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Jan 02, 2016
1933 - 1941
Roosevelt and the New Deal 1933 - 1939
Chapter 181Roosevelts Rise to Power 1932 - Republicans nominated Herbert Hoover to run for a second term as president.
Democrats selected New York Governor Franklin Delano Roosevelt (FDR).
FDR's PROMISE: A "NEW DEAL" FOR AMERICANSNew Deal 25 seconds3FDRs policies to end the depression - the New Deal.
Roosevelt won the election in a landslide.
Wealthy NY family; Harvard and Columbia Law School.
Cousin of President Theodore Roosevelt.
Married TRs niece, Eleanor.
4FDRs political career started in 1910 as Progressive NY state senator.
Asst. Secretary of the Navy under Woodrow Wilson.
1920 contracted polio, a paralyzing disease.
Roosevelt did not give up.
He relied on his wife, Eleanor, to keep his name prominent in politics.
5Narrowly won race for New York governor.
During his term as governor, Roosevelt used government power to help people deal with the economic challenges of the time.
His struggle with polio made voters feel he understood their hardships.
His popularity in New York paved the way for his run for president.
6THE NEW DEAL
Roosevelt Is Inaugurated FDR won the November 1932 presidential election, but his inauguration would not occur until March 1933.
During this time, the depression worsened; unemployment continued to rise, bank runs increased, and people began converting their money into gold.
8People began taking gold and currency out of banks (bank runs), resulting in over 4,000 banks collapsing by March 1933.
Many governors declared bank holidays which closed remaining banks before bank runs could put them out of business.
The Hundred Days Begins Between March 9 and June 16, 1933, referred to as the Hundred Days, FDR sent many bills to Congress.
Congress passed 15 major acts to help during the economic crisis.
This period is called the First New Deal.
Fixing the Banks and the Stock Market The first thing FDR needed to do was to restore confidence in the banking system.
He declared a national bank holiday and called Congress into special session.
Emergency Banking Relief Act; required federal examiners to survey the nations banks to determine which banks were financially sound and stable.
In FDRs first fireside chat, on the radio, he assured listeners that the banks were now secure.
The following day deposits in every city outweighed withdrawals, ending the banking crisis.
12New regulations for banks and stock market were implemented with the Securities Act of 1933 and the Glass-Steagall Banking Act.
Under the Securities Act of 1933, companies that sold stocks and bonds had to provide complete and truthful information to their investors.
13 The Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent fraud.
14Glass-Steagall Act separated commercial from investment banking.
Depositors money could no longer be risked by banks speculating on stock market.
Created the Federal Deposit Insurance Corporation (FDIC); provided government insurance for bank deposits up to a certain amount.
15Current limits are $250,000 TOTAL deposits at any one bank. (Includes checking, savings, and CDs).Managing Farms and Industry FDR asked Congress to pass the Agricultural Adjustment Act a plan that paid farmers not to raise certain crops to lower crop production.
Administered by the Agricultural Adjustment Administration (AAA).
Increased prices, and helped some farmers, but thousands of tenant farmers were unemployed, homeless.
16The National Industrial Recovery Act (NIRA) suspended antitrust laws and allowed business, labor, and government to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry.
The program was run by the National Recovery Administration (NRA), and it urged consumers to buy only from companies who signed agreements with the NRA.
17The gains of the NRA were short-lived and actually caused industrial production to fall.
It was declared unconstitutional by the Supreme Court in 1935.
18Spending and Relief Programs FDR supported a series of government agencies to begin work programs for the unemployed.
The Civilian Conservation Corps (CCC) - unemployed men aged 18 to 25 worked with national forestry service planting trees, fighting forest fires, and building reservoirs.
By the time it closed in 1942, the CCC had employed three million men.20In 1933 Congress authorized the Public Works Administration to begin a series of construction projects, creating additional jobs.
Harry Hopkins, the head of FERA, set up the Civil Works Administration (CWA), which hired workers directly and put them on the government payroll.
It was shut down when Roosevelt became fearful of the amount of money spent on the program.
The most important aspect of Roosevelts New Deal was the change in the spirit of the American people.
People became hopeful and optimistic, and their faith in America was restored.
NEW DEAL "ALPHABET" AGENCIES24
25Challenges to the New Deal Support of FDR & the New Deal began to fade in 1935.
Was the New Deal working?
FDR used deficit spending to pay for the New Deal.
He borrowed money to pay for his programs.
26Left-wing Democrat senator Huey Long proposed taking property from the rich and dividing it up among the poor.
Charles Coughlin, Catholic priest in Detroit, gave further support to Huey Long's ideas through his popular radio broadcast.
Huey Long27Dr. Francis Townsend, former public health official, proposed that the federal government pay citizens over the age of 60 a pension of $200 a month.
This would increase spending and create additional jobs for younger people.
Dr. Francis Townsend28Launching the Second New Deal In 1935 Roosevelts second New Deal began with a series of programs and reforms to speed up recovery and provide economic security to every American.
Roosevelt hoped the plan would increase his chances of being reelected in 1936.
29The Works Progress Administration (WPA) was a federal agency headed by Harry Hopkins.
It spent $11 billion over several years creating jobs for workers.
The Riverwalk in San Antonio was one of many WPA projects.30
A mural painted on a wall in a public building. The artists work was financed by the Works Progress Administration with taxpayer dollars. The WPAs most controversial aspect was offering work to artists, musicians, theater people, and writers.
32In the Supreme Court case Schechter v. United States, the court struck down the National Industrial Recovery Act.
The Court ruled that the Constitution did not allow Congress to delegate its powers to the executive branch.
It ruled the NIRA codes unconstitutional.
33The Rise of Industrial Unions FDR believed that:
More labor unions
341935 - National Labor Relations Act (Wagner Act) was passed; guaranteed workers the right to organize unions without employer interference. Set up the National Labor Relations Board (NLRB); organized factory elections by secret ballot to determine if workers wanted to form a union.
35Binding arbitration was also set up. A neutral party would listen to both sides and decide the issue.
This gave dissatisfied union members a process to voice their complaints.
In 1935 the Committee for Industrial Organization (CIO) was formed to organize industrial unions.
36At the General Motors auto-body plant in Cleveland, Ohio, workers protested with a sit-down strike where they stopp