Chapter 15 The New Deal
I. A New Deal Fights the Depression
A. Electing Franklin Delano Roosevelt
1. The Republicans nominated
President Hoover in the election of
1932.
2. The Democrats nominated
Franklin Delano Roosevelt (FDR) a
two term governor of New York.
3. Hoover was blamed for the
Depression and not doing enough to
stop it.
4. Roosevelt won by a wide margin.
B. Waiting for Roosevelt to Take
Office
1. Roosevelt was elected in November
1932 but was not inaugurated until
March of 1933. (Famous Quote)
*audio
2. FDR used the time from November
to March to select and work with a
group of carefully picked advisors.
3. The Twentieth Amendment which
took effect in 1933 moved the date the
President took office to January
following the November election.
(inauguration)
4. Roosevelt selected a group of
lawyers, professors, and journalists
that became known as the brain trust.
5. Roosevelt’s program designed to
end the Great Depression was called
the New Deal.
6. The New Deal policies had three
general goals: (the 3 “Rs”)
a. relief for the needy.
b. recovery for the
economy.
c. reform of the nation’s
finances.
7. When Roosevelt took office, his
administration started a period of
intense activity known as the Hundred
Days.
8. During this period Congress
passed over 15 major pieces of
legislation.
C. Reforming Banking and Finance
1. Roosevelt’s first step was to carry
out reforms in the nation’s banks and
finances.
2. Roosevelt declared a bank holiday
closing all banks preventing further
withdrawals.
3. The Emergency Banking Relief Act
authorized the Treasury Department to
inspect all banks.
4. Banks that were declared
financially sound would be allowed to
reopen.
5. The day before the banks were
scheduled to reopen, FDR began the
first of his radio talks to the nation.
(were known as “fireside chats”)
*audio
6. He explained his New Deal
measures and asked the public to
support the government and the
banking system.
7. Congress also passed a law
creating the FDIC-Federal Deposit
Insurance Corporation which insured
all individual bank accounts up to
$5,000.
8. The Federal Securities Act required
corporations to provide complete
information on all their stock offerings.
9. The SEC-Securities and Exchange
Commission was created by
Congress to regulate the Stock
Market.
10. The Twenty-first Amendment was
passed repealing Prohibition to allow
revenue from the sale of alcohol.
D. Other New Deal Measures.
1. The Agricultural Adjustment Act:
a. was passed to aid America’s
farmers by raising crop prices
through lowering production.
b. paid farmers to leave land
unplanted.
2. The Civilian Conservation Corps:
a. The CCC was a work project that
put young men age 18 to 25 to work
on public works.
b. they built roads, parks, planted
trees, and worked on soil erosion and
flood control projects.
c. workers were paid $30 a month
and $25 was automatically sent
home to their families.
d. The CCC supplied food,
housing and uniforms.
e. The CCC employed over 3
million men.
f. Most work camps were located on
the Great Plains where they planted
over 200 million trees to prevent
another Dust Bowl
3. The Federal Emergency Relief
Administration
a. The FERA provided direct relief to
the needy in the form of food and
clothing.
b. It provided over $750 million in
federal grants to the states.
4. The Public Works Administration
a. The PWA gave federal money to
the states to provide jobs.
b. The jobs were mainly in the
construction of schools and
community buildings.
5. The Civil Works Administration
a. The CWA provided 4 million jobs
for the winter of 1933-1934.
b. It built over 40,000 schools, over a
half a million miles of roads, and paid
the salaries of over 50,000
schoolteachers
6. The National Industrial Recovery
Act (NIRA) was passed to promote
fair practices for industries.
a. The NIRA set fair prices for goods
to ensure fair competition.
b. The NIRA banned child labor.
c. The NIRA created a set standard for
working hours.
7. The Tennessee Valley Authority
(TVA) was a program to develop the
depressed Tennessee Valley River
region.
a. The TVA constructed 20 dams
and renovated five existing ones.
b. The TVA created thousands of
jobs.
c. The TVA provided flood control.
d. The TVA provided hydroelectric
power.
8. The Home Owners Loan
Corporation (HOLC) provided
government loans to homeowners
9. The Federal Housing
Administration (FHA) was created to
furnish loans for new homes and
repairs.to the New Deal
E.home
Opposition
1. The New Deal had many critics in
the government.
2. Some believed that the New Deal
did not do enough to help the poor.
3. Others believed that the New Deal
went too far by controlling industry
and agriculture.
4. Two New Deal measures were
declared illegal by the Supreme Court
in 1935 and another in 1936.
5. Roosevelt believed that the S.C.
would strike down other New Deal
measures so he proposed a courtreform bill to reorganize the Supreme
Court in his favor.
a. The Court packing plan would
allow the President to appoint a new
justice for every present justice over
the age of 70.
b. The plan would allow FDR to
appoint 6 new justices making the
total 15.
c. FDR would appoint judges who
supported his New Deal measures.
6. The “court-packing” plan met
strong opposition in Congress.
7. FDR did not need to reorganize
the court-within the next four years
seven justices retired or resigned
which allowed him to make new
appointments.
II. The Second New Deal
A. The Second Hundred Days
1. The economy had improved
during FDR’s first two years in office
but not as much as he had hoped.
2. Roosevelt launched a new burst of
legislation that became known as the
Second Hundred Days.
3. This legislation was aimed at
providing relief for farmers and
workers whom Roosevelt had called
the “forgotten man”.
4. In the election of 1936 Roosevelt
ran against the Republican candidate
Alf Landon of Kansas.
5. Roosevelt won every state but two
giving him a vote of confidence for
his New Deal reforms.
B. Helping Farmers
1. The Supreme Court had repealed
the AAA in 1936.
2. In 1938 Congress passed a
second AAA that was revised to meet
the Supreme Court standards.
3. The Resettlement Administration
was formed to loan money so small
farmers could buy land.
4. The Farm Security Administration
(FSA) loaned money so tenant
farmers could buy their own land.
C. Other Relief Measures
1. The Works Progress
Administration:
a. The WPA was one of the largest
New Deal programs.
b. It employed over 8 million
workers between 1935 and 1943.
c. they built over 850 airports, over
651,000 miles of roads, constructed
over 110, 000 libraries, schools and
hospitals.
d. Women workers made over 300
million garments for the needy.
2. The National Youth
Administration, the NYA, provided
jobs for over 2 million high school
and college students in part-time
clerical positions.
3. The Social Security Act created in
1935 had three main provisions.
a. old-age insurance for retirees 65
years or older and their spouses.
b. unemployment compensation
system.
c. aid to families with dependent
children and the disabled.
4. The Rural Electrification
Administration (REA) distributed
electricity to rural and farm areas.
III. Society and Culture
A. Motion Pictures and Radio (p.
523)
1. The 1930’s were a golden age for
the motion picture and radio
industries.
2. New Hollywood Stars:
a. Greta Garbo
b. Clark Gable
c. Marlene Dietrich
d. James Cagney
3. Famous Movies of the 1930s:
a. Gone With the Wind-most famous
film of the 1930s about life in the
South during the Civil War.
b. Flying Down to Rio
c. Gold Diggers
d. The Wizard of Oz
e. Snow White and the Seven
Dwarfs
f. Little Caesar
g. Public Enemy
4. Radio provided entertainment in
over 90% of American Homes and
featured stars such as:
a. George Burns and Gracie
Allen
b. Bob Hope
c. Jack Benny
d. Orson Welles-famous for his
radio broadcast “The War of the
5.Worlds”
Famous artists and writers of the
1930s:
a. Grant Wood-painted American
Gothic that shows two farmers
standing in front of their farmhouse
during the Depression.
b. Richard Wright-African American
writer who wrote Native Son about a
man trying to survive in a racist
world.
c. John Steinbeck-wrote the Grapes
of Wrath about a group of
Oklahomans who left the Dust Bowl
for California.
IV. The Impact of the New Deal
A. New Deal Reforms
1. In his inauguration for his second
term FDR made this famous
statement, “I see one-third of a
nation ill-housed, ill-clad, illnourished.
2. By 1937 the economy had
improved enough to convince most
Americans that the Depression was
coming to an end.
3. By 1939 the focus of the
government had turned away from
the economy to events that were
taking place in Europe-especially the
rise of Hitler to power in Germany.