The New Deal

FDR Offers Relief & Recovery

Roosevelt Takes Charge

People lost faith in Hoover’s ability to get them out of the depression,

so there was not much of a chance for Hoover.

Eleanor Roosevelt was a social reformer who combined her humanitarian beliefs with her political skills. She traveled the country, observing the social conditions and reminded the president about the suffering of the nation’s peoples.

She also urged him to appoint women to government positions. She resigned from

DAR because they would not allow Marian Anderson to perform. She focused on child

welfare, housing, and equality for all!

Not only does FDR win, but the Democrats

also gain control of the Senate as well. FDR

collects a group of professionals and academics,

whom were nicknamed the “Brain Trust.”

Roosevelt decided on a plan called the New Deal.

The Plan contained 3 main goals:

Roosevelt’s First 100 Days

FDR restored faith and confidence in the nation’s banks by declaring a four-day bank “holiday.” Banks closed and got their accounts in order and then reopened for business.

FDR also passed the FDIC, which insured bank deposits up to $5,000.

Congress established the SEC to regulate the

stock market and make it a safer place for investments.

President Roosevelt delivered informal radio speeches to the American

people. These were called fireside chats. These chats became

an important way to communicate to the American people. FDR’s

calming words reassured the Americans.

· The AAA did the following:

o Paid farmers not to grow crops and raised crop prices by lowering production.

o Cotton was plowed under and 6 million pigs were slaughtered.

· Results: Mixed feelings because crop prices increased and people were starving.

21st Amendment Repeals Prohibition: The main goal was to increase government revenue through the taxation of alcohol.

· Built dams to provide cheap electric power to seven southern states.

· Set up schools and health centers.

· Provided jobs to 2 million young men.

· Replanted forests (200 million trees), built trails, dug irrigation ditches, and fought fires.

· FDR’s favorite New Deal program.

· $500,000 was provided for direct relief and work projects for the hungry, homeless, and unemployed.

· Created to help homeowners save their houses from foreclosure.

· Provided funds to pay off mortgages and proved new long-term mortgages at lower, fixed-interest rates.

· Developed codes that established minimum wages for workers and minimum prices for goods.

· Idea that if a worker made more money then they could buy more goods.

· Built bridges, dams, power plants, and government buildings.

· Created millions of new jobs for workers.

Opposition to the New Deal

Roosevelt spent more money than what the government had, which

is called deficit spending. Some critics said the New Deal

gave too much power to the government.

He was a radio show host who was initially a supporter of the New Deal, but wanted to nationalize the banks. His anti-Semitic

views ended up costing him much of his support.

He believed that FDR was not doing enough for the poor and the elderly. Found backing from the elderly, thus

undermining support for FDR.

He supported the New Deal initially as well. Eager to

win the presidency for himself, he proposed program

known as Share-Our-Wealth. But he was assassinated.

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The New Deal

The Second New Deal

Extending Social & Economic Reform

Progress had been made under the New Deal, but there was still much work that needed to be done. The Second New Deal addressed the problems of the elderly, the poor, and the unemployed. It created new public-works projects; helped

farmers; and enacted measures to protect workers rights.

· The WPA built or improved a good part of the nation’s highways, dredged rivers and harbors, and promoted soil and water conservation.

· The WPA even provided programs in the arts for unemployed artists.

· By 1943 the WPA employed 8 million people.

· Helped build the San Antonio River Walk and parts of the Appalachian Trail.

·

· Set up a system of pensions for retired workers.

· The law also created insurance for victims of work-related accidents, and provided aid for poverty-stricken mothers and children, the blind, and the disabled.

·

· Loaned money to electric utilities to build power lines.

· Provided affordable electricity for isolated rural areas.

Labor Unions Find A New Energy

· Banned Child labor.

· Set the work week at 44 hours.

· Established a hourly minimum wage.

o *New Deal’s most controversial legacy.*

· Outlawed unfair labor practices.

· Granted workers the right to organize unions and to use collective bargaining.

· Created the National Labor Relations Board (NLRB) to look into worker’s complaints.

Challenges To The New Deal

The Supreme Court struck down the AAA and the NIRA on

the grounds that agriculture is a local matter and should be

regulated by the state instead of the federal government.

FDR issued a plan to add up to six new justices to the

nine-member Court. Critics called his plan

Court Packing because all of the new justices would

most likely support the New Deal legislation.

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The New Deal

Effects of the New Deal

Women Lead the New Deal

Frances Perkins was the first female cabinet member, Secretary of Labor. Sec. Perkins was influential in establishing Social Security and winning approval for the Fair Labor Standards Act (which ended child labor & established a minimum wage).

Mary McLeod Bethune helped to organize a “Black Cabinet”

of influential African Americans to advise the Roosevelt

administration on racial issues.

African Americans Make Advances & Face Challenges

African Americans were one group that benefited from the New Deal. Mary McLeod Bethune worked to provide jobs for African Americans. FDR met with the “Black Cabinet” to discuss social issues that African Americans were facing. Did Roosevelt always listen to the “Black Cabinet?” Why?

Overall, African Americans still voted for FDR

because he was their best hope for the future.

New Deal Aims at Other Groups

Generally approved of the New Deal because the CCC & WPA helped some. The New Deal did not interfere with their work on farms.

John Collier created the Indian Reorganization Act of 1934, which moved away from the policy of assimilation and land ownership h

(tribe not individual).

New Deal Coalition

This was an alignment of diverse groups dedicated to supporting

the Democratic Party. The coalition included Southern whites,

various urban groups, African Americans, and unionized industrial

workers. Keep the Democrats Dominate!

Evaluating The New Deal

· The New Deal expanded the power of the government and the president.

o Regulated business.

o Settled labor and management disputes.

o The FDIC and SEC restored confidence in the banking and stock market.

· Government employed deficit spending.

o FDR left the country with a large debt.

· What had the greatest effect?

o Social Security – Assumed the responsibility for the social welfare of its citizens.

o Effects on Agriculture – Oversaw the nation’s agriculture by setting up quotas on the production of crops.

o Environmental Benefits – Conserved and promoted policies designed to

protect the nation’s natural resources.

o FDR’s Legacy – Ranks 3rd in most Historical Rankings of Presidents.

§ Why do you think? Who’s he behind?

· What really got us out of the Great Depression?

o Historical Significance: WWII was largely responsible for ending the Great Depression. The New Deal did not solve

unemployment, the farm crisis, and under consumption.