The New DealThe New Deal

Franklin D. Roosevelt Saves the Day (?) Franklin D. Roosevelt Saves the Day (?) And Expands the Federal Gov’tAnd Expands the Federal Gov’t

1st Term: 1933- 1937

Short-Term Effects of G.D.Short-Term Effects of G.D.1. UNEMPLOYMENT2. HOOVERVILLES/

SHANTYTOWNS3. BANKS &SCHOOLS CLOSE4. POOR

GLOBAL ECON.

5. HOOVER (REP.) = OUTF. ROOSEVELT (DEM.) = IN

1932 – FDR is Elected1932 – FDR is Elected Hoover was blamed for doing nothing Hoover was blamed for doing nothing

about the Depression.about the Depression. Gov. of NY, FDR winsGov. of NY, FDR wins Demos win maj. in House Demos win maj. in House

& Senate & Senate

The Brain Trust The Brain Trust Presents…Presents…The New DealThe New Deal ““The Brain Trust”: FDR’s cabinet was The Brain Trust”: FDR’s cabinet was

made up of professors, lawyers, and made up of professors, lawyers, and journalistsjournalists

• They developed policies that would provide reliefrelief for those in need, economic recoveryrecovery, and financial reformreform.

“A new dealnew deal for the

American people”

What to do 1What to do 1stst?? Roosevelt declares a “bankRoosevelt declares a “bank

holiday” & closes all banksholiday” & closes all banks

Emergency Banking Relief Act, 1933 – Emergency Banking Relief Act, 1933 – Gov’t. Treasury Dept. gained ability Gov’t. Treasury Dept. gained ability inspect banksinspect banks– Only “sound” banks could re-openOnly “sound” banks could re-open– Effect: build faith in banking systemEffect: build faith in banking system

Fireside chats – FDR gave weekly radio Fireside chats – FDR gave weekly radio addresses to the public.addresses to the public.

Regulating the New Regulating the New Banking SystemBanking System

Glass-Steagall Act, 1933Glass-Steagall Act, 1933– Est. the Federal Deposit Ins. Corp.Est. the Federal Deposit Ins. Corp.– Provided ins. to all individual bank accountsProvided ins. to all individual bank accounts

Fed. Securities Act, 1933Fed. Securities Act, 1933– Required corporations to provide complete Required corporations to provide complete

info. on stocks info. on stocks Securities & Exchange Commission, 1934Securities & Exchange Commission, 1934

– Regulated the stock market & prevented Regulated the stock market & prevented “insider” trading“insider” trading

$5,000 then

$250,000 today

Federal Securities ActFederal Securities Act

2121stst Amendment Amendment 2121stst Amendment passes, Amendment passes,

which brings back alcoholwhich brings back alcohol– Creates extra revenue for gov’t Creates extra revenue for gov’t – Sin taxSin tax

Help is on the Way:Help is on the Way:Farms & AgricultureFarms & Agriculture

The Agricultural Adjustment Act, 1933 The Agricultural Adjustment Act, 1933 – farmers were paid to slow down farmers were paid to slow down

production = raise crop pricesproduction = raise crop prices Tennessee Valley Authority, 1933Tennessee Valley Authority, 1933

– Rebuilt & built 25 dams in Rebuilt & built 25 dams in Tenn. River Valley Tenn. River Valley

– Provided jobs, flood control, Provided jobs, flood control, CHEAP hydroelectric power CHEAP hydroelectric power

– Problem: private power co’s Problem: private power co’s

couldn’t compete w/ pricescouldn’t compete w/ prices

AAA

TVA

Work ProjectsWork Projects

The Civilian Conservation Corps, The Civilian Conservation Corps, 1933 1933 – Built roads, parks, planted trees, Built roads, parks, planted trees,

& developed flood control. & developed flood control. Public Works Admin., 1933Public Works Admin., 1933

– Provided $ to states to construct schools Provided $ to states to construct schools & community buildings& community buildings

Civil Works Admin., 1933Civil Works Admin., 1933– Built more schools, paid Built more schools, paid

teachers’ salaries, built teachers’ salaries, built 500,000 miles of roads 500,000 miles of roads

CCC

PWA

CWA

Promoted Fair Promoted Fair PracticesPractices

The National Recovery The National Recovery AdministrationAdministration– Set prices, minimum wages, standardsSet prices, minimum wages, standards

■ The National Industrial Recovery Act, 1933 -- established codes of fair practice for industries-- guaranteed workers’ right to unionize NIRA

NRA

Housing & ReliefHousing & Relief

Home Owners Loan Corporation, 1933Home Owners Loan Corporation, 1933– provided loans to homeowners in defaultprovided loans to homeowners in default

The Federal Housing Commission, 1934The Federal Housing Commission, 1934– Approved loans for mortgages & repairsApproved loans for mortgages & repairs

The Federal Emergency Relief The Federal Emergency Relief Administration, 1933Administration, 1933– Provided funds for Provided funds for direct reliefdirect relief to to

poor / needypoor / needy

HOLC

FHC

FERA

FDR Faces Opposition- Democrats

New Deal doesn’t go far enough! Fr. Charles Caughlin: wanted a

guaranteed annual income & nationalization of banks

Dr. Francis Townsend: developed a pension plan for the elderly

Huey Long: developed “Share-Our-Wealth” social program

FDR Faces Opposition- FDR Faces Opposition- ConservativesConservatives

Critics say his Critics say his BIGBIG gov’t has gone too gov’t has gone too far… DEFICIT SPENDING! far… DEFICIT SPENDING! – Spending more $ than what is being taken Spending more $ than what is being taken

inin The Supreme Court disallows NIRA and The Supreme Court disallows NIRA and

AAAAAA– Too much gov’t interference.Too much gov’t interference.– Exec. Branch overstepping powersExec. Branch overstepping powers

FDR’s Court PackingFDR’s Court Packing

FDR tries to change the rules re: FDR tries to change the rules re: appointing new Supreme Court justices appointing new Supreme Court justices – (sep. of powers?)(sep. of powers?)

Congress did not grant his request for a Congress did not grant his request for a new panel of judges (court packing) new panel of judges (court packing)

For various reasons he ends up For various reasons he ends up nominating seven new judges during nominating seven new judges during his years in office.his years in office.