The New Deal

1932 – Americans were ready for a changeMost people recognized that Hoover had

to go

Franklin D. Roosevelt (FDR) won the election easilyHad a reputation for being friendly and

wanted to combat poverty and unemployment

Before the inauguration, FDR began working to create the “Brains Trust”Wanted to alleviate the DepressionDeveloped a program called “The New Deal”

Election of 1932

New Deal was made up of many components to help the USFocused on: financial reform, relief for the

needy, and economic recovery

15 policies supporting the New Deal were passed during FDR’s 1st 100 days in office

The New Deal

the day after the inauguration, FDR had the banks closed to stop all withdrawals

Then had Congress pass the Emergency Banking Relief ActGov’t inspects banks, and only the ones in

good financial shape could re-open

FDR urged people to trust the banks and invest their money

Financial Reform

FDR on the banking system (clip)

Glass-Steagall ActEstablished Federal Deposit Insurance

Corporation (FDIC)Insured individual bank accountsRequired banks to be cautious with customers’

$

Federal Securities ActGoal was to regulate the stock marketCompanies must provide information about

their stocks

FDR also had Congress begin to allow the making and selling of some alcohols

Financial Reform

Agricultural Adjustment ActPay farmers to produce less (leave some of

the fields unplanted)Raises prices on farm goods

But many were upset that farmland was going to waste when so many were hungry

Tennessee Valley AuthorityRenovated 5 dams, built 20 newCreated thousands of jobs, provided flood

control, and a new source of power

Helping the Needy

Civilian Conservation CorpsPut young men to work

Building roads, developing parks, planting trees, preventing erosion

Most work was focused in the mid-west

Public Works AdministrationGave $ to states to create jobs in building schools

and community buildings

Civil Works AdministrationPWA was not providing enough jobs, so FDR

created CWAInvented jobs for people

Helping the Needy

National Industrial Recovery ActPromoted industrial growthNational Recovery Act

Set prices of products, established standards for products, and wages

Workers were allowed to unionize

Food, Clothing, ShelterNew Deal programs provided loans to stop

foreclosure and made mortgages easier to obtain

$500 million was given in direct relief to the needy and to support work programs

Helping the Needy

New Deal did help millions of AmericansBut it meant that the Gov’t was spending more

money than it brought in

FDR viewed deficit spending as a necessary evil

Didn’t end the Depression

Some thought it didn’t focus enough on direct relief or reform the economic system

Others thought the gov’t was interfering too much in the economy

New Deal Under Attack

1935 – Supreme Court says NIRA is unconstitutionalGives the gov’t too much power

1936 – AAA is unconstitutional, states should govern agriculture

1937 – FDR wanted to appoint 6 new Supreme Court Justices (not really legal)One Justice ended up retiring, and FDR was

able to appoint someone anywayFDR ended ups appointing 7 new judges during

his term

Supreme Court on the New Deal

3 strong critics spoke out against the New DealFather Coughlin

Wanted a guaranteed national income and nationalized banks

Huey LongBegan “Share-Our-Wealth” program,

wanted to run against FDR in the 1936 election

Dr. Francis TownsendWanted a pension plan for the elderly,

undermined support for FDR

Criticism of the New Deal

New Deal was very popular, FDR wanted to use that success to get Congress to provide more relief

FDR’s wife, Eleanor Roosevelt was a driving force behind this push

Eleanor Roosevelt was a humanitarian who traveled the country observing people’s lives and living conditionsWould inform FDR about what was actually

going onUrged FDR to appoint women to gov’t positions

FDR’s 2nd 100 Days

Popularity of the New Deal and 2nd 100 days (aka 2nd New Deal) let to FDR easily being re-elected

Election of 1936

40% of farmers had to mortgage their property

When the Supreme Court got rid of AAA, Congress passed the Soil Conservation and Domestic Allotment ActCut crop production of soil-depleting cropsRewarded farmers for conserving soil

Resettlement Administration – gave loans to farmers to buy land, established camps for migrant workers

FSA hired photographers to get a glimpse of what life was like for farmers

Helping Farmers

Works Progress Administration (WPA)Wanted to create as many jobs as quickly as possibleBuilt 850 airports, constructed and repaired 651,000

miles of roads, built more than 125,000 buildingsHired people collect narratives, paint murals, and

perform playsMade special effort to help young people, women and

minorities

National Youth Administration (NYA)Provided education, jobs, and counseling to young

peopleStudents had to work part-time in order to

participate

FDR increases relief

Wagner Act (National Labor Relations Act)workers were able to create unions and engage

in collective bargainingProhibited unfair labor practices

Fair Labor Standards Act44 hour work week (later 40 hrs)Established minimum wage (25¢, later 40¢)Set rules about workers under 16

Improving Labor

Old-age Insurance – 65 or older, supplemental retirement plan

Unemployment compensation system - $15-$18 a week, funded by a tax on employers

Aid to families with dependent children and the disabled – paid for by federal funds

Social Security Act

Electricity to rural townsRegulating public utilitiesGet rid of corruption in public utilities

Other programs under the 2nd New Deal

Women were able to gain gov’t positionsFrances Perkins – Secretary of LaborFDR also appointed 2 female diplomats and

federal judge

African-Americans were appointed to gov’t and leadership positionsMary McLeod Bethune – leader in NYA“Black Cabinet” – advised FDR on racial issuesSouthern Tenant Farmers Union

New Deal new opportunities

Mexican-Americans received less support than other minorities Were excluded from some programs, were not

allowed to unionizeMigrant workers did not have a permanent

address, and were not eligible for CCC and WPA

New Deal new opportunities

Native Americans received strong support from the New DealWere declared full citizensJohn Collier became head of Indian Affairs

Economic- tribes can own landsCultural – Native American children can attend

own schoolsPolitical – tribes can elect councils to govern

themselves

New Deal new opportunities

Diverse groups dedicated to supporting the Democratic PartySouthern Whites, unionized laborers, urban

groups, African-Americans

New Deal Coalition

Unionization tripled between 1933-1941American Federation of LaborCongress of Industrial organizations

Unions bargained for better pay and working conditionsSit-down strike

Unions Grow

Movies65% of people saw at least 1 movie a weekMade Hollywood the center of the film industryMovies were an escape from reality

Gone With the Wind Flying Down to RioWizard of Oz Snow White and the Seven DwarfsMr. Smith Goes to Washington

Radio almost 90% of homes had a radio

War of the Worlds (trick broadcast)Fireside Chats ComediansSoap operas Lone Ranger

Culture of the 1930s

ArtFederal Art Project – pay artists to produce public

artMurals, posters, teach art in schools

MusicWoody Guthrie – songs captured hardships of

America

TheaterWPA’s Federal Theater Project – hired actors to

perform plays around the country

WritersWPA’s Federal Writer’s Project

John Steinbeck Richard WrightZora Neale Hurston James T. FarrellJack Conroy Thornton Wilder

Hinted at a 3rd New DealDid not like the conditions that many workers

and families had to live inDid not want to use deficit spending

Economy was improving

Congress chose to scale back New Deal programsCaused industrial production to drop againUnemployment increased

FDR was becoming concerned with the actions of Germany in Europe

FDR’s Second Term

FDR expanded the power of the gov’t, especially the role of the president

Regulated banking and investing

Reduced suffering through jobs, money and food

Federal Deficit rose to $2.9 billion

Protected workers rights

Effects of the New Deal

Establishing the Social Security Administration

AAA, CCC, TVA

Loans for farmers (based on parity)

Spread electricity to more towns

Civilian Conservation Corps- planted trees, created hiking trails, built fire-lookout towers

Soil Conservation Act

Effects of the New Deal

Massive spending by the government in 1943Guns, tanks, ships, airplanes, equipment and

supplies needed for US Armed Forces in WWII

What Ended the Great Depression?