Franklin Roosevelt Becomes president in

1932 Campaign speech

promised a “new deal for the American people.”

THREE GOALS: relief for the needy, economic recovery, financial reform

Early Accomplishments (first 100 days) Declared a bank holiday on his first day

in office Emergency Banking Relief Act –

Treasury Department inspected banks Glass-Steagall Act – Established the

FDIC ($5,000) Federal Securities Act – Established the

SEC to regulate the stock market

Fireside Chats

Radio talks about public concerns Explained his New Deal in plain, clear,

simple language Designed to be informal Tried to explain the role of the average

person within the American economy Spoke as if he was talking to you face to

face

AAA – Agricultural Adjustment Administration Intent was to raise crop prices by

lowering production Government paid farmers to leave a

portion of every acre unseeded Cotton – too far advanced – government

paid $200 million to plow under 10 million acres of land

6 million pigs slaughtered.

Agricultural Adjustment Administration poster

CCC – Civilian Conservation Corps Put 18-25 year old men to work building

roads, developing parks, planting trees, and helping in soil-erosion and flood control projects.

3 million trained by 1932 Wage was $30/month and $25/month

was sent straight home to your family

Civilian Conservation Corps poster

NIRA – National Industrial Recovery Act

Created the PWA Provided money to

states to create jobs in the construction of schools and community buildings

CWA – Civil Works Administration Addressed unemployment that was not

covered by the NIRA and the PWA Immediately provided 4 million jobs

during the winter of 1933/34. Built 40,000 schools Built 500,000 miles of roads Paid 50,000 teachers

HOLC (home owners loan corp) and the FHA (federal housing administration)

Provided government loans to homeowners who faced foreclosure

Furnish loans for home repairs The FHA is still with us today

Notice the eagle

in the middle

FERA – Federal Emergency Relief Fund $500 million to provide direct relief for

the needy Half was given to states as direct grants

to help furnish food and clothing to the unemployed, aged, and ill

The rest went to support work relief programs

Deficit Spending President Roosevelt agreed to

spending more money than the government was receiving in revenue.

FDR believed deficit spending was a necessary evil only to be used in a time of crisis.

Keynes – and influential British economist promoted this idea

Deficit Spending

Millions of American benefitted Public confidence rebounded DEFICIT SPENDING – the government

spends more than it receives in revenue LIBERALS – the New Deal is too small CONSERVATIVES – spending too

much and creating socialism

THE SECOND NEW DEAL

FDR called on congress to provide more extensive relief for both farmers and workers

Eleanor had deep humanitarian impulses and also influenced him

Reelected in 1936

WPA (works progress admin) Spent $11 billion dollars to create 8

millions jobs for mostly unskilled workers.

Built 850 airports Constructed or repaired 651,000 miles

of road Erected 125,000 public buildings Women sewed 300 million garments for

the needy

NYA (National Youth Admin.) Created specifically to provide jobs,

education, counseling, and recreation for young people.

Provided student aid to high school, college and graduate students

In exchange students worked part time at their schools

NYA Journalism Students

NYA Auto mechanics

CRITICS

Huey Long is considered to be the most serious critic Senator from Louisiana who was running for president “Share-Our-Wealth” clubs 1935 – 27,000 S.O.W clubs with 7.5 million members Long was assassinated by a lone gunman

Lasting Effects

Reformed banking and finance Government takes a more active role in

the economy Workers benefit from labor standards Social security provides for the needy Conservation efforts preserve the

environment

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