Making Sense of the New Deal

1. Making Sense of the New Deal An Educational Accompaniment of Chapter 33

2. Table Of Contents • Timeline of the New Deal • The First New Deal • The Second New Deal • Relief • Reform • Recovery

3. The New Deal, 1933-1939 1939

4. Organizing the New Deal • The New Deal can be organized in two ways: • Relief, Reform, and Recovery • Or the First New Deal, and Second New Deal • Both will be covered, starting with First and Second New Deal Back to Table of Contents

5. The First New Deal • The First New Deal was initiated by FDR in the 1932 Presidential election • It ran from 1933-1935

6. 100 Days Congress • Upon coming into office, FDR sparked off the congressional law passing dash known as the 100 days congress

7. 100 Days Congress cont. • In 100 days, congress passed 13 acts • Banks were closed nationwide to stabilize their currency supply • Collectively, the acts of the 100 days congress have come to be known as the Alphabet Soup Reform

8. The Brain Trust • The brain trust was a group of young, but brilliant college graduates • They helped FDR in the economic engineering of most of the New Deal, and the 100 Days Congress

9. “The only thing we have to fear….” • Are bank runs: • Following inauguration day, FDR called a nationwide banking holiday to stop paranoid bank runs from depleting banks cash supply Back to Relief

10. FDIC • Glass-Steagall Banking Reform Act • Gave the Federal Deposit Insurance Corp.(FDIC) insurance on personal deposits p to $5000 Back to Reform Back to Recovery

11. Gold Reserve • 1934 Gold Reserve Act • Took the nation of the gold standard, to introduce inflation, and alleviate debt • Promised not to do this in his camping • Controlled the inflation he created, by ordering Congress to buy gold at increasingly higher prices. Back to Reform

12. The Dole • Civilian Conservation Corps (CCC) • Gave unemployed ages 18-24 employment in open air government camps • Reforested areas, fought fires, drained swamps, and controlled floods • Critics accused FDR of militarizing the youth, and acting as a dictator. Back to Relief

13. The Dole cont. • Federal Emergency Relief Act • Federal Emergency Relief Administration(FERA) • Looked to affect immediate relief rather than long term reform. • Helped in producing quick aid for failing economies and downtrodden unemployed, but had no long term goals Back to Relief

14. For the Farmers!! • Agricultural Adjustment Act (AAA) • Made millions available to help farmers pay mortgages, and reduce surplus • Established the Agricultural Adjustment Administration • Paid “farmers not to farm” to reduce price-depressing surpluses • The Goal was to create economic Parity Back to Relief

15. For the Farmers!! Cont. • The Supreme Court killed the AAA in 1936, declaring it an unconstitutional use of Presidential power. • Congress responded with the Soil Conservation and Domestic Allotment Act • Paid farmers to plant soil-conserving plants like soybeans, rather then do nothing Back to Reform

16. Agricultural Adjustment Act mach 2 • To continue the reforms of the Agricultural Adjustment Act a more comprehensive plan was enacted • The second Agricultural Adjustment Act took the reforms of the first even farther, and was accepted by the Supreme Court Back to Reform

17. On the Home Front • Home Owner’s Loan Corporation (HOLC) • Refinanced mortgages on non farm homes • Bolted the support of the middle class • Was an important step to curb the rash of homelessness (Homerville's) that plagued people during the Depression

18. WPA • By far the most liberal relief movement, the Works Progress Administration • Spent 11 million dollars on thousands of public buildings, bridges, and paving roads • Employed over 9 million Americans during it’s 8 year existence • Also found part time employment for high school and college students, actors, musicians, and writers • Encouraging education, creativity, and culture to continue despite the hard times Back to Reform Back to Relief

19. Winter Crisis • When the winter of 1933 rolled in the job crisis deepened • Civil Works Administration (CWA) was formed • Provided purely frivolous employment, solely to create jobs to last the winter Back to Relief

20. The Blue Eagle • The National Recovery Administration (NRA) • More commonly known as the Blue Eagle • By far the most complicated of all the New Deal Reforms • Sought to assist Industry, Labor, and the Unemployed in one fell swoop Back to Recovery

21. The Blue Eagle • Set a maximum number of labor hours • And a minimum wage • Gave more rights and bargaining ability to labor unions • Including the ability to choose their own representation in bargaining, rather then representation appointed by management

22. Killing the Blue Eagle • Eventually, the NRA was declared unconstitutional by the Supreme Court, and closed • In truth, the NRA was failing long before the Supreme Court got to it, it’s success relied to heavily on the cooperation between management and labor

23. Resurrecting the Blue Eagle • To continue his liberal reforms, FDR shifted his ideas out of the dieing NRA, and into The Public Works Administration • It was also intended to supply relief for unemployment, and industrial recovery

24. Public Works Administration • Headed by Secretary of the Interior Harold L. Ickes • Aimed at long range recovery • Spent over $4 billion on over 34,000 projects • Including public buildings, highways, parkways, and dams (such as the Grand Coulee Dam of the Columbia River) Back to Recovery

25. Dust Bowl • Dry Farming techniques had eroded topsoil for years, to the point now, where strong winds, and no crops, blew dust across the landscape like snow • In 1935 FDR set up the Resettlement Administration, charged with removing farmers from the ravaged Dust Bowl land, to more arable land Back to Relief

26. Preventing a second Depression • Several Acts were passed during the New Deal to ensure the stock market crash leading to the Great Depression wouldn’t be repeated • Federal Securities Act (Truth in Securities Act) required promoters to transmit sworn information regarding the soundness of their stocks and bonds Back to Reform

27. Watchdog Administrations • The Securities and Exchange Commission • Designed as a watchdog administrative agency • Ensured the stock market would run as a legitimate trading mart, not as a gambling casino • Ended the practice of shifty stock market cheating, and rampant speculation

28. Electricity • The sprawling electric power industry was the next to fall under New Deal Fire • Tennessee Valley Authority researched the exact cost of producing electricity, to establish a reasonable price cap • Constructed dams on the Tennessee River • Improved 2.5 million extremely poor citizens improve their lives, and limited floods • Hydroelectric power of Tennessee would give rise to that of the West Back to Reform

29. Housing for the Homeless • The Federal Housing Administration (FHA) • One of the few alphabetical agencies to outlive Roosevelt • Stimulated building industry in 1934 by making small loans to homeowners • Bolstered in 1937 when congress authorized the U.S. Housing Authority to lend money to states or communities for low-cost construction • First time in American history that the slums actually stopped growing Back to Relief

30. Social Security • 1935 saw the dawn of the Social Security Act • Greatest victory for the New Dealers • Created pension and insurance for the old-aged, the blind, the physically handicapped, delinquent (orphan) children, and other dependents by taxing employees and employers • It was fiercely attacked by republicans, but survived all attacks thrown at it, to this very day Back to Reform

31. The Second New Deal • The Second New Deal began in 1935, and ran till 1939 • It’s beginning was marked by a shift from protecting skilled labor, to unskilled labor • For the first time, unskilled labor would receive the same protection that the AFL and Knights of Labor had provided for skilled labor

32. One for the Little Guys • After the NRA was axed by the Supreme Court, FDR’s plans to help labor partially flowed into the Wagner Act (National Labor Relations Act) • Under it’s encouragement unskilled laborers like the United Mine Workers succeeded in forming the Committee for Industrial Organization, under John Lewis, within the AFL in 1935 • Later, the CIO left the AFL and own a victory again the General Motors Back to Reform

33. Maximum Hours, Minimum Wage Once Again • 1938, the Fair Labor Standards Act (Wages and Hours Bill) was passed • Minimum Wage of .25 cents an hour • Maximum Hours Standard • Forbid children under the age of sixteen from working • FDR received immense support from labor, but industrialists opposed this reform Back to Reform

34. The First Failure • After his reelection, FDR controlled congress, but the Supreme Court continued to block his programs • Proposed a shocking plan to add a member to the court for every member over 70 to a maximum of 15 • For the first time Congress voted against him • Despite failing, the court did begin to vote more liberally, so in the end, FDR’s scheme succeeded

35. Twilight of the New Deal • During Roosevelt's term, the depression did not end, but unemployment dropped from 25% to 15% • FDR announced a bold plan in 1939 to adopt John Maynard Keynes Keynesian Economics to stimulate the economy by planned deficit spending Back to Recovery

36. Reorganizing the White House • 1939, at the tail end of the New Deal, FDR slid the Reorganization Act through Congress • Gave him limited powers for administrative reforms, including the key new executive office in the White House Back to Reform

37. Ending Unnecessary Campaigning • Hatch Act of 1939 • Barred federal administrative officials, except for the highest policy-making officers, from active political campaigning and soliciting Back to Reform

38. End of the New Deal • After 1939, the New Deal had effectively drawn to a close • FDR had enacted bold reform without revolution • Elevated minorities, women, and children’s need • Protected labor and softened the harsh reality of the depression • His next big move would be the legislation leading into WWII, the true cure for the Great Depression

39. Emergency Banking Relief Act CCC FERA AAA Civil Works Administration Works Progress Administration Resettlement Administration Federal Housing Administration U.S. Housing Authority Relief

40. Glass-Steagall Banking Reform Act Gold Reserve Act WPA Soil Conservation and Domestic Allotment Act 2nd AAA Federal Securities Act Securities Exchange Commission Tennessee Valley Authority Social Security Act Wagner Act Fair Labor Standards Act Reorganization Act Hatch Act Reform

41. Federal Deposit Insurance Corporation NRA Public Works Administration Keynsian Economics Recovery