THE NEW DEAL 19331938

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THE NEW DEAL 1933-1938
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1. THE NEW DEAL

• When FDR took office in 1933, he did not have a
  plan, but he did act, and what he did do was
  called The New Deal. He was able to restore the
  optimism of the American people.
• -The Sunday after his inauguration he began his
  popular weekly radio chats-called the Fireside
  Chats.
• -His first Hundred days in office - pushed
  program after program through Congress to provide
  relief, create jobs and stimulate economic
  recovery.

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2. His 1st Step

• was to restore people's confidence in the banks.
  He ordered all banks closed on Feb. 6. Then he
  passed the Emergency Banking Act which inspected
  banks for their solvency. Along with this he
  established the FDIC-(Federal Deposit Insurance
  Corporation) which insured deposits up to
  5,000. Most banks reopened on March 15.

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3. His 2nd Step

• was to replenish relief agencies and create jobs.
• He established FERA (Federal Emergency Relief
  Administration) which gave out 5 million dollars
  within 2 hrs of opening.
• -Public works programs-government funded
  projects to build public facilities-got people
  back to work-building roads, parks, airports,
  (CWA) Civil Works Administration (employed 4
  million workers)
• -The (CCC) Civilian Conservation Corps. put 2.5
  million unmarried men to work in the forests,
  beaches, and park maintenance and restoration
  projects -CCC put 8,500 women to work under
  pressure from Eleanor Roosevelt
• -many of these work projects put minorities
  (Natives and African Americans and work building
  schools ,hospitals and irrigation systems.
• -The Indian Reorganization Act-1934-stopped the
  sale of tribal lands

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4. -3rd Step

• The (NIRA)-National Industrial Recovery Act
  helped to bring up prices-but provided for
  minimum wage.
• -The PWA- Public Works Administration-built the
  Grand Coulee Dam in Washington and the causeway
  connecting Key West and Florida.
• -The Federal Securities Act-made it law that
  business had to fill full disclosure about stocks
  offered for sale.
• -Then the SEC was established-Securities and
  Exchange Commission to regulate the stock market
  and regulated the amount of stocks that could be
  bought on margin.

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5. 4th Step-saving homes and farms

• -the HOLC-Homes Loan corporation-let people
  refinance mortgages
• -The AAA-Agricultural Adjustment
  Administration-tried to raise farm prices by
  lowering production to raise prices.

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6. 5Th Step-Improving the Quality of Life

• -The TVA-Tennessee Valley authority-created jobs
  in the hydroelectric power industry.

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7. New Deal Personnel

• -FDR surrounded himself with hardworking advisors
• -for the first time a women held a cabinet
  post-Frances Perkins was appointed secretary of
  labor. 1 of 30 women he appointed to high
  ranking positions.
• -Mary McLeod Bethune's appointment was most
  controversial. She was a famous, outspoken
  African American even before her appointment.
  She started the 1st school for blacks in Daytona
  Florida, opened the 1st educational high school
  in Jacksonville. She had volunteered for the
  NAACP, and the National Association of Colored
  People. FDR appointed her to the position of
  Director of Negro Affairs- to help create jobs
  for blacks

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8. Eleanor Roosevelt-

• worked alongside her husband, visited coal mines,
  construction sites, and started her own weekly
  column-My Day

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9. Court Packing

• -the most criticism came from those who realized
  FDR was trying to pack the Supreme Court with his
  supporters
• -the Courts had blocked much of his legislation.
  so he proposed a court reform bill
• -Normally nine justices, but FDR wanted up to 6
  more one for each member over 70(leftists)
• -He eventually had to withdraw his reform, but
  was still able to pack the court because as
  conservatives retired he appointed as liberals

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10. Legacies of the New Deal

• it profoundly changed politics, American social
  life, and increased the publics expectations of
  the President (to formulate programs and solve
  problems)

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11. Recession

• -recession occurred in 1937 because of massive
  govt. spending.
• -also, people had less money to spend now that
  deductions were coming out of their paychecks to
  pay for social security
• -the national debt was rising -the total amount
  of money the federal government has borrowed and
  has yet to payback.
• -from 1933 to 1940 it rose from 21 to 43 billion

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12. Union

• the success of unions changed permanently the
  relationship between workers and employers
• -the Congress of Industrial organizations-CIO-dev
  eloped, which organized all unskilled workers in
  the nation and welcomed all workers regardless of
  sex, color, or skill
• -the Wagner Act had legalized strikes and
  employers had to bargain in good faith with the
  union representatives.
• -This period had several of the county's most
  spectacular strikes-known as sit-down strikes, in
  which workers stopped working and refused to
  leave the premises, preventing the companies with
  the picketers outside from bringing in scabs.

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13. Cultural life in the thirties

• -radios and movies were popular with radio comedy
  shows being the biggest form of
  entertainment-first soap operas too
• -symphonies were popular
• -movies-Mr. Smith goes to Washington and showed
  how the common man could triumph over evil
• Mickey Mouse and Disney films helped Depression
  era, people escape from reality, Snow White(1937)
  and The Wizard of Oz(1939)
• -the government supported the arts because
  Hoover did not want people to give them up just
  because of hard times

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14. THE SECOND NEW DEAL

• -the first new deal had many critics, because the
  President was making laws without the states
  approval and because it wasn't working fast
  enough
• -But mostly, the nation followed Roosevelt so he
  continued to launch new legislation with more
  social welfare benefits, stronger unions and
  higher takes on the rich-called the second new
  deal

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15. Social Security Act

• -part of the New Deal was the Social Security Act
  that established old age pensions for workers,
  survivor benefits for victims of industrial
  accidents, unemployment insurance, and aid for
  dependent mothers and children, the blind, and
  physically disabled.
• -It was and is funded from contributions from
  employers and workers

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16. 1936 election

• it was a landside victory for FDR who carried
  every state except Maine and Vermont
• -Overwhelmingly, Americans were behind the New
  Deal

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17. Limits on the New Deal

• minimum wage was set at .25 cents/hour
• -less helpful to women and minority groups
• -it permitted lower wages for women
• -relief programs reinforced segregation in the
  South because they were only hired for labor
  positions
• -Social Security did not cover farmers and
  domestic workers, 2/3 of which were women and
  African Americans in the South.

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18. Criticism

• -the political right-those who want to keep
  things the way they are opposed to Roosevelt
• -most opponents were the wealthy who opposed the
  taxes aimed at them
• -some argued that social security penalized hard
  workers and that assigning everyone a number
  would make the U.S a militaristic country
• -the political left-those who want government to
  change-also attacked Roosevelt. They felt the New
  Deal was not going far enough to help the common
  man.

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19. -Demagogues

• Charismatic leaders who manipulate people with
  half truths also opposed Roosevelt-ex Father
  Charles E. Coughlin and Huey Long(aka Kingfish)
• -Coughlin was anti-Semitic and blamed the Jewish
  people and on his radio show encouraged people to
  follow Hitler and Mussolini
• -Long-called for the redistribution of wealth
  and gained a strong following in New orleans.

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20. Lasting New Deal Monuments

• -The bridges, dams, tunnels, public buildings,
  hospitals, and port facilities were built during
  this time to give people jobs.
• -many of the agencies Roosevelt created still
  exist
• -most importantly, is social security- almost
  everyone since has come to depend on it, although
  not everyone benefited in those early days as we
  do today.
• -the depression still was effecting people-not
  until war starts again was it finally over.