•Republicans must stay with Hoover or take blame for Depression •Democrats choose Franklin D. Roosevelt •Hoover says F.D.R. will destroy the American economy
Jan 12, 2016
• Republicans must stay with Hoover or take blame for Depression
• Democrats choose Franklin D. Roosevelt
• Hoover says F.D.R. will destroy the American economy
• F.D.R. traveled 25,000 miles, promised to help “the forgotten man” - “New Deal”
• F.D.R. wins - Inaugural Address - “The only thing we have to fear is fear itself. Reality was that he was the first to give the nation hope
• Group of intellectuals who advised the President
• Raymond Moley - Law professor
• Rexford Tugwell - Agriculture professor
• Adolph Berle - Corporate finance lawyer and speech writer
• The first “New Deal”
• March 9 - June 16, 1933
• Honeymoon period when the President told the Brain Trust “If all fails admit it frankly and try another, but above all try”
• Declared a “Bank Holiday” - fastest bill in history
• Sec. of Treasury called in all gold in the country ($10,000 fine if you didn’t)
• Examined all banks - sound ones were allowed to reopen
• First “Fireside Chat” he says “I assure you it is safer to keep your money in a reopened bank than under a mattress”
• By end of next week 3/4 of nations banks reopened
• Emergency currency issued to halt bank runs
• Prohibited commercial banks from selling stock or financing corporations
• Created Federal Deposit Insurance Corporation (FDIC) which insured investors up to $2,500
• F.D.R. had the U.S. taken off the gold standard in April, 1933
• By 1934, the dollar is worth 59 cents
• Goal was to see major businesses shortened hours and raised wages
• “Codes of Fair Competition” - minimum wage, no child labor, and collective bargaining
• Established N.I.R.A.
• Effort to join the federal gov’t with business and labor to fight the depression
• Set codes of fair competition
• Headed by Hugh Johnson
• Blue Eagle “We do our part”
• People encouraged to only go to NIRA businesses
• Small and large businesses didn’t like it (too pro-labor)
• NIRA and NRA declared unconstitutional - can not establish codes of fair competition
• National Labor Relations Act - 1933
• Saved part of the NIRA• No coercion of employees• No firing due to union membership• Guarantee collective bargaining
• CCC - March 31, 1933
• Provide employment for men age 18-25
• Built parks and battlefields
• Paid $30.00/month, $25.00 had to be sent home
• To advise and assist farmers
• May 12, 1933
• Government paid farmers not to produce
• Paid subsidies for unplanted land
• By 1934 - size of Illinois
• May 12, 1933, FERA• To provide direct relief to
needy Americans. • System set up $5 million to
state and local governments to directly help the needy
• TVA, May 28, 1933
• To help develop the resources of the Tennessee Valley
• 25,000 miles long, 25 dams, 7 states benefit from electricity provided
• Encouraged industry in area
• HOLC, June 13, 1933
• To help townspeople refinance their mortgages
• Low interest rates and 15 years to pay mortgage
• Helped middle and upper middle class homes
• PWA, June, 13, 1933
• Provide employment on public works
• Help business help people
• Usually were construction jobs
• Enterprise and Yorktowne
• June 13, 1933, NRA
• To revive American business
•FCA, June 16, 1933
•Set up credit system for farmers
• CWA, November 8, 1933
• Provided employment at federal expense
• Rake leaves, pave roads,
• Real goal was to get people through the Winter of 33-34
• Airports, schools $15.00/week
•SEC, June 6, 1934
•Protected public and private investors in stocks
•FHA, June 28, 1933
•Inside loans for home construction
• Wanted to pay every American over 60 $200/month
• To be paid by 2% sales tax
• Person could not hold a job
• Had to spend money every month
• Popular idea with the people
• Cost $24 billion/year
• “Radio Priest”
• Received more mail in 1934 than FDR - very popular
• Wanted government ownership of banks, natural resources and public utilities
• “Kingfish”
• Proposed gov’t take money from the rich and give to the poor
• Give every family a car, home, & a radio
• College education if wanted
• Tax the rich at 70% - he was assassinated
• WPA, April 8, 1935
• Provide jobs and training for 16-25 year olds
• Accounted for over 1/2 of schools built in the 1930’s, 800 airports, 13,000 playgrounds, 2,500 hospitals
• Kept artists and actors employed
•NLRB, July 5, 1935
•Purpose was to guarantee rights to workers
• SSB, August 14, 1935
• To provide a sound social security system
• Helped children, handicapped, and the aged
• Every worker had to take part
• Provided for unemployment compensation
• Employers and employees made mandatory contributions out of wages
• Idea came from Francis Perkins, first women to hold a cabinet position