US History Chapter 12

1. The New Deal US History Chapter 12

2. The Election of 1932 What? • Roosevelt offers a “New Deal” for America • Roosevelt wins with 60% of the vote

3. Roosevelt’s New Deal What? • Programs meant to help the country by getting the government involved in the economy Meant to do 3 things 1. Relief - help people out in the short term 2. Recovery - get the economy back on its feet 3. Reform - keep this from ever happening again

4. Bank Holiday - First Step Why? • Many banks had failed, wiping out families’ savings • People lost confidence in the banks Depositors Congregate Outside Closed Bank

5. Bank Holiday - First Step How? • Closed banks for four days to reorganize • President explains in a “fireside chat” • Confidence restored

6. Next Step - “Alphabet Soup” • In the first 100 days of his administration Roosevelt passes tons of legislation Hundred Days Alphabet Soup • The agencies he creates (like AAA)

7. Next Step - “Alphabet Soup” • 18-25 year old guys get jobs and send money home to their families CCC - Civilian Conservation Corps CCC workers in Lassen National Forest, California

8. Next Step - “Alphabet Soup” WPA – Works Progress Administration renamed during 1939 as the Work Projects Administration; WPA • Employed 2–3 million people who worked on depression-era public works projects. • It tried to provide one paid job for all families where the breadwinner suffered long-term • Led to the construction and improvement of over 600,000 miles of roads and the building of over 800 airports Some WPA programs included adult education

9. Next Step - “Alphabet Soup” • Government pays farmers not to farm AAA - Agricultural Adjustment Administration • Meant to cause prices to rise and halt overproduction Criticism • It encouraged farmers to destroy crops and livestock in order to raise prices, despite public need for both.

10. Next Step - “Alphabet Soup” • Government runs a hydroelectric power plant • Provides flood control • Creation of thousands of jobs TVA - Tennessee Valley Authority • example of an energy development project • Provides cheap power & fertilizer to the poor region Construction at Norris Dam, which was being built by the TVA on the Clinch River in Northeastern Tennessee

11. Remember the Locks from the Panama Canal?

13. Rural Electricity • example of an energy development project One goal was to provide additional help to rural Americans. Toward this end, Roosevelt in May signed the Rural Electrification Act. It empowered the Rural Electrification Administration (REA) to loan money to farm cooperatives and other groups trying to bring electricity to people living outside of cities and towns. In many areas, for-profit power companies had been unwilling to put in the miles of power lines needed to serve remote, sparsely settled areas. Under the REA, the numbers of rural homes with electricity grew from 10 percent to 90 percent in about a decade. Millions of farmers were finally able to enjoy the benefits of electricity Technology In what is seen as a parallel to rural electrification in the 1930s, Congress has earmarked funds to help bring high-speed Internet service to rural America today.

14. Next Step - “Alphabet Soup” • Insurance for the $ you put in banks FDIC - Federal Department Insurance Corp. • Protected people’s savings Bank Employee Checks Depositor's Account

15. Next Step - “Alphabet Soup” • Watchdog agency for the stock market SEC - Securities and Exchange Commission Federal Securities Act of 1933 • It required that any publicly traded company give accurate information about itself and made them liable for any fraudulent representations. New York Stock Exchange

16. Next Step - “Alphabet Soup” • Gave direct relief ($) to those who needed it • Beginnings of a welfare program FERA - Federal Emergency Relief Admin. • Begging, bread lines, and soup kitchens were how the poor got food

17. Next Step - “Alphabet Soup” • Taxed people currently working to give payments to the elderly • Still being run today Social Security Social Security Information Poster

18. Recovery Major New Deal Programs Relief Reform Agricultural Adjustment Administration (AAA), 1933 Encouraged farmers to cut production in return for a subsidy Tennessee Valley Authority (TVA),1933 Promoted development projects for the Tennessee River Valley—for example, to improve navigation, produce electricity, and control floods National Industrial Recovery Act (NIRA), 1933 Encouraged cooperation among businesses in establishing production and labor practices Federal Housing Administration (FHA),1934 Encouraged loans for renovating or building homes Rural Electrification Administration (REA), 1935 Encouraged the delivery of electricity to rural areas Civilian Conservation Corps (CCC), 1933 Provided jobs on conservation projects to young men whose families needed relief Federal Emergency Relief Administration (FERA), 1933 Provided grants to states for direct relief to the needy Public Works Administration (PWA), 1933 Provided public-works jobs for many of those needing relief Civil Works Administration (CWA), 1933 Provided public-works jobs for many of those needing relief Works Progress Administration (WPA), 1935 Provided public-works jobs on a wide range of projects for many of those needing relief Social Security Act, 1935 Established pensions for retirees, unemployment insurance, and aid for certain groups of low-income or disabled people Farm Security Administration (FSA), 1937 Provided assistance to tenant farmers to help them purchase land or establish cooperatives Emergency Banking Act, 1933 Gave federal government power to reorganize and strengthen banks Federal Deposit Insurance Corporation (FDIC),1933 Established an insurance program for deposits in many banks Securities and Exchange Commission (SEC),1934 Provided increased government regulation of the trading on stock exchanges National Labor Relations Act (NLRB),1935 Established the National Labor Relations Board to enforce labor laws Fair Labor Standards Act (Wages and Hours Law),1938 Established minimum wages and maximum hours for many workers Programs in red still in existence.

19. Effects • Population grew by over 1 million due to the Dust Bowl • California Central Valley Project was developed to protect the area from devastating drought and destructive floods, thus helping to stabilize California's economy Impact on California Map of CVP facilities in the state of California. Facility labels and aqueducts are in red, utilized watercourses and reservoirs are in dark blue, and other watercourses are in light blue.

20. Impact on Labor Unions • Just after WWI, many people began to associate labor unions with communism and anarchy. • Decline in memberships during the 1920s was due to much of the work force being made up of new immigrants, who were difficult to organize. • Collective Bargaining was legalized in the National Labor Relations Act of 1935 and strengthened labor unions • The rate of membership in labor unions greatly increased between 1935 and 1940. • The labor movement benefited from FDR's policies.

21. American Federation of Labor (AFL) • Samuel Gompers was the first president of the American Federation of Labor • The creation of American Federation of Labor was the MOST successful in organizing labor in the United States • There were restrictions: an automobile manufacturers' union would not have been allowed to join because of the AFL’s disinterest in protecting the rights of industrial workers relative to craft workers. This led to the creation of the Committee (or later, Congress) of Industrial Organizations (CIO) in 1935

22. His Greatest Mistake Trying to Pack the Supreme Court What? • Increase the # of Supreme Court justices from 9 to 15 Why? • Kept declaring his programs unconstitutional (including National Recovery Administration, AAA, SEC, etc.)

23. Constitutional Issue: Powers of the President Schechter Poultry Corporationv.United States (1935) Why It MattersCan Congress broadly delegate its lawmaking authority to the administrative agencies of the executive branch? That was the question the Court faced in Schechter. The Court’s negative ruling temporarily derailed President Franklin D. Roosevelt’s New Deal program. However, it also forced Roosevelt and Congress to tailor future legislation more narrowly. The Impact Today The Supreme Court later took an expanded view of the commerce clause and gave Congress more authority to delegate lawmaking authority to administrative agencies. Today there is widespread governmental regulation of business and economic matters. Much of the regulation is done by administrative agencies within the executive branch. Above, President George W. Bush meets with Senate leaders to discuss energy policy. The Decision In its unanimous decision, the Court cited two grounds for finding the mandatory code system unconstitutional. First, it ruled that the delegation of rule-making authority to an agency of the executive branch violated the constitutional separation of powers. The Constitution places all legislative power in the Congress. Rules or codes having the force of law could only be made by Congress, not by the executive branch. Second, the Court ruled that the activities of the Schechter Corporation were not subject to congressional regulation. Under the commerce clause, Congress can regulate interstate commerce (conducted in more than one state), not intrastate commerce (conducted entirely within a single state). The Schechter Corporation bought and sold its chickens almost exclusively within New York State. So the commerce clause did not apply to the way that Schecter conducted business. Background of the Case In 1933 President Roosevelt created the National Recovery Administration (NRA). The NRA supervised the development of mandatory industry-wide codes for production, prices, and wages. The standards carried the force of law. The Schechter Corporation appealed after it was convicted of violating the minimum wage and maximum hour provisions of the code for the live poultry industry.

24. His Greatest Mistake Packing the Supreme Court What did this cartoonist think about the Supreme Court? February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"

25. Political Cartoon President Roosevelt was very upset when theSupreme Court struck down some of the key provisions of the New Deal. To protect his new reforms,he attempted to “pack” the Court by adding morejustices. Congress stopped this effort, marking oneof the few great political defeats for the popularpresident. Many critics feared that such a changewould threaten the balance of powers as spelledout in the U.S. Constitution. The following politicalcartoon originally included a caption that read, “Oh,So That’s the Kind of a Sailor He Is!”

26. His Greatest Mistake Packing the Supreme Court Results? • Public grew angry (FDR taking too much power) • FDR passed much less legislation after this Supreme Court Exterior

27. The New Deal - Pros and Cons Pros • Restored optimism and hope to Americans • Provided necessary relief to many • Labor movement benefited Cons • Did not really fix the depression • Left the nation with much debt • Left people too dependent on government (?) • Conservatives felt it interfered with the free market economy and was leading toward socialism

28. Visual Summary

29. Did I tell you about the following? • Cutting sheets • My grandmother’s high school principal • School lunch in Arizona • School dances in L.A. Life in the 1930s