1934 Created the Securities and Exchange Commission (SEC)
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Regulated the nations stock exchange and securtities markets.
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Federal Emergency Relief Administration (FERA). FERA put money into public works programs, government-funded projects to build public facilities and create jobs.
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Civilian Conservation Corps (CCC) . The CCC put more then 2.5 million men to work maintaining forests, beaches, and parks.
Young men got paid one dollar a day, but got three meals a day and a place to sleep.
Areas of New Deal Reform (Alphabet Soup) Providing Relief and Creating Jobs
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National Industrial Recovery Act (NIRA). NIRA established the National Recovery Administration (NRA) tried to balance the unstable economy.
, which The
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NRA established codes for fair business practices. regulated wages and set minimum wage.
working conditions, production, and prices.
Assisting Home owners and Farmers
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Federal Housing Administration (FHA) worked to improve housing standards and conditions insure mortgages.
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Agricultural Adjustment Administration (AAA) raised farm prices through subsidies. Paid farmers not to raise certain crops and livestock Hoped that lower production would cause prices to rise.
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Tennessee Valley Authority (TVA) provided jobs, hydroelectric power, flood control, and recreational opportunities to farmers in the Tennessee Valley.
Key Players in the New Deal
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Frances Perkins Former Progressive First female cabinet member, became the Secretary of Labor.
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“Black Cabinet” FDR hired African Americans in more than a hundred policymaking posts.
Mary McLeod Bethune
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Close friend to Eleanor Roosevelt
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Eleanor Roosevelt sat next to Mrs. Bethune at the Southern Conference on Human Welfare in Alabama despite segregation laws forbidding the action .
New Deal Obstacles
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The New Deal failed to bring about significant economic improvement critics began to attack the programs. Opponents warned that New Deal agencies were giving increasing power to the federal government.
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The Supreme Court declared the NIRA and the AAA unconstitutional Said gave the President lawmaking powers and regulated local rather than interstate commerce.
struck down the tax that funded AAA subsidies to farmers.
The Second New Deal
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FDR’s administration launched an even bolder set of legislation. The Second New Deal included:
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more social welfare benefits stricter controls over business stronger support for unions higher taxes on the rich.
New agencies attacked unemployment. Employed more than 8 million workers, building or improving playgrounds, schools, hospitals, and airfields.
Supported the creative work of writers and artists.
The Second New Deal Assisting Farmers and Factory Workers
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Farm Security Administration (FSA) helped migrant farmers, sharecroppers, and tenant farmers who were ignored by the AAA.
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Wagner Act legalized such union practices as collective bargaining and closed shops.
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Closed shops are workplaces open only to union members Providing Relief and Creating Jobs
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Works Progress Administration (WPA) employed more than 8 million workers built or improved playgrounds, schools, hospitals, and airfields.
supported the creative work of writers and artists
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Social Security Act Provided financial security to those that could not support themselves.
There were three types of insurance:
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Old age pensions and survivors’ benefits Unemployment insurance
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Aid for dependent children, the blind, and the disabled
The Court-Packing Fiasco
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Roosevelt wanted to gain more support in the Supreme Court proposed a major court-reform bill. recommended that Congress allow him to add six additional Supreme Court justices
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one for every justice over 70 years old. His argument was that this would “lighten” the case load for aging justices. Real intention , however, was to “pack” the Court with judges supportive of the New Deal.
The Court-Packing Fiasco
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Critics warned that FDR was trying to undermine the constitutional separation of powers. They were concerned that Roosevelt was trying to gain unchecked powers
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was a serious concern in a time when several dictators ruling in Europe.
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In the end, FDR eventually got a Court that tended to side with him. Some of the older justices retired Roosevelt was able to appoint justices who favored the New Deal.
Limitations of the New Deal
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The New Deal fell short of many people’s expectations.
The Fair Labor Standards Act covered fewer than one quarter of all gainfully employed workers.
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It set the minimum wage at 25 cents an hour, which was below what most workers already made.
The NRA permitted lower wages for women’s work, and gave boys and men strong preference in relief and job programs.
Limitations of the New Deal
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No New Deal programs protected domestic service, the largest female occupation.
Many federal relief programs in the South reinforced racial segregation.
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The Social Security Act excluded farmers and domestic workers, so it failed to cover nearly two thirds of working African Americans.
Political Critics
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New Deal Does Too Much
A number of Republicans, in Congress and elsewhere, opposed Roosevelt. They believed that the New Deal went too far.
A group called the American Liberty League , founded in 1934, spearheaded much of the opposition.
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The league charged the New Deal with limiting individual freedom in an unconstitutional, “un American” manner.
Political Critics
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New Deal Does Not Do Enough
Many Progressives and Socialists attacked the New Deal because they believed that the programs did not provide enough help.
Muckraking novelist Upton Sinclair believed that the entire economic system needed to be reformed.
In 1934, Sinclair ran for governor of California on the Democratic ticket. His platform, “End Poverty in California” (EPIC), called for a new economic system in which the state would take over factories and farms.
Other Critics
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Some other New Deal critics were demagogues .
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leaders who manipulate people with half-truths, deceptive promises, and scare tactics.
Father Charles E. Coughlin Huey Long
Modern-Day Critics Modern critics also attack the policy of paying farmers not to plant.
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program wasted precious resources. Farm production quotas penalized efficient and less efficient farmers equally,
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free market would have weeded out inefficiency and rewarded productivity. New Deal receives criticism from people who oppose deficit spending
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paying out more money from the annual federal budget than the government receives in revenues.
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Deficit spending has been used since to get country out of depressions since.
Modern-Day Critics (Continued)
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Debate about the New Deal continues today. Critics believe that the programs violated the free market system. Supporters believe that providing relief to the poor and unemployed was worth the compromise.
The Recession of 1937
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In August 1937, the economy collapsed again. Industrial production and employment levels fell.
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The nation entered a recession , a period of slow business activity.
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Reasons The new Social Security tax was partly to blame. The tax came directly out of workers’ paychecks Less money in pocket=fewer goods bought.
The Recession of 1937
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The President had become concerned about the rising
national debt
, or the total amount of money the federal government borrows and has to pay back. The government borrows when its
revenue
, or income, does not keep up with its expenses.
To fund the New Deal, the government had to borrow massive amounts of money. As a result the national debt rose from $21 billion in 1933 to $43 billion by 1940.
Lasting New Deal Achievements
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The New Deal had a profound effect on American life. Voters began to expect a President to formulate programs and solve problems. People accepted government intervention in their lives. Workers demanded more changes in the workplace. The New Deal also left a physical legacy with monuments that dot the American landscape.
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Bridges, dams, tunnels, national parks and trails.
Lasting New Deal Achievements (Continued)
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Federal agencies such as the Tennessee Valley Authority and the Federal Deposit Insurance Corporation are still around.
The Social Security system has gone through some changes, but is a part of the lives of all Americans. Perhaps the New Deal’s greatest achievement was to restore a sense of hope to the nation.
Essential Questions 6.4 review
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What was the New Deal?
(1) Franklin D. Roosevelt’s policies of RELIEF, RECOVERY, & REFORM.
Describe the First New Deal? (
1)First 100 Days was the attempt to stabilize the economy & relieve suffering, (2) Bank Holiday, & Fireside chats, (3) FDIC, (4) SEC, (5) AAA & Farmers paid subsidies, (6) TVA, (7) CCC & WPA
What new policy did FDR believe would help “jump start” the economy?
Deficit Spending
Describe the Second New Deal?
(1) Actions taken in response to criticism from others, (2) FDR tried to pack the Supreme Court, (3) NRA, (4) Deficit spending, (5) Social Security Act, (6) Wagner Act (Labor Union rights)
What impact did the New Deal have on minorities?
(Native Americans) New Deal did not protect black workers, (2) FDR did consult the “Black Cabinet” to address some racial discrimination, (3) His wife Eleanor championed blacks against discrimination, (4) FEPC, (5) New Deal policies did not address women, (5) Dawes Act reverse
How did the government feel about Labor Unions?
the leadership of John Lewis was formed.
Wagner Act was passed & gave unions the right to work collectively for change; New union, CIO, under
Why did FDR try to “pack” the Supreme Court?
The Supreme Court blocked some of his New Deal programs and he was trying to gain favor by putting New Deal supporters on the bench. He failed!