Chapter # 23Chapter # 23“The New Deal”“The New Deal”

1933 - 19381933 - 1938

Section #1:Section #1: The New Deal The New Deal

Section #2: New Deal Critics

Section #3:Section #3: End of the New End of the New DealDeal

Section #1: The New Deal

Why did FDR call his program “The New Deal”? Explain the “3R’s” of the New Deal. FDR’s main focus with the New Deal? In his First Inaugural Address what did

FDR mean by “The only thing we have “The only thing we have to fear is fear itself”to fear is fear itself”?

Explain: The Hundred Days Why did the New Deal close banks? What was Harry Hopkins belief in

helping people find work?

The New Deal’s Three R’s…

1. Relief - Immediate action taken to halt the economies deterioration.2. Recovery - "Pump - Priming" Temporary programs to restart the flow of consumer demand.3. Reform - Permanent programs to avoid another depression and insure citizens against economic disasters.

Section #1 cont.Federal Emergency Relief Administration (FERA)

Sent funds to to agencies.

Public Works Program CWA? CCC?

National Industrial Recovery Act (NIRA)

NRA = National Recovery Administration

Spell out fair practices Regulate wages,

working conditions, production, prices.

Minimum wages & collective bargaining

PWA = Public Works Administration

Harold Ickes; Sect. Of Interior

Building projects

Homes & Farms HOLC?

June 1933 – June 1936 = one million low interest loans.

AAA = Agricultural Adjustment Administration

TVA?

Personnel Name women! Brain Trust? African Americans Eleanor Roosevelt

Section #1 Cont.

AgencyAgency PurposePurposeCivilian Conservation Corps (CCC)

Provided jobs to young, unmarried men (and later, women) to work on conservation and resource development projects.

Works Progress Administration (WPA)

Gave the unemployed work in building construction and arts programs.

Public Works Administration (PWA)

Sponsored massive public works projects such as dams and hydroelectric plants.

National Recovery Administration (NRA)

Worked with industries to establish codes outlining fair business and labor practices.

National Labor Relations Board (NLRB)

Enforced provisions of the Wagner Act, which included the right to collective bargaining and other union rights.

Federal Deposit Insurance Corporation (FDIC)

Insured bank deposits up to $5,000.

Securities and Exchange Commission (SEC)

Regulated the stock market and protected investors from dishonest trading practices.

Agricultural Adjustment Administration (AAA)

Attempted to raise farm prices by paying farmers to lower farm output.

Social Security Administration (SSA)

Provided old-age pensions, disability payments, and unemployment benefits.

Section #1 cont.

The Second New Deal More social welfare benefits, stricter controls over

business, stronger support for unions, and higher taxes on the rich.

WPA provided work for more than 8 mill. Playgrounds, airports, hospitals ect. Supported artists and writers.

FSA loaned more than $1 billion to farmers and set up camps for migrant workers.

Wagner Act July 1935, Sen. Robert Wagner: legalized practices

allowed only unevenly in the past. Ex. Collective bargaining.

Outlawed spying on union activities. Social Security system

Provided security to people who could not support themselves.

Old Age pensions and survivors’ benefits. Unemployment insurance Aid for dependent children and handicapped.

Section #1 cont.

1936 Election1936 Election FDR defeats Rep. Governor Alfred

M. Landon from Kansas FDR loses only two states.

Maine & Vermont Landslide victory winning the

electoral college 523 – 8. Shows that Americans support

the New Deal.

Section #2:Section #2:““The New Deal Critics”, The New Deal Critics”, Limitations…Limitations…

Women NRA codes permitted lower wages for women’s work. Jobs went to male “head of families”. 14-hour days for $6.50 per week.

African Americans Fed. relief programs (PWA) reinforced segregation. Not offered jobs at a “professional” level. Received lower pay than whites. Social Security failed to cover 2/3 of African

Americans. In the North: “Last hired, first fired.” “Don’t shop where you can’t work!” Fed offered no relief to lynchings.

Anti lynching bills went down to defeat in 1935 & 1938. FDR did appoint more African Americans to policy-

making posts than any President.

Section #2 cont.Section #2 cont.

Political Critics Republicans believed the New Deal

went too far. Wealthy regarded FDR as their enemy. Considered programs (TVA) as socialist. Second New Deal brought higher taxes to the rich

(Revenue Act of 1935 or the Wealth Tax Act). Raised the tax rate on individual incomes over $50,000. Increased rates on incomes and profits of corporations. Social Security????

Progressives and Socialist don’t believe the New Deal does enough. Upton Sinclair & Robert LaFollette, Jr. =

redistribution of wealth. Father Charles E. Coughlin & Huey Long:

demagogues

Section #2 cont.Section #2 cont.

Court - Packing Scheme Supreme Court frustrated FDR.

Invalidated the NIRA, AAA, and many state laws.

Feb. 1937 proposed a major court reform bill: lighten the burden on the justices.

Could appoint up to six additional justices.

9 justices had become well established since 1869.

Wanted to “pack” the court with judges favorable to the New Deal.

Violation of Separation of Powers?

Section 3: Last Days of the New Deal

The New Deal did not end the nation’s suffering, but it did lead to some profound changes in American life.Voters began to expect a President to formulate programs and solve problems.Unfortunately there was The Recession of 1937 Industrial production once again fell, as well as

employment levels. The new Social Security tax was partly to blame FDR also cut back on the WPA program The national debt rose from $21 billion in 1933 to

$43 billion by 1940.

Labor Unions IncreaseThe Wagner Act (1935) provided federal protection unions.Union membership rose from 3 million in 1933 to 10.5 million by 1941. The CIO (Congress of Industrial Organizations) was est. by John L. Lewis. The aim of this organization was to challenge conditions in industry, and their main tool was the strike.

An Era of StrikesDue to the Wagner Act, many unions went on strike.Several strikes included “Sit-down” strikes. Where the employees would not leave the building, they would simply sit down and refuse to work.The most famous sit-down strike began on Dec. 31, 1936. The UAW (United Auto Workers) occupied GM’s main plant in Flint, Michigan. GM executives turned off the heat and blocked entry to the

plants so that the workers could not receive food. Violence erupted outside with the picketers. Many wives were able to get food in to their husbands and

later GM finally gave in to negotiations.

New Deal’s Effect on Culture

The WPA supported unemployed artists, musicians, historians, theater people, and writers. In 1935, the program was called, “The Federal Writers’ Project.”

In the end, 10,000 artists painted some 2,000 murals, 100,000 other paintings, 17,000 sculptures, and many other works.

Lasting New Deal AchievementsMany NEW DEAL bridges, dams, tunnels, Many NEW DEAL bridges, dams, tunnels, public buildings, and hospitals stand to public buildings, and hospitals stand to this day.this day.The Tennessee Valley Authority remains a The Tennessee Valley Authority remains a model of government planning.model of government planning.The Federal Deposit Insurance The Federal Deposit Insurance Corporation (FDIC) still guarantees bank Corporation (FDIC) still guarantees bank deposits.deposits.The the workings of the stock exchange. The the workings of the stock exchange. (Martha Stewart!)(Martha Stewart!)Social Security is still around, though Social Security is still around, though many worry if it will be available for you many worry if it will be available for you and your children.and your children.

In the end…

Of all of its achievements, perhaps the New Deal’s greatest was to restore a sense of hope!What finally brought the U.S. out of the Great Depression?

So, time for Unit 7 Test! (Ch 21-23)