NEW DEAL1933-1940
Launching the New Deal
Questions of the Day
What happened during the four months between the presidential election and Roosevelt’s inauguration?
What major action did Roosevelt take on his second day as president, and why did he do it?
What was the goal of the TVA?How did the public benefit from the Federal Securities
Act?What are the three main categories of the programs of the
New Deal?What did Huey P. Long’s Share our Wealth Society want to
do?Why did the American Liberty League appeal to both
Democrats and Republicans?
Roosevelt Takes Action
Economic crisis worsened in months before Roosevelt took office
U.S. Banking system was most immediate problem Roosevelt faced
Roosevelt Takes Action
“So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” – March 4, 1933
Solving the Banking Crisis
People withdrew their money from banks to avoid losing their savings Created panic, more withdraws
To stop this:1.Roosevelt issued an executive order to CLOSE
ALL THE NATION’S BANKS Called it a “Bank Holiday”
2.Passed Emergency Banking Act Allowed government officials to evaluate banks Determine if it should stay open or close the bank Decide on steps to correct problems
3.Explained his actions in the first “fireside chat”
Success of the Emergency Banking Act
Things improved within a few days Banks began to reopen
w/ government assurance
People started to return their funds
Nation regained confidence in the financial system
More Banking Reforms
The Glass-Steagall Act Passed in 1933 Created FDIC - (Federal
Deposit Insurance Corporation) Provided insurance for
depositors’ savingsWithin a month $1
billion in new deposits entered the system
The Hundred Days and The New Deal
Solving the banking crisis began an important period of government activity known as the
HUNDRED DAYS A time in which Roosevelt pushed Congress to put in
place key parts of:THE NEW DEAL
A plan meant to accomplish three main goals: (the three R’s) Relief for those suffering the effects of the Great Depression Recovery of the depressed economy Reforms that would prevent serious economic crisis from
happening in the future.
The New Deal - CCC
The Civilian Conservation Corps. (CCC) An effort to solve problem of unemployment for men
age 18-25 Americans enrolled in CCC were paid to work on
various conservation projects Ex: planting trees
Lived in army-style camps Sent money to their families
Help for Agriculture and Industry
Agricultural Adjustment Act (AAA) Gave farmers a subsidy
to grow fewer crops Subsidy = government
payment supply, demand,
price
National Industrial Recovery Act (NIRA) Mandated that
businesses in the same industry work together to set prices and levels of production
Included $3.3 billion for public works programs
The PWA, FSA and SEC
Public Works Administration (PWA) Helped manage public
works projectsFederal Securities Act
Forced companies to share certain financial info with the public
Securities and Exchange Commission (SEC) Monitored fairness of
stock market
Tennessee Valley Authority (TVA)
Massive programGoal: developing the
resources of the entire Tennessee River Valley
Built dams and other projects along Tennessee River Helped control floods Aided navigation and
shipping on the river Provided hydroelectric
power for industries
TVA
TVA
Beyond the Hundred DaysRoosevelt promised “bold, persistent experimentation” and he deliveredBut the effort wasn’t over
Nov. 1933 – Civil Works Administration (CWA) Provided winter employment for 4
million workers But highways, sewer lines, airports,
etc.June 1934 – Indian
Reorganization Act Recognized tribes as key social
units Limited sale of Indian lands Assisted them in developing
resources, economy and culture Granted some rights of self-rule
Trouble for the New Deal
New Deal greatly increased the role of government in business and peoples lives Not supported by everyone
Some said the New Deal didn’t do enough Complained that it propped up the system which had
caused all the problems in the first placeOthers complained that it ignored traditional
American values
Critics of the New Deal
Opposition from the Courts
Courts were more skeptical than American people Thought New Deal gave the President too much power President appointed officers made decisions Congress used to
By 1935, New Deal cases hit the courts Sent a swift blow to Roosevelt’s programs
1935 Schechter Poultry Corporation vs. U.S. Destroyed parts of NIRA
1936 United States vs. Butler Found AAA’s tax used to raise money for farm subsidies
unconstitutionalCourts accomplished what New Deal critics could
not
For Next Class…
Research one New Deal programMake poster, visual displayBe sure to explain:
What is the program supposed to accomplish? What benefits might the program have? Who will the program benefit? What might be some downsides to the program?
Be prepared to share next class