Chapter 12, Section 1Chapter 12, Section 1

Launching the New DealLaunching the New Deal

FDR won the election of 1932 by a landslideFDR won the election of 1932 by a landslideHe reached out to Americans with a series of He reached out to Americans with a series of

radio talksradio talksThese “fireside chats” explained in simple These “fireside chats” explained in simple

terms how he would fight the Depressionterms how he would fight the DepressionFDR’s mobility was limited, so Eleanor FDR’s mobility was limited, so Eleanor

attended rallies, tours & reported to himattended rallies, tours & reported to himBefore becoming elected, he recruited Before becoming elected, he recruited

experts to advise himexperts to advise himThe brain trustThe brain trust

FDR addressed the banking crisisFDR addressed the banking crisisOnly healthy banks were allowed to reopenOnly healthy banks were allowed to reopen

May ’33: Congress established the Federal May ’33: Congress established the Federal Emergency Relief Administration, giving $ to Emergency Relief Administration, giving $ to states for direct aid to the homelessstates for direct aid to the homeless

June ‘33, Congress passed Glass-Steagall ActJune ‘33, Congress passed Glass-Steagall Act It prevented banks from investing in the It prevented banks from investing in the

stock marketstock marketAlso created the FDIC to insure depositors’ Also created the FDIC to insure depositors’

savingssavingsFDR began a policy of deficit spending to FDR began a policy of deficit spending to

keep agencies openkeep agencies openBanks reopened & deposits exceeded Banks reopened & deposits exceeded

withdrawalswithdrawals

As confidence grew, the banking crisis endedAs confidence grew, the banking crisis endedRoosevelt sent a flurry of proposals to CongressRoosevelt sent a flurry of proposals to CongressThis session (Hundred Days), much of FDR’s This session (Hundred Days), much of FDR’s

program was passed without debateprogram was passed without debateFDR called his plan the New DealFDR called his plan the New DealHe had no clear plan of how to end the He had no clear plan of how to end the

DepressionDepressionIt was a series of measures quickly drawn up to It was a series of measures quickly drawn up to

attack Depression in many ways at onceattack Depression in many ways at onceRelief for victimsRelief for victimsRecovery of the economyRecovery of the economyReform to prevent a crisis in the futureReform to prevent a crisis in the future

1933-35, goals were recovery & relief1933-35, goals were recovery & reliefJune,’33: Public Works Administration, June,’33: Public Works Administration,

offered jobs instead of handoutsoffered jobs instead of handoutsPWA built highways, dams, schools, public PWA built highways, dams, schools, public

buildingsbuildingsCivil Works Administration also hired jobless Civil Works Administration also hired jobless

for construction projectsfor construction projects‘‘33-34: CWA hired 4 million, 300,000 33-34: CWA hired 4 million, 300,000

womenwomenMay ’33: Congress created the Tennessee May ’33: Congress created the Tennessee

Valley Authority (employed over 40,000)Valley Authority (employed over 40,000)

TVA built dams & power plants in seven-statesTVA built dams & power plants in seven-statesCCC was most admired New Deal agencyCCC was most admired New Deal agencyIt provided outdoor work to jobless single menIt provided outdoor work to jobless single men3 million planted trees, fought fires, & 3 million planted trees, fought fires, &

prevented soil erosionprevented soil erosion

Tennessee Valley Authority Tennessee Valley Authority dam construction and a dam construction and a finished damfinished dam

’’34: Indian Reorganization Act, gave to tribal 34: Indian Reorganization Act, gave to tribal ownership Native lands previously open to saleownership Native lands previously open to sale

The National Industrial Recovery Act was The National Industrial Recovery Act was passed to control productionpassed to control production

NIRA shortened work hours to create more jobsNIRA shortened work hours to create more jobsIt limited factories to 2 shifts per dayIt limited factories to 2 shifts per dayNational Recovery Administration created to National Recovery Administration created to

direct the programdirect the programSome wanted more active gov.; others thought Some wanted more active gov.; others thought

the gov. interfered too muchthe gov. interfered too much

One critic was Father Charles E. Coughlin, a One critic was Father Charles E. Coughlin, a priest with a popular radio showpriest with a popular radio show

He called for heavy taxes on the wealthy and a He called for heavy taxes on the wealthy and a guaranteed income for everyoneguaranteed income for everyone

Another rival was Louisiana Senator Huey Another rival was Louisiana Senator Huey LongLong

He proposed taking property from the rich & He proposed taking property from the rich & giving every family a home & $2,000 a yeargiving every family a home & $2,000 a year

A third critic was Dr. Francis TownsendA third critic was Dr. Francis TownsendHe called for a $200 per month pension for all He called for a $200 per month pension for all

Americans over age 60Americans over age 60

Father Charles Father Charles E. CoughlinE. Coughlin

SenatorSenator

Huey LongHuey Long