Transcript The New Deal

The New Deal
Chapter 33
Revised
8/09
In spite of the many criticisms,
most Americans were ready
for a change.
‘______________’
 Election to inauguration
 President elect – no constitutional power
 Current president – no political power
 Hoover - lame duck (November of 1932
to March of 1933)
_______________
 1932 – 1933 circumstances warranted
immediate action, but hands were tied
 20th Amendment changed the
inauguration date from
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
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______– 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
(See chart on page 774)
New Deal programs nicknamed
“__________
_____________”
for the many acronyms used.
Executive Appointments
 Frances Perkins
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1st female member of cabinet
Secretary of Labor
 Mary McLeod Bethune
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Appointed Director of Negro Affairs of
the National Youth Administration
One of over a hundred African
Americans FDR appointed
First 100 Days:
Banking Plan
_____________
*Closed all banks for reorganization
___________________
*Federal audit of banks
*Only those in sound condition could
reopen
First 100 Days:
Banking Plan
1st Fireside chat

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Urged people to deposit instead of
withdrawing money
Deposits increased by $
First 100 Days:
Banking Plan
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Up to $2500 guaranteed

Low interest, long term loans to homeowners
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Low interest, long term loans to farmers
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First 100 Days:
Direct Relief
 Federal Emergency Relief
Administration (FERA)
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Gave money to state and local
relief agencies from 1933-1935
Headed by Harry Hopkins
First 100 Days:
Direct Relief
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Locally run employment of young men
and women (1933-1934)
Built airports, bridges, painted park
benches, raked leaves, etc.
First 100 Days
Recovery
 National Industrial Recovery Act
(NIRA)

National Recovery Administration (NRA)
encouraged businesses to cooperate
with each other to set prices, output, etc.


Businesses had to allow ___________
First 100 Days
Recovery
(NIRA)
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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
 Part of NIRA
 1933-1941
 Led by Harold Ickes from 1933-1939
 Gave billions 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
 “__________________”


Gave employment to millions exponentially
Built infrastructure in 1930’s
 Helped
win war in 1940’s
 Backbone of post-war industrial boom in
1950’s
 Infrastructure sadly lacking today both in new
projects and maintenance of existing
structures
First 100 Days:
Direct Relief
 ______________________.
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
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Gave people clean, safe living quarters
Fed them 3 meals a day
Earned wages
Families had one less person to feed
¾ of paychecks were sent home to
their families
Not competing for jobs with older men
(Cont.)
First 100 Days:
Direct Relief
 _________________________.
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Literacy programs, recreation, and
time to spend with other young adults
National parks and forests received
many improvements
Program helped the most volatile
group in society – males age 18 to 25
First 100 Days:
Direct Relief
 ______________________.
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Lived in camps in rural areas
$30 a month but $25 was sent
home to their families.
Planted over 3 billion trees, cleared
forests, built levees, etc.
(1933 to 1939, phased out by 1942)
First 100 Days:
Direct Relief
 Civilian Conservation Corp.

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Few women in 45 separate camps
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African-Americans, Hispanics, Native
Americans in segregated camps

Offered to veterans from 2nd Bonus Army
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First 100 Days
Agricultural Recovery
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Paid farmers to
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) _________________________
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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
 ____________________________
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6 dams and power plants on the
Tennessee River and its tributaries in
13 states.
Tennessee, West Virginia, Virginia, North Carolina, South
Carolina, Georgia, Alabama, Mississippi, Arkansas,
Missouri, Illinois, Indiana, and Kentucky
TVA is only New Deal program still
around and operated by the federal
government. Part of the area is still very
poor and the TVA works to improve the
standard of living there.
Second New Deal
 New Deal failed to end the Depression
 Critics included Herbert Hoover
 Supreme Court heard cases from people
that questioned the constitutionality of the
programs
 However, the public indicated that they
wanted change
 Mid-term elections in 1934 supported
democrats
 Gave Roosevelt thumbs up

Provided electricity
to rural areas and
Regulated interstate
electricity and gas
Second New Deal:
(1935)
 Millions of bricklayers, carpenters,
writers, artists, etc. employed by the
federal government.
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National Youth Administration
 Provided jobs to young adults, 16-25
Division of Negro Affairs

Provided jobs for African Americans
Second New Deal:
 Pensions to people 65 and older
 Payments to the disabled, widows, and their
children
 Unemployment benefits
 Stabilizing influence on the economy
 Paid for with taxes on employers and
employees
 (1935) Wagner-Connery Act
(Labor Relations Act)
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Guaranteed unions the right
to organize and negotiate
Right to collective bargaining
and closed shops
Eleanor Roosevelt
 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
Stood up for women, AfricanAmericans, and other minorities
Marion Anderson sang at the White House in
1936. When she was denied the use of
___________________________, Mrs.
Roosevelt arranged for her to appear on the
steps of the _______________________.
1936 election was a landslide
for Roosevelt
Carried every state but
Vermont and Maine
Showed wide-spread support
for the New Deal
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
 _______________- 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)
 ________________ - Share-Our-Wealth.
Take from the rich and give to the poor.
Assassinated in 1935.
Roosevelt’s Recession
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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 over 70

Can not remove a Supreme Court justice except
for high crimes and misdemeanors

Constitution does not specify how many justices
sit on the court

President nominates judges; senate ratifies them

Roosevelt asked Congress to pass legislation to

Congress denied his request and the newspapers
and public spoke out against his “court-packing
scheme’.
FAIR LABOR STANDARDS ACT
(Reform)
o (1938) Last major piece of New Deal
legislation

 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
How successful, if at all, was
the New Deal?
 New Deal goals:
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End unemployment
Increase Gross Domestic Product
Improve living and working conditions
nationwide
Prevent a new “Great Depression” from
occurring
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!