The New DealChapter 16, section 1

1932 Election - Turning Point

The choice of FDR over Hoover was an American choice for the federal government to provide relief for its citizens.

THIS IDEA ABOUT OUR GOVERNMENT HAS NOT CHANGED SINCE THIS ELECTION.

• “Brain Trust” – Group of Columbia Professors who advised FDR on policy.

The 1st Hundred Days

Aka… “THE NEW DEAL”Pushed massive legislation

through congress

1933• Purpose of the New Deal – • Provide relief• Create jobs• Stimulate economy

March 5th, 1933 - Bank Holiday• FDR orders all banks to close four 4 days

to inspect their own financial health.• Congress passes the Emergency Banking

Act which authorizes Federal Gov’t to inspect all bank records to ensure banks are making good investments.

• 67% of banks reopen by March 15th. • Gov’t proclaims them safe & secure for

Americans (even if not all of them were!!!!!)

• People begin bringing their money back to banks.

• Banks can begin loaning out money again.

New Deal Major Players

Women and Minorities – FDR was the 1st president to appoint women and African Americans to major government posts

Francis Perkins – Secretary of Labor

Mary McLeod Bethune – Advisor to FDR on African Americans & education

Political

• Changed people’s view of the role of government.

• Eleanor Roosevelt – Traveled the country doing PR for the President’s programs.

• (2nd Bonus Army)

New Deal Criticisms –• Programs had no immediate effect on the nation’s

economy; • Progressives: didn’t do enough for the little man• Conservatives: Made the govt. too powerful.

FDIC – Federal Deposit Insurance Corporation

Created by the Glass-Stegall Act of 1933.

Federal Government guarantees bank deposits.

Gave Americans increased confidence in the U. S. banking system.

Securities Exchange CommissionRegulates the Stock Market

2nd New Deal 1935-38Goals• More social welfare• Stricter controls over business• Stronger support for unions• Higher taxes for the rich• FDR was forced to cut back on 2nd New Deal Programs

because of a rising national debt because of deficit spending.

WPA –

• Playgrounds• schools• airfields• artists• writers

Rural Electrification –

• FDR sought to bring basic amenities to places that private industry would not. Eventually 98% of American farms got electricity thanks to FDR.

Labor Unions become more powerful

• Wagner Act – Legalized collective bargaining

• Closed Shop – made it legal for a place of business to hire only union workers

Social Security –

• Old age pension• Unemployment

insurance• Aid for dependants

and disabilities

Election of 1936 –• Landslide victory for FDR. He carried every state except

Maine. Showed Americans still thought FDR had the answers even though their lives had not improved much.

Federal Emergency

Relief Agency

Work Projects and unemployment aid

Civilian Conservation

Corps

• Work relief• Soil conservation and

other environmental projects

NIRA

Agricultural Adjustment Administration

TVA

• Supreme court strikes down both the NIRA and the AAA as unconstitutional.

New Deal is Unconstitutional!• NIRA (National Industrial

Recovery Act) – reorganizes industry by setting prices, production levels, wages, & workers’ rights

• AAA (Agricultural Adjustment Act) – reorganizes agriculture by telling farmers how to farm, what to farm, how much to farm, and what will be paid for crops