Unit VIII – Boom Times and Challenges

1. Unit VIII – Boom Times and Challenges Chapter 25 – The Great Depression Section 2 – Roosevelt’s New Deal

2. Roosevelt’s New Deal • The Big Idea • Franklin Roosevelt’s New Deal included government programs designed to relieve unemployment and help the economy recover. • Main Ideas • Congress approved many new programs during the Hundred Days. • Critics expressed concerns about the New Deal. • New Deal programs continued through Roosevelt’s first term in what became known as the Second New Deal. • Roosevelt clashed with the Supreme Court over the New Deal.

3. Keynesian Theory • Keynesianeconomics, also called Keynesianism, or Keynesian Theory, is an economic theory based on the ideas of 20th century British economist John Maynard Keynes. • An economic theory stating thatactive government interventionin the marketplace and monetary policy is the best method of ensuring economic growth and stability • Thegovernment would borrow money to spend on such things as public works; and that deficit spending, in turn, wouldcreatejobsand increase purchasing power.

4. The New Deal (08:08)

5. Main Idea 1: Congress approved many new programs during the Hundred Days. • Took office in March 1933 • Said that economic recovery was possible • Promised that the government would help A New President The Hundred Days • Roosevelt called special session of Congress that became known as the Hundred Days. • President and Congress worked together to create new programs to battle the Depression and aid economic recovery. • These programs became known as the New Deal.

6. The Only Thing We Have to Fear Is Fear Itself (00:14)

7. Franklin Roosevelt as President • Banking Crisis • Temporarily closed all the nation’s banks to stop panic and large-scale withdrawals- Bank Holiday • Passed the Emergency Banking Act • Glass-Steagall Act created the FDIC • Hundred Days • Critical period of government activity • Roosevelt pushed Congress to put most of his New Deal into practice. • The New Deal promised relief, recovery and reforms. • Beyond the Hundred Days • FDR and Congress passed important legislation after the Hundred Days • Created the Civil Works Administration • Passed the Indian Reorganization Act

8. Restoring Confidence • Roosevelt worked to restore confidence in American banks. • Ordered all banks to temporarily close • Emergency Banking Relief Act was quickly passed . • Government inspected finances of a bank before it was allowed to reopen. • Plan was announced in Roosevelt’s first fireside chat. • Radio address in which he spoke directly to the American people • Gave many chats over the course of his administration

9. This Bank Closed Until Further Notice (00:30)

10. Selected New Deal Programs Civil Works Administration– employed 4 million Americans to build road and airports Civilian Conservation Corps– provided jobs to thousands. Helped unemployed young men 18 to 25 years old Tennessee Valley Authority– hired people to build dams and generators, bringing electricity and jobs to Tennessee River Valley Farm Credit Administration– helped farmers refinance mortgages so they could keep their farms Agricultural Adjustment Act– stabilized agricultural prices- Helped farmers by paying them not to grow crops National Industrial Recovery Act– passed with support from Frances Perkins, the nation’s first female Cabinet member, addressed business concerns

11. The New Deal • National Industrial Recovery Act (NIRA) • Helped business by requiring that businesses in the same industry cooperate with each other to set prices and output • Started Public Works Administration (PWA) • Labor received federal protection for the right to organize. • Federal Securities Act • Helped investors, restored confidence in the markets • Securities and Exchange Commission (SEC) • Tennessee Valley Authority (TVA) • Helped build dams and other projects along the Tennessee River and its tributaries

17. Section 3 Activity Relief, Recovery and Reform • FDR came into office with no clear or specific plan for what to do. • Roosevelt used to say "try something, if it doesn't work try something else." He and his brain trust recognized, at least, that they must try to do something. • These attempts at least gave Americans the hope that something was being done. • Roosevelt's basic philosophy of Keynesian economics manifested itself in what became known as the three "R's" of relief, recovery and reform. • The programs created to meet these goals generated jobs and more importantly, hope. • They also generated what is refered to today as "alphabet soup;" a series of acts and agencies that created a huge federal bureaucracy.

18. The New Deal

19. EARLY NEW DEAL MEASURES – Are they Relief, Recovery or Reform? _______ FAIR LABOR STANDARDS ACT -- provided minimum wage for workers. _______ FEDERAL SECURITIES ACT -- required full disclosure of information related to new stock issues. _______ NATIONAL EMPLOYMENT SYSTEM ACT -- created US employment service. _______ HOME OWNERS REFINANCING ACT -- use of government bonds to guarantee mortgages. _______ BANKING ACT OF 1933 -- created Federal Deposit Insurance Corp., guaranteeing the safety of bank deposits. ______ NATIONAL INDUSTRIAL RECOVERY ACT -- minimum wages and self regulation of industry --- ended in 1935. _______ PUBLIC WORKS ADMINISTRATION -- appropriated funds to construct roads and other federal projects. _______ NATIONAL HOUSING ACT -- federal housing administration insured loans of private banks and trust companies for construction of homes. _______ COMMUNICATIONS ACT -- federal housing administration insured loans of private banks and trust companies for construction of homes. ______ NATIONAL HOUSING ACT -- construction of low cost public housing and slum clearance. ______ SOIL CONSERVATION ACT -- established federal soil conservation services. ______ RESETTLEMENT ADMINISTRATION -- built new model communities for low income city workers ______ RURAL ELECTRIFICATION ADMINISTRATION -- created and administered program of bringing electricity to rural areas. _____ NATIONAL YOUTH ADMINISTRATION -- federal work relief and employment for young people.

20. EARLY NEW DEAL MEASURES – Are they Relief, Recovery or Reforn? Relief FAIR LABOR STANDARDS ACT -- provided minimum wage for workers. Reform FEDERAL SECURITIES ACT -- required full disclosure of information related to new stock issues. Reform NATIONAL EMPLOYMENT SYSTEM ACT -- created US employment service. Recovery HOME OWNERS REFINANCING ACT -- use of government bonds to guarantee mortgages. Reform BANKING ACT OF 1933 -- created Federal Deposit Insurance Corp., guaranteeing the safety of bank deposits. Recovery NATIONAL INDUSTRIAL RECOVERY ACT -- minimum wages and self regulation of industry --- ended in 1935. Recovery PUBLIC WORKS ADMINISTRATION -- appropriated funds to construct roads and other federal projects. Recovery NATIONAL HOUSING ACT -- federal housing administration insured loans of private banks and trust companies for construction of homes. Recovery COMMUNICATIONS ACT -- federal housing administration insured loans of private banks and trust companies for construction of homes. Reform NATIONAL HOUSING ACT -- construction of low cost public housing and slum clearance. Reform SOIL CONSERVATION ACT -- established federal soil conservation services. Relief RESETTLEMENT ADMINISTRATION -- built new model communities for low income city workers Reform RURAL ELECTRIFICATION ADMINISTRATION -- created and administered program of bringing electricity to rural areas. Relief NATIONAL YOUTH ADMINISTRATION -- federal work relief and employment for young people.

21. FDR Visits Virginia (00:49)

22. The Hundred Days • Recall- What did Roosevelt promise in his inaugural address? • Identify – Who worked together on the New Deal? • Rate – How would you judge the value of programs such as CWA, the CCC, and the TVA?

23. Main Idea 2: Critics expressed concerns about the New Deal. • New Deal: • Goes Too Far • Criticized expansion of federal government • American Liberty League argued New Deal gave president too much authority. • Business leaders concerned about potentially higher taxes • New Deal: • Not Enough • U.S. senator Huey Long believed the rich should pay extra taxes to support the poor. • Some felt that the New Deal helped only business interests.

25. Trouble for the New Deal Radical Reactions to the New Deal • Believed the New Deal did not go far enough in reforming the economy • Wanted a complete overhaul of capitalism • Huey P. Long, Father Charles Coughlin, Dr. Francis Townsend Conservative Reactions to the New Deal • Attacked the New Deal as a radical break with traditional American ideals • Thought the New Deal would drive the country to destruction. • American Liberty League

26. Leading Critics of the New Deal • Huey P. Long (senator from Louisiana) • Believed Roosevelt’s policies were too friendly to banks and businessmen (started the Share Our Wealth Society) • Father Charles Coughlin (the “radio priest”) • Believed Roosevelt was not doing enough to curb the power of bankers and financial leaders • Dr. Francis Townsend • Criticized the New Deal for not doing enough for older Americans (wanted pensions for people over 60) • The American Liberty League • Believed that the New Deal went too far and was anti-business • Opposition from the courts • Critics of the New Deal feared that it gave the president too much power over other branches of government. • Schechter Poultry Corporation v. United States • United States v. Butler

28. New Deal Critics • Recall- What stopped Huey Long from running for President? • Explain – Why were business leaders critical of New Deal programs? • Rate – What do you think about Long’s “Share Our Wealth” idea?

29. Main Idea 3: New Deal programs continued through Roosevelt’s first term in what became known as the Second New Deal. • America showed support of Roosevelt in the Congressional elections of 1934. • Roosevelt continued to introduce additional New Deal legislation • These laws became known as the Second New Deal. • First lady Eleanor Roosevelt was an active supporter of New Deal programs

30. Selected Second New Deal Programs • Social Security Act– passed in 1935, worked to provide some financial security for the elderly, the disabled, children, and the unemployed • Placed new tax on workers and employers • First time the federal government took direct responsibility for many citizens’ economic well-being Works Progress Administration– employed 8.5 million National Youth Administration– gave part-time jobs to young workers

31. New Deal Labor Programs • National Industrial Recovery Act passed in 1933. • Required minimum wage and allowed collective bargaining • Declared unconstitutional by Supreme Court in 1935 • National Labor Relations Act, or the Wagner Act • Allowed workers to join labor unions • Established the National Labor Relations Board to oversee union activities • Congress of Industrial Organizations • Organized workers into unions based on industry, not skill level • Allowed African Americans, Hispanics, women, and immigrants as members • Led a sit-down strike against General Motors in which they stayed in the factories so that they could not be replaced by new workers

32. The New Deal Continues • Recall- How many people were employed by the WPA? • Identify – What were two benefits of Eleanor Roosevelt’s NYA? • Explain – What was unusual about the passage of the Social Security Act? • Analyze – In what way did Americans show their support for Roosevelt and his programs in the 1934 election?

33. The New Deal Continues • Recall- What happened to the NIRA? • Draw Conclusions – In what way was the CIO helpful to unskilled workers? • Evaluate – What do you think about the CIO’s attitude toward membership?

34. Main Idea 4:Roosevelt clashed with the Supreme Court over the New Deal. • Roosevelt was reelected in 1936 by a huge margin. • Supreme Court issued a series of rulings declaring several New Deal programs unconstitutional. • Roosevelt responded by proposing a plan for reorganizing federal judiciary. • Drew harsh criticism from Congress and public • Critics charged that Roosevelt was trying to change the balance of power defined in the U.S. Constitution. (Court Packing) • Congress rejected the bill. • The Supreme Court did not overturn any more New Deal legislation.

35. Clashes with the Court • Identify- Which branch of the federal government was not controlled by the Democrats in 1936? • Define – What is meant by “court packing”? • Compare – How did the actions of President Roosevelt, the Supreme Court and Congress illustrate the systems of Checks and Balances within the U.S. government?