Unit VIII Boom Times and Challenges

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Unit VIII Boom Times and Challenges

• Chapter 25 The Great Depression
• Section 2 Roosevelts New Deal

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Roosevelts New Deal

• The Big Idea
• Franklin Roosevelts New Deal included government
  programs designed to relieve unemployment and
  help the economy recover.
• Main Ideas
• Congress approved many new programs during the
  Hundred Days.
• Critics expressed concerns about the New Deal.
• New Deal programs continued through Roosevelts
  first term in what became known as the Second New
  Deal.
• Roosevelt clashed with the Supreme Court over the
  New Deal.

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Keynesian Theory

• Keynesian economics, also called Keynesianism, or
  Keynesian Theory.
• active government intervention in the marketplace
  and monetary policy is the best method of
  ensuring economic growth and stability.
• government would borrow money to spend on such
  things as public works and that deficit
  spending, in turn, would create jobs and increase
  purchasing power.

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Main Idea 1 Congress approved many new programs
during the Hundred Days.
A New President

• Took office in March 1933
• Said that economic recovery was possible
• Promised that the government would help

The Hundred Days

• Hundred Days.
• President and Congress worked together
• These programs became known as the New Deal.

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Franklin Roosevelt as President

• Banking Crisis
• Bank Holiday
• Passed the Emergency Banking Act
• Glass-Steagall Act created the FDIC

• Hundred Days
• The New Deal promised relief, recovery and
  reforms.

• Beyond the Hundred Days
• Civil Works Administration
• Passed the Indian Reorganization Act

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Restoring Confidence

• Plan was announced in Roosevelts first fireside
  chat.
• Radio address in which he spoke directly to the
  American people
• Gave many chats over the course of his
  administration

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Selected New Deal Programs
Civil Works Administration employed 4 million
Americans to build road and airports
Civilian Conservation Corps provided jobs to
thousands. Helped unemployed young men 18 to 25
years old
Tennessee Valley Authority hired people to build
dams and generators, bringing electricity and
jobs to Tennessee River Valley
Farm Credit Administration helped farmers
refinance mortgages so they could keep their farms
Agricultural Adjustment Act stabilized
agricultural prices- Helped farmers by paying
them not to grow crops
National Industrial Recovery Act passed with
support from Frances Perkins, the nations first
female Cabinet member, addressed business concerns
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The New Deal

• National Industrial Recovery Act (NIRA)
• Helped business by requiring that businesses in
  the same industry cooperate with each other to
  set prices and output
• Started Public Works Administration (PWA)
• Labor received federal protection for the right
  to organize.
• Federal Securities Act
• Helped investors, restored confidence in the
  markets
• Securities and Exchange Commission (SEC)
• Tennessee Valley Authority (TVA)
• Helped build dams and other projects along the
  Tennessee River and its tributaries

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The New Deal
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EARLY NEW DEAL MEASURES Are they Relief,
Recovery or Reform? _______ FAIR LABOR
STANDARDS ACT -- provided minimum wage for
workers. _______ FEDERAL SECURITIES ACT --
required full disclosure of information related
to new stock
issues. _______ NATIONAL EMPLOYMENT
SYSTEM ACT -- created US employment service.
_______ HOME OWNERS REFINANCING ACT --
use of government bonds to guarantee
mortgages. _______ BANKING
ACT OF 1933 -- created Federal Deposit Insurance
Corp., guaranteeing the
safety of bank deposits. ______ NATIONAL
INDUSTRIAL RECOVERY ACT -- minimum wages and self
regulation of industry
--- ended in 1935. _______ PUBLIC WORKS
ADMINISTRATION -- appropriated funds to construct
roads and other
federal projects. _______ NATIONAL HOUSING
ACT -- federal housing administration insured
loans of private banks
and trust companies for construction of homes.
_______ COMMUNICATIONS ACT -- federal
housing administration insured loans of private
banks and trust
companies for construction of homes. ______
NATIONAL HOUSING ACT -- construction of low
cost public housing and slum
clearance. ______ SOIL
CONSERVATION ACT -- established federal soil
conservation services. ______
RESETTLEMENT ADMINISTRATION -- built new model
communities for low income
city workers ______ RURAL
ELECTRIFICATION ADMINISTRATION -- created and
administered program
of bringing electricity to rural areas. _____
NATIONAL YOUTH ADMINISTRATION -- federal
work relief and employment for
young people.
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EARLY NEW DEAL MEASURES Are they Relief,
Recovery or Reforn? Relief FAIR LABOR
STANDARDS ACT -- provided minimum wage for
workers. Reform FEDERAL SECURITIES ACT --
required full disclosure of information related
to new stock
issues. Reform NATIONAL EMPLOYMENT
SYSTEM ACT -- created US employment service.
Recovery HOME OWNERS REFINANCING ACT --
use of government bonds to guarantee
mortgages. Reform BANKING
ACT OF 1933 -- created Federal Deposit Insurance
Corp., guaranteeing the
safety of bank deposits. Recovery NATIONAL
INDUSTRIAL RECOVERY ACT -- minimum wages and self
regulation of industry
--- ended in 1935. Recovery PUBLIC WORKS
ADMINISTRATION -- appropriated funds to construct
roads and other
federal projects. Recovery NATIONAL
HOUSING ACT -- federal housing administration
insured loans of private
banks and trust companies for construction of
homes. Recovery COMMUNICATIONS ACT --
federal housing administration insured loans of
private banks and
trust companies for construction of homes. Reform
NATIONAL HOUSING ACT -- construction of
low cost public housing and slum
clearance. Reform SOIL
CONSERVATION ACT -- established federal soil
conservation services. Relief
RESETTLEMENT ADMINISTRATION -- built new model
communities for low income
city workers Reform RURAL
ELECTRIFICATION ADMINISTRATION -- created and
administered program
of bringing electricity to rural areas. Relief
NATIONAL YOUTH ADMINISTRATION -- federal
work relief and employment for
young people.
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The Hundred Days

• Recall- What did Roosevelt promise in his
  inaugural address?
• Identify Who worked together on the New Deal?
• Rate How would you judge the value of programs
  such as CWA, the CCC, and the TVA?

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Main Idea 2 Critics expressed concerns about
the New Deal.

• New Deal
• Goes Too Far
• Criticized expansion of federal government
• American Liberty League argued New Deal gave
  president too much authority.
• Business leaders concerned about potentially
  higher taxes

• New Deal
• Not Enough
• U.S. senator Huey Long believed the rich should
  pay extra taxes to support the poor.
• Some felt that the New Deal helped only business
  interests.

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Leading Critics of the New Deal

• Huey P. Long (senator from Louisiana)
• Believed Roosevelts policies were too friendly
  to banks and businessmen (started the Share Our
  Wealth Society)
• Father Charles Coughlin (the radio priest)
• Believed Roosevelt was not doing enough to curb
  the power of bankers and financial leaders
• Dr. Francis Townsend
• Criticized the New Deal for not doing enough for
  older Americans (wanted pensions for people over
  60)
• The American Liberty League
• Believed that the New Deal went too far and was
  anti-business
• Opposition from the courts
• Critics of the New Deal feared that it gave the
  president too much power over other branches of
  government.
• Schechter Poultry Corporation v. United States
• United States v. Butler

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New Deal Critics

• Recall- What stopped Huey Long from running for
  President?
• Explain Why were business leaders critical of
  New Deal programs?
• Rate What do you think about Longs Share Our
  Wealth idea?

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Main Idea 3 New Deal programs continued through
Roosevelts first term in what became known as
the Second New Deal.

• America showed support of Roosevelt in the
  Congressional elections of 1934.
• Roosevelt continued to introduce additional New
  Deal legislation
• These laws became known as the Second New Deal.
• First lady Eleanor Roosevelt was an active
  supporter of New Deal programs

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Selected Second New Deal Programs
Works Progress Administration employed 8.5
million
National Youth Administration gave part-time
jobs to young workers

• Social Security Act passed in 1935, worked to
  provide some financial security for the elderly,
  the disabled, children, and the unemployed
• Placed new tax on workers and employers
• First time the federal government took direct
  responsibility for many citizens economic
  well-being

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New Deal Labor Programs

• National Industrial Recovery Act passed in 1933.
• Required minimum wage and allowed collective
  bargaining
• Declared unconstitutional by Supreme Court in
  1935
• National Labor Relations Act, or the Wagner Act
• Allowed workers to join labor unions
• Established the National Labor Relations Board to
  oversee union activities
• Congress of Industrial Organizations
• Organized workers into unions based on industry,
  not skill level
• Allowed African Americans, Hispanics, women, and
  immigrants as members
• Led a sit-down strike against General Motors in
  which they stayed in the factories so that they
  could not be replaced by new workers

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The New Deal Continues

• Recall- How many people were employed by the WPA?
• Identify What were two benefits of Eleanor
  Roosevelts NYA?
• Explain What was unusual about the passage of
  the Social Security Act?
• Analyze In what way did Americans show their
  support for Roosevelt and his programs in the
  1934 election?

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The New Deal Continues

• Recall- What happened to the NIRA?
• Draw Conclusions In what way was the CIO
  helpful to unskilled workers?
• Evaluate What do you think about the CIOs
  attitude toward membership?

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Main Idea 4Roosevelt clashed with the Supreme
Court over the New Deal.

• Roosevelt was reelected in 1936 by a huge margin.
• Supreme Court issued a series of rulings
  declaring several New Deal programs
  unconstitutional.
• Roosevelt responded by proposing a plan for
  reorganizing federal judiciary.
• Drew harsh criticism from Congress and public
• Critics charged that Roosevelt was trying to
  change the balance of power defined in the U.S.
  Constitution. (Court Packing)
• Congress rejected the bill.
• The Supreme Court did not overturn any more New
  Deal legislation.

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Clashes with the Court

• Identify- Which branch of the federal government
  was not controlled by the Democrats in 1936?
• Define What is meant by court packing?
• Compare How did the actions of President
  Roosevelt, the Supreme Court and Congress
  illustrate the systems of Checks and Balances
  within the U.S. government?