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The New Deal

The New Deal. Chapter 13. Chapter 13 Sections 1 & 2. FDR wins the 1932 election -Takes office on March 4, 1933 -Creates a plan called The New Deal -FDR’s plan to fix the Depression -Promised drastic changes -Major changes come in 1st Hundred Days -March –June 1933.

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The New Deal

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  1. The New Deal Chapter 13

  2. Chapter 13Sections 1 & 2 • FDR wins the 1932 election • -Takes office on March 4, 1933 • -Creates a plan called The New Deal • -FDR’s plan to fix the Depression • -Promised drastic changes • -Major changes come in 1st Hundred Days • -March –June 1933

  3. Franklin Delano Roosevelt

  4. Fixing the Banks • -FDR’s 1st step was to fix the banks • -March 5, 1933, FDR orders all the banks in the U.S. to close • -Passes the Emergency Bank Act • -Govt. inspects banks to see how to fix them • -2/3 of banks re-open by March 15 • -Becomes known as the Bank Holiday • -When banks re-open, deposits far out weigh withdrawals • -FDR’s final step in giving confidence back to the banks was to create the Federal Deposit Insurance Corp. • -FDIC • -Insures your money in the bank up to $5000 in 1933 • -Today it is $100,000

  5. Helping Business • -FDR creates the National Industry Recovery Act • -NIRA • -Controlled industry prices • -Next creates the National Recovery Administration • -NRA • -Created industry wide rules • -Set wages • -Rules for safe working conditions • -Set prices for goods • -NIRA also put people to work • -NIRA creates the Public Works Administration [PWA] • -Build the Grand Coulee Dam [Wa.] • -Built Triboro Bridge [NYC] • -Built bridge connecting Florida Keys

  6. Grand Coulee Dam

  7. Triboro Bridge

  8. Florida Keys Causeway

  9. Helping the Stock Market • -1933 FDR passes the Federal Securities Act • -Companies must report to stockholders how the business is doing • -Next creates Securities and Exchange Commission • -SEC • -Regulate the stock market • -Finally creates Federal Reserve Board • -Regulating buying stocks • -Controls interest rates today

  10. Saving Farms and Homes • -Many Americans lost their homes and farms b/c of Depression • -Others were about to lose them • -FDR creates the Home Owners Loan Corp. [HOLC] • -Reshaped mortgages to allow people to keep or re-buy their homes • -Also saved farms by creating Agricultural Adjustment Administration • -AAA • -Helped raise farm prices • -Paid farmers not to grow certain crops • -Finally creates the Tennessee Valley Authority • -TVA • -Public works program • -Hired thousands to create hydroelectric power plants • -Built flood control and dams • -Mostly in Tennessee River valley

  11. TVA TVA Area

  12. TVA dam building

  13. TVA hydroelectric power plant

  14. Creating Jobs • -FDR needed to help Americans get jobs • -Creates the Federal Emergency Relief Administration • -FERA • -Gives money to local agencies to help poor and unemployed • -Next creates Public Works Programs • -Govt. funded jobs to build public facilities • -1st program was created called the Civil Works Administration • -CWA created November 1933 • -Hires 4 million Americans • -Build parks and airports • -2nd program was the Civilian Conservation Corps • -CCC • -2.5 million hired • -Restore and maintain forests, beaches and parks • -Earned $1 per day but lived for free • -Sent money home to workers’ families

  15. The Second New Deal • -The New Deal progress slowed late in 1930’s • -Many began to criticize it as too Communist • -Supreme Court rules NIRA unconstitutional • -Also says AAA unconstitutional • -FDR needed a new plan • -Called 2nd New Deal

  16. 5 Major Parts of 2nd New Deal 1. Wagner Act • -Granted workers and unions rights 2. National Labor Relations Board • -Used to enforce Wagner Act • -Middleman between unions and business 3. Fair Labor Standards Act • -Outlawed child labor • -Set minimum wages 4. Works Progress Administration • -Hires 8 million • -Build playgrounds, schools, hospitals • -Built “Lookout” 5. Social Security System • -Monthly pension for elderly • -Covered workers & spouses once they reached 65 • -Aid to children, blind, & physically handicapped

  17. Unions • Union membership rose dramatically in 1930’s • Mainly b/c workers’ rights were protected by Wagner Act • 2 new unions emerge in 1930’s • American Federation of Labor [AFL] • Congress of Industrial Organization [CIO] • These two unions join a Coalition • -Alliance • Called the AFL-CIO • Led by John L. Lewis

  18. -Unions used Wagner Act to gain more rights • -Began using Sit Down Strikes • -Workers stop doing their jobs, but refuse to leave worksite • -Prevented owners from using Scabs • -Substitute workers • -1st sit down strike is in Akron, Ohio at tire plants in 1936 • -Later spread to GM plants in Michigan • -In 1939, the Supreme Court rules sit down strikes illegal

  19. New Deal Culture • -3 parts of American life grow during New Deal • 1. Literature • “The Grapes of Wrath” -John Steinbeck • “The Good Earth” Pearl S. Buck • 2. Radio • A. George Burns • B. Jack Benny • 3. Movies • Mr. Smith Goes to Washington • -Jimmy Stewart • Monkey Business & Duck Soup • -Marx Brothers • Snow White & The 7 Dwarfs • -Walt Disney • The Wizard of Oz • -Judy Garland

  20. The Grapes of Wrath

  21. The Good Earth

  22. George Burns and Jack Benny

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