did these actions help or hinder the united states in its efforts to rise from the depression?
TRANSCRIPT
New DealDid these actions help or hinder the United
States in its Efforts to Rise From the Depression?
“The Only Thing We Have to Fear is Fear Itself” Franklin D. RooseveltThe Roosevelt Administration initiated
policies that supported and regulated agriculture and industry
Legislation improved labor conditions and increased power of the unions
Programs of the New Deal: CWA, TVA, FDIC, SEC, Social Security
New Deal created new opportunities for women and minority groups
Roosevelt Takes Office in 1932
Roosevelt knew that he had to act with a nation in the midst of a Depression, some people had not worked in three years or more
Formed “Brain Trust,” a group of advisers made up of professors, lawyers, and journalists
Worked to formulate set of policies to relieve the problems plaguing many Americans
New Deal, phrase from a campaign speech in which Roosevelt had promised, “a new deal for the American people.”
Focus of New DealThree general goals: a. Relief for the needy b. Economic Recovery c. Financial Reform
Roosevelt launched a period of intense activity, known as the Hundred Days, from march 9-June 16, 1933.
During this period Congress passed more than 15 major pieces of New Deal legislation, expanding the federal government’s role in the nation’s econom
Banking and Financial Reform
March 5 when Roosevelt took office, declared a bank holiday
Roosevelt persuaded Congress to pass Emergency Banking Relief Act
Emergency Banking Relief Act: authorized US Treasury to inspect banks, those unable to pay debts remained closed
Americans began to regain confidence in banks
Roosevelt’s Fireside ChatsStarted March 12, 1933, when solvent banks
were allowed to reopenUsed these radio programs to discuss his
concerns and detail policies on the New DealFirst chat centered on restoring financial
system“We have provided the machinery to restore
our financial system. It is up to you to support and make it work.”
He explained that banks invests your deposit. People demanding cash for savings cause banks to fail
Glass-Steagall Banking Act of 1933Established Federal Deposit Insurance
Corporation (FDIC), which provided federal insurance for individual bank account of less than $5,000. The FDIC is still in use today.
Regulated Stock Market with the Federal Securities Act, required corporations to provide complete information on all stock offerings and made corporations responsible
Securities and Exchange Commission (SEC) created in 1934 to regulate stock market to prevent people from rigging the market with inside information
Alcohol BillsAllowed manufacturing and sale of some
alcoholic beveragesAlcohol tax to raise government revenues21st Amendment: 1933, repealed the
prohibition amendment
Agricultural Adjustment Act (AAA)Purpose to raise crop prices by lowering
productionGovernment paid farmers to leave a certain
amount of every acre unseededReduction of supply, cost would riseGovernment paid cotton workers $200
million to plow under 10 million acres of their crop
Hog farmers paid to slaughter 6 million pigsThis act was controversial because so many
were hungry
Civilian Conservation Corps (CCC)1933, Men 18-25 given jobs, $30/month with
$25 of it sent home to families, given free food and uniforms
Built roads, developed parks, planted trees and helped soil erosion and flood-controlled projects
Ended in 1942: 3 million men had worked with CCC and planted in 8 years over 200 million trees
Many of these jobs were in the Great Plains to prevent another Dust Bowl
Federal Emergency Relief Administration (FERA)1933, funded with $500 million to provide
direct relief for the needyHalf of the money went to the states as direct
grants-in-aid to help furnish food and clothing to the unemployed, the aged, and the ill
Additional $250 million distributed on the basis of one federal dollar for every three state dollars
Harry Hopkins headed the program, believed that money helped people buy food, but work gave them confidence and self-respect
Public Works Administration (PWA)1933, provided money to states to create jobsMostly in construction of schools and other
community buildingsWhen these programs failed, Roosevelt
created the CWA
Civil Works Administration (CWA)1933 after PWA failed Provided 4 million jobsCriticized by many because the jobs were
viewed as busy work and wasting moneyCWA built over 40,000 schools and paid the
salaries of 50,000 school teachersHalf a million miles of roads were built
National Industrial Recovery Act (NIRA)1933, Promoted industrial growth by establishing
codes of fair practice for individual industriesCreated National Recovery Administration (NRA)
to set prices of products to ensure fair competitionNRA established standards for working hours and
a ban on child laborNRA promoted recovery by interrupting wages
cuts, falling prices and layoffsEstablished workers’ rights to unionize and
bargain collectivelyMany felt this act served large businesses
Tennessee Valley Authority (TVA)1933, focused on Tennessee River valleyCreated thousands of jobs and provided flood
control, hydroelectric power, and other benefits to the region
Home Owners Loan Corporation (HOLC)1933 provided government loans to
homeowners who faced foreclosure because they could not make their loan payments
National Housing Act (NHA)1933, created the Federal Housing
Administration (FHA), which continues today providing loans for home mortgages and repairs
Protests Against New DealAfter first 100 days, many felt that the New
Deal interfered with the workings of a free market economy
1935, Supreme Court struck down the NIRA as unconstitutional, declaring that the law gave legislative power to the executive branch
Enforcement of industry codes within stats went beyond federal government’s constitutional powers
1936, AAA was struck down due to agriculture being a local matter and should be regulated by the states
Roosevelt’s Response to Supreme Court1937, proposed that Congress enact a court-
reform bill that would reorganize the federal judiciary and allow him to appoint six new Supreme Court justices
Seen as “court packing” and Roosevelt was criticized for violating separation of powers
Rulings in the Supreme Court began to be more in Roosevelt’s favor without this action because of resignations
Roosevelt was able to appoint 7 new justices in the next 4 years
American Liberty League1934, made up of wealthy business leaders such as Al
Smith, John W. DavisOpposed New Deal because it was believed that it
violated respect for the rights of individuals and propertyCharles Coughlin, Francis Townsend and Huey Long felt
the poor suffered more with the New DealFather Coughlin favored a guaranteed annual income
and nationalization of banksDr. Townsend devised a pension plan to provide monthly
benefits, but this was too expensiveSenator Long proposed a nationwide social program,
Share Our Wealth
Second New DealAlso known as the Second Hundred DaysFocus on farmers, workers and poor, the
“forgotten man”Eleanor Roosevelt played a role in social
reform aspects of the New Deal
Soil Conservation and Domestic Allotment Act1936, to replace AAA, which was struck downPaid farmers for cutting production of soil-
depleting crops like cotton and wheatRewarded farmers for practicing good soil
conservation methodsSecond Agricultural Act 1938 passed with out
the unconstitutional processing tax to pay for farm subsidies
“Grapes of Wrath” by John Steinbeck illustrated the struggling farmers
Resettlement Administration1935, to help sharecroppers, migrant
workers and poor farmersDesigned to loan money to small farmers to
buy land1937, replaced by the Farm Security
Administration (FSA), loaned more than $1 billion to help tenant farmers by forming a network of migrant farmer camps
FSA sent photographers such as Dorothea Lange, Ben Shaun, Walker Evans to take pictures of rural towns and farms
Works Progress Administration (WPA)Created jobs on largest public works budget
($5 billion)1935-1943 employed over 8 million peopleBuilt 850 airportsConstructed or repaired 651,000 miles of
roads and streetsBuilt 110,000 libraries, schools and hospitalsSewed over 300 million garments for the
needyGave a sense of hope and purpose to many
workers
National Youth Administration (NYA)More than 2 million high school and college
students worked part-time clerical positions at their schools
1936, more than 200,000 students received aid and assistance through NYA
Wagner ActReestablished NIRA provision of collective bargainingListed unfair labor practices that companies could not use
such as threatening workers, firing union members, and interfering with unions
Set up National Labor Relations Board (NLRB) to hear testimony and unfair practices and hold elections to find out if they wanted union representation
Fair Labor Standards Act 1938 to establish maximum hours and minimum wages
FLSA set minimum hourly rate at 25 cents/hour then by 1940, it was 40 cents. National maximum work week of 44 hours and in 2 years 40 hours. Banned factory labor workers under 16 years old (18 yrs if work hazardous)
Social Security Act1935 by Secretary of Labor Frances Perkins3 Parts: a) old age insurance for retirees 65
or older and their spouses ($10-85/month) Groups excluded: domestic servants, farm workers, many hospital and restaurant workers, b) Unemployed compensation system ($15-18/week), c) Aid to families with dependent children and the disabled
Rural Electrification Act (REA)Created, financed and worked with rural and
farm electrical cooperatives to bring electric to rural areas
1935 30% of American farms had electricity, 1945 45%, 1951 90%
Public Utilities Holding Company Act1935 aim to fight financial corruption in the
public utility industryOutlawed ownership of utilities by multiple
holding companies
New DealHelped different minority groups as well such
as women, African Americans, Latinos and Native Americans
Eleanor Roosevelt opened many doors for African Americans, particularly the performance of Marian Anderson in front of the Lincoln Memorial in 1939
Indian Reorganization Act of 1934 to strengthen Native American land claims by prohibiting the government from taking unclaimed reservation lands and selling them to people other than Native Americans
New Deal CoalitionAn alignment of diverse groups dedicated to
supporting the Democratic PartyEnabled Democrats to dominate politics in
the 1930s and 1940s
Impact of New DealTo avoid deficit spending, President
Roosevelt did not launch a Third New DealConservatives felt that Roosevelt made the
federal government too large and it had stifled free enterprise and individual initiative
Liberals felt that Roosevelt did not do enough to socialize the economy and eliminate social and economic inequalities