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
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