The Architect of Increased Government

FDR’s 1st New Deal

Relief Programs

Banks/Stock

Market

Farming & Industry

Debt Relief

Bank HolidayEmergency Banking Relief Act

Securities and Exchange CommissionFederal Deposit Insurance Corporation

Agricultural Adjustment Admin.National Industrial Recovery Act

National Recovery AdministrationTennessee Valley Authority

Home Owners’ Loan CorporationFarm Credit Administration

Civilian Conservation CorpsPublic Works AdministrationCivil Works Administration

The Three R’s

Relief

Recovery

Reform

Immediate Assistance to those Suffering

Begin changes to allow nation to recover

Enact permanent long-term reform and

change

Focus on: Relief

Bank Holiday

Emergency Banking Act

•FDR orders all banks in US closed.•Government to determine which wouldreopen and which would close permanently

The Only Thing We have to Fear is Fear itself

Required government to check every bank

Licenses issued to banks that were sound andfinancially acceptable

Focus on: ReliefCCC

Work relief program for men aged 18-25

Most work done in Western U.S.

Planting treesBuilding roadsFighting forest firesBuilding public parks

Focus on: ReliefCWA

Established to create jobs for unemployed

Created for the Winter of 1933-34Ended Spring 1934

Employed over 4,000,000 worksCost over 1 billion dollars for5 months only

Laid sewer pipesBuilt 500,000 miles of roadsWorked on schools, airports, public buildings, etc

Focus on: RecoveryAAA

Government determined howMuch could be producedby farmers

-corn-wheat-cotton-rice-milk-peanuts-tobacco

Farmers received Government checks to REDUCE their crops

Government could control supply and demand and therefore: PRICES

Eventually Ruled unconstitutional by Supreme Court

Focus on: RecoveryNIRA

Two Parts

Part I: regulated labor and industry in America

-fair prices-fair pay-similar business practices-codes of working standards-established prices for certain products

Part II: Established the Public Works Administration

-explained projects to be created-funded projects

Was later ruled unconstitutional by the Supreme Court

Focus on: RecoveryNRA

Industries in the US could create codes for fair competition in business

Attempted to:

-reduce competition-setting minimum wages/similar wages-setting hours of work-set prices with other businesses

The Blue Eagle Mascot of the NRA

The Blue Eagle was so popular with some

New franchise in the NFL was started:

PhiladelphiaEagles

Focus on: RecoveryPWA

Creation of large scale building projects to employ workers

Some famous projects built by the PWA

Lincoln Tunnel: NY/NJ

Grand Coulee Dam: WA

Focus on: Recovery WPA

Largest New Deal Agency

Construction of public buildings and roadsParks, bridges, schoolsArts and literary projects

Provide work for the unemployedTotal cost was 11 billion dollars

Focus on: RecoveryTVA

Government controlled corporation to control flooding andprovide electricity for Tennessee Valley area

Series of dams built to control river

Focus on: ReformSEC FDIC

Created to regulate the Stock Marketand protect consumers from fraud

Truthful reports on companies value

Provided insurance for bankdeposits up to set amounts.

Restored public confidence.

If a bank failed then individualsmoney would be insured by thefederal government

SSAFocus on: Reform

Passed in 1935

Provide security and a paycheck for retired andunemployed

Created primarily as an Insurance bill

Workers pay monthly taxes to it/employers match payments

Monthly retirement checks at age 65 would begin

Also provide temporary unemployment insurance

The Second New Deal1935-1937 Challenges to FDR’s New Deal

Huey

Lon

g • Huey Long

• Wanted more projects for poor

• Share Our Wealth program

Fath

er C

ough

lin • Father Coughlin

• Call for heavy taxes on rich and government takeover of banks

Dr. F

ranc

is To

wns

end • Francis

Townsend

• Pay everyone 60 and up $200 a month which had to be spent

Election of 1936The New Democratic Party Coalition of Voters

-African Americans switch parties in huge numbers-Farmers and laborers-New immigrants-Women

-FDR appointed 1st woman to CabinetFrances Perkins

-

FDR’s Second Term: 1937-1941Court Packing Plan

FDR proposed to increased number of justices on Court

Required retirement for a judge at 70 with 10 years on court

The President could then appoint an extra justice.

In 1937 the court may have grown from 9 to 16 justices

Why:

FDR not happy with Supreme Court blocking some of his New Deal Programs

Replace with ones that would accept his programs

Effects:

FDR appeared power hungry

US public feared too much power to thePresident

Supreme Court woke up and workedwith FDR more

It was NEVER passed at all.

The Roosevelt Recession of 1937

FDR attempted to cut back government spending as economy looked better

FDR wanted to balance the budget

End Deficit Spending

WPA and PWA was cut heavilySocial Security taxes now removingmoney from economy

Result:

Economy fell hard, unemployment rose sharply

FDR finally accepted Keynesian Economics strategy

Spend heavily (deficit spending) during bad times.

The Legacy of the New DealThe United States government began a new role in American History

Broker State:

Regulating all different interests in the nation

Modern Welfare State:

Government created safety nets for citizens during bad times

The New Government:

Role of government enlarged and heavily strengthened

insThe Legacy of the New Deal

How did FDR’s New Deal completely change the role of the US government?

You must write a ONE sentence answer to the previous question and you muse use every one of the following terms/phrases below in your sentence.

ONE SENTENCE

Franklin D. Roosevelt relationshipNew Deal social1930’s economicUnemployment assistancegreatly dependentRoleexpandedDemocrats

Key Review ItemsThe Dust Bowl: Drought and winds in Midwest, many moved from OK to California

John Steinbeck: The Grapes of Wrath, book about family leaving OK and moving toCalifornia

Wrote about the despair and dark mood of the 1930’s

Hoover’s view on helping during Depression: rugged individualism

1929: Stock Market Crash

1936 election: Large numbers of Black voters switch to Democratic Party

Bonus Army: Army veterans marched to DC to demand early bonus checks

Know how: “buying on margin” and overproduction were causes of Depression

Passage of tariffs had European nations pass tariffs, global trade slowed heavy.