An increasingly pluralistic United States faced profound domestic and global challenges, debated the proper degree of government activism, and sought to.

An increasingly pluralistic United States faced profound domestic and global challenges, debated the proper degree of government activism, and sought to define its international role.

4/21/2015

Period 7

1890 – 1945, comprises 17% of the AP exam

Key concept 7.1

III. National, state, and local reformers responded to economic upheavals, laissez-faire capitalism, and the Great Depression by transforming the U.S. into a limited welfare state.

The New Deal

4/21/2015

A. The liberalism of President Franklin Roosevelt’s New Deal drew on earlier progressive ideas and represented a multifaceted approach to both the causes and effects of the Great Depression, using government power to provide relief to the poor, stimulate recovery, and reform the American economy.

Roosevelt elected in 1932 Relief, Recovery, Reform In direct contrast to _______________

economics of the 1920’s Took a middle-road approach to change

If too drastic, would end Capitalism as we know it

If too little, might lead to the overthrow of the government

Government spending was needed to stimulate the economy

Government spending had to be limited to avoid huge debts and increased taxes

‘_______________’ Election to inauguration

President elect – no constitutional power

Current president – no political power

Hoover - __________(November of 1932 to March of

1933) 1932 – 1933 circumstances warranted immediate

action, but hands were tied

__________________changed the inauguration date from March 4th to January 20th after 1933

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

3 R’s of the New Deal Relief – _________ assistance to

people in need. Included CWA and CCC

Recovery – ___________ assistance to promote growth in the economy; programs built infrastructure while providing employment “prime the pump” Included PWA, WPA Longer time than relief but not designed to

last 4-ever

3 R’s of the New Deal Reform – ___________ changes to

regulations of financial institutions to correct flaws and reduce volatility ; long term programs to provide financial security Includes Glass-Steagal, Social Security,

SEC

**Note: most of the programs fell into more than 1 category; CWA also worked toward recovery, WPA also provided relief

First 100 Days:Banking Plan

______________- 4 days*Closed all banks for reorganization

Emergency Banking Act*Federal audit of banks

*Only those in sound condition could

reopen ____________________

Urged people to deposit instead of withdrawing money

Deposits increased by $12 million

First 100 Days:Banking Plan –

Glass – Steagal

Federal Deposit Insurance Corp. (F.D.I.C)

Up to $2500 guaranteed (now $250,000)

Restrictions on affiliations between banking and

investment firms (repealed in 1999)

Required term: Federal Deposit Insurance Corporation

First 100 Days:Direct Relief

Civil Works Administration (CWA) Locally run employment of young men

and women (1933-1934) Built airports, bridges, painted park

benches, raked leaves, etc.

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

National Industrial Recovery Act (NIRA)

National Recovery Administration (NRA)

encouraged businesses to cooperate

with each other to set prices, output, etc.

________________suspended.

Businesses had to allow ___________

_____________by labor.

Required term: National Recovery Administration

• Public was encouraged to frequent the businesses that were part of the NRA.

• People signed pledges to only buy products from ‘NRA’ companies.

• Initial response was positive – hope for a quick recovery

• Program lost support by 1934. • Too complicated• Too many special interest groups benefited• Little or no enforcement of the rules.

(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 in 1935

Public Works Administration(PWA) Part of NIRA 1933-1939* (Fazed out completely by 1941)

Led by Harold Ickes Gave 6 billion 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

Public Works Administration(PWA)

“___________” Gave employment to millions exponentially Built _____________ in 1930’s

Helped win war in 1940’s Backbone of post-war industrial boom in

1950’s _______________ sadly lacking today both

in new projects and maintenance of existing structures

First 100 Days:Direct Relief

_____________________________. 2.5 million young, single men ages 18-25 Few women in 45 separate camps African-Americans, Hispanics, Native

Americans in segregated camps Offered to veterans from ______________

Allowed to be married and older than 25 250,000 served

Lived in camps in rural areas

Gave people clean, safe living quarters

Literacy programs, recreation, and time to spend with other young adults

National parks and forests received many improvements

First 100 Days:Direct Relief

________________________. Families had one less person to feed Not competing for jobs with older men Program helped the most volatile

group in society –

First 100 DaysAgricultural Recovery

Agricultural Adjustment Administration (AAA) . 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) Agricultural Adjustment Act 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 Tennessee Valley Authority

6 dams and power plants on the Tennessee River and its tributaries in 13 states.

Required term: Tennessee Valley Authority

Second New Deal New Deal failed to end the Depression Critics included _________________ Supreme Court heard cases from people

that questioned the constitutionality of the programs

However, the public indicated that they wanted change

______________in 1934 supported democrats

Gave Roosevelt thumbs up

Second New Deal: Works Progress Administration

(1935)

Millions of , , 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

Federal Writers’ Project

Employed authors as part of the WPA ________________

2300 1st person accounts of slavery collected between 1936-1938

Written as texts and recorded on wax spools

Originals in the ______________

Required term: Federal Writers’ Project

Second New Deal:(1935) Social Security Act

Pensions to people 65 and older

Payments to the disabled, widows, and their children

Unemployment benefits Paid for with taxes on

employers and employees

Required Term: Social Security Act

(1935) Wagner-Connery Act (Labor Relations Act) Guaranteed unions the right

to organize and negotiate Right to

_______________

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

Marion Anderson sang at the White House in 1936. When she was denied the use of Constitutional Hall, Mrs. Roosevelt arranged for her to appear on the steps of the Lincoln memorial.

1936 election was a landslide for Roosevelt

Carried every state but Vermont and Maine

Showed wide-spread support for the New Deal

Key Concept 7.1, III.

B. Radical, union, and populist movements pushed Roosevelt toward more extensive reforms, even as conservatives in Congress and the Supreme Court sought to limit the New Deal’s scope.

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

Paul Townsend - 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)

Huey Long (Kingfish) Share-Our-Wealth. Take from the rich and give to the poor. Assassinated in 1935.

Required term: Huey Long

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

Can not remove a Supreme Court justice except for

Constitution does not specify how many justices sit on the court

President nominates judges; senate ratifies them

Roosevelt asked Congress to pass legislation allowing him to add new judges for each judge on the court .

Congress denied his request and the newspapers and public spoke out against his “court-packing scheme’.

Required term: Supreme Court Fight

FAIR LABOR STANDARDS ACT(Reform)

o (1938) Last major piece of New Deal legislation  

Set _______________(________an hour) 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

Key Concept 7.1, III

C. Although the New Deal did not completely overcome the Depression,

it left a legacy of reforms and agencies that endeavored to make society and individuals more secure, and

it helped foster a long-term political realignment in which many ethnic groups, African Americans, and working class communities identified with the Democratic Party.

How successful, if at all, was the New Deal?

New Deal goals:

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!