New Deal

New Deal

New DealDid these actions help or hinder the United States in its Efforts to Rise From the Depression?The Only Thing We Have to Fear is Fear Itself Franklin D. RooseveltThe Roosevelt Administration initiated policies that supported and regulated agriculture and industryLegislation improved labor conditions and increased power of the unionsPrograms of the New Deal: CWA, TVA, FDIC, SEC, Social SecurityNew Deal created new opportunities for women and minority groupsRoosevelt Takes Office in 1932Roosevelt knew that he had to act with a nation in the midst of a Depression, some people had not worked in three years or moreFormed Brain Trust, a group of advisers made up of professors, lawyers, and journalists Worked to formulate set of policies to relieve the problems plaguing many AmericansNew Deal, phrase from a campaign speech in which Roosevelt had promised, a new deal for the American people.Focus of New DealThree general goals: a. Relief for the needy b. Economic Recovery c. Financial Reform

Roosevelt launched a period of intense activity, known as the Hundred Days, from march 9-June 16, 1933.During this period Congress passed more than 15 major pieces of New Deal legislation, expanding the federal governments role in the nations economBanking and Financial ReformMarch 5 when Roosevelt took office, declared a bank holidayRoosevelt persuaded Congress to pass Emergency Banking Relief ActEmergency Banking Relief Act: authorized US Treasury to inspect banks, those unable to pay debts remained closedAmericans began to regain confidence in banks

Roosevelts Fireside ChatsStarted March 12, 1933, when solvent banks were allowed to reopenUsed these radio programs to discuss his concerns and detail policies on the New DealFirst chat centered on restoring financial systemWe have provided the machinery to restore our financial system. It is up to you to support and make it work.He explained that banks invests your deposit. People demanding cash for savings cause banks to failGlass-Steagall Banking Act of 1933Established Federal Deposit Insurance Corporation (FDIC), which provided federal insurance for individual bank account of less than $5,000. The FDIC is still in use today.Regulated Stock Market with the Federal Securities Act, required corporations to provide complete information on all stock offerings and made corporations responsibleSecurities and Exchange Commission (SEC) created in 1934 to regulate stock market to prevent people from rigging the market with inside informationAlcohol BillsAllowed manufacturing and sale of some alcoholic beveragesAlcohol tax to raise government revenues21st Amendment: 1933, repealed the prohibition amendment Agricultural Adjustment Act (AAA)Purpose to raise crop prices by lowering productionGovernment paid farmers to leave a certain amount of every acre unseededReduction of supply, cost would riseGovernment paid cotton workers $200 million to plow under 10 million acres of their cropHog farmers paid to slaughter 6 million pigsThis act was controversial because so many were hungryCivilian Conservation Corps (CCC)1933, Men 18-25 given jobs, $30/month with $25 of it sent home to families, given free food and uniformsBuilt roads, developed parks, planted trees and helped soil erosion and flood-controlled projectsEnded in 1942: 3 million men had worked with CCC and planted in 8 years over 200 million treesMany of these jobs were in the Great Plains to prevent another Dust BowlFederal Emergency Relief Administration (FERA)1933, funded with $500 million to provide direct relief for the needyHalf of the money went to the states as direct grants-in-aid to help furnish food and clothing to the unemployed, the aged, and the illAdditional $250 million distributed on the basis of one federal dollar for every three state dollars Harry Hopkins headed the program, believed that money helped people buy food, but work gave them confidence and self-respect

Public Works Administration (PWA)1933, provided money to states to create jobsMostly in construction of schools and other community buildingsWhen these programs failed, Roosevelt created the CWACivil Works Administration (CWA)1933 after PWA failed Provided 4 million jobsCriticized by many because the jobs were viewed as busy work and wasting moneyCWA built over 40,000 schools and paid the salaries of 50,000 school teachersHalf a million miles of roads were builtNational Industrial Recovery Act (NIRA)1933, Promoted industrial growth by establishing codes of fair practice for individual industriesCreated National Recovery Administration (NRA) to set prices of products to ensure fair competitionNRA established standards for working hours and a ban on child laborNRA promoted recovery by interrupting wages cuts, falling prices and layoffsEstablished workers rights to unionize and bargain collectivelyMany felt this act served large businessesTennessee Valley Authority (TVA)1933, focused on Tennessee River valleyCreated thousands of jobs and provided flood control, hydroelectric power, and other benefits to the region

Home Owners Loan Corporation (HOLC)1933 provided government loans to homeowners who faced foreclosure because they could not make their loan payments

National Housing Act (NHA)1933, created the Federal Housing Administration (FHA), which continues today providing loans for home mortgages and repairsProtests Against New DealAfter first 100 days, many felt that the New Deal interfered with the workings of a free market economy1935, Supreme Court struck down the NIRA as unconstitutional, declaring that the law gave legislative power to the executive branchEnforcement of industry codes within stats went beyond federal governments constitutional powers1936, AAA was struck down due to agriculture being a local matter and should be regulated by the statesRoosevelts Response to Supreme Court1937, proposed that Congress enact a court-reform bill that would reorganize the federal judiciary and allow him to appoint six new Supreme Court justicesSeen as court packing and Roosevelt was criticized for violating separation of powersRulings in the Supreme Court began to be more in Roosevelts favor without this action because of resignationsRoosevelt was able to appoint 7 new justices in the next 4 years

American Liberty League1934, made up of wealthy business leaders such as Al Smith, John W. DavisOpposed New Deal because it was believed that it violated respect for the rights of individuals and propertyCharles Coughlin, Francis Townsend and Huey Long felt the poor suffered more with the New DealFather Coughlin favored a guaranteed annual income and nationalization of banksDr. Townsend devised a pension plan to provide monthly benefits, but this was too expensiveSenator Long proposed a nationwide social program, Share Our WealthSecond New DealAlso known as the Second Hundred DaysFocus on farmers, workers and poor, the forgotten manEleanor Roosevelt played a role in social reform aspects of the New Deal

Soil Conservation and Domestic Allotment Act1936, to replace AAA, which was struck downPaid farmers for cutting production of soil-depleting crops like cotton and wheatRewarded farmers for practicing good soil conservation methodsSecond Agricultural Act 1938 passed with out the unconstitutional processing tax to pay for farm subsidiesGrapes of Wrath by John Steinbeck illustrated the struggling farmers Resettlement Administration1935, to help sharecroppers, migrant workers and poor farmersDesigned to loan money to small farmers to buy land1937, replaced by the Farm Security Administration (FSA), loaned more than $1 billion to help tenant farmers by forming a network of migrant farmer campsFSA sent photographers such as Dorothea Lange, Ben Shaun, Walker Evans to take pictures of rural towns and farmsWorks Progress Administration (WPA)Created jobs on largest public works budget ($5 billion)1935-1943 employed over 8 million peopleBuilt 850 airportsConstructed or repaired 651,000 miles of roads and streetsBuilt 110,000 libraries, schools and hospitalsSewed over 300 million garments for the needyGave a sense of hope and purpose to many workersNational Youth Administration (NYA)More than 2 million high school and college students worked part-time clerical positions at their schools1936, more than 200,000 students received aid and assistance through NYAWagner ActReestablished NIRA provision of collective bargainingListed unfair labor practices that companies could not use such as threatening workers, firing union members, and interfering with unionsSet up National Labor Relations Board (NLRB) to hear testimony and unfair practices and hold elections to find out if they wanted union representationFair Labor Standards Act 1938 to establish maximum hours and minimum wagesFLSA set minimum hourly rate at 25 cents/hour then by 1940, it was 40 cents. National maximum work week of 44 hours and in 2 years 40 hours. Banned factory labor workers under 16 years old (18 yrs if work hazardous)Social Security Act1935 by Secretary of Labor Frances Perkins3 Parts: a) old age insurance for retirees 65 or older and their spouses ($10-85/month) Groups excluded: domestic servants, farm workers, many hospital and restaurant workers, b) Unemployed compensation system ($15-18/week), c) Aid to families with dependent children and the disabledRural Electrification Act (REA)Created, financed and worked with rural and farm electrical cooperatives to bring electric to rural areas1935 30% of American farms had electricity, 1945 45%, 1951 90%Public Utilities Holding Company Act1935 aim to fight financial corruption in the public utility industryOutlawed ownership of utilities by multiple holding companies

New DealHelped different minority groups as well such as women, African Americans, Latinos and Native AmericansEleanor Roosevelt opened many doors for African Americans, particularly the performance of Marian Anderson in front of the Lincoln Memorial in 1939Indian Reorganization Act of 1934 to strengthen Native American land claims by prohibiting the government from taking unclaimed reservation lands and selling them to people other than Native AmericansNew Deal CoalitionAn alignment of diverse groups dedicated to supporting the Democratic PartyEnabled Democrats to dominate politics in the 1930s and 1940s

Impact of New DealTo avoid deficit spending, President Roosevelt did not launch a Third New DealConservatives felt that Roosevelt made the federal government too large and it had stifled free enterprise and individual initiativeLiberals felt that Roosevelt did not do enough to socialize the economy and eliminate social and economic inequalitiesSources

The Americans: Reconstruction through the 2oth Century, McDougal Littell, Inc, Evanston, IL, 2002.