Chapter 23 The New Deal

The New Deal23

CHAPTER OBJECTIVE

To understand the impetus for FDR’s New Deal legislations and the impact these policies had on the American nation

1A New Deal Fights the Depression

OVERVIEW

After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression.

Americans still benefit from programs begun in the New Deal, such as bank and stock market regulations and the Tennessee Valley Authority.

MAIN IDEA WHY IT MATTERS NOW

TERMS & NAMES

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• Franklin Delano Roosevelt

• Glass-Steagall Act

• Federal Securities Act

• National Industrial Recovery Act (NIRA)

• Civilian Conservation Corps (CCC)

• Agricultural Adjustment Act (AAA)

• Huey Long

• deficit spending

• New Deal

ASSESSMENT

MAP

23W I T H H I S T O R Y

I N T E R A C T

How would you begin to revive the economy?Examine the Issues

It is 1933, the height of the Great Depression. Thousands of banks and businesses have failed, and a quarter of the adult population is out of work. Now a new president takes office, promising to bring relief to the ailing economy.

• What can be done to ease unemployment?• How can the government help failing industries?

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• What would you do to restore public confidence and economic security?• How would you get money to pay for your proposed recovery programs?

The New Deal

What Should Be Done to Cure the Depression?

Read each of the following suggested ways to fix the economy.

Pick the top three ideas that you think are best and label them 1, 2, &3

Pick the three ideas you think are the worst and label them 8, 9, & 10.

Election of 1932

Franklin Delano Roosevelt

Democratic Candidate

reformer

Herbert Hoover

Republican Candidate

Incumbent (residing) President

Who won the Election of 1932?Who were the two presidential

candidates in the 1932 election?

Who won the election of 1932?

Which political party was the winning candidate apart of?

Why might this candidate have won by such a large majority?

Franklin Delano Roosevelt

Thirty-Second President

1933-1945

Suffered from polio & was partially paralyzed from the waist down.

He was able to stand with the help of leg braces.

Campaigned vigorously to prove he could undertake the job of President despite his disability

Brain Trust

A group of carefully picked advisers including professors, lawyers, & journalists that helped FDR set policies to alleviate the problems of the Depression.

New Deal

Goals of the New Deal:

1. relief for the needy

2. economic recovery

3. financial reform

FDR’s programs designed to alleviate the problems of the Great Depression.

First Hundred Days

What month is the president elected in?

When is the president inaugurated (sworn in) into office today?

First 3 months of Roosevelt’s administration (March-June 1933)

A burst of congressional legislation (laws) to address problems of the Depression.

Significantly expanded the federal government’s role in the nation’s economy.

A Wise Economist Asks A Question 1. What do squirrels do

with acorns in the summer & fall?

2. Did the man “squirrel” away his money?

3. What happened to his savings?

4. What does this cartoon tell us about Americans faith in the banking system?

5. What can be done to restore Americans confidence?

FDR Fireside Chat

How does FDR use the fireside chat?

What type of language does he use?

What was the focus of his first talk?

http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid=a_000760&oid=ob_000064

http://www1.teachertube.com/viewVideo.php?title=FDR_Fireside_Chat&video_id=89365&vpkey=









Banking Reform

Widespread bank failures had caused Americans to loose faith in the banking system.

March 5, 1933 Roosevelt declared a “Bank Holiday”

Closed the banks to prevent further withdrawals & reorganization

Exit Ticket Complete the, “Let’s Make A Deal” Worksheet.

Identify the specific problems Roosevelt will need to address as president.

Brainstorm possible solutions to each problem.


OVERVIEW

After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression.

Americans still benefit from programs begun in the New Deal, such as bank and stock market regulations and the Tennessee Valley Authority.

MAIN IDEA WHY IT MATTERS NOW

TERMS & NAMES

HOME

• Franklin Delano Roosevelt

• Glass-Steagall Act

• Federal Securities Act

• National Industrial Recovery Act (NIRA)

• Civilian Conservation Corps (CCC)

• Agricultural Adjustment Act (AAA)

• Huey Long

• deficit spending

• New Deal

ASSESSMENT

MAP

Group Activity Insert make your own fireside chat or New Deal

program poster.

See rubric for evaluation criteria.

Emergency Banking Relief Act:

Authorized the Treasury Department to inspect the country’s banks. Sound could reopen, insolvent-remain closed

How does this help to cure the economy?

Restored confidence in banks

Glass-Steagall Act

Established the FDIC Federal Deposit Insurance Corporation to provide federal insurance for individual bank accounts.

Regulating Banking & Finance

Federal Securities Act- required corporations to provide complete information on all stock offerings and made them liable

Securities & Exchange Commission (SEC)-regulate the stock market and prevent insider trading.

21st Amendment

Repealed prohibition so that government could raise revenue by taxing alcohol.

Rural Assistance

Agricultural Adjustment Act (AAA)- sought to raise crop prices by lowering production which the government achieved by paying farmers to leave a certain amount of land unseeded.

Agricultural Adjustment Act (AAA)

Government provided subsidies for limits on production of corn, wheat, cotton, pork, & tobacco

If farmers reduced their supply then prices would increase

Slaughtered 6 million hogs

In return for withdrawing land, farmers received “rental” payments from the AAA

Paid $200 million to plow under 10 million acres of cotton

Agricultural Adjustment Act


declared unconstitutional in 1936

Revived in 1938 with modifications to meet Court challenge



Tennessee Valley AuthorityTVA

Designed to develop & improve the Tennessee River Valley region

Created thousands of jobs & other benefits to an impoverished region

Which seven states benefit most directly from TVA projects?

Built damns to prevent floods

Constructed hydroelectric power plants to attract more industry and provide electricity to homes

Power companies didn’t like the government production and sale of power they claimed it was unfair

Civilian Conservation Corps Put almost 3

million young men aged 18-25 to work building roads, developing parks, planting trees, & helping prevent soil erosion and flood control projects.




Planted 200 million tress in the Great Plains to prevent another Dust Bowl

Public Works Administration

Created in 1933 when Depression was at its most severe and economic system of U.S. was near “complete collapse”

Provided money to states to create jobs chiefly in the construction of schools & community buildings

Funded $3.3 billion to put people to work building roads, public buildings, improving waterways, and other projects

34,000 public projects

The poster claims that P.W.A. efforts were aimed at turning relief into what?

What examples of P.W.A. activities are found in Texas?

What primary activity was taking place off the west and east coast of the U.S.?

What public-works activity involved the Mississippi River?

National Industrial Recovery Act (NIRA)

Established codes of fair business practices

Set prices of products to ensure fair competition

Established standards for working hours & a ban on child labor

Guaranteed workers rights to unionize and bargain collectively.

Home Owners Loan Corp (HOLC)

Provided government loans to homeowners who faced foreclosure because they couldn’t make their loan payments.

Federal Housing Administration (FHA)

Furnishes loans for home mortgages and repairs

Federal Agency Emergency Relief (FERA)

$500 million to provide direct relief for the needy

Food & clothing for the unemployed, aged, & ill

Keynesian Economics

Deficit Spending- spending more money then the government takes in to stimulate the economic recovery by putting money in the hands of consumers to make it possible for them to buy goods & services and thus fuel economic growth

British economist

John Maynard Keynes

Opposition to the New Deal New Deal

isn’t doing enough!- liberals

New Deal is doing too much!-conservatives

Opposition from the Supreme Court

New Deal Isn’t Doing Enough!

Many Americans were still desperately poor

Worst off were blacks & farmers

Key figures were:

Huey Long

Father Coughlin

Dr. Francis Townsend

New Deal Critic: Dr. Francis Townsend

Retired California Physician

Suggested a $200 per month pension for people over 60

Open jobs for younger unemployment

Funded by a national transaction sales tax

New Deal Critic: Father Charles Coughlin

Catholic radio priest in Detroit Michigan in 1930’s

10 million listeners

Criticized FDR in weekly radio program

Critical of New Deal

International conspiracy of bankers

Fascist; Anti-Semitic overtones

National Union for Social Justice

Every person capable of work should receive a fair, living, annual wage

Nationalizing some public resources

Private ownership of property but controlling it for public good

Right for workers to form unions & govt support & protection

Human rights over property rights

Father Charles Coughlin

New Deal Critic: Huey Long

Governor of Louisiana & U.S. Senator

Populist who championed the working class & the poor

“The Kingfish”

Critic of FDR’s New Deal for not doing enough to redistribute wealth

Promoted “Share the Wealth” program

Shot & killed by Dr. Carl Weiss in 1936

http://www.youtube.com/watch?v=hphgHi6FD8k&feature=related




“Share Our Wealth” 1. Federal govt give every family an allowance of not less than

1/3 the average family wealth of the country

No family have a fortune more than 100-300 times the average family fortune

Capital levy tax on income over $1 million

2. No person have an income less than $2,000-$2,500 annually

3. Limit/regulate working hours to prevent overproduction and allow workers time for recreation, education, etc.

4. Old Age Pension for people over 60 years old

Guarantee all citizens a car, a house, a pension, & an education

Popular with the poor

The New Deal is Doing Too Much!

Business Community & Republicans

ND too complicated, too many codes & regulations

Govt shouldn’t support unions & wages, that is the job of the market

ND like Stalin’s 5 year Plan

Wealthy worked hard, high taxes discourage people from working hard, & gave money to people who did little for it.

The New Deal is Doing Too Much!

Govt schemes like TVA unfair competition since private companies aren’t funded by govt

What is FDR wearing?

What does his clothing represent?

What is FDR pointing at?

What compass did FDR want to change? Why?

How might the cartoonist feel about FDR’s power as president?

•FDR is behaving like a dictator


1. List problems that President Roosevelt confronted and how he tried to solve them.

continued . . .

Massive unemployment

Bank holiday; treasury inspection; deposit insurance

Federal work programs

Paying farmers to slow crop production

Lack of confidence in banks

Low crop prices

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Problems Solutions

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ASSESSMENT


2. Of the New Deal programs discussed in this section, which do you consider the most important?Think About:

ANSWER

POSSIBLE RESPONSES:• The FDIC boosted confidence in banks• The CCC provided aid for unemployment and helped

the environment.

• the type of assistance offered by each program• the scope of each program• the impact of each program

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ASSESSMENT

continued . . .

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3. Do you think Roosevelt was wrong to try to “pack” the Supreme Court with those in favor of the New Deal?

ANSWER

POSSIBLE RESPONSES:

• No: Given the crisis of the Depression, it was necessary for FDR to restructure the Court.

• Yes: FDR’s proposed “Court-packing bill” would violate principles of judicial independence and the separation of powers.

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ASSESSMENT

continued . . .

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4. The New Deal has often been referred to as a turning point in American history. Cite examples to explain why.

ANSWER

The New Deal helped the failing banking system, restored people’s hope in the future, provided assistance to farmers and those in need of housing, and provided people with jobs.

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ASSESSMENT

End of Section 1

MAP

Election of 1936

Democratic convention in Philadelphia overwhelmingly re-nominated Roosevelt

Governor Alfred M. Landon of Kansas was nominated as the candidate for the Republican Party

William Lemke ran as a third party candidate

Election of 1936

Kansas Governor Alfred Landon

Moderate Republican

Follower of Teddy Roosevelt, supported some regulation of business

A poor speaker compared to the charm and political astuteness of Franklin Roosevelt

Eleanor Roosevelt

A social reformer who combined her humanitarian impulses and her political skills

Served as an important advisor to FDR in domestic policy

She traveled the country observing social conditions & reminding the president about the suffering of the nation’s people

She urged FDR to appoint women to government positions

Unemployment still highProduction still laggingFDR called on Congress to provide more relief for both farmers and workers

Second New Deal

Farm Security Administration (FSA)

Loaned more than $1 billion to help tenant farmers become landholders

Established camps for migrant farm workers

Hired photographers to take pictures of rural towns & farms & their inhabitants

Wagner Act Created in 1935

Named after its sponsor Robert F. Wagner

Federal government protected the rights of workers to join unions& use collective bargaining

Government could investigate employers, issue cease & desist orders if unfair practices were brought to light.

Fair Labor Standards Act Set maximum

number of working hours at 44 hours/week

Set minimum wages

Banned hazardous work for those under 18

Set rules for employment of workers under 16 years old

• In 1935, only 12.6% of American farms had electricity

• Government financed & worked with electrical companies to bring electricity to isolated areas.

• By 1949, 90% of America’s farms & rural areas had electricity

Rural Electrification Administration (REA)

Federal Art Project Paid artists a living

wage to produce public art and sought to increase public appreciation of art.

Artists created posters, taught art in schools, and painted murals on walls of public buildings

Gains Made by African Americans Increased political

voice through greater access to the president

Organizations created for tenant farmers

Mary McLeod Bethune advisor to FDR on minority affairs

William H Hastie and Robert C Weaver appointees to Department of Interior

Problems Faced by African Americans

Segregation

Racial violence

Racism

Discrimination in all areas of life

Poll taxes

FDR not committed to full civil rights, afraid of upsetting white democratic voters

FDR refused to approve anti lynching law

Mexican Americans

Mexican Americans worked on farms in Texas, California, & ArizonaValued for their low cost labor during the 1920’s. Became targets of hostility during the Great Depression.During the 1930s, 400,000 persons of Mexican decent, many U.S. citizens, were deported to Mexico.Why do you think Mexican Americans were met with hostility during the Depression?Why did white workers accuse minorities of taking their jobs?

John Collier Appointed by FDR

as commissioner of Indian affairs

Helped create the Indian Reogranization Act which allowed for autonomy instead of assimilation

Helped restore reservation lands to tribal ownership

Gains Made by Labor Unions

Better working conditions because of Wagnner Act and other prolabor legislation

Increased bargaining power

Dramatic increase in union membership from 3 million in 1933 to 10 million in 1941

Labor unions pledged votes to FDR relection

Problems of Unions Strike violence (i.e.

Memorial Day Massacre in Chicago 1937)

Big business opposition to labor unions

Sit down strikes prevented owners from calling in strike breakers called scabs to work, shut down factory production

Coalition Groups

Southern whites

Urban groups in Northern cities like Boston, NY, Philadelphia, Chicago

Immigrants

Religious and ethnic groups (Catholics, Jews, Italians, Irish, Polish, & Slavic)

Supported Roosevelt

New Deal labor laws and work-relief programs aided urban poor

FDR made persuasive appeals to urban voters

FDR appointed many officials of urban-immigrant backgrounds to important government positions

What are some ways in which pop culture is spread?

What are attitudes, values, & beliefs?

23

The United States The World

1940 President Roosevelt is elected a third time.

1935 Congress passes the Social Security Act. 1935 Mussolini leads Italian invasion of Ethiopia. British Parliament passes the Government of India Act.

1937 Labor unions begin using sit-down strikes. 1937 Japan invades Northern China. Hindenburg disaster

1939 The Wizard of Oz is released in movie theaters.

1939 Germany invades Poland.

TIME LINE

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1933 Franklin Delano Roosevelt is inaugurated. 1933 Hitler and the Nazi party come to power in Germany.

1936 President Roosevelt is reelected. 1936 Civil war begins in Spain.

1938 Route 66 is completed, linking Chicago, Illinois, to Los Angeles, California.

1934 Congress creates the SEC to regulate the stock market. Indian Reorganization Act is passed.

The New Deal