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The New Deal
Chapter 33
Revised 8/09
In spite of the many criticisms, most Americans were ready for a change.
‘______________’
Election to inauguration
President elect – no constitutional power
Current president – no political power
Hoover - lame duck (November of 1932
to March of 1933)
_______________
1932 – 1933 circumstances warranted immediate action, but hands were tied
20th Amendment changed the inauguration date from
Brain Trust While waiting, FDR gathered the foremost
experts in their fields at his estate in Hyde Park, NY
They mapped out an ambitious plan for relief, recovery, and reform ______– immediate direct payments for the needy
and jobs for the unemployed ______ – assist the economy to recover; new jobs
will mean increased demand, which will lead to more new jobs
_______– regulation of industry and the stock market to prevent the next crash and depression
(See chart on page 774)
New Deal programs nicknamed “__________
_____________” for the many acronyms used.
Executive Appointments
Frances Perkins 1st female member of cabinet Secretary of Labor
Mary McLeod Bethune Appointed Director of Negro Affairs of
the National Youth Administration One of over a hundred African
Americans FDR appointed
First 100 Days:Banking Plan
_____________*Closed all banks for reorganization
___________________*Federal audit of banks
*Only those in sound condition could
reopen
First 100 Days:Banking Plan
1st Fireside chat Urged people to deposit instead of
withdrawing money Deposits increased by $
First 100 Days:Banking Plan
Up to $2500 guaranteed
Low interest, long term loans to homeowners
Low interest, long term loans to farmers
First 100 Days:Direct Relief
Federal Emergency Relief Administration (FERA) Gave money to state and local
relief agencies from 1933-1935 Headed by Harry Hopkins
First 100 Days:Direct Relief
Locally run employment of young men
and women (1933-1934) Built airports, bridges, painted park
benches, raked leaves, etc.
First 100 DaysRecovery
National Industrial Recovery Act (NIRA) National Recovery Administration (NRA)
encouraged businesses to cooperate with each other to set prices, output, etc. Businesses had to allow ___________
First 100 DaysRecovery
(NIRA) Most unpopular program in New
Deal Price controls, limiting output, etc.
were too similar to Socialism Regulations confusing; owners
feared the loss of control of their businesses
Parts found unconstitutional by Supreme Court
Part of NIRA 1933-1941 Led by Harold Ickes from 1933-1939 Gave billions to state and local
governments to build dams, bridges, airports, and other government buildings
70% of all schools constructed in 1930’s were funded by the PWA
“__________________” Gave employment to millions exponentially Built infrastructure in 1930’s
Helped win war in 1940’s Backbone of post-war industrial boom in
1950’s Infrastructure sadly lacking today both in new
projects and maintenance of existing structures
First 100 Days:Direct Relief
______________________. Gave people clean, safe living quarters Fed them 3 meals a day Earned wages Families had one less person to feed ¾ of paychecks were sent home to
their families Not competing for jobs with older men
(Cont.)
First 100 Days:Direct Relief
_________________________. Literacy programs, recreation, and
time to spend with other young adults National parks and forests received
many improvements Program helped the most volatile
group in society – males age 18 to 25
First 100 Days:Direct Relief
______________________. Lived in camps in rural areas $30 a month but $25 was sent
home to their families. Planted over 3 billion trees, cleared
forests, built levees, etc. (1933 to 1939, phased out by 1942)
First 100 Days:Direct Relief
Civilian Conservation Corp. Few women in 45 separate camps African-Americans, Hispanics, Native
Americans in segregated camps Offered to veterans from 2nd Bonus Army
First 100 DaysAgricultural Recovery
Paid farmers to Raised prices and incomes for farmers. Hurt consumers and tenant farmers.
Struck down by Supreme Court in 1935 Re-established in 1936 by changing
wording
(1936) _________________________ Revised to give money to farmers
for _______________________. Established the Farm Security
Administration to aid tenant farmers to buy land
Established migrant camps for shelter and medical care
First 100 DaysRecovery ____________________________
6 dams and power plants on the Tennessee River and its tributaries in 13 states.
Tennessee, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas, Missouri, Illinois, Indiana, and Kentucky
TVA is only New Deal program still around and operated by the federal government. Part of the area is still very poor and the TVA works to improve the standard of living there.
Second New Deal New Deal failed to end the Depression Critics included Herbert Hoover Supreme Court heard cases from people
that questioned the constitutionality of the programs
However, the public indicated that they wanted change
Mid-term elections in 1934 supported democrats
Gave Roosevelt thumbs up
Provided electricity
to rural areas and
Regulated interstate
electricity and gas
Second New Deal:
(1935)
Millions of bricklayers, carpenters, writers, artists, etc. employed by the federal government. National Youth Administration
Provided jobs to young adults, 16-25 Division of Negro Affairs
Provided jobs for African Americans
Second New Deal:
Pensions to people 65 and older
Payments to the disabled, widows, and their children
Unemployment benefits
Stabilizing influence on the economy
Paid for with taxes on employers and employees
(1935) Wagner-Connery Act (Labor Relations Act) Guaranteed unions the right
to organize and negotiate Right to collective bargaining
and closed shops
Eleanor Roosevelt
FDR’s eyes and ears Visible sign of hope and compassion Visited with 2nd Bonus Army and other
groups Traveled the country and spoke to common
people Gained support for the New Deal
Stood up for women, African-Americans, and other minorities
Marion Anderson sang at the White House in 1936. When she was denied the use of ___________________________, Mrs. Roosevelt arranged for her to appear on the steps of the _______________________.
1936 election was a landslide for Roosevelt
Carried every state but Vermont and Maine
Showed wide-spread support for the New Deal
Roosevelt’s Critics
_____________ – wanted a return to laissez faire. Protested against increased taxes and
government interference in business.
___________ – didn’t think Roosevelt went far enough.
Roosevelt’s Critics
_______________- pension plan for Americans over age 60
_______________- nationalize banks and return to silver standard (increase the supply of money, cause inflation, which means repaying loans with inflated dollars)
________________ - Share-Our-Wealth. Take from the rich and give to the poor. Assassinated in 1935.
Roosevelt’s Recession
Roosevelt stopped introducing new programs and tried to scale back some programs because it appeared that the economy was recovering.
Cutbacks were too soon and contributed to a downward swing in 1936-1937.
Funding was increased in 1938.
Roosevelt’s Court Packing Scheme
6of the 9 Supreme Court judges were conservative and all 6 were over 70
Can not remove a Supreme Court justice except for high crimes and misdemeanors
Constitution does not specify how many justices sit on the court
President nominates judges; senate ratifies them
Roosevelt asked Congress to pass legislation to
Congress denied his request and the newspapers and public spoke out against his “court-packing scheme’.
FAIR LABOR STANDARDS ACT(Reform)
o (1938) Last major piece of New Deal legislation
Maximum hour standards (established the
40-hour work week) Severely curbed the use of child labor Did not apply to domestics, farmers and
other jobs that paid less than .25 an hour
How successful, if at all, was the New Deal?
New Deal goals: End unemployment Increase Gross Domestic Product Improve living and working conditions
nationwide Prevent a new “Great Depression” from
occurring
Numbers of Banks and Bank Suspensions
Year Number as of 12-31 Suspensions
1929 24,633 659
1930 22,773 1350
1931 19,970 2293
1932 18,397 1453
1933 15,015 4000
1934 16,096 57
Data are from Table V 20-30 in Historical Statistics of The United States: Colonial Times to 1970, 1975, p.
Gross Domestic Product as a
percentage of 1933 GDP.
Consumer spending was 80 billion in 1929; 46 billion in 1933; 72 billion in 1940.
Expenditures per capita, 1800-1990, measured every 12 years.
*Note: we spent less on the Depression than on WWI
1860
1918
1944
1968
1990
*Amount spent on Public Works increased by 1934 but not dramatically. Amount spent by the private sector decreased drastically from 1931 to 1933 and only increased again slowly.
The End!