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1933-1939 The Great Depression and the New Deal Slide 2 FDR 1932 Franklin Delano Roosevelt Governor of New York Cousin of Teddy Reform minded --- Can do Polio Wife = Eleanor His Legs Reformer oControversial Slide 3 Campaign of 1932 I pledge you, I pledge myself to a new deal for the American people FDR wins 472 59 Elected 4 months before he could take office Inauguration March 4, 1933 Lame Duck Session Did not work with Hoover Slide 4 FDR Moved decisively Let me assert my firm belief that the only thing we have to fear is fear itself Special Session = Special Congress Gave president new powers Rubber Stamp Hundred Days March 9 June 16, 1933 15 major pieces of New Deal Legislation Expanded federal governments role in nation's economy Slide 5 FDR New Deal Three Rs Relief, Recovery, and Reform Fireside Chats Radio talks Talk directly to the people about his plans Slide 6 FDR Manages Money Closed banks day after inauguration Prevent withdrawals Emergency Banking Relief Act = 1933 Gave president power to regulate banking transactions and foreign exchange Treasury Department inspects banks Sound banks reopen Insolvent banks stay closed Restored confidence in banks Slide 7 Cont. Glass Steagall Act =1933 Federal Deposit Insurance Corporation = (FDIC) Federal insurance for bank accounts Up to $5,000 Manage currency Protect gold reserves = Hoarding Surrender to Treasury = Exchange for paper money Took nation off the gold standard Purchase gold at increasing prices 1933 = $21 1934 = $35 Slide 8 Bank Failures Before and After the Glass- Steagall Banking Reform Act of 1933 Slide 9 Creating Jobs Civilian Conservation Corps = 1933 (CCC) Most popular of New Deal Put men 18- 25 to work on building roads, parks, planting trees, flood control projects Paid $30 sent home $25 Free food housing Great Plains 200 million trees Prevent another Dust bowl Militarizing? Slide 10 ABC Soup Federal Emergency Relief Administration = 1933 (FERA) Harry L. Hopkins NY Social Worker $3 Billion to states for direct dole payments Direct relief for the needy Food, clothing Works Progress Administration = 1935 (WPA) Create as many jobs as possible as quickly as possible 1935 1943 Spent $11 Billion = Giving jobs to more than 8 million workers (unskilled) Built airports, constructed roads and streets, public buildings Federal Art Projects Artist hired to create posters and murals Slide 11 Farmers Agricultural Adjustment Act = 1933 (AAA) Raise crop prices by lowering production Paid farmers not to plant = Destruction of Food Cotton growers - $200 million to plow under 10 million acres of their crop Hog farmers paid to slaughter 6 million pigs Put money back in farmers pockets Slide 12 Industry and Labor National Recovery Administration = 1934 (NRA) Immediate relief with long range recovery Codes of Fair Competition Hours of labor reduced = employment spread over more people Right to organize Blue Eagle = We Do Our Part Fell apart = shot down by Supreme Court Slide 13 Cont. Domestic Allotment Act = 1936 Paid farmers for cutting production of soil depleting crops Rewarded for practicing good conservation methods Soybeans Farm Security Administration = 1937 (FSA) Loaned more than $1 billion to help tenant farmers become landholders Indian Reorganization Act = 1934 Establish local self governments Preserver native crafts and traditions Slide 14 Battling Bankers Federal Securities Act Soundness of their stocks and bonds Securities and Exchange Commission = 1934 (SEC) Watch Dog Regulate the stock market Prevent inside information Rigging Slide 15 TVA Harnesses Tennessee Tennessee Valley Authority = 1933 (TVA) Most revolutionary Discover how much the production/distribution of electricity cost Test fairness of rates Socialism? Dams = Hydroelectric power Growth of urban West Regulate Public Utilities = 1935 Brought electricity to rural areas 1935 12.6% 1945 48% 1949 90% Slide 16 Housing and Social Security Federal Housing Administration = 1934 (FHA) Small loans to householders Improving dwellings or completing new ones United States Housing Authority = 1937 (USHA) Lend money to states or communities for low-cost construction Slide 17 Cont. Social Security Act = 1935 Old Age insurance for retiree 65 or older Unemployment compensation system Aid for families with dependent children and disabled Government was not recognizing its responsibility for welfare of its citizens Slide 18 New Deal for Labor Labor began to feel more secure Rash of walkouts = summer 1934 Wagner Act = 1935 National Labor Relations Act Protected the right of workers to join unions Self organization Collective bargaining Committee for Industrial Organization = CIO Sit ins Slide 19 Cont. Fair Labor Standards Act = 1938 Minimum-wage and maximum-hour levels 40 hour work week Set minimum wage 40 cents an hour Labor by children under 16 forbidden Under 18 if dangerous Roosevelt wants you to join a Union Slide 20 Election 1936 Democrats = FDR Republicans = Alfred M. Landon FDR wins 523 to 8 Appealed to the Forgotten Man Coalition of the South: Blacks, Urbanites and the Poor Catholics, Jews, Immigrants Economy had improved, but not as much as he would have liked Second New Deal Next 100 days Slide 21 Supreme Court 20 th Amendment Moved inauguration to January 20, 1937 Supreme Court = did not back many of FDRs Bills Ultraconservative Wanted to add 6 new justices 1 for everyone who was over 70 who would not retire Court-packing plan Ax over their head Owen J. Roberts Began to vote on the liberal side Congress passed a court reform bill, only for lower courts Loss for FDR Deaths/Resignations allow him to appoint 9 justices Slide 22 Reforms FDR did not favor Deficit Spending Scaled back Industrial production dropped 1937 = Depression within a depression Unemployment increased o7.7 million -1937 o10.4 million -1938 New Plan Deficit Spending Keynesianism Prime the Pump Slide 23 Critics Conservatives Made federal government too large too powerful Stifled free enterprise Took more of their money - taxes Liberals Didnt go far enough to socialize the economy Eliminate social and economic equality Supporters Struck a balance Slide 24 Social Effects New Deal did not end Great Depression It reduced the suffering of thousands Gave people hope Confidence increased Banking Unemployment compensation Social Security