1932 – americans were ready for a change most people recognized that hoover had to go franklin d....
TRANSCRIPT
The New Deal
1932 – Americans were ready for a changeMost people recognized that Hoover had
to go
Franklin D. Roosevelt (FDR) won the election easilyHad a reputation for being friendly and
wanted to combat poverty and unemployment
Before the inauguration, FDR began working to create the “Brains Trust”Wanted to alleviate the DepressionDeveloped a program called “The New Deal”
Election of 1932
New Deal was made up of many components to help the USFocused on: financial reform, relief for the
needy, and economic recovery
15 policies supporting the New Deal were passed during FDR’s 1st 100 days in office
The New Deal
the day after the inauguration, FDR had the banks closed to stop all withdrawals
Then had Congress pass the Emergency Banking Relief ActGov’t inspects banks, and only the ones in
good financial shape could re-open
FDR urged people to trust the banks and invest their money
Financial Reform
FDR on the banking system (clip)
Glass-Steagall ActEstablished Federal Deposit Insurance
Corporation (FDIC)Insured individual bank accountsRequired banks to be cautious with customers’
$
Federal Securities ActGoal was to regulate the stock marketCompanies must provide information about
their stocks
FDR also had Congress begin to allow the making and selling of some alcohols
Financial Reform
Agricultural Adjustment ActPay farmers to produce less (leave some of
the fields unplanted)Raises prices on farm goods
But many were upset that farmland was going to waste when so many were hungry
Tennessee Valley AuthorityRenovated 5 dams, built 20 newCreated thousands of jobs, provided flood
control, and a new source of power
Helping the Needy
Civilian Conservation CorpsPut young men to work
Building roads, developing parks, planting trees, preventing erosion
Most work was focused in the mid-west
Public Works AdministrationGave $ to states to create jobs in building schools
and community buildings
Civil Works AdministrationPWA was not providing enough jobs, so FDR
created CWAInvented jobs for people
Helping the Needy
National Industrial Recovery ActPromoted industrial growthNational Recovery Act
Set prices of products, established standards for products, and wages
Workers were allowed to unionize
Food, Clothing, ShelterNew Deal programs provided loans to stop
foreclosure and made mortgages easier to obtain
$500 million was given in direct relief to the needy and to support work programs
Helping the Needy
New Deal did help millions of AmericansBut it meant that the Gov’t was spending more
money than it brought in
FDR viewed deficit spending as a necessary evil
Didn’t end the Depression
Some thought it didn’t focus enough on direct relief or reform the economic system
Others thought the gov’t was interfering too much in the economy
New Deal Under Attack
1935 – Supreme Court says NIRA is unconstitutionalGives the gov’t too much power
1936 – AAA is unconstitutional, states should govern agriculture
1937 – FDR wanted to appoint 6 new Supreme Court Justices (not really legal)One Justice ended up retiring, and FDR was
able to appoint someone anywayFDR ended ups appointing 7 new judges during
his term
Supreme Court on the New Deal
3 strong critics spoke out against the New DealFather Coughlin
Wanted a guaranteed national income and nationalized banks
Huey LongBegan “Share-Our-Wealth” program,
wanted to run against FDR in the 1936 election
Dr. Francis TownsendWanted a pension plan for the elderly,
undermined support for FDR
Criticism of the New Deal
New Deal was very popular, FDR wanted to use that success to get Congress to provide more relief
FDR’s wife, Eleanor Roosevelt was a driving force behind this push
Eleanor Roosevelt was a humanitarian who traveled the country observing people’s lives and living conditionsWould inform FDR about what was actually
going onUrged FDR to appoint women to gov’t positions
FDR’s 2nd 100 Days
Popularity of the New Deal and 2nd 100 days (aka 2nd New Deal) let to FDR easily being re-elected
Election of 1936
40% of farmers had to mortgage their property
When the Supreme Court got rid of AAA, Congress passed the Soil Conservation and Domestic Allotment ActCut crop production of soil-depleting cropsRewarded farmers for conserving soil
Resettlement Administration – gave loans to farmers to buy land, established camps for migrant workers
FSA hired photographers to get a glimpse of what life was like for farmers
Helping Farmers
Works Progress Administration (WPA)Wanted to create as many jobs as quickly as possibleBuilt 850 airports, constructed and repaired 651,000
miles of roads, built more than 125,000 buildingsHired people collect narratives, paint murals, and
perform playsMade special effort to help young people, women and
minorities
National Youth Administration (NYA)Provided education, jobs, and counseling to young
peopleStudents had to work part-time in order to
participate
FDR increases relief
Wagner Act (National Labor Relations Act)workers were able to create unions and engage
in collective bargainingProhibited unfair labor practices
Fair Labor Standards Act44 hour work week (later 40 hrs)Established minimum wage (25¢, later 40¢)Set rules about workers under 16
Improving Labor
Old-age Insurance – 65 or older, supplemental retirement plan
Unemployment compensation system - $15-$18 a week, funded by a tax on employers
Aid to families with dependent children and the disabled – paid for by federal funds
Social Security Act
Electricity to rural townsRegulating public utilitiesGet rid of corruption in public utilities
Other programs under the 2nd New Deal
Women were able to gain gov’t positionsFrances Perkins – Secretary of LaborFDR also appointed 2 female diplomats and
federal judge
African-Americans were appointed to gov’t and leadership positionsMary McLeod Bethune – leader in NYA“Black Cabinet” – advised FDR on racial issuesSouthern Tenant Farmers Union
New Deal new opportunities
Mexican-Americans received less support than other minorities Were excluded from some programs, were not
allowed to unionizeMigrant workers did not have a permanent
address, and were not eligible for CCC and WPA
New Deal new opportunities
Native Americans received strong support from the New DealWere declared full citizensJohn Collier became head of Indian Affairs
Economic- tribes can own landsCultural – Native American children can attend
own schoolsPolitical – tribes can elect councils to govern
themselves
New Deal new opportunities
Diverse groups dedicated to supporting the Democratic PartySouthern Whites, unionized laborers, urban
groups, African-Americans
New Deal Coalition
Unionization tripled between 1933-1941American Federation of LaborCongress of Industrial organizations
Unions bargained for better pay and working conditionsSit-down strike
Unions Grow
Movies65% of people saw at least 1 movie a weekMade Hollywood the center of the film industryMovies were an escape from reality
Gone With the Wind Flying Down to RioWizard of Oz Snow White and the Seven DwarfsMr. Smith Goes to Washington
Radio almost 90% of homes had a radio
War of the Worlds (trick broadcast)Fireside Chats ComediansSoap operas Lone Ranger
Culture of the 1930s
ArtFederal Art Project – pay artists to produce public
artMurals, posters, teach art in schools
MusicWoody Guthrie – songs captured hardships of
America
TheaterWPA’s Federal Theater Project – hired actors to
perform plays around the country
WritersWPA’s Federal Writer’s Project
John Steinbeck Richard WrightZora Neale Hurston James T. FarrellJack Conroy Thornton Wilder
Hinted at a 3rd New DealDid not like the conditions that many workers
and families had to live inDid not want to use deficit spending
Economy was improving
Congress chose to scale back New Deal programsCaused industrial production to drop againUnemployment increased
FDR was becoming concerned with the actions of Germany in Europe
FDR’s Second Term
FDR expanded the power of the gov’t, especially the role of the president
Regulated banking and investing
Reduced suffering through jobs, money and food
Federal Deficit rose to $2.9 billion
Protected workers rights
Effects of the New Deal
Establishing the Social Security Administration
AAA, CCC, TVA
Loans for farmers (based on parity)
Spread electricity to more towns
Civilian Conservation Corps- planted trees, created hiking trails, built fire-lookout towers
Soil Conservation Act
Effects of the New Deal
Massive spending by the government in 1943Guns, tanks, ships, airplanes, equipment and
supplies needed for US Armed Forces in WWII
What Ended the Great Depression?