The New Deal
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Hoover-business, if left alone would correct itself
Vetoed bills aimed at relieving the depression-gave govt too much power
State/local govt should provide relief-but they don’t have money
RFC-Reconstruction Finance Corporation (1933)
Hoover’s most successful anti-depression measure
Lent money to banks, railroads, other institutions whose failure would worsen the depression
Most Americans felt he had not done enough
The New Deal
FDR-Franklin Delano Roosevelt-elected 1932
Ist inaugural-rallied a frightened nation in which 1 in 4 workers were unemployed
“We have nothing to fear but fear itself”
Belief: federal govt had chief responsibility of fighting the depression
No comprehensive plan:
Ad Hoc Approach
Reform, not revolution
Bank Holiday-March 5, 1933-declared a national bank holiday
Banks to reopen under Treasury Department Licenses-April
Fireside Chats-begun to explain the problems in banking
Off the Gold Standard-April 1933-hoping prices would rise
100 Days-New Deal
Comprehensive set of legislation passed to relieve the depression
March 9, 1933-called special session of Congress to pass laws to relieve the depression
Changed the role of government to a more active participant in solving problems
Laws established by the New Deal-3 Main Purposes:
1.
Relief: for the needy
2.
Recovery: provide and encourage business
3.
Reform: business and govt so that such a depression cannot happen again; labor
Relief-several agencies created to manage relief
1.
CCC-Civilian Conservation Corps, 1933 a.
Employ 10s of 1000s of young men in conservation projects
2.
FERA-Federal Emergency Relief Administration, 1933 a.
Gave states money for the needy
3.
WPA-Works Progress Administration-created by the NIRA-1935-Second New Deal a.
Jobs in building projects, i.e. highways and parks b.
1939-name changed to Works Projects Administration c.
Recoveryseveral agencies created to manage relief
1.
AAA-Agricultural Adjustment Admistration-1933 a.
Regulate farm production b.
Lift agricultural prices to parity w/ industrial prices
2.
NRA-National Recovery Administration-created NIRA-1933 a.
Set up and enforced rules of fair practice for business and industry
3.
PWA-Public Works Administration-created by the NIRA, 1933
4.
Jobs in the construction of bridges, dams, schools
5.
Also-Deficit Spending
Lower Tariffs
Reform -several agencies established to manage recovery programs
NIRA-National Industrial Recovery Act-1933 a.
Controversial. Envisaged a system of industry-wide organization of capitalists/workers supervised by the government

b.
Created the NRA, WPA
1.
FDIC-Federal Deposit Insurance corporation-1933 a.
Insured bank deposits b.
Extended Federal Reserve Power over investment and commercial banking
2.
HOLC-Home Owners Loan Corporation-1933 a.
Refinance mortgages and prevent foreclosures
3.
SEC-Securities and Exchange Commission-1934 a.
Broad authority to protect investors from buying unsafe stocks and bonds
4.
TVA-Tennessee Valley Authority-1933-Muscle Shoals Alabama a.
Board to build cams, power plants, transmission lines, undertake flood control, conservation
NIRA-provided for collective bargaining, But-
Craft-oriented, conservative AF of L-not want to enroll unskilled workers
John Lewis (UMW) and other labor leaders created CIO-1938
CIO – Congress of Industrial Organization
Organized without regard to craft; unskilled workers
Second New Deal/Second 100 Days-1935
1.
Wagner Act (National labor Relations Act) a.
Right to collective bargaining b.
Prohibited employers from interfering with union organization
2.
National labor Relations Board (NLRB) a.
Uphold Wagner Act
3.
Social Security Act a.
System of old age insurance financed by taxes on wages (workers) and payroll (employers)
4.
REA-rural Electrification Act a.
Bring electricity to rural areas
5.
Wealth Tax Act
6.
WPA-Works Progress Administration a.
Height in 1936-employed 25% of the work force
Requested and received $4.8 billion in work relief for the unemployed
Single largest appropriation in US History
First New Deal -told business what it MUST do
fundamentally more radical -
NIRA and AAA attempted to establish a planned economy
Second New Deal -told business what it MUST NOT do
-legislation had greater long-range effect
Social Security, Wagner Act
FDR-Democrat-Elected 4 times: 1932, 36, 40, 44
New Deal Coalition: Blacks (in record numbers), Labor Unions/Workers, Farmers, Homeowners, Elderly
Southerners, Catholic
FCR and Court Packing
Conservative majority in Supreme Court
Voided NIRA (Schechter Poultry v US, 1935), legislation dealing with minimum wage (Fair labor Standards Act)
Voided AAA (US v Butler, 1936)
1937-all New Deal legislation, ie Wagner Act, Social Security, appeared doomed
FDR response-increase the number of justices
Congress, public outrages: 1937 FDR withdrew
BUT-alarmed by the attack, 2 justices changed positions and voted to uphold New Deal legislation
Marks the end of the New Deal

New Deal
1.
Failed to end the Great Depression
2.
Effected changes that later prevented economic declines from becoming disasters
3.
Renewed public confidence in government
4.
Expanded the federal bureaucracy
5.
Expanded the powers of the president
6.
Altered American life and society
7.
Changed the relationship of people to the government
The Great Depression ended in 1942-after the US entered World War II
Note: add Eleanor Roosevelt and minorities, Harry Hopkins, Harold Ickes, Critics: Huey Long, Francis Townsend, Father
Charles Conklin; Unions: Fair Labor Standards Act along w/ Wagner Act and CIO and Lewis,