Chapter 15- The New Deal

Chapter 15- The New Deal

Roosevelt v. Hoover 1932

Conservative; opposed direct Relief to combat depression

Liberal; social duty of gov.To aid the poor

Privately run welfare fundsAnd local gov. to help needy

Combo of private and federalAid to needy

Supported some regulationOf business

Supported regulation of Business and government Ownership of utilities

Believed in tariffs to raiseMoney for government

Believed in progressiveIncome tax

1. A New Deal Fights the Depression

1. Election of 1932: a. Dem- Franklin D. Roosevelt b. Rep.- Herbert Hoover 1. Roosevelt won in overwhelming fashion 2. Democrats also took control of Congress

2. Waiting for Roosevelt:

1. 20th Amendment- moved inaugurations from March to January (did not go into effect until 1933)

2. “Brain Trust”- group of advisors to FDR working on set of policies- “New Deal”

b. March 9-June 16, 1933- “First 100 Days”

1. 15 pieces of legislation passed significantly expanded gov’ts role in economy.

Relief for theunemployed

Economic Recovery

Reforms to prevent another depression

Goals of New Deal

3. Reforming Banking and Financing: a. declared a bank holiday b. Emergency Banking Relief Act:

revived faith in banks c. An important Fireside Chat d. Glass-Steagall Banking Act of 1933: 1. Est. the FDIC (Federal Deposit

Insurance Cor.)

2. Provided

insurance for accounts less than $5,000.

e. Federal Securities Act: required cor. To provide information on all stock offerings and made them liable for misrepresentation.

1. Securities and Exchange Commission- regulate stock market.

f. 21st Amendment: repealed prohibition 1. Cleared way for alcohol tax for raising government revenue. B. Helping the American People 1. Assisting farmers: a. Agricultural Adjustment Act (AAA): raise crop prices by limiting production 1. Asked farmers not to grow or to destroy

some crops/livestock

2. Providing Work Projects: a. Civilian Conservation Corps.: 18-25 year old men to work building roads, parks, planting trees,

and soil-erosion/flood control projects. 1. Paid $30/month; $25 sent to

family 2. Free food and uniforms

b. Federal Emergency Relief Administration: $500 million to provide direct relief to the needy.

c. Public Works Administration: money to states to create jobs

1. Schools; community buildings d. Civil Works Administration (CWA): 4 million immediate jobs; 40,000 schools; 1/2 million miles of road e. National Industrial Recovery Act:

1. National Recovery Administration: set prices on products to ensure fair competition

a. standards for work hours; child labor laws

f. Tennessee Valley Authority (TVA): renovated 5 existing dams and constructed 20 new ones

C. New Deal Under Attack: 1. Liberals- new deal didn’t do enough to

help the poor and reform the economy. 2. Conservatives- too much direct relief

and a socializing of the economy.

a. “court-packing” bill

b. called for appointment of 6 new justices

1. Why appoint new ones?

2. Never came to fruition

2. Unforeseen changes- appointed 7 new justices in 4 years.

3. Huey Long- “The King Fish”

a. Share Our Wealth Programs

The Tree of Liberty

Liberals

Conservatives

Radicals

5. Father Charles Coughlin- Roman Catholic priest

a. favored guaranteed annual income

b. nationalization of banks

c. radio audience of 40 million

d. anti-Semitic views cost him

support

II. The Second New Deal

A. Second 100 DaysB. 1. 1936 ElectionC. a. Rep.- Alfred LandonD. b. Dems.- FDRE. 1. Landslide- FDRF. 2. Works Progress Admin. (WPA):

constructed airports, libraries, hospitals, roads, etc.

a. $5 Billion budget; largest sum ever for welfare by one nation.

b. employed 8 million people

c. employed teachers, artist, musicians, etc.

B. Improving Labor Conditions:

1. Fair Labor Standards Act:

a. est. national minimum hourly rate for wages- 25 cents

b. est. national maximum workweek- 44 hours.

2. Social Security Act:

a. old age insurance for retirees 65 or older and their spouses.

b. unemployment compensation system

c. aid to families with dependent children and the disabled

III. Impact of the New Deal

A. Reforms that Endure

1. 1937 production had returned to 1929 levels and unemployment was at 14%

a. 1939 the New Deal was over

b. fear of deficit spending: spending more money than the government receives.

2. Expanding the role of the government

a. more active role in shaping economy

1. Kicking $ into economy

2. Creating federal jobs

3. Regulating supply and demand

4. Increased involvement in labor disputes

b. Fed. Gov’t had to go deep into debt:

1. 1934- $3.3 Billion

2. 1939- $2.9 Billion

c. So what really ended the depression?

1. Massive spending for guns, tanks, airplanes, and other war time equipment.

3. Areas effected long term:

a. Labor

b. agriculture

c. banking and finance

4. Continued Benefits:

a. Social Security

b. The Environment

1. Tennessee Valley Authority (TVA): water power for hydroelectric power to prevent floods

2. National parks