The New Deal Chapter 33 Revised 8/09. In spite of the many criticisms, most Americans were ready for a change.

The New Deal

Chapter 33

Revised 8/09

In spite of the many criticisms, most Americans were ready for a change.

‘______________’

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

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

(See chart on page 774)

New Deal programs nicknamed “__________

_____________” for the many acronyms used.

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

___________________*Federal audit of banks

*Only those in sound condition could

reopen

First 100 Days:Banking Plan

1st Fireside chat Urged people to deposit instead of

withdrawing money Deposits increased by $

First 100 Days:Banking Plan

Up to $2500 guaranteed

Low interest, long term loans to homeowners

Low interest, long term loans to farmers

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

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. Businesses had to allow ___________

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

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

70% of all schools constructed in 1930’s were funded by the PWA

“__________________” Gave employment to millions exponentially Built infrastructure in 1930’s

Helped win war in 1940’s Backbone of post-war industrial boom in

1950’s Infrastructure sadly lacking today both in new

projects and maintenance of existing structures

First 100 Days:Direct Relief

______________________. Gave people clean, safe living quarters Fed them 3 meals a day Earned wages Families had one less person to feed ¾ of paychecks were sent home to

their families Not competing for jobs with older men

(Cont.)

First 100 Days:Direct Relief

_________________________. Literacy programs, recreation, and

time to spend with other young adults National parks and forests received

many improvements Program helped the most volatile

group in society – males age 18 to 25

First 100 Days:Direct Relief

______________________. Lived in camps in rural areas $30 a month but $25 was sent

home to their families. Planted over 3 billion trees, cleared

forests, built levees, etc. (1933 to 1939, phased out by 1942)

First 100 Days:Direct Relief

Civilian Conservation Corp. Few women in 45 separate camps African-Americans, Hispanics, Native

Americans in segregated camps Offered to veterans from 2nd Bonus Army

First 100 DaysAgricultural Recovery

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) _________________________ 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 ____________________________

6 dams and power plants on the Tennessee River and its tributaries in 13 states.

Tennessee, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas, Missouri, Illinois, Indiana, and Kentucky

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

Mid-term elections in 1934 supported democrats

Gave Roosevelt thumbs up

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:

Pensions to people 65 and older

Payments to the disabled, widows, and their children

Unemployment 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 ___________________________, Mrs. Roosevelt arranged for her to appear on the steps of the _______________________.

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)

________________ - Share-Our-Wealth. 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 70

Can not remove a Supreme Court justice except for high crimes 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 to

Congress denied his request and the newspapers and public spoke out against his “court-packing scheme’.

FAIR LABOR STANDARDS ACT(Reform)

o (1938) Last major piece of New Deal legislation  

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!