A “New Deal”
for America
A Reform-Minded Candidate
Takes Charge
Franklin Delano Roosevelt
•Energetic
•Optimistic
•Aggressive
“The
only thing we have to fear
is fear itself.”
Roosevelt’s 100 Days
• 15 Proposals for recovery sent to Congress
• Major expansion of the Federal Gov’t’s power
• Opposite approach from Hoover’s “do nothing”
stand
• Based on Relief, Recovery and Reform
Banking and Finance
• “Bank Holiday” – Restore people’s faith
• Banking Relief Act
» Failures caused withdrawals
» Banks had to prove solvency to re-open
» Loans to those that could not
• “Fireside Chats” to explain how banking worked – asked
people to use banks again.
• Glass-Steagle Banking Act – 1933
» Est. Federal Deposit Bank Insurance
» Amounts up to $2,500
Stock Market Regulation
• Addressed reasons for Stock Market Crash
• Federal (Truth In) Securities Act
» Complete Disclosure about Stocks
• Securities & Exchange Commission – (SEC)
» Stopped Insider Trading
» “Rigging” of stock Offerings
Relief For Americans
• Federal Emergency Relief Agency (FERA)
» Gov’t Agency – gave grants to states
» $500 Million to help local relief agencies
• Public Works then Civil Works Administration
» Gave states $ to create 4 million jobs in
construction.
» Built schools, roads & bridges
• Civilian Conservation Corps
» Young men built roads, parks, planted
200 Million trees to try to help prevent erosion
in Dust Bowl again.
Regional Relief
• Agricultural Adjustment Act (AAA) – Farmers
» Reduced production to end surplus
» Drive prices up & leave land bare
» Slaughter livestock ---it worked.
• Tennessee Valley Authority (TVA)
» Built Dams in TN, AL, NC & GA
» Supplied 1st time cheap power to the south
» Eliminated flooding & improved transport.
» Created thousands of jobs
TVA Projects
Industrial Relief
• National Industrial Recovery Act (NIRA)
Creates Nat’l. Recovery Agency (NRA)
- Codes for fair pricing
- Set prices for fair competition
- Standards for work hours/banned child labor
- Unions can organize & bargain collectively
Homeowners Get Relief
• Home Owners Loan Corp (HOLC)
»Loans to people who couldn’t pay
mortgages @ low interest rates
• National Housing Act
»Created the Federal Housing Authority
»Provides low interest loans for 1st time
homeowners, and to refinance schools,
hospitals, nursing homes
Labor Reforms
• Wagner Act – 1935
(Nat’l Labor Relations Act)
• Supported Collective Bargaining rights
• Specified unfair labor practices as:
–
–
–
–
Threatening workers
Firing Union members
Prohibiting union organization
Establishes Nat’l Labor Relations Board to hear
testimony about unfair practices.
• Fair Labor Standards Act
- Minimum wages; Set work week – 44 hrs.; No Child Labor
Something
for
everybody
FDR’s
"alphabet
soup"
agencies
Critics of the
New Deal thought
there was no real
direction, that it
would be more
encouraging talk
without action.
Critics of the New Deal
Huey Long
» Governor of
Louisiana
» “Share Our Wealth”
» Take from rich – Give
to Poor - Robin
Hood!
» Assassinated in1935
Critics of the New Deal
Father Charles Coughlin
- Energetic radio sermons denounced
Roosevelt’s programs – NOT ENOUGH
- He wanted guaranteed incomes and
federal ownership of banks
Dr Francis Townshend
- Townshend Plan – Elderly get $200/mo.
- Must spend it all – Good public support!
- Set the stage for the Social Security
program
Supreme Court
Stalls Programs
• Conservative Supreme Court declared two
Roosevelt programs unconstitutional b/c…
• NIRA regulated national industries, but the
Federal Gov’t could regulate only interstate
commerce.
• AAA interfered with state matters - agriculture
should be regulated only by states.
Roosevelt Strikes Back!
• Alarmed about future Court decisions
• Proposes Court Reform Bill to seat 6 more
judges to Supreme Court to make it more
“effective”.
• “Court Packing” bill widely criticized for
violating ‘separation of powers’ clause.
• Damaged Roosevelt in eyes of conservatives
http://www.aroberts.us
Social Reforms
• Social Security Act – Social Security Program
Most important social legislation of New Deal to date
Old age insurance for retirees 65 + & spouses
Supplement to retirement plans
• Welfare
Aid to Families with Dependent Children
Needy elderly, blind, handicapped
• Unemployment Compensation
Federal tax on employers to help pay benefits to workers
who lost their jobs until they get new ones.
Impact of the New Deal
• Expanded Government’s role and power.
• Workers rights recognized and expanded
• Farm price supports and subsidies
• Investor Protection in Stock Exchange
• Savings Accounts Insured
• Social Security and Welfare protection against total
poverty.
• National Parks System and wildlife refuges expanded