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Title: Chapter Menu

Chapter Menu
Chapter Introduction Section 1 The First New
Deal Section 2 The Second New Deal Section
3 The New Deal Coalition Visual Summary
Chapter Intro
  • Can Government Fix the Economy?
  • During the 1930s, New Deal programs increased
    government regulation of banking, industry, and
    farming gave greater rights to workers and
    provided government aid to the unemployed and
    senior citizens.
  • What kind of problems do you think government
    can solve?
  • What difficulties can result when the
    government tries to regulate the economy?

Chapter Timeline
Chapter Timeline
Chapter Intro 1
The First New Deal In what areas did the New Deal
attempt to make major economic improvements?
Chapter Intro 2
The Second New Deal How did the Second New Deal
assist unions, the elderly, and the unemployed?
Chapter Intro 3
The New Deal Coalition What was the legacy of the
New Deal?
Section 1
Roosevelts Rise to Power
Franklin D. Roosevelt was governor of New York
when he was elected president in 1932, promising
a New Deal for the American people.
Section 1
Roosevelts Rise to Power (cont.)
  • After losing the 1920 election as the Democratic
    vice presidential candidate, Franklin Delano
    Roosevelt temporarily withdrew from politics.
  • The next year he caught polio, but refused to
    give in.
  • In 1928, Roosevelt ran for governor of New York.
  • He won the election and oversaw the creation of
    the first state relief agency to aid the

Section 1
Roosevelts Rise to Power (cont.)
  • Roosevelts popularity in New York paved the way
    for his presidential nomination in 1932.
  • His policies for ending the Depression became
    known as the New Deal.
  • On election day, Roosevelt beat Herbert Hoover in
    a landslide.

Section 1
The Hundred Days
Upon taking office, FDR launched the New Deal by
sending 15 major pieces of legislation to
Section 1
The Hundred Days (cont.)
  • Although Roosevelt won the presidency in November
    1932, the countrys unemployed and homeless had
    to endure another winter as they waited for his
  • Some of the bank runs occurred because people
    feared that Roosevelt would abandon the gold
    standard and reduce the value of the dollar in
    order to fight the Depression.
  • In 38 states, governors declared bank holidays to
    save the remaining banks.

Section 1
The Hundred Days (cont.)
  • By the day of Roosevelts inauguration, most of
    the nations banks were closed.
  • One in four workers was unemployed.
  • Between March 9 and June 16, 1933which came to
    be called the Hundred DaysCongress passed 15
    major acts to resolve the economic crisis.
  • These programs made up what would later be called
    the First New Deal.

Section 1
The Hundred Days (cont.)
  • To generate new ideas and programs, Roosevelt
    deliberately chose advisers who disagreed with
    each other.
  • One group during the early years of his
    administration supported the New Nationalism of
    Theodore Roosevelt.
  • A second group wanted government planners to run
    key parts of the economy.
  • A third group supported the New Freedom of
    Woodrow Wilson.

Section 1
Banks and Debt Relief
President Roosevelt took steps to strengthen
banks and the stock market and to help farmers
and homeowners keep their property.
Section 1
Banks and Debt Relief (cont.)
  • Roosevelt knew the first thing he had to do was
    restore confidence in the banking system.
  • The House of Representatives unanimously passed
    the Emergency Banking Relief Act after only 38
    minutes of debate.
  • On March 12, sixty million people listened to the
    first of many of Roosevelts fireside chats.

Section 1
Banks and Debt Relief (cont.)
  • He assured people that their money was safe in
    banks, and the next day, deposits far outweighed
  • Roosevelt listened to his advisers and supported
    the Securities Act of 1933 and the Glass-Steagall
    Banking Act.
  • Congress also created the Securities and Exchange
    Commission (SEC) to regulate the stock market and
    prevent fraud.

The First Hundred Days
Section 1
Banks and Debt Relief (cont.)
  • The Glass-Steagall Act created the Federal
    Deposit Insurance Corporation (FDIC) to provide
    government insurance for bank deposits up to a
    certain amount.
  • To help homeowners make their mortgage payments,
    Roosevelt asked Congress to establish the Home
    Owners Loan Corporation (HOLC).

The First Hundred Days
Section 1
Banks and Debt Relief (cont.)
  • Congress also authorized the Farm Credit
    Administration (FCA) to help farmers refinance
    their mortgages.

The First Hundred Days
Section 1
Farms and Industry
New Deal legislation tried to raise crop prices
and stabilize industry.
Section 1
Farms and Industry (cont.)
  • To further help the nations farmers, Secretary
    of Agriculture Henry Wallace drafted the
    Agricultural Adjustment Act.
  • Administered by the Agricultural Adjustment
    Administration (AAA), the government paid farmers
    not to raise certain livestock, not to grow
    certain crops, and not to produce dairy products.
  • The plan worked, but did not benefit everyone,
    especially tenant farmers.

The TVA, 1940
Section 1
Farms and Industry (cont.)
  • The government turned its attention to
    manufacturing in June 1933, when Roosevelt and
    Congress enacted the National Industrial Recovery
    Act (NIRA).
  • Under the leadership of Hugh Johnson, the
    National Recovery Administration (NRA) ran the
    entire program.
  • By the time the Supreme Court declared the NRA
    unconstitutional in 1935, it had already lost
    much of its political support.

The TVA, 1940
Section 1
Relief Programs
Programs such as the CCC, the PWA, and the WPA
provided jobs for some unemployed workers.
Section 1
Relief Programs (cont.)
  • The most highly praised New Deal work relief
    program was the Civilian Conservation Corps (CCC).
  • The CCC offered unemployed young men 18 to 25
    years old the opportunity to work under the
    direction of the forestry service planting trees,
    fighting forest fires, and building reservoirs.

Section 1
Relief Programs (cont.)
  • Congress also established the Federal Emergency
    Relief Administration (FERA), led by Harry
  • In June 1933 Congress authorized another relief
    agency, the Public Works Administration (PWA)
    which put civilians to work on government-funded
    construction projects.

Section 1
Relief Programs (cont.)
  • Roosevelt authorized Hopkins to set up the Civil
    Works Administration (CWA), since FERA and the
    PWA werent reducing unemployment significantly.
  • The agency did provide jobs through the winter,
    but Roosevelt insisted that it be shut down the
    following spring due to the large amount of money
    the agency spent.

Section 1
Relief Programs (cont.)
  • Perhaps the most important result of the first
    New Deal was a noticeable change in the spirit of
    the American people.
  • Roosevelts actions had inspired hope and
    restored Americans faith in their nation.

Section 1
Which of the following did the Civil Works
Administration build or improve? A. Airports
B. Roads C. Playgrounds D. Schools E. All of the
  1. A
  2. B
  3. C
  4. D
  5. E

Section 2
Launching the Second New Deal
By 1935, the New Deal faced political and legal
challenges, as well as growing concern that it
was not ending the Depression.
Section 2
Launching the Second New Deal (cont.)
  • Although New Deal programs had created more than
    2 million new jobs, more than 10 million workers
    remained unemployed, and the nations total
    income was about half of what it had been in 1929.
  • Hostility toward Roosevelt came from both the
    political right and the left.
  • To pay for his programs, Roosevelt had started
    deficit spending, and many business leaders
    became greatly alarmed at the governments
    growing deficit.

Section 2
Launching the Second New Deal (cont.)
  • In August 1934 business leaders and anti-New Deal
    politicians from both parties joined together to
    create the American Liberty League.
  • Three people who challenged Roosevelt were
  • Huey Long
  • Father Coughlin
  • Francis Townsend

Section 2
Launching the Second New Deal (cont.)
  • In 1935 Roosevelt launched a series of programs
    now known as the Second New Deal.
  • Among these new programs was the Works Progress
    Administration (WPA), headed by Harry Hopkins.
  • The WPAs most controversial program was Federal
    Number One, a program for artists, musicians,
    theater people, and writers.

Section 2
Launching the Second New Deal (cont.)
  • In May 1935, in Schechter Poultry Company v.
    United States, the Supreme Court unanimously
    struck down the authority of the NRA.
  • Roosevelt feared that the Court would strike down
    the rest of the New Deal and told Congress that
    they could not go home until they passed his new

Section 2
Reforms for Workers and the Elderly
Roosevelt asked Congress to pass the Wagner Act
and Social Security to build support among
workers and older Americans.
Section 2
Reforms for Workers and the Elderly (cont.)
  • In July 1935 Congress passed the National Labor
    Relations Act (also called the Wagner Act), which
    guaranteed workers the right to organize unions
    and to bargain collectively.
  • Congress also set up the National Labor Relations
    Board (NLRB).
  • The Wagner Act set up a process called binding

Section 2
Reforms for Workers and the Elderly (cont.)
  • The Committee for Industrial Organization (CIO)
    set out to organize unions that included all
    workers, skilled and unskilled, in a particular
  • Union organizers used new tactics, such as the
    sit-down strike.
  • By using a sit-down strike, the United Auto
    Workers (UAW) became one of the most powerful
    unions in the U.S.

Union Membership, 19331940
Section 2
Reforms for Workers and the Elderly (cont.)
  • In 1938 the CIO changed its name to the Congress
    of Industrial Organizations and became a
    federation of industrial unions.
  • After passing the Wagner Act, Congress began work
    on one of Americas most important pieces of
    legislationthe Social Security Act.
  • Although Social Security helped many people, it
    initially left out many of the neediestfarm and
    domestic workers.

Section 2
Reforms for Workers and the Elderly (cont.)
  • Social Security did establish the principle that
    the federal government should be responsible for
    those who, through no fault of their own, were
    unable to work.

Section 3
Roosevelts Second Term
Roosevelt was easily reelected, but the New Deal
lost momentum during his second term due to his
court-packing plan and a new recession.
Section 3
Roosevelts Second Term (cont.)
  • Since the Civil War, African Americans had been
    reliable Republican voters.
  • However, in the 1930s, they became just one part
    of a new Democratic coalition that included
    farmers, industrial workers, African Americans,
    new immigrants, ethnic minorities, women,
    progressives, and intellectuals.

Section 3
Roosevelts Second Term (cont.)
  • African Americans and women made some modest
    gains during the New Deal.
  • The president appointed several African Americans
    to positions in his administration, where they
    informally became known as the Black Cabinet.
  • FDR appointed the first woman to a cabinet post,
    Secretary of Labor Frances Perkins, and appointed
    many other women to lower-level posts.

Section 3
Roosevelts Second Term (cont.)
  • In the election of 1936 the Republicans nominated
    Alfred Landon.
  • Roosevelt swept to victory in one of the largest
    landslides in American history
  • Although many people supported the New Deal, the
    Supreme Court saw things differently.
  • In March 1937 Roosevelt sent Congress a bill to
    increase the number of justices.

Section 3
Roosevelts Second Term (cont.)
  • The court-packing plan, as the press called it,
    was FDRs first serious political mistake.
  • The Senate quietly killed the bill without
    bringing it to a vote.
  • Roosevelt still achieved his goal of changing the
    Courts view of the New Deal.

Section 3
Roosevelts Second Term (cont.)
  • In 1937 Roosevelts reputation again suffered
    when unemployment suddenly surged.
  • The recession of 1937 led to a debate inside
    Roosevelts administration.
  • Treasury Secretary Henry Morgenthau favored
    balancing the budget and cutting spending.

Section 3
Roosevelts Second Term (cont.)
  • Harry Hopkins, head of the WPA, and Harold Ickes,
    head of the PWA, pushed for more government
    spending using a new theory called Keynesianism
    to support their arguments.
  • Keynesianism was based on the theories of an
    influential British economist named John Maynard

Section 3
Roosevelts Second Term (cont.)
  • According to Keynesian economics, FDR had done
    the wrong thing when he cut back programs in 1937.
  • Finally, in the spring of 1938, with no recovery
    in sight, Roosevelt asked Congress for money for
    the PWA, the WPA, and other programs.

Section 3
First Lady Eleanor Roosevelt demonstrated strong
sympathies toward which group? A. Native
Americans B. Unskilled workers C. African
Americans D. Immigrants
  1. A
  2. B
  3. C
  4. D

Section 3
The New Deal Ends
The New Deal expanded federal power over the
economy and established a social safety net.
Section 3
The New Deal Ends (cont.)
  • One of the presidents goals for his second term
    was to provide better housing for the nations
  • He responded with the National Housing Act,
    establishing the United States Housing Authority.
  • He also sought to help the nations tenant

What New Deal Programs Still Exist Today?
Section 3
The New Deal Ends (cont.)
  • Congress created the Farm Security Administration
    to give loans to tenants so they could purchase
  • The Fair Labor Standards Act was the last major
    piece of New Deal legislation.
  • By 1939, the New Deal era had come to an end.

What New Deal Programs Still Exist Today?
Section 3
The New Deal Ends (cont.)
  • The New Deal had only limited success in ending
    the Depression.
  • As a whole, the New Deal tended to balance
    competing economic interests.
  • In taking on a mediating role, the New Deal
    established what some have called the broker
  • This role has continued under the administrations
    of both parties ever since.

What New Deal Programs Still Exist Today?
Section 3
The New Deal Ends (cont.)
  • FDRs programs also succeeded in creating a
    safety net for Americans.
  • By the end of the 1930s, many Americans felt that
    the government had a duty to maintain this safety
    net, even though doing so required a larger, more
    expensive federal government.

What New Deal Programs Still Exist Today?
VS 1
Banking and Finances
  • Emergency Banking Relief Act regulated banks.
  • Federal Deposit Insurance Corporation insured
    bank deposits.
  • Farm Credit Administration refinanced farm
  • Home Owners Loan Corporation financed
    homeowners mortgages.

VS 2
Agriculture and Industry
  • Agricultural Adjustment Administration paid
    farmers to limit surplus production.
  • National Industrial Recovery Act limited
    industrial production and set prices.
  • National Labor Relations Act gave workers the
    right to organize unions and bargain
  • Tennessee Valley Authority financed rural
    electrification and helped develop the economy of
    a seven-state region.

VS 3
Work and Relief
  • Civilian Conservation Corps created forestry
    jobs for young men.
  • Federal Emergency Relief Administration funded
    city and state relief programs.
  • Public Works Administration created work
    programs to build public projects, such as roads,
    bridges, and schools.

VS 4
Social Safety Net
  • Social Security Act provided
  • income for senior citizens, handicapped, and
  • monthly retirement benefit for people over 65

Figure 1A
Figure 1B
Figure 2
Figure 3
Figure 4
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DFS Trans 1
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polio abbreviated form of poliomyelitis, an
acute infectious disease affecting the skeletal
muscles, often resulting in permanent disability
and deformity
gold standard a monetary standard in which one
ounce of gold equals a set number of dollars
bank holiday closing of banks during the Great
Depression to avoid bank runs
fireside chats radio broadcasts made by FDR to
the American people to explain his initiatives
apparent appearing to be fact as far as can be
ideology a system of thought that is held by an
individual, group, or culture
fundamental being of central importance
deficit spending government practice of spending
borrowed money rather than raising taxes, usually
in an attempt to boost the economy
binding arbitration process whereby a neutral
party hears arguments from two opposing sides and
makes a decision that both must accept
sit-down strike method of boycotting work by
sitting down at work and refusing to leave the
benefit to be useful or profitable
finance to provide money for a project
thereby by that means
court-packing the act of changing the political
balance of power in a nations judiciary system
whereby a national leader, such as the American
president, appoints judges who will rule in favor
of his or her policies
broker state role of the government to work out
conflicts among competing interest groups
safety net something that provides security
against misfortune specifically, government
relief programs intended to protect against
economic disaster
recovery an economic upturn, as after a
mediate an attempt to resolve conflict between
hostile people or groups
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