Chapter 15 The New DealI. A New Deal Fights the DepressionA. Electing Franklin Delano Roosevelt1. The Republicans nominated President Hoover in the election of 1932.

2. The Democrats nominated Franklin Delano Roosevelt (FDR) a two term governor of New York.

3. Hoover was blamed for the Depression and not doing enough to stop it.

4. Roosevelt won by a wide margin.

1. Roosevelt was elected in November 1932 but was not inaugurated until March of 1933. (Famous Quote) *audio

B. Waiting for Roosevelt to Take Office

3. The Twentieth Amendment which took effect in 1933 moved the date the President took office to January following the November election. (inauguration)

2. FDR used the time from November to March to select and work with a group of carefully picked advisors.

4. Roosevelt selected a group of lawyers, professors, and journalists that became known as the brain trust.

5. Roosevelt’s program designed to end the Great Depression was called the New Deal.6. The New Deal policies had three general goals: (the 3 “Rs”)a. relief for the

needy.b. recovery for the economy.c. reform of the nation’s finances.

7. When Roosevelt took office, his administration started a period of intense activity known as the Hundred Days.8. During this period Congress passed over 15 major pieces of legislation.

C. Reforming Banking and Finance1. Roosevelt’s first step was to carry out reforms in the nation’s banks and finances.

2. Roosevelt declared a bank holiday closing all banks preventing further withdrawals.

3. The Emergency Banking Relief Act authorized the Treasury Department to inspect all banks.4. Banks that were declared financially sound would be allowed to reopen.

5. The day before the banks were scheduled to reopen, FDR began the first of his radio talks to the nation. (were known as “fireside chats”) *audio

6. He explained his New Deal measures and asked the public to support the government and the banking system.

7. Congress also passed a law creating the FDIC-Federal Deposit Insurance Corporation which insured all individual bank accounts up to $5,000.8. The Federal Securities Act required corporations to provide complete information on all their stock offerings.

9. The SEC-Securities and Exchange Commission was created by Congress to regulate the Stock Market.10. The Twenty-first Amendment was passed repealing Prohibition to allow revenue from the sale of alcohol.D. Other New Deal Measures.1. The Agricultural Adjustment Act:

a. was passed to aid America’s farmers by raising crop prices through lowering production.

b. paid farmers to leave land unplanted.2. The Civilian Conservation

Corps:a. The CCC was a work project that put young men age 18 to 25 to work on public works.

b. they built roads, parks, planted trees, and worked on soil erosion and flood control projects.c. workers were paid $30 a month and $25 was automatically sent home to their families.

d. The CCC supplied food, housing and uniforms.

e. The CCC employed over 3 million men.f. Most work camps were located on the Great Plains where they planted over 200 million trees to prevent another Dust Bowl3. The Federal Emergency Relief Administration

a. The FERA provided direct relief to the needy in the form of food and clothing.

b. It provided over $750 million in federal grants to the states.

4. The Public Works Administrationa. The PWA gave federal

money to the states to provide jobs.b. The jobs were mainly in the construction of schools and community buildings.

5. The Civil Works Administrationa. The CWA provided 4 million

jobs for the winter of 1933-1934.b. It built over 40,000 schools, over a half a million miles of roads, and paid the salaries of over 50,000 schoolteachers

6. The National Industrial Recovery Act (NIRA) was passed to promote fair practices for industries.

a. The NIRA set fair prices for goods to ensure fair competition.b. The NIRA banned child labor.

c. The NIRA created a set standard for working hours.

7. The Tennessee Valley Authority (TVA) was a program to develop the depressed Tennessee Valley River region.

a. The TVA constructed 20 dams and renovated five existing ones.b. The TVA created thousands of jobs.c. The TVA provided flood control.d. The TVA provided hydroelectric power.

8. The Home Owners Loan Corporation (HOLC) provided government loans to homeowners facing foreclosure.

9. The Federal Housing Administration (FHA) was created to furnish loans for new homes and home repairs.E. Opposition to the New Deal1. The New Deal had many critics in the government.

2. Some believed that the New Deal did not do enough to help the poor.3. Others believed that the New Deal went too far by controlling industry and agriculture.

5. Roosevelt believed that the S.C. would strike down other New Deal measures so he proposed a court-reform bill to reorganize the Supreme Court in his favor.

4. Two New Deal measures were declared illegal by the Supreme Court in 1935 and another in 1936.

c. FDR would appoint judges who supported his New Deal measures.

b. The plan would allow FDR to appoint 6 new justices making the total 15.

a. The Court packing plan would allow the President to appoint a new justice for every present justice over the age of 70.

6. The “court-packing” plan met strong opposition in Congress.7. FDR did not need to reorganize the court-within the next four years seven justices retired or resigned which allowed him to make new appointments.

II. The Second New Deal

A. The Second Hundred Days

1. The economy had improved during FDR’s first two years in office but not as much as he had hoped.2. Roosevelt launched a new burst of legislation that became known as the Second Hundred Days.

3. This legislation was aimed at providing relief for farmers and workers whom Roosevelt had called the “forgotten man”.4. In the election of 1936 Roosevelt ran against the Republican candidate Alf Landon of Kansas.5. Roosevelt won every state but two giving him a vote of confidence for his New Deal reforms.

B. Helping Farmers

1. The Supreme Court had repealed the AAA in 1936.2. In 1938 Congress passed a second AAA that was revised to meet the Supreme Court standards.3. The Resettlement Administration was formed to loan money so small farmers could buy land.

4. The Farm Security Administration (FSA) loaned money so tenant farmers could buy their own land.C. Other Relief Measures

1. The Works Progress Administration:a. The WPA was one of the

largest New Deal programs.

b. It employed over 8 million workers between 1935 and 1943.

c. they built over 850 airports, over 651,000 miles of roads, constructed over 110, 000 libraries, schools and hospitals.

d. Women workers made over 300 million garments for the needy.2. The National Youth Administration, the NYA, provided jobs for over 2 million high school and college students in part-time clerical positions.

3. The Social Security Act created in 1935 had three main provisions.a. old-age insurance for retirees 65 years or older and their spouses.b. unemployment compensation system.

c. aid to families with dependent children and the disabled.

III. Society and CultureA. Motion Pictures and Radio (p. 523)1. The 1930’s were a golden age for the motion picture and radio industries.

4. The Rural Electrification Administration (REA) distributed electricity to rural and farm areas.

2. New Hollywood Stars:

a. Greta Garbo

d. James Cagney

3. Famous Movies of the 1930s:a. Gone With the Wind-most

famous film of the 1930s about life in the South during the Civil War.

b. Clark Gable

b. Flying Down to Rio

c. Marlene Dietrich

e. Snow White and the Seven Dwarfsf. Little Caesar

g. Public Enemy

c. Gold Diggers

4. Radio provided entertainment in over 90% of American Homes and featured stars such as:

d. The Wizard of Oz

c. Jack Bennyd. Orson Welles-famous for his radio broadcast “The War of the Worlds”

a. George Burns and Gracie Allen

5. Famous artists and writers of the 1930s:

b. Bob Hope

a. Grant Wood-painted American Gothic that shows two farmers standing in front of their farmhouse during the Depression.

c. John Steinbeck-wrote the Grapes of Wrath about a group of Oklahomans who left the Dust Bowl for California.

b. Richard Wright-African American writer who wrote Native Son about a man trying to survive in a racist world.

IV. The Impact of the New Deal

A. New Deal Reforms

2. By 1937 the economy had improved enough to convince most Americans that the Depression was coming to an end.

1. In his inauguration for his second term FDR made this famous statement, “I see one-third of a nation ill-housed, ill-clad, ill-nourished.

3. By 1939 the focus of the government had turned away from the economy to events that were taking place in Europe-especially the rise of Hitler to power in Germany.