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The New Deal Forging a New Deal

The New Deal Forging a New Deal. Chapter 13 Section 1 Angela Brown. The New Deal became FDR’s program of relief, recovery, and reform aimed at combating problems caused by the Depression. FDR was not sure exactly how the New Deal would work…. Restoring the Nation’s Hope.

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The New Deal Forging a New Deal

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  1. The New DealForging a New Deal Chapter 13 Section 1 Angela Brown

  2. The New Deal became FDR’s program of relief, recovery, and reform aimed at combating problems caused by the Depression. • FDR was not sure exactly how the New Deal would work…

  3. Restoring the Nation’s Hope • Both Eleanor and FDR smoothed public fears • Second Bonus March – provided campsites for veterans – Eleanor paid them a visit • Demonstrated new administrations approach to unrest • FDR’s “Fireside Chats” – address nation on radio the first Sunday after taking office • Easy manner and confidence made people feel better

  4. The First Hundred Days • Had promised “bold, persistent experimentation” no one knew what that would include • From March Inaugration – June 1933 • Pushed many programs through Congress to provide relief, create jobs and stimulate economic recovery

  5. Roosevelt • 2 forms of Public communications • met with press twice a week – put achievement and plans in headlines • Fireside Chats – talked about programs and purposes to the nation

  6. “It’s common sense to take a method and try it. If it fails admit it frankly and try another. But above all try something.” • Should government programs to help the elderly and poor be temporary responses to crisis or should they be permanent?

  7. Closing the Banks • March 5, 1933 – FDR ordered all banks to close for next four days • Pushed Congress to pass Emergency Banking Act • Authorized the government to inspect the financial health of all banks • Government found most banks healthy – 2/3 reopened by March 15 • Americans gained confidence in banking system

  8. They began to put more money into their accounts than they took out • Allowed banks to make loans that would help stimulate the economy • June – Congress established - Federal Deposit Insurance Corporation (FDIC) to insure bank deposits up to $5000. • Confidence increased further

  9. Providing Relief and Creating Jobs • May Congress passed Federal Emergency Relief Administration (Fera) • Sent funds to overburdened local relief agencies • Gave out $5 million in first two hours in office (Harry Hopkins) • Fera put money into Public – works programs – government funded projects to build public facilities

  10. Nov. 1933 Civil Works Administration (CWA) gave jobs building roads, parks, airports – 4 million employed – boosted moral • March 1933 Civilian Conservation Corps (CCC) – FDR’s favorite program – 2.5 unmarried young men restored/maintained forests, beaches, and parks • CCC earned $1 a day – lived in camp free, received food, med. Care and job training

  11. Eleanor created similar program for young women 8500 took part • Native American workers built schools, hospitals, and irrigation systems (through Indian Affairs) • Indian Reorganization Act of 1934 – ended sale of tribal lands begun under Dawes Act (1887) and restored ownership of some lands to Indian groups.

  12. A Helping Hand to Business • National Industrial Recovery Act (NIRA) – established the National Recovery Administration (NRA) – an agency that set out to balance the unstable economy through sensible planning • Industry wide codes to spell out fair practices – regulated wages, working conditions, production, and even prices, set a minimum wage and gave organized labor collective bargaining rights (allowed workers to negotiate as a group)

  13. Worked for a while but higher wages = higher prices – people stopped buying • Businesses soon complained that the codes were too complicated and control by the NRA was too rigid. • Best part of NIRA – Public Works Administration (PWA) – built Grand Caulee Dam on the Columbia River in Washington, Causeway connecting Key West to Florida Mainland, Triborough Bridge in NY City

  14. Federal Securities Act – required companies to provide information about their finances if they offered stock for sale • Congress reformed Stock Market • Congress set up Securities and Exchange Commission (SEC) to regulate the stock market – tell companies what info must be included in their financial statements • Congress gave Federal Reserve board power to regulate the purchase of stock on-margin

  15. Saving Homes and Farms • Home Owner’s Loan Corporation (HOLC) refinanced, or reshaped terms of mortgage payments more manageable – 3 year period made about one million low-interest loans • Agricultural Adjustment Administration (AAA) tried to raise farm prices through subsidies or government financial assistance • new tax used to pay farmers not to raise certain crops and animals

  16. Saving Homes and Farms • hoped lower production would raise prices • Many people could not understand destroying food while so many were hungry – (farmers plowed under crops to get subsidies)

  17. The TVA • Tennessee Valley Authority (TVA) – May 1933 helped farmers and created jobs in one of the country’s least developed regions • Reactivating a hydroelectric power facility started during WWI = cheap electric power, flood control, and recreational opportunities to the entire Tennesse River Valley

  18. New Deal Personnel • Frances Perkins – Sec. Of Labor until 1945 first woman in a cabinet post –pressed for laws to help employed and unemployed • Est. Department of Labor and the Bureau of Labor Statistics – min wage, max work week, disabled workers compensation • Two dozen women held key New Deal positions • African Americans held more than one hundred policy-making posts

  19. Mary McLeod – African American woman – highest position of any African American woman – director of the division of Negro Affairs of the National Youth Administration • Advised FDR on programs that aided African Americans • Formed Federal Council on Negro Affairs – known as black cabinet – met weekly to prioritize

  20. Eleanor Roosevelt • Most important advisor/colleagues – traveled and reported on effect on programs • Wealthy, educated – FDR’s distant cousin – they had 6 children • During WWI volunteered • Reshaped position of First Lady – toured country in place of her husband

  21. Eleanor Roosevelt • Held own press conferences with women correspondences • Newspaper column “My Day” drummed up support for the New Deal • At Southern Conference for Human Welfare - interracial group – refused Jim Crow laws – sat in center aisle between divided races – symbolism of act made huge publicity – embarrassed FDR

  22. Eleanor Roosevelt • Eleanor’s activities troubled some Americans • First Lady should be a gracious hostess • many came to admire her unconventional style • (Compare to Hillary Clinton – Is there room for personal differences in the role of First Lady?)

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