NEW DEAL1933-1940

Launching the New Deal

Questions of the Day

What happened during the four months between the presidential election and Roosevelt’s inauguration?

What major action did Roosevelt take on his second day as president, and why did he do it?

What was the goal of the TVA?How did the public benefit from the Federal Securities

Act?What are the three main categories of the programs of the

New Deal?What did Huey P. Long’s Share our Wealth Society want to

do?Why did the American Liberty League appeal to both

Democrats and Republicans?

Roosevelt Takes Action

Economic crisis worsened in months before Roosevelt took office

U.S. Banking system was most immediate problem Roosevelt faced

Roosevelt Takes Action

“So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” – March 4, 1933

Solving the Banking Crisis

People withdrew their money from banks to avoid losing their savings Created panic, more withdraws

To stop this:1.Roosevelt issued an executive order to CLOSE

ALL THE NATION’S BANKS Called it a “Bank Holiday”

2.Passed Emergency Banking Act Allowed government officials to evaluate banks Determine if it should stay open or close the bank Decide on steps to correct problems

3.Explained his actions in the first “fireside chat”

Success of the Emergency Banking Act

Things improved within a few days Banks began to reopen

w/ government assurance

People started to return their funds

Nation regained confidence in the financial system

More Banking Reforms

The Glass-Steagall Act Passed in 1933 Created FDIC - (Federal

Deposit Insurance Corporation) Provided insurance for

depositors’ savingsWithin a month $1

billion in new deposits entered the system

The Hundred Days and The New Deal

Solving the banking crisis began an important period of government activity known as the

HUNDRED DAYS A time in which Roosevelt pushed Congress to put in

place key parts of:THE NEW DEAL

A plan meant to accomplish three main goals: (the three R’s) Relief for those suffering the effects of the Great Depression Recovery of the depressed economy Reforms that would prevent serious economic crisis from

happening in the future.

The New Deal - CCC

The Civilian Conservation Corps. (CCC) An effort to solve problem of unemployment for men

age 18-25 Americans enrolled in CCC were paid to work on

various conservation projects Ex: planting trees

Lived in army-style camps Sent money to their families

Help for Agriculture and Industry

Agricultural Adjustment Act (AAA) Gave farmers a subsidy

to grow fewer crops Subsidy = government

payment supply, demand,

price

National Industrial Recovery Act (NIRA) Mandated that

businesses in the same industry work together to set prices and levels of production

Included $3.3 billion for public works programs

The PWA, FSA and SEC

Public Works Administration (PWA) Helped manage public

works projectsFederal Securities Act

Forced companies to share certain financial info with the public

Securities and Exchange Commission (SEC) Monitored fairness of

stock market

Tennessee Valley Authority (TVA)

Massive programGoal: developing the

resources of the entire Tennessee River Valley

Built dams and other projects along Tennessee River Helped control floods Aided navigation and

shipping on the river Provided hydroelectric

power for industries

TVA

TVA

Beyond the Hundred DaysRoosevelt promised “bold, persistent experimentation” and he deliveredBut the effort wasn’t over

Nov. 1933 – Civil Works Administration (CWA) Provided winter employment for 4

million workers But highways, sewer lines, airports,

etc.June 1934 – Indian

Reorganization Act Recognized tribes as key social

units Limited sale of Indian lands Assisted them in developing

resources, economy and culture Granted some rights of self-rule

Trouble for the New Deal

New Deal greatly increased the role of government in business and peoples lives Not supported by everyone

Some said the New Deal didn’t do enough Complained that it propped up the system which had

caused all the problems in the first placeOthers complained that it ignored traditional

American values

Critics of the New Deal

Opposition from the Courts

Courts were more skeptical than American people Thought New Deal gave the President too much power President appointed officers made decisions Congress used to

By 1935, New Deal cases hit the courts Sent a swift blow to Roosevelt’s programs

1935 Schechter Poultry Corporation vs. U.S. Destroyed parts of NIRA

1936 United States vs. Butler Found AAA’s tax used to raise money for farm subsidies

unconstitutionalCourts accomplished what New Deal critics could

not

For Next Class…

Research one New Deal programMake poster, visual displayBe sure to explain:

What is the program supposed to accomplish? What benefits might the program have? Who will the program benefit? What might be some downsides to the program?

Be prepared to share next class