The New Deal
Vocab
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20th amendment
relief
recovery
reform
bank holiday
New Deal
lame duck
amendment
100 days (hundred
days)
direct relief
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indirect relief
brain trust
public works program
Second New Deal
Wagner Act
closed shop
Social Security
System
• Fireside chat
Relief-Recovery- Reform
relief- 1st ASAP
money ,food or other
help given to those who need it.
recovery- 2nd to regain or make
improvements from on state or
condition.
reform- 3rd fix what is broke so it does
not break again
Goals of the New Deal
First 100 Days
1. Restore the nations hope
2. Stabilize financial institutions
3. Provide relief to the poor and
create jobs
DIRECT VS INDIRECT RELIEF
4. Create a plan to regulate the
economy
Second 100 Days
1. Pass new labor laws
2. Create and expand the New Deal
agencies
3. Establish Social Security to provide
old age pension and unemployment
insurance.
Restore the nations hope
How?
“The only thing we have to fear is fear
itself”.
Eleanor visits the Bonus Army
Fireside chats promising the New Deal
RRR to fight the Great Depression
First 100 days provide relief, create jobs
and stimulate economic recovery and
hopefully reform (change) will follow
Stabilize financial institutions
How?
Bank holiday
Emergency Banking Act
Glass Stegal Banking Act creates the FDIC
Federal Securities Act
SEC
US goes off gold standard
Provide Relief - Create Jobs
FERA Harry Hopkins
$ into public works programs
CWA Civil Works Administration
CCC Civilian Conservation Corporation
Indian Reorganization Act
Women
Plan and Regulate the Economy
NIRA National Industrial Recovery Act creates the NRA
National Recovery Administration to help balance the
economy
PWA Public Works Administration with Harold Ickes
Helping the farmer and homeowner
FHA Federal Housing Administration
AAA Agricultural Adjustment Act
TVA Tennessee Valley Authority
Key Players
Braintrust
FDR first president to appoint a women to a
cabinet position
Frances Perkins became the Sec. of Labor
FDR also hired African American
Bethune headed a part of the NYA who
created the “black cabinet”
Eleanor his wife
New Deal Setbacks
Not enough results = blame game
Court declared the NIRA unconstitutional.
Gave FDR too many powers not written the
constitution.
Court struck down the tax that helped
farmers in the AAA.
Time to regroup.
Support still there: wins 1934 election
Second New Deal Goals
Create and expand the New Deal agencies
• Created more social welfare ( to help those in
need)
• Put stricter controls on business. Limit unfairness
• Support for unions
• Taxes on the rich
New Agencies
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WPA Work Progress Administration
created jobs in construction and
arts program
Resettlement Administration
helped tenant farmers and share
croppers
REA gave loans to for power plants to
create electricity in rural areas
New Labor Laws
• Wagner Act allowed collective
bargaining and closed shops (union
members only) and sets up the NLRB
to be the police force to enforce
• Fair Labor Standards act bans child
labor and creates a minimum wage
• Social Security System
The Alphabet Soup
FOLDABLE:
CATEGORIZE AGENCIES AS
RELIEF
RECOVERY
REFORM
Relief
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FERA
CCC
CWA
NYA
WPA
HOLC
TVA
Recovery
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AAA
WAGNER ACT NLRB
NRA
PWA
FDIC
FHA
Resettlement administration
FSA
REA
Reform
• FDIC
• SEC
• SSA
FDR wins 1936 election
FDR WINS BY A LANSLIDE BUT
THERE WERE MANY CRITICS
WAITING TO ADD THEIR 2
CENTS!
FDR’s Critics
16:2 Vocab
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American Liberty League
Demagogue
Nationalization
Deficit spending
Court packing
Criticisms of the New Deal
pp 545-551
LIMITATIONS Women and Blacks
• The New Deal fell short of many people’s
expectations.
• The Fair Labor Standards Act covered fewer than
one quarter of all employed workers. It set the
minimum wage at 25 cents an hour, which was below
what most workers already made.
• The NRA codes, in some cases, permitted lower wages
for women’s work, and gave boys and men strong
preference in relief and job programs.
MORE Limitations
• No New Deal programs protected domestic
service, the largest female occupation.
• Many federal relief programs in the South
reinforced racial segregation. WHY?
• The Social Security Act excluded farmers and
domestic workers AND it failed to cover
nearly two thirds of working African
Americans.
MORE LIMITS
FDR also refused to support a bill
to make lynching a federal crime
because he feared that his
support of the bill would cause
southern Congressmen to block all
of his other programs.
Political Critics
New Deal Does Too Much
• A number of Republicans, in Congress and
elsewhere WERE AGAINST Roosevelt
because they believed that the New Deal
did too much.
• Wealthy people regarded FDR as their
enemy because he taxed them more to
help others out and pay for the help he
provided to all.
Political Critics
• FDR’s political enemies felt the SSA
penalized the successful when people were
assigned SS #’s
• A group called the American Liberty
League charged the New Deal with limiting
individual freedom in an unconstitutional,
“un-American” manner.
Progressives and Socialists
New Deal Does Not Do Enough
• Many Progressives and Socialists attacked the New Deal
because they believed that the programs did not help
enough .
• Novelist Upton Sinclair believed that the entire economic
system needed to be reformed. Maybe????
His “End Poverty in California” (EPIC), called for a new
economic system in which the state would take over
factories and farms.
• Truth be told… The New Deal was not successful at
eliminating poverty. It did give American’s hope!
Other Critics
• Other New Deal critics were demagogues, leaders who
manipulate people with half-truths, deceptive promises, and
scare tactics.
• Father Charles E. Coughlin often contradicted himself.
He believed the nationalization, or government takeover and
ownership, of banks and the redistribution of wealth was a
good idea.
• Huey Long, one time governor of Louisiana, and then United
States senator, was also a demagogue. He wanted a
redistribution of wealth and developed a program called
Share-Our-Wealth. The goal was to limit individual
personal wealth and increase the minimal income of all
citizens. Long also called for increased benefits for
veterans, shorter working hours, payments for education,
and pensions for the elderly.
Modern Critics
• Some historians and economists believe that the
New Deal did not achieve the greatest good for
the greatest number of Americans.
• They argue that New Deal programs slowed
economic progress and threatened America’s
belief in free enterprise an economic and political
belief that says a capitalist economy (private
owned) businesses will fix itself through
competition with supply and demand instead of
the government stepping in to fix and be the
police with new rules.
Modern Critics
• Modern critics attacked the policy of
paying farmers not to plant. In a time of
hunger, the program wasted precious
resources. Farm production quotas
penalized efficient and less-efficient
farmers equally, while the free market
would have weeded out inefficiency and
rewarded productivity.
Survival of the fittest???
• Finally, the New Deal receives criticism from
people who oppose deficit spending–paying out
more money from the annual federal budget
than the government receives in revenues.
• Debate about the New Deal continues today.
Critics believe that the programs violated the
free market system. Too much government help.
• Supporters believe that providing relief to the
poor and unemployed was worth the compromise.
Court Packing Fiasco
• Roosevelt received criticism not only for his programs,
but for his actions.
• In an effort to gain more support in the Supreme Court,
proposed a major court-reform bill. He recommended
that Congress allow him to add six additional Supreme
Court justices, one for every justice over 70 years old.
His argument was that this would lighten the case load
for aging justices. His real intention, however, was to
“pack” the Court with judges supportive of the New Deal.
• Critics said that FDR was trying to undermine the
constitutional separation of powers. They were
concerned that Roosevelt was trying to gain unchecked
powers.
• FDR still wound up with a Court that tended to side with
him. Some of the older justices retired and Roosevelt
was able to appoint justices who favored the New Deal
but suffered political damage. Many Republicans and
southern Democrats united against New Deal legislation.
This alliance remained a force for years to come.
Effects of the New Deal
16:3 Vocab pp 553-559
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Recession
National debt
Revenue
Coalition
Sit down strike
Economical Effects
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Relieved poverty in some segments
Created much more debt
Strengthened unions
Created big public works prjects that
cost BIG bucks
• Strengthened banks and the stock
market
ECONOMICAL
• The New Deal worked hard to fix the depression.
Massive government spending was a temporary
fix. Then in August of 1937, the economy
collapsed again. Industries made less so people
lost their jobs.
• The nation entered a recession, a period of slow
business activity. The new Social Security tax
was partly to blame. The tax came directly out of
workers’ paychecks, through payroll deductions.
With less money in their pockets, Americans
bought fewer goods.
Economical
• Americans also had less money because FDR had to cut back
on expensive programs such as the WPA that gave people
jobs
• The President had become concerned about the rising
national debt, or the total amount of money the federal
government borrows and has to pay back. The government
borrows when its revenue, or income, does not keep up with
its expenses.
• To fund the New Deal, the government had to borrow
massive amounts of money. As a result the national debt
rose from $21 billion in 1933 to $43 billion by 1940.
• 2008 over 10 trillion
Economical: union impact
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AFL (skilled workers) vs CIO (unskilled workers)
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In 1935, some union representatives wanted to create a place for
unskilled laborers within the American Federation of Labor.
They created the Committee for Industrial Organization (CIO).
The AFL did not support this effort and suspended the CIO in
1936. Booted em out more or less.
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By 1938, the CIO coalition, or alliance of groups with similar goals,
had 4 million members. John L. Lewis became president of the
CIO, which changed its name to the Congress of Industrial
Organization. The aim of the coalition of industrial unions was to
challenge the working conditions in factories. Their main tool was
the strike.
Unions
• The Wagner Act, in 1935, legalized collective
bargaining and led to many strikes in the work
place. Many work stoppages took the form of sitdown strikes, in which laborers stop working, but
refuse to leave the building and supporters set up
picket lines outside. Together the strikers and
the picket lines prevent the company from
bringing in scabs, or non-union substitute workers.
These tactics, although not always successful,
proved quite powerful. In 1939, the Supreme
Court outlawed the sit-down strike as being too
potent a weapon and prevented workers and the
bosses from working out their differences.
Political
Changed peoples view of the role of the
government
Expanded the federal government in peoples
lives
Produced much political controversy.
Extended the power of the president.
Was the New Deal a benefit to America or a
hindrance
Social
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Left out help for tenant farmers
Discriminated against women
Provided hope for Americans
Renewed peoples faith in their
government
Cultural
• Government provided $ to encourage
popular and fine artists with jobs
• Funded research for James Magee and
Walker Evans to stay with sharecroppers
• Created a federal writers project
• Created a federal music project
• Created a federal theater project
• FRD believed that the arts should be
available to all Americans
The Legacy
The New Deal attempted to help all but fell
short at times.
These federal agencies still exist today
TVA
SEC
SSA
Many public works projects still exist
Most of all…HOPE was the true legacy!