The New Deal

1
The New Deal

• Chapter 16

2
Restoring the Nations Hope

• New Deal
• Relief, recovery, and reform programs of FDRs
  administration that were aimed at combating the
  Great Depression

3
First Hundred Days

• Hundred days
• Period at the start of FDRs presidency in 1933,
  when many New Deal programs were passed by
  Congress
• Programs to provide economic relief, create jobs,
  and stimulate economic recovery

4

• Stabilizing Financial Institutions
• FDR wanted to restore confidence in banks
• Closed the banks 4 days (Bank Holiday)
• Emergency Banking Act
• Govt inspected the financial health of all the
  banks

5

• Glass-Steagall Banking Act (1933)
• Est. the Federal Deposit Insurance Corp. (FDIC)
• Insured banking deposits
• Federal Securities Act
• Required companies to disclose information about
  their finances if they offered stocks
• Securities and Exchange Commission
• Regulated stock market

6

• Providing Relief and Creating Jobs
• Federal Emergency Relief Administration (FERA)
• Sent funds to overburdened local agencies
• Public works programs
• Govt funded projects to build public facilities

7
Public Works Programs

• Civil Works Administration (CWA)
• Gave out jobs for improving roads, parks,
  airports, and other facilities
• Civilian Conservations Corp (CCC)
• Put more than 2.5 million young men to work
  restoring and maintaining forests, beaches, and
  parks
• 30 a month but lived in a camp free of charge w/
  food, health care and job training

8

• Regulating the Economy
• National Industrial Recovery Act (NIRA)
• National Recovery Administration balance the
  unstable economy through extensive planning
• Federal codes to regulate wages, control working
  conditions, production and prices
• Public Works Administration (PWA)
• Built dams, bridges, etc.

9

• Assisting Homeowners and Farmers
• Agricultural Adjustment Administration (AAA)
• Tried to raise farm prices through subsidies or
  government financial assistancef
• Tennessee Valley Authority (TVA)
• Federal project to provide inexpensive electric
  power, flood control, and recreational
  opportunities to the Tenn. River Valley

10
Key Players in the New Deal

• Groundbreaking Appointments
• Frances Perkins Secretary of Labor
• 1st ever woman appointed to a Cabinet post
• Mary McLeod Bethune director of Division of
  Negro Affairs of the National Youth Admin.
• Highest position of an African-American woman in
  the New Deal

11

• Eleanor Roosevelt
• Reported on the condition of the country
• Traveled widely to publicize the New Deal
• Mildly protested Jim Crow laws when visiting the
  South

12
New Deal Falters

• FDR vs. the Supreme Court
• Justices were against New Deal policies
• Declared NIRA and AAA unconstitutional
• SC federal nor state govts had the right to
  impose regulations on industry and agriculture

13

• Court Packing Controversy
• FDR a new justice should be added when a
  current one reached the age of 70 and did not
  retire (never exceed 15 just.)
• FDRs 1st major legislative defeat
• Court becomes more responsive to the New Deal
  policies
• By 1942, FDR appointed 7 SC justices legally and
  traditionally

14
A Second Deal

• Second New Deal
• Period of legislative activity launched by Pres.
  Franklin Roosevelt in 1935

15

• New and Expanded Agencies
• Works Progress Administration (WPA)
• Provided work for more than 8 million citizens
• Built or improved playgrounds, schools,
  hospitals, and airfields
• National Youth Admin. (NYA)
• Provided education, jobs, recreation, and
  counseling forf young people 16 25

16

• Farm Security Admin.
• Loaned to small farm owners and helped resettle
  tenants and sharecroppers on productive land

17

• Rural Electrification
• Rural Electrification Admin.
• Offered loans to electric companies and farm
  cooperatives for building power plants and
  extending power lines
• Farmers and other rural residents could now wire
  their homes and barns

18

• New Labor Legislation
• Wagner Act (Natl Labor Relations Act)
• Legalized such union practices as collective
  bargaining and closed shops
• Workplaces open only to union members
• Outlawed spying on union activities and
  blacklisting
• Set up the Natl Labor Relations Board (NLRB)
• Act upheld by Sup. Ct in NLRB v. Jones Laughlin
• Fed. Govt has ability to regulate labor disputes
  linked to interstate commerce

19

• Social Security
• Social Security Act
• Est. Social Security system
• Provide financial security to people who could
  not support themselves
• Offered 3 types of insurance
• Old-age pensions and survivors benefits
• Unemployment insurance
• Aid for dependent children, the blind, and the
  disabled

20
1936 Election

• Roosevelt wins in landslide
• 523 electoral votes to 8 (Maine Vermont)
• New Deal proves favorable

21
Limitations

• Women
• NRA codes permitted lower wages
• Men boys received strong preference for jobs

22

• African Americans
• Highest unemployment rate of any group
• Last hired, first fired
• The South
• Not offered jobs _at_ professional level
• Kept out of skilled jobs
• Received lower pay for some work
• Social Sec. failed to cover 2/3 of working
  Af.-Am.

23
Political Critics

• New Deal does too much
• Wealthy disapproved of ND
• Wealth Tax Act
• Raised tax rates on individual incomes and
  profits of corporations
• American Liberty League
• Believed the ND limited individual freedom in
  an unconstitutional manner
• ND had similar philosophy to Soviet Union

24

• Doesnt do Enough
• Socialists and Progressives
• Upton Sinclair ran for California Gov. (Dem.)
• End Poverty in California (EPIC) state will
  take over factories and farms
• Lost the election as a result of shady campaign
  tactics

25
Other Critics

• Demagogues leaders who manipulate people w/
  half-truths

26

• Father Charles E. Coughlin (Radio Priest)
• Nationalization govt takeover and ownership,
  of banks and the redistribution of their wealth
• Formed the National Labor for Social Justice
• Roman-Catholic church shutdown his broadcast
• Praised Hitler and Mussolini

27

• Huey Long
• Louisiana Senator (D)
• Never used racial attacks to build power
• Share-Our-Wealth program
• Confiscate large fortunes and redistribute
• Shot and killed in 1935

28
Modern Critics

• Economists
• Market should have determined supply and demand
  (prices)
• Deficit spending paying out more money from the
  annual federal budget than the govt receives in
  revenues
• New Deal required govt to borrow