The New Deal Chapter 23 Revised 5/2014. ‘____________’ Election to inauguration President elect – no constitutional power Current president – no.

The New Deal

Chapter 23

Revised 5/2014

‘____________’

Election to inauguration

President elect – no constitutional power

Current president – no political power

Hoover - lame duck (November of 1932

to March of 1933)

_________________

1932 – 1933 circumstances warranted immediate action, but hands were tied

20th Amendment 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

Executive Appointments

Frances Perkins 1st female member of cabinet Secretary of Labor

Mary McLeod Bethune Appointed Director of Negro Affairs of

the National Youth Administration One of over a hundred African

Americans FDR appointed

First 100 Days:Banking Plan

_________________*Closed all banks for reorganization

Emergency Banking Act*Federal audit of banks

*Only those in sound condition could

reopen

First 100 Days:Banking Plan

______________ Urged people to deposit instead of

withdrawing money Deposits increased by $12 million

First 100 Days:Banking Plan

Federal Deposit Insurance Corp. __________ Up to $2500 guaranteed

Homeowners Loan Corp. & Farm Credit Administration Low interest, long term loans to homeowners &

farmers to try to prevent foreclosures

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

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 DaysRecovery

National Industrial Recovery Act (NIRA) National Recovery Administration (NRA)

encouraged businesses to cooperate with each other to set prices, output, etc. Anti-trust laws suspended. Businesses had to allow collective

bargaining by labor.

First 100 DaysRecovery

(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

Public Works Administration(PWA)

Part of NIRA 1933-1941 Led by Harold Ickes from 1933-1939 Gave billions to state and local

governments to build dams, bridges, airports, and other government buildings

_______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

Civilian Conservation Corp.

(1933 to 1939, phased out by 1942)

Benefits multi-faceted

Helped environment

“Plant a line of trees -------”

Gave young men work

Lived in camps in rural areas Gave men (age 18-25) clean, safe living

quarters Fed them 3 meals a day

Families had one less person to feed Earned wages - ______a month

______sent home to their families Literacy & recreation programs run by _______ Kept younger men ‘content’ Not competing for jobs with older men

Civilian Conservation Corp.

Civilian Conservation Corp.

Planted over 3 billion trees, cleared forests, built levees, etc.

Civilian Conservation Corp.

2.5 million young, single, white men

Women in separate camps

African-Americans, Hispanics, Native Americans in segregated camps

Offered to veterans from 2nd Bonus Army

Allowed to be married and older than 25

250,000 served

First 100 DaysAgricultural Adjustment Administration (AAA)

Paid farmers to _________________. 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.

TVA is only New Deal program still around and operated by the federal government. Part of the area is still very poor and the TVA works to improve the standard of living there.

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

that questioned the constitutionality of the programs

However, the public indicated that they wanted change

___________ elections in 1934 supported democrats

Gave Roosevelt thumbs up

(1935) Rural Electrification Administration

Provided electricity

to rural areas and

Regulated interstate

electricity and gas

Second New Deal: _________________________

(1935)

Millions of bricklayers, carpenters, writers, artists, 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

Second New Deal:(1935) Social Security Act

Pensions to people Payments to the _______, ____________,

and their children _______________ benefits Stabilizing influence on the economy Paid for with taxes on employers and

employees

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

to organize and negotiate Right to collective bargaining

and closed shops

Eleanor Roosevelt

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

Stood up for women, African-Americans, and other minorities

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

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

________________- 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) ______________. Take from the rich and give to the poor. Assassinated in 1935.

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 over ____

Can not remove a Supreme Court justice except for _____________and misdemeanors

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 over.

Congress denied his request and the newspapers and public spoke out against his ___________ ________________________

FAIR LABOR STANDARDS ACT(Reform)

o (1938) Last major piece of New Deal legislation  

Set minimum wage (______________) 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

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

New Deal goals: End unemployment Increase Gross Domestic Product Improve living and working conditions

nationwide Prevent a new “Great Depression” from

occurring

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!