New Deal

SSUSH18: The student will describe Franklin

Roosevelts New Deal as a response to the
Great Depression and compare the ways
governmental programs aided those in need.

Election of 1932
Herbert Hoover (Republican)
vs.
Franklin D. Roosevelt (Democrat)
Too many Americans blamed Hoover for doing
too little about the depression & wanted a new
president
Roosevelt 2-term NY governorhad proved to
be an effective, reform-minded leaderworked
to fight the problems of unemployment &
povertyunlike Hoover, Roosevelt possessed a
can-do attitude
The only thing we have to fear is fear itself
Roosevelt won an overwhelming victorynearly
23 million votes to Hoovers 16 million
Senate Democratsnearly 2/3rd majority
HOR Democratsnearly 3/4th of the seats
SO.now the Democrats controlled the
Executive AND Legislative branches!

New Deal
Before even inaugurated into office,
Roosevelt began to formulate a set of
policies for his new administration
This program, designed to alleviate the
problems of the Great Depression,
became known as the New Deal
taken from a phrase in a campaign speech
Roosevelt had made where he promised a
new deal for the American people

New Deal policies focused on

Relief (for the needy)
Recovery (of the economy)
Reform (financial)
http://www.history.com/topics/new-deal/videos/
the-new-deal

The Hundred Days

When FDR became president in March
1933, the nation was in bad shape
5,000 banks had closed
Unemployment was around 25%
2 million Americans were homeless

March 9th to June 16, 1933 (first 100

days in office)
Congress passed more than 15 major
pieces of New Deal legislation
These laws, and others that followed,
significantly expanded the federal
govts role in the nations economy
FDR was determined to declare war on
the Great Depression

Help the Banks

By 1933, widespread bank failures had caused
most Americans to lose faith in the banking
system
On March 5th (one day after taking office)
Roosevelt declared a bank holiday and closed
all banks to prevent further withdrawals
FDR persuaded Congress to pass the
Emergency Banking Relief Act (which
authorized the U.S. Treasury Department to
inspect the countrys banks)
Those banks that were determined to be secure
would reopen and those that were unable to pay
their debts would remain closed
Those that needed help could receive loans

Revived public confidence in bankssince

customers how had greater faith that the open
banks were in good financial shape

FDRs Fireside Chats

March 12th (day before the first banks were
to reopen) Pres. Roosevelt gave the first of
many fireside chats
Fireside chats radio talks from FDR
These informal talks made Americans feel as
if the president were talking directly to them
1st fireside chat Pres. Roosevelt explained
why the nations welfare depended on public
support of the govt & the banking system
FDR explained that when too many people
demand their savings in cash, banks would fail
This was not b/c banks were weak but b/c even
strong banks couldnt meet such heavy demands
Over the next few weeks, many Americans
returned their savings to the banks

Alphabet Agencies
Many of FDRs programs
became known by the letters
(TVA, CCC, SEC, AAA, etc.)
These programs ultimately
created jobs & helped the
environment

Tennessee Valley
Authority
Early New Deal program
implemented by

Pres. Roosevelt
Tennessee River Valley region that runs
through 7 states
One of the poorest regions in the nation
Flash floods were common due to excessive
tree cutting in the Blue Ridge Mountains &
poor management of agricultural lands
May 18, 1933 FDR signed the TVA
TVA built dams to control the environment
by preventing floods
Each dam had its own power plants &
parks
This construction project created hundreds
of jobs for unemployed workers
At the TVAs height the employment
28,000 jobs

Song of the South by

Alabama
https://www.youtube.com/watch?v=
lHdXQAQHjd8

Glass-Steagall Act

Passed by Congress in 1933

Established the Federal
Deposit Insurance Corporation
(FDIC)

Provided federal insurance for

individual bank accounts of up to
$5,000reassuring millions of
bank customers that their money
was safe
Also required banks to act
cautiously with their customers
money

Federal Securities Act

Passed in May 1933
Required corporations to provide
complete stock information
June 1934 Congress created the
Securities & Exchange
Commission (SEC)
Would supervise the stock market &
eliminated dishonest practices

Agricultural Adjustment
Act (AAA)

Passed in 1933
Raised crop prices by
lowering productionwhich
the govt achieved by paying
farmers to leave a certain
amount of every acre of land
unseeded
Reduced supply would boost
prices

Helped to raise farm prices

and put more money in
farmers pockets

Civilian Conservation
Corps (CCC)
Men (18-25 yrs old)
Built roads, developed parks, planted trees, &
helped soil-erosion and flood-control projects
By 1942, almost 3 million young men had
passed through the CCC
CCC paid a small wage ($30 per month)
$25 of it was sent automatically to the workers
family

Free food & uniforms and lodging in the work

camps
Many of the camps were located in the Great
Plains
Planted more than 200 million trees
tremendously helped to reforest the area & to
prevent another Dust Bowl

Housing & Home

Mortgage
Help
Home Owners Loan Corporation (HOLC)
Provided govt loans to homeowners who faced
foreclosure b/c they couldnt meet their loan
payments

Federal Housing Administration (FHA)

Govt agency that gives loans for home mortgages
Still around today

Federal Emergency Relief Administration

(FERA)
Provides direct relief for the needy
Funded with $500 million from the fed govt
of money given to states as direct grants-in-aid to
help with food & clothing to the unemployed, elderly, & ill
Rest of money distributed to states to help w/ work
relief programs

The New Deal Comes Under Attack

Millions of Americans had benefited from the
New Deal programs
Pres. Roosevelt had agreed to a policy of
deficit spendingspending more money
than the govt receives in revenue (taxes)
He said that deficit spending should only be used
in emergency situations

Critics of New Deal Programs:

Liberals not enough to help the poor & economy
Conservatives spent too much on direct relief &
used New Deal policies to control business & the
economyand gave too much power to the fed
govt

Huey Long
Senator from Louisiana
One of the most serious challengers
to the New Deal
Once an early supporter of the New
Deal
Believed that the New Deal had not
gone far enough to help
He proposed a nationwide social
program called Share-Our-Wealth
Proposed a guaranteed household income
for each American family paid for by high
taxes on the wealthiest Americans

Assassinated in 1935

Roosevelts CourtPacking
Bill
1936the Supreme
Court declared
parts of the first
New Deal unconstitutional
Roosevelt became frustrated with the Supreme Court
(9 men over 60 yrs old & generally conservative)
So, he sent a bill to Congress proposing that he
reorganize the federal court system
Plan:
Add judges to all levels of the federal courts
For every justice who refused to retire after 70 yrs old, FDR
would be able to appoint enough justices to support his New
Deal programs

FDR was criticized for wanting to pack the court

Many of Roosevelts long-time supporters deserted
him on this controversial proposalthis opposition
began to turn the nation away from the New Deal

Second Hundred Days/Second New Deal

By 1935, Roosevelts administration was
trying to build on the programs established
during the first 100 days
Although the economy had improved during
FDRs first 2 yrs in office, they wanted more
Unemployment remained high & production
was still less than the 1920s
Pres. Roosevelt launched the Second New
Deal or Second Hundred Days
Called for more extensive relief for both farmers
& workers

Works Progress Administration (WPA)

Part of the Second New Deal

Goal create as many jobs as
possible and as quickly as possible
19351943 spent $11 billion to
give jobs to more than 8 million
workers
Built 850 airports throughout the U.S.
Constructed & repaired 651,000 miles
of roads
Built more than 125,000 public
buildings
Women made 300 million pieces of
clothing for the needy

Wagner Act (NLRA)

Also known as the National Labor Relations Act
Sponsored by Senator Robert Wagner of NY
Labor unions had suffered greatly as a result of the
Great Depression
Protected the rights of workers to join labor unions &
mediated negotiations b/t the workers & employers
Prohibited unfair labor practices (threatening workers,
firing union members, & interfering w/ union
organizing)
Set up the National Labor Relations Board (NLRB)
they would hear testimony about these problems & would
hold elections to find out if workers wanted union
representatives

By 1945, 37% of the U.S. work force was unionized

Social Security Act

One of the most impacted groups of the

Second New Deal was the elderly
Most seniors didnt have pensions &
those who did, saw them wiped out as a
result of the Great Depression
Passed in 1935
3 Major Parts of the law
Old-age insurance for 65 yrs old and older &
their spouses supplemental retirement
plan; from worker & from employer
Unemployment pay
Aid to families w/ children & the disabled

Eleanor Roosevelt
First

Presidents wife to testify before a Congressional committee

Hold press conferences
Speak before a national party convention
To write a newspaper column
To be a radio commentator
To earn money as a public speaker

Big advocate for change during her husbands presidency

(especially for women & African Americans)
Traveled all over the U.S. so she could keep the president
informed about what was going on in different parts of the
nation
FDR referred to Eleanor as his legs
During WWII became known as the First Lady of the
Worlddue to her service w/ the United Nations (international
peace-keeping organization created at the end of WWII)
http://www.history.com/topics/new-deal/videos/the-new-dealhow-does-it-affect-us-today?m=528e394da93ae&s=undefined&f=

New Deal Writing

Assignment
Was the New Deal a success or a
failure?
Explain your position with at least 3
supportive reasons.
Minimum of 1 paragraph (5-6
sentences)

Social Security Video

Questions
1. What is Social Security?
2. Where does money for social
security come from?
3. Where did Huey Long think the
money should come from?
4. Where did Townshend think the
money should come from?