The New Deal

1. The New Deal 1933-1940

2. President Roosevelt • Had the greatest impact on American life & politics than any other U.S. President. • Elected to an unprecedented four terms. • Began a 40-year period in which the Democrats were the dominant political party. 1933-1945

3. The Hundred Days • FDR’s New Deal had three goals: • Provide relief for the needy • Economic recovery • Financial Reform • FDR’s first one hundred days were a flurry of activity, which expanded the federal government’s role in dealing with the nation’s economy.

4. The Hundred Days • FDR immediately declared a bank holiday & closed the nation’s banks • The Emergency Banking Relief Act allowed the Treasury department to inspect banks to determine if they were financially sound • This measure restored confidence in the nation’s banking system

5. The Hundred Days • The Glass-Steagal Act (1933) established the Federal Deposit Insurance Corporation (FDIC), which insured individual bank accounts up to $5,000 • Regulating the Stock Market: • The Federal Securities Act (1933) made corporations liable for misrepresenting stock info • The Securities & Exchange Commission (1934) was created to prevent insiders from gaining to much control over the market

6. Providing Relief • Relief to Farmers: • The Agricultural Adjustment Act (AAA) raised crop prices by lowering farm production • The government paid farmers to produce less in the hope that reduced supply would boost prices • The Tennessee Valley Authority (TVA) renovated dams, created jobs, & provided flood control to the Tennessee River Valley

7. Providing Relief • The Civilian Conservation Corps (CCC) provided young men from the ages of 18 to 25 work building roads, cultivating parks, & planting trees • The Public Works Administration (PWA) created jobs to construct school & community buildings • The Civil Works Administration (CWA) constructed school houses & roads

8. Providing Relief • The Federal Housing Administration (FHA) provided home mortgage loans & money for home repairs (known as the Department of Housing & Urban Development today) • The Federal Emergency Relief Administration (FERA) provided direct relief to help furnish food & clothing to the unemployed, old, & sick

9. Question to Consider Of the New Deal programs reviewed so far, which do you consider the most important? Explain

10. New Deal Opposition • True or False: The New Deal ended the Great Depression False • Because the New Deal did not end the depression, Roosevelt became open to criticism

11. New Deal Opposition • Liberal critics argued that the New Deal did not provide enough relief • Conservative critics argued that too much direct relief & control over business had brought socialism to the United States

12. New Deal Opposition • The Supreme Court declared some New Deal legislation unconstitutional • Roosevelt responded with a “Court Packing” Bill to add six justices to the Supreme Court in order to ensure support for New Deal legislation • The retirement of an elderly justice & the appointment of a liberal justice allowed rulings to favor the New Deal after 1937

13. “Kingfish” • Louisiana Senator Huey Long provided the most serious challenge to Roosevelt. • Campaigning for President, Long proposed a social program called Share-Our-Wealth, which would make “Every Man A King” • At the height of his popularity he was assassinated

14. Other Important Happenings • FDR held fireside chats, which were radio addresses about issues during the Great Depression • The 20th Amendment (1933) moved a President’s inauguration to January • The 21st Amendment (1933) repealed the 18th Amendment ending Prohibition

15. Question to Consider Why were FDR’s fireside chats successful? Besides the obvious (jobs, homes, money – the obvious), what did FDR’s New Deal programs provide to the American People?

16. The Second New Deal • FDR launched a second new deal or second hundred days because despite gains made, unemployment remained high & production low • The Second New Deal focused on farmers & workers • The resettlement administration, which was eventually replaced by the Farm Security Administration (FSA) provided loans for farmers to buy land

17. The Second New Deal • The Works Progress Administration (WPA) created jobs building airports, constructing or repairing roads, & employed professionals in the arts • The National Youth Administration provided young people education, jobs, & recreation

18. Reforming Labor • The Wagner Act created the National Labor Relations Board (NLRB), which protects the rights of workers to join unions & participate in collective bargaining • The Fair Labor Standards Act helped establish maximum hours & minimum wages for workers

19. Social Security • The Social Security Act (1935) had three major parts: • Old-age insurance for those over the age of 65 • Unemployment compensation • Aid for those with dependent children & the disabled

20. Questions to Consider Why is the Social Security Act considered the New Deal’s most important achievement? Why do some think our country has a Social Security crisis?

21. Election of 1936 • Roosevelt is re-elected to a second term in 1936. • His reelection shows the popularity of his New Deal & the increased involvement of the Federal Government in providing relief to the people.

22. Results of the New Deal • The New Deal did not end the depression, but provided economic security to people who never had it before • Americans came to expect that the federal government would ensure the health of the nation's economy and the welfare of its citizens. • Roosevelt’s & our nation’s attention began to turn to foreign threats