The New Deal
Chapter 13
Chapter 13
Sections 1 & 2
FDR wins the 1932 election
 -Takes office on March 4, 1933
 -Creates a plan called The New Deal
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-FDR’s plan to fix the Depression
 -Promised drastic changes
 -Major changes come in 1st Hundred Days
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-March –June 1933
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Franklin Delano Roosevelt
Fixing the Banks
 -FDR’s 1st step was to fix the banks
 -March 5, 1933, FDR orders all the banks in the U.S. to
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close
-Passes the Emergency Bank Act
-Govt. inspects banks to see how to fix them
-2/3 of banks re-open by March 15
-Becomes known as the Bank Holiday
-When banks re-open, deposits far out weigh
withdrawals
-FDR’s final step in giving confidence back to the banks
was to create the Federal Deposit Insurance Corp.
-FDIC
-Insures your money in the bank up to $5000 in 1933
-Today it is $100,000
Helping Business
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-FDR creates the National Industry Recovery Act
-NIRA
-Controlled industry prices
-Next creates the National Recovery Administration
-NRA
-Created industry wide rules
-Set wages
-Rules for safe working conditions
-Set prices for goods
-NIRA also put people to work
-NIRA creates the Public Works Administration [PWA]
-Build the Grand Coulee Dam [Wa.]
-Built Triboro Bridge [NYC]
-Built bridge connecting Florida Keys
Grand Coulee Dam
Triboro Bridge
Florida Keys Causeway
Helping the Stock Market
► -1933
FDR passes the Federal Securities Act
► -Companies must report to stockholders
how the business is doing
► -Next creates Securities and Exchange
Commission
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-SEC
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-Regulate the stock market
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creates Federal Reserve Board
-Regulating buying stocks
Saving Farms and Homes
-Many Americans lost their homes and farms b/c of Depression
 -Others were about to lose them
 -FDR creates the Home Owners Loan Corp. [HOLC]
 -Reshaped mortgages to allow people to keep or re-buy their
homes
 -Also saved farms by creating Agricultural Adjustment
Administration
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-AAA
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-Helped raise farm prices
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-Paid farmers not to grow certain crops
 -Finally creates the Tennessee Valley Authority
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-TVA
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-Public works program
 -Hired thousands to create hydroelectric power plants
 -Built flood control and dams
 -Mostly in Tennessee River valley
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TVA
TVA dam building
TVA hydroelectric power plant
Creating Jobs
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-FDR needed to help Americans get jobs
-Creates the Federal Emergency Relief Administration
-FERA
-Gives money to local agencies to help poor and unemployed
-Next creates Public Works Programs
-Govt. funded jobs to build public facilities
-1st program was created called the Civil Works Administration
-CWA created November 1933
-Hires 4 million Americans
-Build parks and airports
-2nd program was the Civilian Conservation Corps
-CCC
-2.5 million hired
-Restore and maintain forests, beaches and parks
-Earned $1 per day but lived for free
-Sent money home to workers’ families
The Second New Deal
-The New Deal progress slowed late in 1930’s
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-Many began to criticize it as too Communist
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-Supreme Court rules NIRA unconstitutional
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-Also says AAA unconstitutional
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-FDR needed a new plan
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-Called 2nd New Deal
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5 Major Parts of 2nd New Deal
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Wagner Act
-Granted workers and unions rights
National Labor Relations Board
-Used to enforce Wagner Act
-Middleman between unions and business
Fair Labor Standards Act
-Outlawed child labor
-Set minimum wages
Works Progress Administration
-Hires 8 million
-Build playgrounds, schools, hospitals
-Built “Lookout”
Social Security System
-Monthly pension for elderly
-Covered workers & spouses once they reached 65
-Aid to children, blind, & physically handicapped
Unions
► Union
membership rose dramatically in 1930’s
► Mainly b/c workers’ rights were protected by
Wagner Act
► 2 new unions emerge in 1930’s
► American Federation of Labor [AFL]
► Congress of Industrial Organization [CIO]
► These two unions join a Coalition
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-Alliance
► Called the AFL-CIO
► Led by John L. Lewis
 -Unions used Wagner Act to gain more
rights
 -Began using Sit Down Strikes
 -Workers stop doing their jobs, but refuse
to leave worksite
 -Prevented owners from using Scabs
 -Substitute workers
 -1st sit down strike is in Akron, Ohio at
tire plants in 1936
 -Later spread to GM plants in Michigan
 -In 1939, the Supreme Court rules sit
down strikes illegal
New Deal Culture
-3 parts of American life grow during New Deal
 1. Literature
 “The Grapes of Wrath” -John Steinbeck
 “The Good Earth” Pearl S. Buck
 2. Radio
 A. George Burns
 B. Jack Benny
 3. Movies
 Mr. Smith Goes to Washington
 -Jimmy Stewart
 Monkey Business & Duck Soup
 -Marx Brothers
 Snow White & The 7 Dwarfs
 -Walt Disney
 The Wizard of Oz
 -Judy Garland
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The Grapes of Wrath
The Good Earth
George Burns and Jack Benny