Chapter 26
“New Deal”
"I pledge you, I pledge
myself, to a new deal for
the American people." FDR
Launching
 Brain

Trust
Corporate greed, Republican
mismanagement and failed purchasing
power
 Relief-
direct relief to people
(unemployment)
 Recovery- of the economy
 Reform-legislation to change US
 Emergency
Banking Act-federal
assistance to banks
 Glass-steagall banking actrestricted speculation by banks
and created FDIC
 Unemployment- CWA, CCC, TVA
 Industrial Recovery-NIRA to PWA
and NRA (struck down in Schecter
Poultry v. US exceeded Federal
power)
 Should Federal power have right
to regulate commerce? Did
executive branch take over
legislative?
 AAA

store surplus –rise in prices
Benefits distributed only to landowners, land for
tenants usually cut out
Voided by supreme court-replaced by SC and
DAA act
 Broke
despair, never achieved economic
recovery
2nd New Deal
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Democrats increased their majorities in Congress.
progress failed to keep pace with public expectations.
Huey Long, Charles Coughlin, and Dr. Francis Townsend
push Roosevelt farther to the left in 1935.
greater regulation
long-term relief
The Social Security Act institutionalized a welfare state with
a social insurance program for the aged, infirm, and
dependent children.
The National Labor Relations Act gave a powerful boost to
organized labor. Legislation also strengthened federal
control over the private sector.
Roosevelt's 1936 reelection was built on a powerful
coalition of the traditionally Democratic South, big city
ethnics, and labor, and it reflected the wide impact of the
New Deal on the American people.
Impact
 Changed
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lives of all Americans (REA)
Irrigation
Electricity
Boulder dam completed
Limitations

African Americans
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Marian Anderson-Af.Am. Singer
Mary Bethune-Black Cabinet, National Youth Admin.
FDR refused to sign anti-lynching laws- fear of
southern dem votes
Discrimination in New Deal programs
Race riots
 Loose jobs to whites
 Lower wages
 Segregation
 Closed entirely to blacks
 To fix- quota system
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Indian Rights
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1924 Native Americans given full citizenship
Strengthened land claims
Govt. could not take lands that were set
aside for Native Americans
Power to manage internal affairs
revolving credit program for tribal land
purchases, for educational assistance, and for
aiding tribal organization.
Diversion between tribal groups- good for
functioning communal tribes bad if valued
individualism, suspicion of govt. programs
Women
 New
deal agencies build female forcesocial workers, teachers etc.
 Frances Perkins- Labor Secretary for FDR
 Eleanor Roosevelt
 Campaign for Roosevelt
 Focus on aiding and protecting women
not necessarily on employing them.
Rise of Organized Labor
 AFL
bound to skilled labor and organized
on craft or skill- form CIO- unskilled labor
 Labor unions increase numbers
 Industry wide- mass production (Autos,
rubber, electrical workers)
 Sit –down GM
 Memorial Day Massacre- Republican
Steel Plant, 1937 Chicago
 Clash with police 10 workers killed
End of New Deal
ended in 1936
 Court-packing bill angered the public and
bolstered a conservative coalition of Republicans
and rural Democrats.
 FDR's effort to balance the budget in 1937 led to a
deep recession, and his vindictive attempt to
unseat opponents failed.
-----------------------------------------------------------------What did the New Deal do?
 created mechanisms to compensate for future
swings in the economy
 modernized the presidency
 established a limited welfare state
 added new groups into the fold of democracy
through "broker" politics
 transformed the Democratic party into a
dominant force in American politics.
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