New Deal • Origins

– Sought advice from experts in “Brain Trusts”• Academics• Economics• Business• Agriculture• Law• Social work

– Experts had many points of view• Spurred debate &

arguments– FDR made final decision.

• Bank Holiday– Closed 4 days

• Fed gave loans to secure banks

• Banks reopen when financially ready

Civil Works Administration

• Temp. Emergency Jobs– Construction

• Sewage Systems• Bridges• Buildings

• 5 months• 4million Jobs• 200 million per month

(deficit spending)

Glass-Steagall 1933• Separated Banks

– Commercial v. Investment

• Strengthened the Federal Reserve– Ended the gold

standard– Determined value of

the Dollar

Civilian Conservation Crop. (CCC)

• Purpose– Flood Control– Soil conservation– Forest Projects

• Target– Men 18-25

• Effective

Federal Deposit Insurance Corp (FDIC)

• Purpose– Insure individual

deposits in banks• Target

– Depositors• Effective

Agriculture Adjustment Act• Purpose

– Reduction of crops to end surplus and equalize prices

• Target– Farmers

• Effective but Unconstitutional

Tennessee Valley Authority Act• Purpose

– Flood Control– Damns– Roads, Bridges– Hydro-electric

power• Target

– TN river valley• Effective

Works Progress Administration

• Purpose– Hire Unemployed for

construction• Target

– Unemployed• Effective

National Labor Relations Act• Purpose

– Labor’s right to unionize• Target

– Labor• Controversial

Social Security Act

• Purpose– Retirement plan for

elderly +65• Target

– Over 65• Effective

Securities and Exchange Commission

• Purpose– Regulated Stock

Market & restricted margin buying

• Target– Stock Market

• Effective

Court Packing• Many 2nd New Deal

programs deemed UNCONSTITUTIONAL

• FDR responds by– Encouraging older Supreme

Court justices to retire– Attempting to add more

Justices to the Supreme Court

• Caused negative resentment with other branches of Govt.– Legislative (congress)– Judicial ( Supreme Court)

Anti-New Deal• Criticism from the left

and right• Deficit Spending-

Negative budget, unable to balance the budget, adds to national debt. (BAD)

• American Liberty League- Republican and Democrat opponents of NEW DEAL

Anti-New Deal• Huey Long -

– Senator from Louisiana

– Fiery Speaker– Down home humor– “Share Our Wealth”– 3rd party to Run

against Roosevelt

Anti-New Deal• Father Charles

Coughlin– Catholic Priest– Radio show w. 40

million listeners– Heavy taxes on

wealthy.

• Francis Townsend• Townsend Plan

– Wanted $200 pension to people over 60.

– Must be retired– Frees up space

for unemployed.

FDR Re-elected 1936• 1st time African Americans voted in favor of a

Democrat.• New Deal Coalition-

– African Americans, Immigrants, farmers, labor minorities, women

• Roosevelt Recession– 1937 surge of unemployment (1st rise under FDR)– WHY??????– Cut programs (govt spending)

• Proved people depended on Govt spending too much. – Raised Interest Rates

Legacy

• Balanced economic interests• Federal govt new role • Broker State- Govt agent (broker) fixes

conflict between different interests• Safety net- safeguards for average

Americans• Made govt too powerful