Transcript The New Deal

Period 7
1890 – 1945, comprises
17% of the AP exam
An increasingly pluralistic United
States faced profound domestic
and global challenges, debated
the proper degree of government
activism, and sought to define its
international role.
4/21/2015
Key concept 7.1
III. National, state, and local reformers
responded to economic upheavals,
laissez-faire capitalism, and the Great
Depression by transforming the U.S.
into a limited welfare state.
The New Deal
4/21/2015
A. The liberalism of President
Franklin Roosevelt’s New Deal
drew on earlier progressive ideas
and represented a multifaceted
approach to both the causes and
effects of the Great Depression,
using government power to
provide relief to the poor, stimulate
recovery, and reform the American
economy.
 Roosevelt elected in 1932



Relief, Recovery, Reform
In direct contrast to _______________
economics of the 1920’s
Took a middle-road approach to change
 If
too drastic, would end Capitalism as we
know it
 If too little, might lead to the overthrow of the
government
 Government spending was needed to
stimulate the economy
 Government spending had to be limited to
avoid huge debts and increased taxes
‘_______________’
 Election to inauguration
 President elect – no constitutional power
 Current president – no political power
 Hoover - __________(November of 1932 to March of
1933)
 1932 – 1933 circumstances warranted immediate
action, but hands were tied
 __________________changed the inauguration date
from March 4th to January 20th after 1933
Brain Trust
 While waiting, FDR gathered the foremost
experts in their fields at his estate in Hyde Park,
NY
 They mapped out an ambitious plan for relief,
recovery, and reform



_________ – immediate direct payments for the
needy and jobs for the unemployed
_________ – assist the economy to recover; new
jobs will mean increased demand, which will lead to
more new jobs
_________ – regulation of industry and the stock
market to prevent the next crash and depression
3 R’s of the New Deal
 Relief – _________ assistance to
people in need.

Included CWA and CCC
 Recovery – ___________ assistance to
promote growth in the economy;
programs built infrastructure while
providing employment



“prime the pump”
Included PWA, WPA
Longer time than relief but not designed to
last 4-ever
3 R’s of the New Deal
 Reform – ___________ changes to
regulations of financial institutions to
correct flaws and reduce volatility ; long
term programs to provide financial
security

Includes Glass-Steagal, Social Security,
SEC
**Note: most of the programs fell into more
than 1 category; CWA also worked toward
recovery, WPA also provided relief
First 100 Days:
Banking Plan
______________- 4 days
*Closed all banks for reorganization
Emergency Banking Act
*Federal audit of banks
*Only those in sound condition could
reopen

____________________


Urged people to deposit instead of
withdrawing money
Deposits increased by $12 million
First 100 Days:
Banking Plan –
Glass – Steagal

Federal Deposit Insurance Corp. (F.D.I.C)



Up to $2500 guaranteed (now $250,000)
Restrictions on affiliations between banking and
investment firms (repealed in 1999)
Required term: Federal Deposit Insurance Corporation
First 100 Days:
Direct Relief
 Civil Works Administration (CWA)


Locally run employment of young men
and women (1933-1934)
Built airports, bridges, painted park
benches, raked leaves, etc.
First 100 Days:
Direct Relief
 Federal Emergency Relief
Administration (FERA)


Gave money to state and local
relief agencies from 1933-1935
Headed by Harry Hopkins
National Industrial
Recovery Act (NIRA)

National Recovery Administration (NRA)
encouraged businesses to cooperate
with each other to set prices, output, etc.


________________suspended.
Businesses had to allow ___________
_____________by labor.
Required term: National Recovery Administration
•Public was encouraged to frequent the
businesses that were part of the NRA.
•People signed pledges to only buy products
from ‘NRA’ companies.
•Initial response was positive – hope for a quick
recovery
•Program lost support by 1934.
•Too complicated
•Too many special interest groups benefited
•Little or no enforcement of the rules.
(NIRA)

Most unpopular program in New
Deal

Price controls, limiting output, etc.
were too similar to Socialism

Regulations confusing; owners
feared the loss of control of their
businesses

Parts found unconstitutional by
Supreme Court in 1935
Public Works Administration
(PWA)
 Part of NIRA
 1933-1939* (Fazed out completely by 1941)
 Led by Harold Ickes
 Gave 6 billion to state and local
governments to build dams, bridges,
airports, and other government buildings
 70% of all schools constructed in 1930’s
were funded by the PWA
Public Works Administration
(PWA)
 “___________”


Gave employment to millions exponentially
Built _____________ in 1930’s
 Helped
win war in 1940’s
 Backbone of post-war industrial boom in
1950’s
 _______________ sadly lacking today both
in new projects and maintenance of existing
structures
First 100 Days:
Direct Relief
 _____________________________.

2.5 million young, single men ages 18-25

Few women in 45 separate camps

African-Americans, Hispanics, Native
Americans in segregated camps

Offered to veterans from ______________

Allowed to be married and older than 25

250,000 served

Lived in camps in rural areas

Gave people clean, safe living quarters


Literacy programs, recreation, and time to
spend with other young adults


National parks and forests received
many improvements

First 100 Days:
Direct Relief
 ________________________.



Families had one less person to feed
Not competing for jobs with older men
Program helped the most volatile
group in society –
First 100 Days
Agricultural Recovery
 Agricultural Adjustment Administration
(AAA)



.
Raised prices and incomes for farmers.
Hurt consumers and tenant farmers.
 Struck down by Supreme Court in 1935
 Re-established in 1936 by changing
wording
 (1936) Agricultural Adjustment Act



Revised to give money to farmers
for _______________________.
Established the Farm Security
Administration to aid tenant
farmers to buy land
Established migrant camps for
shelter and medical care
First 100 Days
Recovery
 Tennessee Valley Authority

6 dams and power plants on the
Tennessee River and its tributaries in
13 states.






Required term: Tennessee Valley Authority
Second New Deal
 New Deal failed to end the Depression
 Critics included _________________
 Supreme Court heard cases from people
that questioned the constitutionality of the
programs
 However, the public indicated that they
wanted change
 ______________in 1934 supported
democrats
 Gave Roosevelt thumbs up
Second New Deal:
Works Progress Administration
(1935)
 Millions of
,
,
etc. employed by the
federal government.


National Youth Administration
 Provided jobs to young adults, 16-25
Division of Negro Affairs

Provided jobs for African Americans
Federal Writers’ Project
 Employed authors as part of the WPA
 ________________



2300 1st person accounts of slavery
collected between 1936-1938
Written as texts and recorded on wax
spools
Originals in the ______________
Required term: Federal Writers’ Project
Second New Deal:
(1935) Social Security Act
 Pensions to people 65 and
older
 Payments to the disabled,
widows, and their children
 Unemployment benefits

 Paid for with taxes on
employers and employees
Required Term: Social Security Act
 (1935) Wagner-Connery Act
(Labor Relations Act)


Guaranteed unions the right
to organize and negotiate
Right to
_______________
 FDR’s eyes and ears
 Visible sign of hope and compassion
 Visited with 2nd Bonus Army and other
groups
 Traveled the country and spoke to common
people
 Gained support for the New Deal
Marion Anderson sang at the White House in
1936. When she was denied the use of
Constitutional Hall, Mrs. Roosevelt arranged
for her to appear on the steps of the Lincoln
memorial.
1936 election was a landslide
for Roosevelt
Carried every state but
Vermont and Maine
Showed wide-spread support
for the New Deal
Key Concept 7.1, III.
B. Radical, union, and populist
movements pushed Roosevelt toward
more extensive reforms, even as
conservatives in Congress and the
Supreme Court sought to limit the New
Deal’s scope.
Roosevelt’s Critics
 ___________ – wanted a return to
laissez faire.

Protested against increased taxes and
government interference in business.
 ___________ – didn’t think
Roosevelt went far enough.
Roosevelt’s Critics
 Paul Townsend - pension plan for
Americans over age 60
 ______________- nationalize banks and
return to silver standard (increase the
supply of money, cause inflation, which
means repaying loans with inflated dollars)
 Huey Long (Kingfish) Share-Our-Wealth.
Take from the rich and give to the poor.
Assassinated in 1935.
Required term: Huey Long
Roosevelt’s Recession



Roosevelt stopped introducing new
programs and tried to scale back
some programs because it appeared
that the economy was recovering.
Cutbacks were too soon and
contributed to a downward swing in
1936-1937.
Funding was increased in 1938.
Roosevelt’s Court Packing Scheme

6of the 9 Supreme Court judges were conservative
and all 6 were

Can not remove a Supreme Court justice except
for

Constitution does not specify how many justices
sit on the court

President nominates judges; senate ratifies them

Roosevelt asked Congress to pass legislation
allowing him to add new judges for each judge on
the court
.

Congress denied his request and the newspapers
and public spoke out against his “court-packing
scheme’.
Required term: Supreme Court Fight
FAIR LABOR STANDARDS ACT
(Reform)
o (1938) Last major piece of New Deal
legislation
 Set _______________(________an hour)
 Maximum hour standards (established the
40-hour work week)
 Severely curbed the use of child labor
 Did not apply to domestics, farmers and
other jobs that paid less than .25 an hour
Key Concept 7.1, III
C. Although the New Deal did not completely
overcome the Depression,
it left a legacy of reforms and
agencies that endeavored to make society
and individuals more secure, and
it helped foster a long-term political
realignment in which many ethnic groups,
African Americans, and working class
communities identified with the Democratic
Party.
How successful, if at all, was
the New Deal?
 New Deal goals:
Numbers of Banks and Bank Suspensions
Year
Number as of 12-31
Suspensions
1929
24,633
659
1930
22,773
1350
1931
19,970
2293
1932
18,397
1453
1933
15,015
4000
1934
16,096
57
Data are from Table V 20-30 in Historical Statistics of The United States: Colonial Times
to 1970, 1975, p.
Gross Domestic
Product as a
percentage of 1933
GDP.
Consumer spending was 80 billion in 1929; 46 billion in
1933; 72 billion in 1940.
1
8
6
0
1
9
1
8
1
9
4
4
1
9
6
8
Expenditures per capita, 1800-1990, measured every 12 years.
*Note: we spent less on the Depression than on WWI
1
9
9
0
*Amount spent on Public Works increased by 1934 but not dramatically.
Amount spent by the private sector decreased drastically from 1931 to 1933
and only increased again slowly.
The End!