Chapter 16 Section 1

1. Forging a New Deal Chapter 16Section 1

2. Setting the Scene • Election held in November, Roosevelt didn’t take office until March 4th. • Why did it take so long? • Hoover remained in office as a “lame duck” • 20th Amendment passed • Changed the date of the inauguration to January 20th.

3. Restoring the Nation’s Hope • FDR and Eleanor’s efforts • What happened during the second Bonus March? • FDR said “the only thing…” • FDR held “fireside chats” • New Deal referred to the relief, recovery, and reform programs FDR’s administration used to end the Great Depression

4. The First Hundred Days • March – June 1933 • Programs were pushed through Congress.

5. Stabilizing the Financial Institutions • First step was to restore public confidence in the banks • March 5, 1933 ordered banks closed for 4 days • Congress passed the Emergency Banking Act on March 9th • Inspection of banks. • People began putting money back into the banks • Glass-Steagall Banking Act of 1933 passed • Established FDIC to insure bank deposits

6. Stabilizing the Financial Institutions Cont.d’ • Federal Securities Act (FSA), May 1933 • Required companies to provide information about their finances if they offered stock for sale. • Securities and Exchange Commission (SEC) • Regulate the stock market • Federal Reserve Board (FRB) • Regulate the purchase of stock on margin • Decreased the value of U.S. currency by taking off the gold standard

7. Providing Relief and Creating Jobs • Next step to help local relief agencies • Federal Emergency Relief Administration (FERA) • Sent funds to agencies • Harry Hopkins was the director • FERA put federal money into public works programs • Civil Works Administration (CWA) • Unemployed to work building or improving roads, parks, airports, and other facilities • Civilian Conservation Corp (CCC) • Unmarried men worked on maintaining forests, beaches, and parks • Indian Reorganization Act (IRA) • Ended the sale of Tribal lands and restored some lands to Indian owners.

8. Regulating the Economy • National Industrial Recovery Act (NIRA) • Set to raise industrial prices • Under the NIRA the National Recovery Administration (NRA) • Balance the unstable economy though extensive planning by using industry-wide codes for fair business practices. • Discuss examples of this code. • Some thought they were too rigid • Public Works Administration (PWA) • Most visible part of the NIRA’s efforts • Discuss examples

9. Assisting Homeowners and Farmers • Home Owners’ Loan Corporation (HOLC) • Refinanced mortgages • National Housing Act established the Federal Housing Administration (FHA) • Improved housing standards and conditions, insures mortgages, stabilizes the mortgage market • Agriculture Adjustment Administration (AAA • Tried to raise farm prices through subsides • What are they? • Government financial assistance

10. The TVA • Tennessee Valley Authority • Helped farmers and created jobs in one of the least developed regions

11. Key Players in the New Deal • Roosevelt surrounded himself with advisors • “Brain trust” • An informal group of intellectuals who helped draft policies • Harry Hopkins, Adolf Berle, Rexford G. Tugwell

12. Groundbreaking Appointments • First to appoint a women to a cabinet post. • Frances Perkins • Secretary of Labor • Hired African Americans • Mary McLeod Bethune • Director of the Division of Negro Affairs of the Youth Administration • She organized the Federal Council on Negro Affairs (aka “black Cabinet”)

13. Eleanor Roosevelt • Strong supporting, traveled since it was hard for FDR to travel • Some of her actions caused FDR problems • Discuss the Southern Conference for Human Welfare in Birmingham, Alabama

14. The New Deal Falters • When new programs didn’t bring significant economic improvements, critic arouse • Discuss what Hoover said • Supreme Court • Declared NIRA unconstitutional • Struck down the tax that funded AAA subsidies to farmers

15. A Second New Deal • Included more social welfare benefits, stricter controls over business, stronger support for unions and higher taxes on the rich

16. New and Expanded Agencies • Works Progress Administration (WPA) • Built or improved playgrounds, schools, hospitals, and airfields, and it supported the creative work of many artists and writers • National Youth Administration • Provided education, jobs, etc for young people ages 16-25

17. New and Expanded Agencies Cont.d’ • Resettlement Administration • Loaned money to owners of small farms, tenants and sharecroppers • Farm Security Administration (FSA) • Loaned $1 billion to farmers and set up camps for migrant workers

18. Rural Electrification • 1930’s • 90% of cities had electricity • 10% of rural areas • Rural Electrification Administration (REA) • Offered loans to businesses and farmers to provide electricity

19. New Labor Legislation • When NIRA declared unconstitutional, new legislation was passed • National Labor Relations Act (Wagner Act) • Legalized union practices like collective bargaining and closed shops. • What are closed shops?

20. New Labor Legislation Cont.d’ • Outlawed spying and blacklisting. • What is blacklisting? • National Labor Relations Board (NLRB) • Enforced the Wagner Act • Fair Labor Standards Act • Banned child labor and minimum wage set

21. Social Security • Provided financial security to people who could not support themselves • Three types of insurances (discuss each) • Old-age pensions and survivors’ benefits • Unemployment insurance • Aid for dependent children, the blind, and the disabled.

22. The 1936 Election • Alfred M. Landon vs. Roosevelt • FDR won by a landslide