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Ch. 23: The New Deal: 1933-1940 Franklin Delano Roosevelt 20 th Amendment New Deal 3 Goals 1 st 00 days Poor Brain Trusts Pragmatism Bank Holiday Emergency Banking Relief Act 1933 Fireside Chats Glass-Stegall Banking Act 1933 Federal Securities Act 1933 Securities Exchange Commission 1933 Agricultural Adjustment Corps. Civil Conservation Corps. Public Works Administration 1933 Civil Works Administration National Industrial Recovery Act 1933 National Recovery Administration Tennessee Valley Authority Huey Long Share the Wealth AAA Challenged Parity 2 nd New Deal Eleanor Roosevelt Francis Perkins Social Security 1936 Election Works Program Administration Harry Hopkins WPA & the Arts National Youth Administration Wagner Act 1935 National Labor Relations Board Court Packing Bill Black Cabinet Mary McLeod Bethune Civil Rights Committee of Industrial Organization Sit Down Strike Unions Radio Results of New Deal Slide 2 1932 Election FDR (Dem) wins Defeats Hoover Elected 4 times Distant cousin of Teddy Friendly demeanor & can do attitude attracted voters Dems. take control of Senate Represented the poor Unlike Hoover, who represented the rich & business Slide 3 The New Deal FDRs platform Plan to get out of the depression 3 general goals: Relief for the needy Economic recovery Financial reform FDR never said exactly what it was, he might not have had a clear idea either. 1st New Deal (1 st 100 Days): Focused on banking & job creation 2 nd New Deal (2 nd 100 Days): Focused on more extensive help for workers & farmers Slide 4 Waiting for FDR Elected in November 1932, didnt take office until March 1933. Depression grew worse during these 5 months 20 th Amendment (1933): Presidential inauguration moved from March to January (today) Slide 5 Group of professors of economics etc., to help figure out how to get out of the depression BRAIN TRUST Slide 6 Pragmatic FDR believed in this idea Value of an idea try something whether it works or not, but try something! Proposed by philosopher William James Slide 7 Bank Holiday 1 day after taking office, FDR declared a bank holiday Purpose: Closed all banks to prevent further withdrawals. Emergency Banking Relief Act (3/1933): Banks would be inspected, only financially sound banks would reopen. Renewed confidence in banks Slide 8 Fireside Chats Weekly radio addresses made by FDR addressing public concerns, in plain English, about the New Deal Felt as if FDR was talking directly to you 1 st Chat: Explained banking system to nation, next day people began to deposit their money back in banks Slide 9 All legislation abbreviated Slide 10 Federal Deposit Insurance Corp. (FDIC): 1933 Created by the Glass Stegall Banking Act of 1933 Insurance on savings accounts up to $5,000 Reassured people their accounts were safe Still used today Slide 11 More Finance Reform 1933 - Federal Securities Act (FSA): Corporations must report detailed stock info. Held liable for any misrepresentations 1933 - Securities Exchange Commission (SEC): Regulates stock market, no rigging Headed by Joseph Kennedy Still used today Slide 12 Agricultural Adjustment Act (AAA) Lowered production to raise crop prices Paid farmers not to grow crops Alleviate erosion & dust bowl effect Hog Farmers paid to slaughter 6 million hogs Upset many Americans taught not to waste food, esp. when so many are hungry Successful: prices slowly rose Slide 13 Work Projects Civilian Conservation Corps (CCC): Built roads, cultivated parks & planted tress (200 mil.) to control flooding & soil erosion 3 million went to work, men ages 18-25 $30/mo., but $25 automatically sent home Free food & uniforms 1933 - Public Works Administration (PWA): Gave money to states to create jobs (mainly schools, bridges, airports) Spend money to make more jobs Didnt make a dent in unemployment Slide 14 More ABCs Civil Works Administration (CWA): Created to provide more jobs since PWA failed Provided 4 mil. Jobs (roads & schools) 6/1933 - National Industrial Recovery Act (NIRA): Promoted industrial growth & set up fair codes of practice Slide 15 National Recovery Administration (NRA) Set prices on products to ensure competition Established working hours, minimum wage, banned child labor etc. Gave workers the right to unionize & bargain collectively. Helped limit production to produces would make a profit. Slide 16 Tennessee Valley Authority (TVA) May, 1933 Tennessee River Valley badly depressed area Project created thousands of jobs Built 20 dams providing flood control &hydroelectricity Brought electricity to rural areas improving living conditions & economy Effected 7 states Used as yardstick to measure fair prices for electricity Slide 17 Tennessee, Mississippi, Alabama, Georgia, N. & S. Carolina & Virginia Slide 18 Social Security Act (SSA): 1933 Insurance 65+ Unemployment Aid to families with disabled children Farmers not included at 1st Slide 19 Works Progress Administration (WPA) Create as many jobs as possibly as quickly as possible Headed by Harry Hopkins Employed 8 mil. People w/i 8 yrs. Built roads, schools, libraries, airports etc. Great value to nation, restored sense of purpose Slide 20 WPA & the Arts Controversy over WPAs funding of artists, theaters, etc. Hired artists to paint public works of art, offer free plays, free concerts etc. Why would this be important? 20% of WPAs budget went to the arts Many people felt this money could be better spent Slide 21 Homeowners Loan Corp. gave govt. loans to those who faced foreclosure Federal Housing Admin. (FHA) provides loans for mortgages & home repairs (even today) Slide 22 Everyones a Critic Liberals felt the New Deal didnt do enough & Conservatives thought it did too much Many people thought New Deal interfered with Free Market Economy Slide 23 Huey Long Every Man A king Radical Left Opponent of FDR Gov. of Louisiana Kingfish Share the Wealth: Welfare program that gave $5,000 per year, division of land etc. 7.5 million supporters FDRs most serious threat for re-election Assassinated in 1935 at Louisiana State House Slide 24 Challenges to the AAA AAA challenged in Supreme Court & forced to reorganize New AAA called for parity: Crops would no longer be destroyed, but stored until they reached parity (a set price), & then the crops would be sold Allowed farmers to repay debt Slide 25 1 st New Deal put 4 mil. to work, but 10 mil. were still unemployed & production lagged 1934: Democrats gain majority in Congress & help FDR launch the 2 nd New Deal 2 nd New Deal focused on reform & more extensive relief for farmers Slide 26 LADIES ! Eleanor Roosevelt: Wife, social reformer, humanitarian & very persuasive Helped shape New Deal policies to appt. women to administration Traveled country to find out what people needed & wanted & observed social conditions Francis Perkins: 1 st woman cabinet member (Sec. of Labor) Social security (1933) Insurance 65+ Unemployment Aid to families with disabled children Farmers not included at 1st Slide 27 More Help for Farmers Farmers paid for practicing good soil conservation techniques Resettlement Administration (1935): Loaned money to sharecroppers & tenant farmers buy own land Replaced by Farm Security Admin. (FSA): Helped tenant farmers become landowners Slide 28 Election of 1936 1 st time blacks voted Democrat instead of Republican (why?) 1 st time labor unions supported 1 candidate Represented vote of confidence Are you better off now than you were four years ago? Slide 29 National Youth Administration (NYA) Provided children with aid & employment Provided organized sports Segregated Slide 30 Wagner Act: 1935 NRA declared unconstitutional, gave legislative powers to executive branch Forced to reorganize Wagner Act: Listed unfair labor & business practices Supported right of workers to organize & engage in collective bargaining National Labor Relations Board: Heard grievances Govt. on side of unions Slide 31 Fair Labor Standards Act: 1938 National minimum wage & work week 40 hour work week, down from 44 hrs $.25 to $.40 per hr. (1 st time) No one younger than 16 in factories No reforms in health insurance Unions made gains during the New Deal Slide 32 Court Packing Bill: 1937 FDR wanted to reorganize the Supreme Court So his New Deal legislation would be passed Appointed 7 new judges Creating Supreme Court sympathetic to New Deal FDR lost support as some see this as an attempt at dictatorship. Slide 33 Black Cabinet Group of influential African Americans that advised FDR on racial issues & concerns Main organizer was Mary McLeod Bethune: Ofc. of Minority Affairs Ensured hiring of African Americans Eleanor Roosevelt played role in opening doors Invited opera star Marion Anderson to perform at Lincoln Memorial after she was refused the right to sing at Constitution Hall Marion Anderson Mary Bethune Slide 34 Civil Rights FDR never committed to civil rights Didnt want to upset Southern Democrats (why?) Refused to support Anti-Lynching legislation & elimination of the Poll Tax African Americans paid less Discriminated against in federal programs such as the FHA, CCC & TVA Slide 35 Committee of Industrial Organization Organized Labor Union Allowed skilled & non-skilled Allowed minorities Used Sit Down Strikes: Dont leave, but dont work 1937 Memorial Day Massacre Republic Steel Plant, Chicago Police attacked striking workers outside plant, killing 10, dozens injured FDR friend of labor Unions flourish during New Deal Legalization, Better Working Conditions, & Increased Bargaining Power Slide 36 Society & Culture Radio most direct means of communication Drama: Guiding Light Green Hornet Lone Ranger Actors/Actresses Bob Hope Orson Wells Jack Benny Clark Gable Greta Garbo Big Band Music Glen Miller Benny Goodman Leading Ladies Betsy Davis Joan Crawford Margaret Mitchell (Gone w/the Wind) Amelia Earhart 1 st women to fly across Atlantic non-stop Tried to fly around worlddisappeared Aliens??? Slide 37 Slide 38 Results of New Deal By 1939 New Deal over & FDR faced with European problemsWhat? New Deal did not end depression, but helped by creating jobs WWII causes end of depression New Deal compared to socialism Why? Created $40 bil. deficit 1 st time Fed. Govt. took responsibility for economic wellbeing of citizens Expanded power of Fed. Govt.