Chapter 22

1. Chapter 22 The New Deal

2. Section 1 – Forging a New Deal • Goals: • Help people find jobs • Provide relief in the form of $ • Restore the economy • The New Deal had 3 phases • Relief – provide $ and jobs to people • Recovery – recover agriculture and industry • Reform – change economic structure to prevent another depression

3. Banking Crisis • Roosevelt used “fireside chats” talking over the radio to the public to ease fear and panic • Bank closing was 1st priority – instituted Emergency banking act • Closed all banks (holiday) • Ordered all banks be inspected for stability • Opened banks as they were deemed financially stable (2/3 opened within 6 days)

4. First New Deal • First 100 days of FDR administration • Much legislation implemented – not passed by congress (emergency) • Called alphabet soup – initials used to define laws • New Deal based on idea of “Pump Priming” (government pouring $ into the economy to get economy flowing)

5. 1st New Deal Relief Legislation • F.E.R.A. – Federal Emergency Relief Administration – directed by Harry Hopkins (provided $ for relief agencies and public works programs • C.W.A. – build roads, parks, and airports • P.W.A. – Public Works Administration – sponsored huge public works projects (ex. – dams) • Established by the National Industrial Recovery Act • led by Sec. of Interior Harold Ickes (Grand Coulee dam and Causeway for Florida Keys were major projects)

6. 1st New Deal Relief Legislation • C.C.C. – Civilian Conservation Corps – provided jobs to young single men to work on environmental conservation programs (2 ½ million men restoring parks, forests, and beaches • T.V.A. – Tennessee Valley Authority – public works project to build hydroelectric dams on Tenn. River to provide cheap electric power, flood control and recreational opportunities

7. 1st New Deal Recovery Legislation • N.I.R.A. – National Industrial Recovery Act – • Established the P.W.A. and N.R.A. – National Recovery Administration - established codes of fair competition for business • A.A.A. – raise farm prices through subsidies – tax to pay farmers not to grow crops and animals (many animals killed and crops burned) idea was to lower production to raise prices

8. Reform Laws of New Deal • F.D.I.C. – Federal Deposit Insurance Corporation – Insured people’s bank deposits up to $5000 • S.E.C. – Securities Exchange Commission – oversee and regulate the stock market and make it a safer place for investments.

9. 1st New Deal Continued • John Collier (headed community of Indian affairs) - used Native Am. To build schools, hospitals, and irrigation systems • Indian Reorganization Act – restored ownership of some lands to Native Am. • Supreme Court declared AAA and NIRA unconstitutional

10. The Second New DEal

11. 2nd New Deal • Imposed higher taxes on wealthy and included more welfare benefits – stronger support for unions • W.P.A. – provided work for over 8 million in constructing playgrounds, schools, hospitals, and airfields – it also supported creative work for artists and writers • Social Security – Sec. of Labor (Francis Perkins) – 1st female cabinet member (2nd New Deal) • Old age pensions and survivor benefits • Unemployment insurance for lost job • Aid blind – handicapped – or dependent children • $ comes from workers and employers pay = into an insurance fund

12. 2nd New Deal • Farm Securities Administration – loan $ to farmers and set up camps for migrant workers • F.L.S.A.- Fair Labor Standards Act – established minimum wage and banned child labor. • Wagner Act (NLRA – National Labor Relations Act) – legalized collective bargaining and closed shops • 1936 election – FDR won in a landslide over Alf Landon

13. Section 2 New Deal Critics • Women and African Americans – said New Deal offered more opportunities to white men (women and African Americans are paid less for same work • Progressives and Socialists – programs are not doing enough to solve nations problems (need to do more to distribute nations wealth among all • Republicans and other political opponents – Government is too powerful (FDR is like a dictator - taxes on wealthy is unfair and too socialistic • American Liberty League – opposed socialist policies and said government trampled on individual freedoms

14. Demagogue Critics • Huey Long – Louisiana Senator that promoted a share the wealth program (Would have run for president in 36 but was assassinated) • Father Coughlin – Radio priest from Detroit (fascist minded blaming banking system for depression) • Dr. Townshend – from California (wanted to force all over 60 to retire opening up jobs for younger and give elderly monthly pension which they would have to spend every month to stimulate the economy

15. New Deal Limits • FLSA – only effected ¼ of workers and minimum wage less than what most earned • The New Deal offered no help for domestic services • Social Security excluded farmers and domestic service workers and 2/3 of African American workers • Nothing done to end discrimination toward blacks

16. FDR and Supreme Court • FDR upset about supreme court declaring laws unconstitutional • He proposed a major court reform bill • It would add an additional judge for every one over 70 years old (6 judges) making a total of 15 • Congress very opposed – also hurt his popularity with people • Lost battle but 1-2 judges died or retired and were replaced so no more new deal measures were declared unconstitutional

17. Section 3 - Last Days of New Deal • 1937 FDR ended some new deal programs which caused another major decline in the economy (programs had to be restarted) • Union Triumphs – John L. Lewis formed the CIO which broke from the AFL and operated separately for unskilled workers • Used sit down strike – prevented company from bringing in scabs or sub workers (outlawed by courts in 1939)

18. New Deal Effects • On Society – bridges- dams- tunnels still in use • Social Security and laws regulating banks and stock market still important today. Our country became more socilistic. • Changed the way people thought about the government and president (government involvement more accepted) • Many now accepted idea of government welfare and handouts • The new deal did not end the depression but it helped the country to survive it