What were the 3 goals (focuses) of
the New Deal?
Key Terms due: Mon. 22-Feb
Ch 19 Test, Study Guide due: Fri. 26-Feb
3rd Quarter Can Drive
2 cans = 1 point (limit 15 points)
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 Distant cousin of Teddy Roosevelt
 Survived polio
 Only able to walk short distances with help of a cane and
leg braces
 People liked his hope and optimism during the
Depression
 1932 – Americans were ready for a change
 Most people recognized that Hoover had to go
 Franklin D. Roosevelt (FDR) won the election
easily
 Had a reputation for being friendly and wanted to
combat poverty and unemployment
 Before the inauguration, FDR began working to create
the “Brains Trust”
 Wanted to alleviate the Depression
 Developed a program called “The New Deal”
 Between FDR's election and his inauguration, the
Depression got worse
 People feared that FDR would abandon the gold
standard, which would reduce the value of American
money
 Involves the exchange rate of American dollars for
gold
 People lined up at the banks to withdraw their money so
they could invest in gold before the money lost its value
 Considered the measure of how effective a
president will be during his term
 FDR worked with Congress to pass 15 major acts to
solve the financial problems of the US
 These programs became known as "the New Deal"
 New Deal was made up of many components to
help the US
 Focused on: financial reform, relief for the needy, and
economic recovery
 the day after the inauguration, FDR had the banks
closed to stop all withdrawals
 Then had Congress pass the Emergency Banking Relief
Act
 Gov’t inspects banks, and only the ones in good financial
shape could re-open
 FDR urged people to trust the banks and invest their
money
 Took US off the gold standard – wanted to cause inflation
(reaction to years of deflation)
 Caused the value of money to drop, prices go up
 Debts became easier to pay, wages increased, goods cost
more
 After 9 months of "reflation" FDR returned the US to
the gold standard
 Glass-Steagall Act
 Established Federal Deposit Insurance Corporation (FDIC)
 Insured individual bank accounts
 Required banks to be cautious with customers’ $
 Securities Act of 1933
 Goal was to regulate the stock market
 Companies must provide truthful information about their
stocks
 Securities and Exchange Commission
 Regulated stock market and stopped fraud
 FDR also had Congress begin to allow the making and
selling of some alcohols
 Farm Credit Administration and Home Owners' Loan
Corporation helped refinance mortgages
 Pay farmers to produce less (leave some of the
fields unplanted)
 Raises prices on farm goods
 But many were upset that farmland was going
to waste when so many were hungry
 Run by National Recovery Administration
 Promoted industrial growth
 created rules for business, gov't and labor to operate by
 National Recovery Act
 Set prices of products, established standards for
products, and wages
 Workers were allowed to unionize
* declared unconstitutional in 1935
 Renovated 5 dams, built 20 new
 Created thousands of jobs, provided flood control, and
a new source of power
 Put young men to work
 Building roads, developing parks, planting trees,
preventing erosion
 Most work was focused in the mid-west
 Federal Emergency Relief Admin – gave money to state
and local agencies to fund relief projects
 Public Works Admin – hired men to build highways,
schools, dams, gov't buildings, awarded contracts to
construction companies
 Civil Works Admin – created because PWA wasn't
doing enough
 New Deal did help millions of Americans
 But it meant that the Gov’t was spending more money
than it brought in
 FDR viewed deficit spending as a necessary evil
 Didn’t end the Depression
 Some thought it didn’t focus enough on direct relief or
reform the economic system
 Others thought the gov’t was interfering too much in
the economy
 1935 – Supreme Court says NIRA is
unconstitutional
 Gives the gov’t too much power
 1936 – AAA is unconstitutional, states should govern
agriculture
 1937 – FDR wanted to appoint 6 new Supreme Court
Justices (not really legal)
 One Justice ended up retiring, and FDR was able to
appoint someone anyway
 FDR ended ups appointing 7 new judges during his term
 3 strong critics spoke out against the New Deal
 Father Coughlin
 Wanted a guaranteed national income and
nationalized banks
 Huey Long
 Began “Share-Our-Wealth” program, wanted
to run against FDR in the 1936 election
 Dr. Francis Townsend
 Wanted a pension plan for the elderly,
undermined support for FDR
 National Industrial Recovery Act
 Promoted industrial growth
 National Recovery Act
 Set prices of products, established standards for
products, and wages
 Workers were allowed to unionize
 Food, Clothing, Shelter
 New Deal programs provided loans to stop foreclosure
and made mortgages easier to obtain
 $500 million was given in direct relief to the needy and
to support work programs
 Nickname of the collection of programs in the New
Deal
As a group, find out the role of each of
the programs on your paper
 FDR was easily re-elected in 1936
 New Deal was very popular, FDR wanted to use
that success to get Congress to provide more relief
 FDR’s wife, Eleanor Roosevelt was a driving force
behind this push
 Eleanor Roosevelt was a humanitarian who
traveled the country observing people’s lives and
living conditions
 Would inform FDR about what was actually going on
 Urged FDR to appoint women to gov’t positions
 40% of farmers had to mortgage their property
 When the Supreme Court got rid of AAA, Congress
passed the Soil Conservation and Domestic
Allotment Act
 Cut crop production of soil-depleting crops
 Rewarded farmers for conserving soil
 Resettlement Administration – gave loans to farmers
to buy land, established camps for migrant workers
 FSA hired photographers to get a glimpse of what life
was like for farmers
 Works Progress Administration (WPA)
 Wanted to create as many jobs as quickly as possible
 Built 850 airports, constructed and repaired 651,000
miles of roads, built more than 125,000 buildings
 Hired people collect narratives, paint murals, and
perform plays
 Made special effort to help young people, women and
minorities
 National Youth Administration (NYA)
 Provided education, jobs, and counseling to young
people
 Students had to work part-time in order to participate
 Wagner Act (National Labor Relations Act)
 workers were able to create unions and engage in
collective bargaining
 Prohibited unfair labor practices
 Fair Labor Standards Act
 44 hour work week (later 40 hrs)
 Established minimum wage (25¢, later 40¢)
 Set rules about workers under 16
 John L. Lewis (head of United Mine Workers)
created the Committee for Industrial Organization
 Wanted to organize unions to help get them recognized
and encourage others to unionize
 UAW (United Auto Workers) went on a sit-down
strike – prevented management from bringing in
scabs
 US Steel agreed to recognize the steelworkers
union to avoid a strike
 Union membership triples during the 1930s
 Old-age Insurance – 65 or older, supplemental
retirement plan
 Unemployment compensation system - $15-$18 a
week, funded by a tax on employers
 Aid to families with dependent children and the
disabled – paid for by federal funds
 Electricity to rural towns
 Regulating public utilities
 Get rid of corruption in public utilities
 Early 1937, industry was stronger, people believed
the worst was over
 Concerned about Debt, Roosevelt cut spending on
PWA and WPA
 Happened at the same time as the first Social Security
payroll tax
 SS took $2 billion out of the economy
 Leaders of WPA and PWA wanted to use
Keynesianism – government should spend heavily
when in a recession to jumpstart the economy
 FDR didn't love the idea of more deficit spending, but
began spending on WPA and PWA again
 Women were able to gain gov’t positions
 Frances Perkins – Secretary of Labor
 FDR also appointed 2 female diplomats and federal
judge
 African-Americans were appointed to gov’t and
leadership positions
 Mary McLeod Bethune – leader in NYA
 “Black Cabinet” – advised FDR on racial issues
 Southern Tenant Farmers Union
 Mexican-Americans received less support than
other minorities
 Were excluded from some programs, were not allowed
to unionize
 Migrant workers did not have a permanent address, and
were not eligible for CCC and WPA
 Native Americans received strong support from the
New Deal
 Were declared full citizens
 John Collier became head of Indian Affairs
 Economic- tribes can own lands
 Cultural – Native American children can attend own
schools
 Political – tribes can elect councils to govern themselves
 Diverse groups dedicated to supporting the
Democratic Party
 Southern Whites, unionized laborers, urban groups,
African-Americans
 Movies
 65% of people saw at least 1 movie a week
 Made Hollywood the center of the film industry
 Movies were an escape from reality
 Radio - almost 90% of homes had a radio
 Federal Art Project – pay artists to produce public
art
 Murals, posters, teach art in schools
 Music - Woody Guthrie – songs captured
hardships of America
 WPA’s Federal Theater Project – hired actors to
perform plays around the country
 WPA’s Federal Writer’s Project
 Hinted at a 3rd New Deal
 Did not like the conditions that many workers and
families had to live in
 Did not want to use deficit spending
 Economy was improving
 Congress chose to scale back New Deal programs
 Caused industrial production to drop again
 Unemployment increased
 FDR was becoming concerned with the actions of
Germany in Europe
 FDR expanded the power of the gov’t, especially the role of
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the president
Regulated banking and investing
Reduced suffering through jobs, money and food
Federal Deficit rose to $2.9 billion
Protected worker’s rights
Established the Social Security Administration
AAA, CCC, TVA
Loans for farmers (based on parity)
Spread electricity to more towns
Civilian Conservation Corps- planted trees, created hiking
trails, built fire-lookout towers
Soil Conservation Act
Created a safety net to protect people from economic
disaster
 Massive spending by the government in 1943
 Guns, tanks, ships, airplanes, equipment and supplies
needed for US Armed Forces in WWII
New Deal
EBRA
TVA
Wagner
Act
Eleanor
Roosevelt
CCC
deficit
spending
Frances
Perkins
PWA
WPA
Social
Security Huey Long
SEC
Act
Brains
Mary McLeod
FSA parity
Trust
NIRA Bethune
Franklin D.
Woody NRLB
CWA
Roosevelt
Guthrie
John
Federal NRA
Glass-Steagall
Steinbeck
AAA
Deficit
Act
“Black” Cabinet
FDIC
FERA