The New Deal

US HistoryMr. Velarde

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The “Old Deal”

What?•President Hoover’s reaction to the Great Depression

President Herbert Hoover

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The “Old Deal”

What did he want to do?

•Refused to create government programs until it was too late

•Let the business cycle take care of things

Children in one of the Bonus Army Camps

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The Bonus Army 1932

•25,000 WWI veteransWho?

•Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945

What?

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The Bonus Army 1932

•Called out the troops and dispersed the army What did Hoover do?

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The Election of 1932

•Roosevelt offers a “New Deal” for America Roosevelt wins with 60% of the vote

What?

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Roosevelt’s New Deal

What?•Programs meant to help the country by getting the government involved in the economy

1. Relief - help people out in the short term

2. Recovery - get the economy back on its feet

3. Reform - keep this from everyhappening again

Meant to do 3 things

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1st new Deal

To recover nations economy

•Industry

•Destitute

•Farming

•Stock Market

•Banking

•Alphabet Agencies

Stock Market

•Faith in Securities Act 1933

•Securities Act 1934

• Stricter control

• Companies had to be honest

Industry

•The New Deal introduced major breaks with traditional practices.

•N.R.A.

•Social Security

Act

•Wagner Act

•Fair Labour

Standards Act

Industry – Fair Labour Standards Act

•Set new standards so that:-

1. Set a minimum wage of 40 cents an hour

2. Set a maximum working week of 40 hours

3. Banned child labour

Industry – Wagner and Social Security Acts

• The Wagner Act stated that workers could join a

trade union

•

•The Social Security Acts established a

contributory insurance.

Farming – First Agricultural Adjustment Act

•Put up prices by creating artificial scarcity, ie killing

livestock, ploughing up crops

•This was considered by many to be unconstitutional and an

extension of federal powers.

De destitute - Successes

•Unique – a move away from laissez faire

•Helped prevent starvation

•Won political support for the Democrats from the poor

•Lowered unemployment from 13 million to 6 million by 1941.

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Bank Holiday - First Step

Why?

•Many banks had failed, wiping out families’ savings

•People lost confidence in the banks

Depositors Congregate Outside Closed Bank

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Bank Holiday - First Step

How?

•Closed banks for four days to reorganize

•President explains in a “fireside chat”

•Confidence restored

“Alphabet soup”-New Deal

2nd new deal was to help out individuals who were desperate.

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“Alphabet Soup”

•In the first 100 days of his administration Roosevelt passes tons of legislation

Hundred Days

•The agencies he creates (like AAA)

Alphabet Soup

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Next Step - “Alphabet Soup”

•18-25 year old guys get jobs and send money home to their families

CCC - Civilian Conservation Corps

CCC workers in Lassen National Forest, California

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Next Step - “Alphabet Soup”

•Government pays farmers not to farm

AAA - Agricultural Adjustment Administration

•Meant to cause prices to rise and halt overproduction

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Next Step - “Alphabet Soup”

•Government runs a hydroelectric power plant

TVA - Tennessee Valley Authority

•Provides cheap power & fertilizer to the poor region

Construction at Norris Dam, which was being built by the TVA on the Clinch River in Northeastern Tennessee

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Next Step - “Alphabet Soup”

•Insurance for the $ you put in banks

FDIC - Federal Department Insurance Corp.

•Protected people’s savings

Bank Employee Checks Depositor's Account

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Next Step - “Alphabet Soup”

•Watchdog agency for the stock market

SEC - Securities and Exchange Commission

New York Stock Exchange

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Next Step - “Alphabet Soup”

•Gave direct relief ($) to those who needed it

FERA - Federal Emergency Relief Admin.

•Beginnings of a welfare program

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Next Step - “Alphabet Soup”

•Taxed people working now to give payments to the elderly

Social Security

Social Security Information Poster

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His Greatest Mistake

Packing the Supreme Court

What?

Why?•Kept declaring his programs unconstitutional (including NRA, AAA, SEC, etc.)

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His Greatest Mistake

Packing the Supreme Court

February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"

What did this cartoonist think about the Supreme Court?

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His Greatest Mistake

Packing the Supreme Court

Results?

•Public grew angry (FDR taking too much power)

•FDR passed much less legislation after this

Supreme Court Exterior

Success or Failure?

1. Reduced unemployment by 7

million

2. Soil conservation schemes.

3. The Stock Market and banks recovered.

4. Transformed the Tennessee valley.

5. Roosevelt was re-elected.

1. Still 6 million out of work in 1941.

2. The numbers fell due to enlistment and

rearmament in WW2.

3. Black people were segregated from

white.

4. Women were excluded from the

New Deal.

5. Tennessee benefited but many areas were

still suffering.

African Americans Roosevelt’s administration also appointed many African Americans.

William Hastie became the first black federal judge.

A group of African Americans hired to fill government posts were known as the Black Cabinet, and they served as unofficial advisors to the president.

The Black Cabinet met under the leadership of Mary McLeod Bethune, director of Negro

Affairs in the National Youth Administration.

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Problems•Severe discrimination

Thousands of African American sharecroppers and tenant farmers were not helped by New Deal programs.

Southern Democrats in Congress opposed efforts to aid African Americans.

Many African American switch from the Republican Party to the Democratic Party during the 1930s.

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