Chapter 27: The New Deal and Reform

Chapter 27: The New Deal Chapter 27: The New Deal and Reformand Reform

AMERICA AMERICA GETS BACK GETS BACK TO WORKTO WORK

Chapter 27: The New Deal and Chapter 27: The New Deal and ReformReform

The First Hundred Days Set the ToneThe First Hundred Days Set the Tone Roosevelt Seeks to Reform The Roosevelt Seeks to Reform The

SystemSystem The New Deal Comes Under AttackThe New Deal Comes Under Attack Many Changes Occur During the New Many Changes Occur During the New

DealDeal

SECTION 1: The First Hundred SECTION 1: The First Hundred Days Set the ToneDays Set the Tone

The 1932 presidential The 1932 presidential election showed that election showed that Americans were Americans were clearly ready for a clearly ready for a changechange

Republicans re-Republicans re-nominated Hoover nominated Hoover despite his low despite his low approval ratingapproval rating

The Democrats The Democrats nominated Franklin nominated Franklin Delano RooseveltDelano Roosevelt

ROOSEVELT WINS ROOSEVELT WINS OVERWHELMING VICTORYOVERWHELMING VICTORY

Democrat Roosevelt, Democrat Roosevelt, known popularly as known popularly as FDR, was a 2-term FDR, was a 2-term governor of New York governor of New York

FDR was a distant FDR was a distant cousin of Teddy cousin of Teddy RooseveltRoosevelt

The Democrats also The Democrats also won huge victories in won huge victories in the house and senatethe house and senate

Greatest Democratic Greatest Democratic victory in 80 yearsvictory in 80 yearsFDR easily won the 1932 election

FDR LAUNCHES NEW FDR LAUNCHES NEW DEALDEAL

FDR promised a FDR promised a “new deal” for the “new deal” for the American peopleAmerican people

He took office with He took office with a flurry of activity a flurry of activity known as “The known as “The Hundred Days”Hundred Days”

The 100 Days The 100 Days lasted from March lasted from March to June 1933to June 1933

New DealNew Deal

Roosevelt’s plan to help deal Roosevelt’s plan to help deal with the Great Depression.with the Great Depression.

He wanted to do the following:He wanted to do the following:1. Help the needy1. Help the needy2. Economic recovery2. Economic recovery3. Financial reform3. Financial reform

Alphabet AgenciesAlphabet Agencies Different programs that Roosevelt Different programs that Roosevelt

began.began. The purpose of these agencies The purpose of these agencies

were to help the poor, give were to help the poor, give unemployed citizens jobs, and to unemployed citizens jobs, and to raise the economy.raise the economy.

Example: CCC- put young men to Example: CCC- put young men to work by building railroads and work by building railroads and parks.parks.

Alphabet LawsAlphabet Laws

New Deal ProgramsNew Deal Programs Tennessee Valley Authority (TVA)Tennessee Valley Authority (TVA) Emergency Banking Relief Act (EBRA)Emergency Banking Relief Act (EBRA) Home Owners Loan Corporation (HOLC)Home Owners Loan Corporation (HOLC) Glass-Steagall Act – F.D.I.C.Glass-Steagall Act – F.D.I.C. National Industrial Recovery Act (NIRA)National Industrial Recovery Act (NIRA) National Recovery Act (NRA)National Recovery Act (NRA) Public Works AdministrationPublic Works Administration

Agricultural Adjustment Act (AAA):Agricultural Adjustment Act (AAA): Raised crop prices by lowering Raised crop prices by lowering production.production.

National Industrial Recovery Act National Industrial Recovery Act (NIRA):(NIRA): gave $ to states to create gave $ to states to create jobs in constructing schools.jobs in constructing schools.

MORE 100 DAYS ACTIVITYMORE 100 DAYS ACTIVITY

Federal Securities Act: Federal Securities Act: Required stock info to Required stock info to be accurate and truthfulbe accurate and truthful

Agricultural Adjustment Agricultural Adjustment Act: (AAA) Raised crop Act: (AAA) Raised crop prices by lowering prices by lowering productionproduction

Tennessee Valley Tennessee Valley Authority: (Authority: (TVATVA) ) Focused on direct relief Focused on direct relief to hard hit area– created to hard hit area– created ambitious dam projectsambitious dam projects

Tennessee Valley AuthorityTennessee Valley Authority

TVATVA

A federal corporation that A federal corporation that constructed dams & power constructed dams & power plants in the Tennessee Valley plants in the Tennessee Valley region to generate electricity as region to generate electricity as well as to prevent floods.well as to prevent floods.

TVA

TO DO LIST: #1- TO DO LIST: #1- HELP BANKSHELP BANKS

First order of business First order of business was to get the banking was to get the banking system in ordersystem in order

On March 5, one day after On March 5, one day after taking office, FDR declared taking office, FDR declared a bank holiday(so people a bank holiday(so people can’t withdraw $)can’t withdraw $)

He persuaded Congress to He persuaded Congress to pass the Emergency Relief pass the Emergency Relief Act, which authorized the Act, which authorized the Treasury Department to Treasury Department to inspect the nation’s banksinspect the nation’s banks

AMERICANS GAIN AMERICANS GAIN CONFIDENCE IN BANKSCONFIDENCE IN BANKS

Glass-Steagall Act- Agency Glass-Steagall Act- Agency that insures individuals’ that insures individuals’ bank accounts, protecting bank accounts, protecting people against losses due people against losses due to bank failuresto bank failures

Act which established the Act which established the Federal Deposit Insurance Federal Deposit Insurance CorporationCorporation

The The FDICFDIC insured account insured account holders up to $5,000 and holders up to $5,000 and set strict standards for set strict standards for banks to follow (today = banks to follow (today = $100,000)$100,000)

ALPHABET AGENCIESALPHABET AGENCIES

CCCCCC – Civilian – Civilian Conservation Corps put Conservation Corps put young men to work young men to work

Men ages 18 to 25 Men ages 18 to 25 worked building roads, worked building roads, parks, planting trees parks, planting trees (200 million trees in (200 million trees in Dust Bowl areas)Dust Bowl areas)

By 1942 three million By 1942 three million men worked for the CCCmen worked for the CCC

ALPHABET ALPHABET AGENCIESAGENCIES

PWAPWA – Public Works – Public Works Administration was Administration was part of the NIRA part of the NIRA (National Industrial (National Industrial Recovery Act) Recovery Act)

The PWA provided The PWA provided money to states to money to states to construct schools construct schools and community and community buildingsbuildings

PWA workers construct a public building in Hartford, Connecticut

ALPHABET ALPHABET AGENCIESAGENCIES

CWACWA – Civil Works – Civil Works Administration built Administration built 40,000 schools and 40,000 schools and provided salaries provided salaries for 50,000 teachers for 50,000 teachers in rural Americain rural America

Also built 500,000 Also built 500,000 miles of roadsmiles of roads CWA School in Woodville, CA

ALPHABET ALPHABET AGENCIESAGENCIES

FHAFHA – Federal – Federal Housing Housing Administration Administration provided home provided home loans, home loans, home mortgages and mortgages and repairsrepairs

Repaired business in Childersburg, Alabama

ALPHABET AGENCIESALPHABET AGENCIES

FERAFERA – Federal – Federal Emergency Relief Emergency Relief Agency provided Agency provided $500 million in $500 million in direct relief to direct relief to the neediest the neediest AmericansAmericans Citizens wait outside a FERA in

Calipatria, CA for relief checks

CRITICS EMERGECRITICS EMERGE Despite the renewed Despite the renewed

confidence of many confidence of many Americans, critics from Americans, critics from both political spectrums both political spectrums emergedemerged

LiberalsLiberals (left) felt FDR’s (left) felt FDR’s program was NOT doing program was NOT doing enough enough

ConservativesConservatives (right) felt (right) felt that government that government intervention was TOO intervention was TOO much and interfered with much and interfered with our free market economyour free market economy

SECTION 2: Roosevelt Seeks SECTION 2: Roosevelt Seeks to Reform the Systemto Reform the System

Although the Although the economy had economy had improved during improved during FDR’s first term FDR’s first term (1932-1936), the (1932-1936), the gains were not as gains were not as great as expectedgreat as expected

Unemployment Unemployment remained high and remained high and production still production still laggedlagged

Works Progress Administration Works Progress Administration (WPA)(WPA)

Agency which provided the Agency which provided the unemployed with jobs in construction, unemployed with jobs in construction, garment making, teaching, the arts, garment making, teaching, the arts, and other fields.and other fields.

National Youth Administration (NYA):National Youth Administration (NYA): Provided education, jobs, counseling, Provided education, jobs, counseling, and recreation for young people.and recreation for young people.

Wagner Act: Wagner Act: Prohibited unfair work Prohibited unfair work labor practices on workers.labor practices on workers.

SOCIAL SECURITY SOCIAL SECURITY ACTACT

One of the most important One of the most important achievements of the New achievements of the New Deal era was the creation Deal era was the creation of the Social Security of the Social Security SystemSystem

The Social Security Act, The Social Security Act, passed in 1935, had 3 parts:passed in 1935, had 3 parts:

Old-Age PensionOld-Age Pension Unemployment compensationUnemployment compensation Aid to families with dependent Aid to families with dependent

children & disabled (welfare)children & disabled (welfare) Millions of Americans received Millions of Americans received

benefits.benefits. Still exists today.Still exists today.

Securities & Exchange CommissionSecurities & Exchange Commission

SECSEC

Agency that monitors the stock Agency that monitors the stock market & enforces laws market & enforces laws regulating the sale of stocks & regulating the sale of stocks & bonds.bonds.

Second New DealSecond New Deal

The New Deal Comes Under AttackThe New Deal Comes Under Attack

U.S. Supreme Court declares U.S. Supreme Court declares New Deal reforms unconstitutionalNew Deal reforms unconstitutional Checks and BalancesChecks and Balances NIRANIRA

Schechter Poultry Corporation v. United StatesSchechter Poultry Corporation v. United States ““Sick chicken case”Sick chicken case”

NLRA createdNLRA created National Labor Relations Board (NLRB)National Labor Relations Board (NLRB) Fair Labor Standards ActFair Labor Standards Act

Minimum wageMinimum wage Maximum work weekMaximum work week

AAA declared unconstitutionalAAA declared unconstitutional

SUPREME COURT REACTSSUPREME COURT REACTS By the mid-1930s, By the mid-1930s,

the Supreme Court the Supreme Court struck down the struck down the NIRA as NIRA as unconstitutional unconstitutional (citing too much (citing too much government control government control over industry)over industry)

The Court also The Court also struck down the AAA struck down the AAA on the grounds that on the grounds that agricultural was a agricultural was a local matter -- not a local matter -- not a federal matterfederal matterThe Supreme Court -- 1935

FDR REGAINS CONTROL OVER FDR REGAINS CONTROL OVER SUPREME COURTSUPREME COURT

From the mid to From the mid to late 1930s, FDR late 1930s, FDR was able to appoint was able to appoint 7 new judges to the 7 new judges to the Supreme Court, Supreme Court, thus assuring that thus assuring that his programs would his programs would carry on unabatedcarry on unabated

ANOTHER CRITICANOTHER CRITIC Huey Long was a Senator Huey Long was a Senator

from Louisiana from Louisiana He turned against Roosevelt He turned against Roosevelt

and the New Deal.and the New Deal. He had a “Share-our-Wealth” He had a “Share-our-Wealth”

programprogram Long was setting up a run for Long was setting up a run for

presidentpresident A lone gunman assassinated A lone gunman assassinated

Long at the height of his Long at the height of his popularity in 1935popularity in 1935 Huey Long made effective use

of radio to promote his views

New Deal CriticsNew Deal Critics

Many Changes Occur During the Many Changes Occur During the New DealNew Deal

Labor Unions GrowLabor Unions Grow United Mine Workers (UMW)United Mine Workers (UMW) United Automobile Workers (UAW)United Automobile Workers (UAW) United Steel Workers (USW)United Steel Workers (USW) Committee for Industrial Organization Committee for Industrial Organization

(CIO)(CIO) Sit-down strikesSit-down strikes

American Federation of Labor (AFL)American Federation of Labor (AFL) AFL-CIO (1955)AFL-CIO (1955)

Labor UnionsLabor Unions

New Opportunities for MinoritiesNew Opportunities for Minorities

African-AmericansAfrican-Americans NAACPNAACP Black CabinetBlack Cabinet Marian AndersonMarian Anderson Mary McLeod Mary McLeod

BethuneBethune American IndiansAmerican Indians

Indian Indian Reorganization ActReorganization Act

Mexican AmericansMexican Americans

AFRICAN AMERICANS GAIN AFRICAN AMERICANS GAIN POLITICAL POSITIONSPOLITICAL POSITIONS

FDR FDR appointed over appointed over 100 African Americans to 100 African Americans to positions within the positions within the governmentgovernment

Mary McLeod Bethune Mary McLeod Bethune headed the division of headed the division of Negro Affairs of the NYANegro Affairs of the NYA

Despite these gains, FDR Despite these gains, FDR was never fully was never fully committed to Civil Rightscommitted to Civil Rights Bethune

NATIVE AMERICANS MAKE NATIVE AMERICANS MAKE GAINSGAINS

Native Americans made Native Americans made advances during the advances during the 1920s & 1930s1920s & 1930s

Full citizenship granted Full citizenship granted in 1924in 1924

The Reorganization Act The Reorganization Act of 1934 gave Natives of 1934 gave Natives more ownership of more ownership of reservationsreservations

Policy was moving Policy was moving away from assimilation away from assimilation towards autonomytowards autonomy

Current locations of Native American

reservations

FDR WINS IN FDR WINS IN 1936 . . . AGAIN1936 . . . AGAIN

FDR had wide FDR had wide appeal in the United appeal in the United States, especially in States, especially in urban areasurban areas

African Americans, African Americans, Jews, Catholics and Jews, Catholics and immigrants all immigrants all supported the supported the popular presidentpopular president FDR & Eleanor campaign by

rail in 1936

FAMOUS FILMS OF THE 30sFAMOUS FILMS OF THE 30s One of the most One of the most

famous films of the famous films of the era was era was Gone with Gone with the Wind the Wind (1939)(1939)

Other notable Other notable movies of the era movies of the era included included The The Wizard of Oz Wizard of Oz (1939) (1939) and and Snow White Snow White and the Seven and the Seven Dwarfs (1937)Dwarfs (1937)

1930’s Entertainment1930’s Entertainment

Actors and MusiciansActors and Musicians

ActorsActors Clark GableClark Gable Greta GarboGreta Garbo Fred Astaire and Fred Astaire and

Ginger RogersGinger Rogers MusiciansMusicians

Benny GoodmanBenny Goodman Glenn MillerGlenn Miller Swing BandsSwing Bands

RADIO: THE RADIO: THE ORIGINAL ORIGINAL

ENTERTAINMENTENTERTAINMENT Sales of radios Sales of radios

greatly increased greatly increased in the 1930s, in the 1930s, from 13 million from 13 million in 1930 to 28 in 1930 to 28 million by 1940million by 1940

Nearly 90% of Nearly 90% of American homes American homes owned a radioowned a radio

Families spent hours listening to the radio

ROOSEVELT’S ROOSEVELT’S FIRESIDE CHATSFIRESIDE CHATS

FDR FDR communicated to communicated to Americans via Americans via radioradio

His frequent His frequent “Fireside Chats” “Fireside Chats” kept Americans kept Americans abreast of the abreast of the government’s government’s efforts during the efforts during the DepressionDepression

JOHN STEINBECK JOHN STEINBECK RECEIVES ACCLAIMRECEIVES ACCLAIM

American writer American writer John Steinbeck John Steinbeck received assistance received assistance from the Federal from the Federal Writers’ ProjectWriters’ Project

He published his He published his most famous book, most famous book, Grapes of WrathGrapes of Wrath (1939), as part of (1939), as part of the programthe program

New Opportunities for WomanNew Opportunities for Woman Francis PerkinsFrancis Perkins ActressesActresses

Janet Gaynor Janet Gaynor Joan CrawfordJoan Crawford Bette DavisBette Davis

WritersWriters Margret MitchellMargret Mitchell Pearl BuckPearl Buck

Amelia EarhartAmelia Earhart Mildred “Babe” Mildred “Babe”

DidriksonDidrikson

Artists and AuthorsArtists and Authors

ArtistsArtists Edward HopperEdward Hopper Thomas Hart Thomas Hart

BentonBenton Grant WoodGrant Wood

WritersWriters Richard WrightRichard Wright John SteinbeckJohn Steinbeck Thornton WilderThornton Wilder

ARTISTS ARTISTS HERALDEDHERALDED

Painters like Edward Painters like Edward Hopper, Thomas Hart Hopper, Thomas Hart Benton, and Iowa’s Benton, and Iowa’s Grant Wood were all Grant Wood were all made famous by their made famous by their work in the WPA work in the WPA programprogram

Photographer Dorothea Photographer Dorothea Lange gained fame Lange gained fame from her photos during from her photos during this era (featured this era (featured throughout this throughout this presentation)presentation)

Wood’s American Gothic is perhaps the most famous piece of the era (1930)

Grant Wood’s Fall Plowing, 1931

Edward Hopper’s Nighthawks (1942)

Edward Hopper, Railroad Sunset (1929)

Mabel Dwight, In the Crowd (1931)

Thomas Hart Benton, Mine Strike

Thomas Hart Benton, Lord, Heal the Child (1934)

Nicolai Cikovsky, On the East River (c. 1934)

THE IMPACT OF THE NEW THE IMPACT OF THE NEW DEALDEAL

Over time, opinions about Over time, opinions about the merits of the New the merits of the New Deal and FDR have ranged Deal and FDR have ranged from harsh criticism to from harsh criticism to high praise – usually high praise – usually along partisan linesalong partisan lines

Conservatives felt FDR Conservatives felt FDR made government too made government too large and too powerfullarge and too powerful

Liberals countered that Liberals countered that FDR socialized the FDR socialized the economy because economy because Americans needed help Americans needed help

LEGACIES OF THE NEW LEGACIES OF THE NEW DEALDEAL

FDIC FDIC – banking – banking insurance critical to insurance critical to sound economysound economy

Deficit spendingDeficit spending has has became a normal became a normal feature of feature of governmentgovernment

Social Security Social Security is a is a key legacy of the New key legacy of the New Deal in that the Feds Deal in that the Feds have assumed a have assumed a greater responsibility greater responsibility for the social welfare for the social welfare of citizens since 1935 of citizens since 1935