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Chapter 34 Notes AP US History Mrs. Marshall Franklin Delano Roosevelt (Democrat) Elected to the presidency in 1932,1936, 1940 and 1944 In 1932 election Democrats also gained control of Congress. Twentieth Amendment “Lame Duck” Amendment-1933-changed the date of presidential inauguration from March to noon of January 20th. 3 goals of the New Deal (3 R’s) Roosevelt’s policies Relief-laws necessary to meet the needs of people without food, shelter and basic necessities Recovery- to help businesses and agriculture start up again Reform- to solve economic problems and prevent future depressions Brain Trust a group of unofficial advisors to FDR, they helped him formulate policies which became known as the New Deal. Hundred Days name given to the 73rd Congress which passed the bulk of New Deal legislation in just over 3 months Emergency Banking Act-closed all insolvent lending institutions and allowed Treasury Department to only reopen solvent Banks. Glass-Steagall Banking Reform Act of 1933 Provided for FDIC-Federal Deposit Insurance Corporation which insures individual deposits in accounts “fireside chats” were FDR’s radio addresses to the American people. He gave 30 of these. CCC-Civilian Conservation Corps Employed single males between ages of 18 and 25. Paid $30 a month with $22 being sent home. Based with armed forces, they lived in camps where they planted trees, prevented erosion, built public parks, and other things to conserve the environment. Federal Emergency Relief Act (FERA) Headed by Harry Hopkins Authorized $3 billion in immediate grants to states for relief projects Agricultural Adjustment Act (AAA) Raised food prices by lowering production. Placed a tax on canners, millers and other food processors and used the income to pay farmers to produce less. Land was removed from production. By 1936, farmer’s income was about 50% higher. Home Owner’s Loan Corporation (HOLC) Allowed homeowners to exchange their mortgages for bonds with better terms to keep then from being foreclosed on. NRA-National Industrial Recovery Act Goal was to stimulate competition and reduce unemployment. Business that cooperated received the “blue-eagle” seal of approval and displayed the motto “we do our part” Public Works Administration (WPA) supervised the construction of roads, public buildings and other projects while providing employment. Headed by Harold Ickes, Secretary of Interior Civil Works Administration (CWA) Emergency relief program designed to put 4 million jobless to work on federal, state and local projects. Headed by Harry Hopkins. Critics of FDR: Father Charles Coughlin- Catholic priest. Once a supporter of FDR but later turned against him and became one of his harshest critics. Dr. Francis Townshend- retired physician who developed a plan in which government would impose a 2% sales tax to provide seniors a monthly income of $200 Huey (Kingfish) Long- governor and later senator of Louisiana. Program was called “Share Our Wealth”-called upon federal government to guarantee every family in the nation and annual income an everyone over 60 would receive an old-age pension Two phases of New Deal: First New Deal concentrated on relief and recovery programs. Second New Deal concentrated on reform. Works Progress Administration (WPA) Created by congress in 1935 ,headed by Harry Hopkins. Was started to fund projects and create jobs. People were paid to build buildings, roads, dams, bridges, paint murals on buildings, entertain and write. Became most widely criticized of the New Deal agencies Mary McLeod Bethune became the highest ranking African American female in FDR’s administration. Appointed director of the Office of Minority Affairs in the National Youth Administration( a program designed to help youth with urban programs) Also, helped organize the “Black Cabinet”-a group of influential African Americans’ that advised FDR on racial issues. Dust Bowl of the 1930’s lasted about a decade. Affected the region of the Great Plains. Factors contributing to the Dust Bowl: Drought Dry-farming techniques Wind Soil erosion Many people packed up and left the Great Plains. Most migrants headed to California. John Steinbeck’s The Grapes of Wrath showed the suffering caused by the Dust Bowl. Resettlement Act 1935 –moved farmers who were victims of the Dust Bowl to better land. Indian Reorganization Act of 1934 Attempted to reverse the forced assimilation of Native Americans into white society. John Collier- appointed by FDR as Commissioner of Indian Affairs Federal Securities Act provided for creation of the Securities and Exchange Commission (SEC) which regulates the stock exchange. Joseph Kennedy was the first to head the commission Tennessee Valley Authority (TVA) proved to be the most socialistic of the New Deal agencies. Public corporation was established to construct dams and power plants along Tennessee River Social Security Act (1935) Purpose was to provide insurance through a tax levied on employers and a retirement system based on contributions from both employers and employees. Provides: Unemployment insurance Old-age pensions Economic provisions for the blind/disabled Support for physically handicapped Delinquent children /other dependants FDR viewed this as his “supreme achievement” Wagner Act (National Labor Relations Act) 1935 Gave labor the right to bargain collectively. Most beneficial to unskilled workers Fair Labor Standards Act-1938-set maximum hours at 44 hours per week and set minimum wage at 25 cents per hour. Set rules for employment of workers under 16 and banned hazardous work for those under 18. Francis Perkins- Secretary of Labor for FDR 1st female to hold a cabinet post. 1955 AFL and CIO merged American Federation of Labor and Congress of Industrial Organization 1936 election: FDR defeats Alfred Landon New Deal Coalition-a group of voters made up of southern whites, urban voters, African American’s and union workers who supported FDR Roosevelt and the “Court-packing” scheme: Called for all federal judges to retire by 70. If they failed to do so, the president could appoint another judge to serve in tandem with each one over 70. This would allow FDR to appoint 6 more justices. (Increasing size to 15) By 1937 economy had improved. Politicians urged FDR to cut back on New Deal programs. Economy slid back slightly but he did not begin a third phase of the New Deal. Reasons why FDR did not launch a third phase: He did not want any more deficit spending He was concerned over events in Europe Opinions on New Deal Conservative Critics- said it made the government too big and powerful. That it got in the way of free enterprise, that it made people not want to work, that the government should not be involved in the economy. Liberal Critics- said the New Deal did not do enough. Should have done more to end the differences between the rich and the poor. Supporters of the New Deal said it was well balanced between saving capitalism and reforming capitalism. Pointed out lasting benefits: It expanded the power of the federal government Gave the government a greater role in shaping the economy Relieved the suffering of millions of Americans The New Deal caused the federal government to go into debt—federal deficit rose. New Deal did not end the depression--WWII ended the depression and caused federal deficit to decrease.