HIGH EXPECTATIONS 1929-1932

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Readiness standards comprise 65 of the U. S.
History Test
Economics 19 A
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Readiness Standard (19) The Student understands
changes over time in the role of government
The Student is expected to (A) Evaluate the
impact of New Deal legislation on the historical
roles of state federal government
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Searching for a Solution
As the Depression deepened, Hoover reluctantly
began to move beyond voluntarism to undertake
more sweeping governmental measures.

• Federal Farm Board loaned money to
• Aid cooperatives
• Buy surplus crops on open market
• Reconstruction Finance Committee (RFC)
• Congressional creation of early-1932
• Given power to loan money to banks, railroads,
  and insurance companies (and later granted power
  to lend money to local communities for public
  works projects) to save them from bankruptcy
• Congress gave the RFC the right to lend money to
  communities for public works programs

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Actions President Hoover Thought He Should Take
at Beginning of Depression

• Voluntarismessentially inactionHoover believed
  the government should not get involved in helping
  the economy
• Received wisdom of the day suggested that
  handouts from the federal government (or
  elsewhere) would undermine the proud spirit and
  penchant for hard work that had made America
  great in the first place.
• Rather, private businesses and charities should
  step in to feed and clothe those in need
• Bold forecasts of better days ahead, of
  recovery just around the corner
• The Republican promise that things would work out
  in the long run prompted the Democrats
  rejoinder, People dont eat in the long run.
• Hoover invited business leaders to the White
  House for an economic conference
• He agreed to federal public works projects that
  used only cash

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Franklin Delano RooseveltDemocratic governor of
New York State
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FDR AND THE NEW DEAL1932-1935
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Dorothea Lange's "Migrant Mother"
The Dust Bowl. . . and Migration West
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THE EARLY NEW DEAL
FDR Savior or Satan?
The election of 1932 brought Franklin D.
Roosevelt to office and in so doing, drastically
reshaped American attitudes about the role and
rights of government in relationship to the
people.
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Main principles underlying the New Deal

• Provide immediate relief to unemployed
• Bring about economic recovery
• Reform conditions causing the Depression

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When he accepted the Democratic presidential
nomination in 1932, he spoke to party delegates
in Chicago declaring, I pledge youI pledge
myself to a new deal for the American people.
From this point of origin, the Roosevelt
administration came to be known as THE NEW DEAL
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Fireside ChatFDR nationwide broadcasts or
informal talks in conversational tones to the
American people
FDR calmed American uncertainties via the
fireside chat, an informal report direct to the
man on the street, an innovative popular new
use of the media (radio) His warmth and
steadiness reassured millions of listeners. . . .
The Roosevelt magic, unfeigned and
inexhaustible, amazed his associates.
Initiated March 5, 1933
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The Blue Eagle
The emblem of the National Recovery
Administration
The WPA slogan We Do Our Part became a rallying
cry for Americans
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How FDR Tried to Solve the Bank Crisis

• Declared a bank holiday
• Proposed Emergency Banking Relief Act (put banks
  under federal supervision) Permitted sound banks
  to borrow federal funds
• Closed unsound banks

FDR declares Bank Holiday Proclamation
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The Hundred Days
This was the appellation given to FDRs
presidential initiatives to aid industrial and
agricultural recovery upon FDRs taking office.
His fifteen major requests to Congress for action
yielded fifteen major pieces of legislation. Over
the long haul, many New Deal creations were
temporary in naturedesigned to meet specific
economic problems of the Depression. Moreover,
none were uniformly successful. Psychologically,
the nation turned the corner in the spring of
1933. Under FDR, the government seemed to be
responding to the economic crisis, enabling
people for the first time since 19209 to look to
the future with hope.
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The Hundred Days

• Purpose of Federal Emergency Relief Act
  (FERA)gave money to local governments to give to
  the unemployed
• Purpose of Civil Works Administration (CWA)gave
  people jobs instead of relief payments
• How the Agricultural Adjustment Administration
  (AAA) helped farmers

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Agricultural Adjustment Administration (AAA)
The AAA limited production to prevent surpluses.
Consequently, prices rose for farm products. The
government offered subsidies to farmers who took
some land out of production, and in other
instances, actually paid farmers to plow under
crops and kill livestock, all to boost farm
prices. In 1936, the Supreme Court found the AAA
to be unconstitutional.
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The Dust Bowl
Farmer woes were complicated by the extended
drought and dust storms that pummeled areas of
Nebraska, Kansas, Oklahoma, and the panhandle of
Texas. Scores of rural families were forced to
abandon their homes and seek greener pastures in
other areas of the nation. The so-called Dust
Bowl experience was the backdrop of John
Steinbecks heralded novel, Grapes of Wrath.
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Main provisions of National Industrial Recovery
Act (NIRA)
The NRA permitted trade associations to draft
codes to regulate production, prices, and working
conditions. It was FDRs attempt to achieve
economic advance through planning and cooperation
between government, business and labor. Use of
the blue eagle was aimed at tying patriotism to
support of NRA programs. Section 7A of the NIRA
ostensibly protected labor by establishing
maximum hours and minimum wages. In fact, it
favored big business over small competitors. In
1935, the Supreme Court judged the NRA
unconstitutional.
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Main purpose of Public Works Administration (PWA)
Stimulate employment by spending money on public
works projects
A future presidentLBJwith FDR during the heyday
of public projects
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Tennessee Valley Authority (TVA)
The most successful and enduring of all New Deal
legislation

• Build Dams
• Construct hydroelectric dams
• Plant trees to stop erosion
• Introduce educational and health facilities

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Voices of ProtestThe Scorecard
The Anti-Roosevelt Triumvirate
Dr. Francis Townsend
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A Second New DealThe Scorecard

• The Wagner Act1935
• Public Utilities Holding Company Act1935,
  empowered government to prohibit holding
  companies from owning more than one utility
  company in any one part of the U. S.
• Utility Companydistributors of gas and
  electricity
• Unemployment Compensationtemporary income for
  people who had lost their jobs

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The Wagner Act
The Wagner National Labor Relations Act, the
most far reaching of all New Deal measures, led
to the revitalization of t he American labor
movement and a permanent change in
labor-management relations.

• Outlawed company unions
• Outlawed other unfair labor practices
• Ensured collective bargaining for unions
• Created National Labor Relations Board to preside
  over labor-management relations

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Rights the Wagner Act guaranteed for workers

• Right to organize
• Right to bargain collectively

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Major provisions of the Social Security Act of
1935

• Old-age pensions financed by tax on both
  employers and workers (in equal amounts)
• States given federal matching funds for pensions
  to aid the destitute and elderly
• System of unemployment compensation set up on a
  federal-state basis
• Direct federal grants given to states on matching
  basis for welfare to blind, handicapped, needy
  elderly and dependent children.

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FDR THE SECOND NEW DEAL1936-1941
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Course of the American economy in fall and winter
of 1937-1938
A recession developed due to

• Cuts in government spending
• Cuts in private spending

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Reforms passed during FDRs 2nd term
The legislative record during Roosevelts second
term was meager.

• Fair Labor Standards Act
• Farm Security Administration Rural
  Electrification Administration
• Lent money to for building power lines in rural
  areas
• Brought electric power to 90 of U.S. farms that
  did not have electricity in the 1930s

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• Soil Conservation and Domestic Allotment
  Actencouraged planting of soil-enriching land
  cover
• Agricultural Adjustment Act
• National Housing Actgave loans to public
  agencies to build low-income housing created the
  U. S. Housing Authority
• Food, Drug, and Cosmetic Actrequired
  manufacturers to list ingredients and test new
  drugs before legal sale
• Hatch Actbarred use of official favors to
  influence elections forbade most federal
  employees from taking active part in political
  campaigns

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WomenAppointed to Important Government Posts
The impact of the First Lady, Eleanor Roosevelt,
was central to these developments. She had a keen
sense of social justice and deplored the
existence of poverty and inequality. She became a
kind of self-appointed conscience for her
husbands administration. She exposed the areas
where the New Deal had not been realized. Her
accessibility to the public and her willingness
to serve its interests gave encouragement to
those who had lost all hope. Her courage and
vitality in the pursuit of human rights and
equality made her the embodiment of reform and
social justice in the New Deal.
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Effects of the New Deal

• The economic recovery problem was not solved in
  1937 and the economy entered another
  mini-depression in 1938-39. The hostilities of
  World War II brought the country out of the
  Depression.
• The Federal Government increased its involvement
  to unheard of levels in American society.
• The size of the government grew and a huge
  bureaucracy was built.
• America identified with the New Deal and the
  Democratic Party. The Democrats dominated
  Congress.

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Appendix New Deal Legislation
Sources Robert A. Divine et al, America, Past
and Present, (New York HarperCollins, 1994), pp
456-7. Gary B. Nash Ed. et al, The American
People Creating a Nation and a Society, (New
York Harper Collins, 1994), pp 842.
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New Deal Legislation Sources Robert A. Divine
et al, America, Past and Present, (New York
HarperCollins, 1994), pp 456-7. Gary B. Nash Ed.
et al, The American People - Creating a Nation
and a Society, (New York Harper Collins, 1994),
pp 842.Z
Year Created Legislation Provisions
1932 Reconstruction Finance Corporation (RFC) Passed during the Hoover administration, it granted emergency loans to banks, life insurance companies and railroads.
1933 Agricultural Adjustments Administration (AAA) Attempted to regulate the production of certain products through farm subsidies. Funding was provided by a processing tax, which the Supreme court ruled unconstitutional in 1936. It helped coordinate agricultural production during World War II, after which it was disbanded.
  Banking Act of 1933 (Glass-Steagall Act) Prohibited banks from selling stock or financing corporations also created the FDIC.
  Civilian Conservation Corps (CCC) Employed young men (and a few women) ages 18 to 25 on regional environmental projects, such as reforestation, road construction and flood control projects, mainly west of the Mississippi they received 30 a month of which 25 was sent home disbanded during World War II.
  Civil Works Administration (CWA) An emergency work relief program which, during the extremely cold winter of 1933-34, placed over 4 million people to work, after which it was disbanded.
  Federal Deposit Insurance Corporation (FDIC) Provided a federal guarantee of savings bank deposits up to 2,500 initially, and continued to grow continues today with a limit of 100,000.

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New Deal Legislation Sources Robert A. Divine
et al, America, Past and Present, (New York
HarperCollins, 1994), pp 456-7. Gary B. Nash Ed.
et al, The American People - Creating a Nation
and a Society, (New York Harper Collins, 1994),
pp 842.Z
Year Created Legislation Provisions
 1933 ctd. Federal Emergency Relief Administration (FERA) Supplied a combination of cash relief and work relief to needy families superseded in 1935 by work relief of WPA and unemployment insurance of Social Security.
  National Industrial Recovery Act (NIRA) Attempted to revive business through national economic planning which controlled production, pricing and labor relations among leading business interests ruled unconstitutional in 1935.
  Public Works Administration (PWA) Provided funding for over 34,000 construction projects such as roads, public housing, power, and conservation of natural resources it made the federal government the nation's leading producer of power, and advanced conservation of the country's natural resources discontinued in 1939 due to a lack of reduction of unemployment and lack of private investment.
  Tennessee Valley Authority (TVA) A regional planning project to construct dams and power projects, and to develop the economy of the nine states of the Tennessee valley area. Continues today to meet the valley's energy and flood control needs.
1934 Federal Communications Commission (FCC) A regulatory agency established to oversee the wired and wireless broadcasts showed the growing importance of radio in America during the depression continues today to control both television and radio.
  National Housing Act - Federal Housing Administration (FHA) Allowed banks to make loans, for construction and repair of homes, which would be guaranteed by the Government. The reduction of down payments, from 30 to 10, and the extension of repayment terms, from 20 to 30 years, continues today.
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New Deal Legislation Sources Robert A. Divine
et al, America, Past and Present, (New York
HarperCollins, 1994), pp 456-7. Gary B. Nash Ed.
et al, The American People - Creating a Nation
and a Society, (New York Harper Collins, 1994),
pp 842.Z
Year Created Legislation Legislation Provisions
1933 ctd. Securities and Exchange Commission (SEC) Securities and Exchange Commission (SEC) Continues today to regulate the trading practices in stocks and bonds.
1935 Social Security Act A program which continues today guaranteeing retirement payments after age 65, providing unemployment insurance and care for dependant mothers and children, and the handicapped as well as public health the program is paid for jointly by taxes on employers and employees. A program which continues today guaranteeing retirement payments after age 65, providing unemployment insurance and care for dependant mothers and children, and the handicapped as well as public health the program is paid for jointly by taxes on employers and employees.
  Rural Electrification Administration (REA) Provided electrification to rural areas which private power companies refused to serve thereby closing the cultural gap by providing modern amenities to rural communities. Provided electrification to rural areas which private power companies refused to serve thereby closing the cultural gap by providing modern amenities to rural communities.
  National Labor Relations Act (Wagner-Connery Act) Enhanced the power of labor by reinforcing the right of workers to join labor unions and to bargain collectively established the National Labor Relations Board to oversee elections and prevent unfair labor practices. It continues to arbitrate labor-management disputes today. Enhanced the power of labor by reinforcing the right of workers to join labor unions and to bargain collectively established the National Labor Relations Board to oversee elections and prevent unfair labor practices. It continues to arbitrate labor-management disputes today.
  Emergency Relief Appropriation Act - created Works Progress Administration (WPA) Provided massive relief by employing over 8 million people in public works programs ranging from construction to acting disbanded by President Roosevelt during World War II. Provided massive relief by employing over 8 million people in public works programs ranging from construction to acting disbanded by President Roosevelt during World War II.
  National Youth Administration (NYA) Established by the WPA, it supported the education and training of young people in order to reduce the competition for employment it provided grants for students for work done in schools as well as providing training towards skilled labor for out-of-school youths disbanded during World War II. Established by the WPA, it supported the education and training of young people in order to reduce the competition for employment it provided grants for students for work done in schools as well as providing training towards skilled labor for out-of-school youths disbanded during World War II.
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Year Created Legislation Legislation Provisions
 1935 ctd. Public Utility Holding Company Act Created holding companies to control gas and electrical provisions within restricted areas forced companies to provide efficient, useful service to local areas within 5 years or be dissolved. Created holding companies to control gas and electrical provisions within restricted areas forced companies to provide efficient, useful service to local areas within 5 years or be dissolved.
1937 Farm Security Administration (FSA) Provided loans to small farmers for purchase and upgrading of small-sized farms it budget was greatly reduced by Congress during World War II when many farmers went into the armed forces or migrated to urban areas. Provided loans to small farmers for purchase and upgrading of small-sized farms it budget was greatly reduced by Congress during World War II when many farmers went into the armed forces or migrated to urban areas.
  National Housing Act (Wagner-Steagall Act) Allowed for low-rent public housing projects. Allowed for low-rent public housing projects.
1938 Agricultural Adjustments Act (AAA) Similar to the 1933 act in that it continued to provide price supports and payments to farmers in order to limit production, however the processing tax which had funded it was replaced by direct federal payment. Similar to the 1933 act in that it continued to provide price supports and payments to farmers in order to limit production, however the processing tax which had funded it was replaced by direct federal payment.
  Fair Labor Standards Act Set a standard minimum wage of 40 cents and hour and created the standard work week of 40 hours for business engaged in interstate commerce. Set a standard minimum wage of 40 cents and hour and created the standard work week of 40 hours for business engaged in interstate commerce.
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Fini