FDR and the New Deal

1. FDR and the New Deal

2. 100 Days • On inauguration day 1933 FDR told the crowd, “The only thing we have to fear is fear itself.” • From March to June of 1933 FDR pushed reforms through congress at a feverish pitch • Relief, Jobs and stimulate the economy • Used some of the programs from WWI which controlled the economy along with Hoover’s reforms and state reforms

3. New Deal and Banking • Banks were closed on March 6th • Pushed the Emergency Banking Act • Gave the government authority to check the financial health of banks • FDIC insured deposits even if the bank failed • Up to $5,000 • March 15th banks opened and for the first time in the Depression deposits exceeded withdrawals

4. New Deal Programs • Civilian Works Administration • Employed workers to build and improve parks, roads and airports • Civilian Conservation Core: • Employed unmarried men for forest, beach and park restoration • Indian Reorganization Act: • Ended the sale of Indian Tribal Lands

5. New Deal Programs II • National Industrial Recovery Act • Tried to stop the decline of industrial prices • Set a minimum wage and other controls on industry • When prices rose due to higher wages and sales declined • Public Works Administration • Built the Grand Coulee Dam, Tribourough Bridge, the causeway between Florida and Key West

6. Homes and Farms • Home Owners Loan Corporation • Refinanced mortgages for middle class Americans • Agricultural Adjustment Administration • Tried to raise farm prices • Paid farmers not to raise certain crops. • Tennessee Valley Authority • Created jobs, dams, electrical grid and flood control in the Tennessee River Valley • This was one of the least modernized areas of the country

7. Critics • Former President Hoover felt the reforms could lead to a “state-run state-controlled economic system” • The NRA and AAA were deemed unconstitutional by the Supreme Court • NRA president could pass laws on local commerce • AAA taxes paying farmers not to grow crops

8. Court Packing Scheme • Due to the Supreme Court invalidation of New Deal FDR wanted to sway the court in his favor • The Constitution does not specify how many judges there could be • Last changes in 1869 to 9 justices • FDR said he wanted to lighten the load on the judges over 70 • This would allow him to add six more justices • People saw through his scheme to pack the Supreme Court in his favor

9. Wagner Act • July 1935 NIRA is declared unconstitutional • Congress then passes the Wagner Act • Allows closed shops • Only union members can work there • Collective bargaining • Workers negotiate as a whole for benefits • Outlawed spying on unions and blacklisting union leaders • Sets up the National Labor Relations Board to enforce the law • 1938 Fair Labor Standards Act • Sets minimum wage and ends child labor

10. Legacy of the New Deal • The President is expected to solve problems • Government can no intervene in major problems • Wagner Act • Social Security • Farm Programs that pay farmers not to plant crops • Security and Exchange Commission • Public works projects

11. End of the Great Depression • FDR’s New Deal programs did help Americans but government spending was never enough to revitalize the economy • John Maynard Keynes believed that in times of economic stress large government spending should be used to bolster the economy • Keynesian economics is controversial even today • When Japan attacks Pearl Harbor on December 7th 1941 increased government spending and the building of the American war machine finally pull America out the Depression.