THE NEW DEAL
Relief, recovery &
reform
“The only Thing we
have to fear, is fear
iTself.”
FDR
RoosevelT’s vicToRy
 His administration began to immediately
prove to the American people that they were
different than that of Hoover.
 When FDR took office, a flurry of activity
began and did not end for three months
(March – June 1933). A lot of legislation was
passed in this time that became known as
the “Hundred Days”. FDR focused on the
three “R’s”—relief, recovery and reform.
 FDR’s approach – “It is common sense to
take a method and try it. If it fails, admit it
frankly and try another, But above all, try
something.”
The Hundred Days
 In the first three months FDR got
Congress to pass 15 major pieces of
legislation – named New Deal
legislation from a speech FDR gave
promising the American people a new
deal!
 These laws and others that followed,
significantly expanded the federal
government’s role in the
nation’s economy.
Saving the banks
 First things first—the bank crisis. FDR
closed the banks on March 5, one day after
taking office!
 The Emergency Banking Act was created
and authorized the government to inspect
the health of banks. Banks in sound
financial shape were reopened
immediately. Those lacking assets would
remain closed until the government could
find a safe way for them to open.
Saving the banks cont.
 FDR addressed the American people the
night before the banks reopened in the first
of his many “fireside chats”. FDR spoke to
the American people over the radio and
explained his New Deal programs and called
for support of the banking system.
 FDR explained that when too many people
demand their money in cash, banks would
fail.
 PLAN WORKED—deposits exceeded
withdraws.
relief
fera
 Federal Emergency Relief Admin. —
Congress appropriated $500 million to
be distributed by the FERA to state and
local relief agencies.
½ the money was to be used to provide food
and clothing to the unemployed, aged, and
ill.
½ to go to support work relief programs.
 FDR however, did not like giving charity
and wanted to put people back to work!
Applicants waiting for jobs in front of FERA offices
in New Orleans.
Aaa
 Agricultural Adjustment Act 1933 —paid
farmers a subsidy (financial assistance) to
reduce production of crops and the number
of animals raised. This would bring the
supply down to meet the demand.
 Problem - by the time the AAA was
established, farmers had already planted
crops and farm animals had already
produced young. Therefore, in order to meet
the AAA guidelines, farmers had to plow
under a portion of their crops and kill
newborn animals.
tva
 Tennessee Valley Authority 1933 —built
dams in the Tennessee River Valley to
turn the river’s water power into
electricity. It also intended to enrich
the land, to create fish-filled lakes that
would in turn increase tourism and
provide jobs for Tennessee Valley
residents.
Tennessee Valley Authority
recovery
Ccc
 Civilian Conservation Corps
Put young men ages 18-25 to work building
roads, developing parks, planting trees, and
helping on flood control
Employed nearly 3 million men by 1942
Paid $30 a month and $25 was automatically
sent home to their families.
Civilian Conservation Corps
Cwa
 Civil Works Administration
Provided 4 million immediate jobs
 many claimed that the programs were “makework” projects and a waste of money
 But, they built 40,000 schools and ½ million
miles of roads.
Working for the CCC
Pwa & nira
 Public Works Administration—put people to
work building dams, refurbishing government
buildings, planning sewage systems and
improving highways.
 National Industrial Recovery Act—created the
National Recovery Administration to help
factories recover.
 relaxed anti-trust laws and called for business leaders
to establish codes to set quality standards, production
levels, prices, maximum working hours and minimum
wages.
 It declared that workers could organize unions and
penalized business leaders that did not adhere to their
standards. (Posted the blue eagle in window).
National Recovery Administration
“Blue Eagle” emblem
reform
Regulating Banking and
Finance
 Glass-Steagall Act of 1933
 Established the Federal Deposit Insurance
Corporation (FDIC) – provided federal insurance
for individual bank accounts of up to $5,000.
 Federal Securities Act of 1933
 Required corporations provide complete info. on
all stock.
 Securities and Exchange Commission (SEC)
 regulated the stock market by preventing
people with inside information from “rigging”
the stock market for their own profit.
Haters
FDR faced many critics that believed his
programs did not do enough, gave the
federal government too much control
over agriculture and industry, and
interfered with the free-market economy.
Deficit Spending
• Roosevelt used the policy of deficit spending
to finance his many programs.
• Deficit spending= spending more money
than the government receives in revenue.
• FDR was reluctant to practice this but he
believed it was a necessary evil.
Tenant farmers
• AAA—what did it do?
• Tenant farmers were evicted from land
to reduce acreage.
• Went into effect late. Crops were tilled
under and animals killed.
• People could not understand this waste
when many were going hungry.
Business
• NIRA permitted workers to join unions
which led to strikes and hurt business.
• Business leaders felt that Roosevelt
interfered too much.
republicans
• Did not like that the New Deal created
“big government”.
Courts
• Supreme Court overturned both the
AAA and the NIRA.
• Declared that the AAA was
unconstitutional because agriculture is
a local matter that should be regulated
by the states rather than the federal
government.
• Declared that the NIRA gave the
executive branch too much power.
Huey Long
• Senator Huey Long of Louisiana was the
New Deal’s biggest challenger.
• Long was eager to win the presidency
himself and proposed a program called
“Share Our Wealth” in which he promised
something for everyone and economic
equality for all.
• Long was assassinated in 1935.
• * refer to the reading on Huey Long*
The court packing bill
February 1937—“The Court Packing Bill”.
- It would allow FDR to appoint 6
additional Supreme Court Justices.
- Roosevelt claimed: The justices were
old and he wanted to lighten their
workload.
- People thought: He was trying
to get a court which would be
sympathetic to his New Deal.
The court packing bill
- Bill - Didn’t happen, at least not
through legislation.
- 1937 an old justice retired and
Roosevelt was able to appoint a liberal
judge and in the next four years was
able to appoint 7 new justices, shifting
the court in favor of his programs.
- This allowed FDR to pass more
legislation with confidence that the SC
would not rule against it.
The second
new deal
The second new deal
 The Second New Deal was another
series of sweeping legislation in
many different areas. The new laws
expanded relief programs, aided
farmers and workers and provided
economic reforms.
 It too focused on the three “R’s”—
relief, recovery and reform.
relief
Wpa
 Works Project Administration—despite the
success of the first New Deal, 10 million
people remained unemployed in 1934. This
program employed people building hospitals,
schools, airports and playgrounds. It also
employed teachers, artists, writers and
actors.
ssa
 Social Security Act— created the Social
Security System headed by Francis Perkins.
– Old-age insurance for retirees and their spouses
– Unemployment compensation
– Aid to families with dependant children and the
disabled
– One of the most important
achievements of the New Deal!!!!
recovery
Wagner, SCA & REA
 Wagner Act—restored the rights to join
unions and bargain collectively that had
been lost when the NIRA was declared
unconstitutional.
 Soil Conservation Act— paid farmers for
cutting production of soil depleting crops
and rewarded farmers for practicing good
soil conservation methods.
 Rural Electrification – provided affordable
electricity for isolated rural areas.
reform
PUhcA & Revenue Act
 Public Utility Holding Company Act—
helped eliminate inefficiency in the
utility industries and reduced
consumer’s costs.
 Revenue Act— increased taxes on
incomes of wealthy corporations and
individuals.
Effects of the New Deal
 Women obtained high ranking
government positions for the first time;
- Francis Perkins became the 1st female
cabinet member
 However, in most other areas of
American society women were still
discriminated against.
Effects of the New Deal
 African Americans made some strides:
- 100+ appointed to key gov. positions
- Famous African-American singer Marian
Anderson was invited by Eleanor
Roosevelt to sing in front of the Lincoln
Memorial on Easter Sunday.
- First, African-American trade union was
formed.
 However, many of FDR’s New Deal programs
were discriminatory towards African
Americans and FDR did not support antilynching legislation or an end to poll taxes.
Effects of the New Deal
 Native Americans received government
support:
- Indian Reorganization Act of 1934 –
worked toward providing more autonomy
for Native Americans rather than forced
assimilation.
Thirties Culture
People enjoyed movies as an escape from
reality. Famous films of the 30’s included
Gone With the Wind (1939), Snow White &
the Seven Dwarfs (1937),and The Wizard
of Oz (1939).
Thirties Culture
• Radio also offered entertainment.
• Orson Welles, an actor, director, producer
and writer created one of the most
renowned radio broadcasts of all time,
“The War of the Worlds” (1938).
• President FDR delivered his Fireside
Chats on the radio. He used them to
describe his New Deal in words that
common folk could understand.
Thirties Culture
• Art during the era, unlike
movies and radio, reflected
the sober serious attitude
of the thirties.
• E.g.—American Gothic
(1930).0
John Steinbeck wrote the Grapes of Wrath
(1939), which reveals the lives of Oklahomans
who left the Dust Bowl and ended up in
California, where their hardships continued.
THE END