The Formation of the New Deal: FDR and Economic Recovery

1. Objective: To examine the formation of the New Deal.

2. Hoover was blamed for doing nothing about the Depression. Democrats nominated the governor of New York, FDR (cousin of Theodore Roosevelt) Democrats won the majority in the House and Senate 1932 – FDR is Elected

3. Franklin Delano Roosevelt • Franklin Delano Roosevelt (FDR) won the 1932 Presidential election.

4. In his inauguration speech, FDR stated that, “the only thing we have to fear is fear itself.” Inauguration of FDR, March 4, 1933

5. FDR QUOTES “Men are not prisoners of fate, but only prisoners of their own mind.” “A conservative is a man with two perfectly good legs who has never learned to walk.” “It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”

6. FDR gathered information from many university professors/ economic experts (Rexford Tugwell, Raymond Moley, Adolph Berle Jr.) known as the Brain Trust.

7. Most diverse administration in US history: including blacks, Jews, Catholics, and women. Frances Perkins became 1st female Cabinet member as Secretary of Labor

8. II. plans for economic Recovery I.Relief for the unemployed The New Deal had three major goals: III. Reforms to prevent another depression

9. Wave of initial action of New Deal during FDR’s first 3 months in office Deficit spending 1st problem: bank failure. The First 100 Days

10. Roosevelt declared a “bank holiday”, closing every bank in the nation for eight days.

11. Congress then passed theEmergency Banking Relief Act, which only allowed banks to open if they had enough funds to pay their depositors. FDR signing the Emergency Banking Relief Act into law.

12. Fireside Chats • FDR gave 30 radio speeches to the nation, which became known as fireside chats. FDR’s first fireside chat on the bank crisis. (March 12, 1933)

13. FDR’s first fireside chat reassured people that banks were safe to use again.

14. Established the FDIC Federal Deposit Insurance Corporation Provided insurance to individual bank accounts initially $2,500 (today $250,000) Glass-Steagall Act

15. The SEC, Securities Exchange Commission was created to regulate the stock market. Practices must be open to the public. No insider trading. Federal Securities Act

16. End of prohibition: increase revenue by legalizing some alcohol sales (sin taxes). What are some ways sin taxes are used today to fund local, state, or federal finances? 21st Amendment

17. The Agricultural Adjustment Act – farmers were paid to slow down production, which would raise prices. The Civilian Conservation Corps Built roads, parks, planted trees, and developed flood control. Help is on the Way!

18. The Public Works Administration / National Industrial Recoveries Act Built schools and government buildings Built roads and bridges The National Recovery Administration Set prices and minimum wages And More…

19. Critics say his “Big Government” has gone too far… Some like Huey Long & Father Coughlin say it hasn’t gone far enough. The courts strike down NRA and AAA. He is accused of assuming legislative powers. FDR has an answer – let’s pack the Supreme Court FDR Faces Opposition

20. FDR wanted to increase justices from 9 to 13 Congress said no (1st time), but he ended up nominating 7 new judges over his terms in office. Court Packing Plan

21. Dorothea Lange The Photographer of the People

22. Eleanor Roosevelt The ‘conscience” of the New Deal. “The future belongs to those who believe in the beauty of their dreams.” “No one can make you feel inferior without your consent.”

23. 1936 – FDR was re-elected. The Soil Conservation and Domestic Allotment Act – rewarded farmers for good farming practices. A second draft of the AAA was passed. The Resettlement Administration allocated over $1 billion in loans to small farmers. 2nd New Deal

24. 1935 – 1943, $11 billion spent to create jobs. 850 airports 651,000 miles of roads 125,000 public buildings Works Progress Administration

25. National Labor Relations Act (Sponsored by Senator Robert Wagner) Supported union rights Prohibited firing of union members Fair Labor Standards Act Reduced work week to 40 hours Minimum wage – 25 cents (40 cents by 1945) Banned hazardous work for minors The Wagner Act & Fair Labor Standards Act

26. Old Age Insurance – employee paid half and employer paid half. Unemployment Insurance – employees could draw from this if out of work. Aid to Families w/Dependent Children and the Disabled Social Security Act

27. The New Deal: The Works Progress Administration

28. Provided education, jobs, counseling, and recreation to young people. Issued part time jobs for students Found work for drop-outs National Youth Administration

29. National Housing Act & The Federal Housing Commission Home Owners Loan Corporation provided loans to homeowners in default The Federal Emergency Relief Administration Provided funds for direct relief to poor / needy And Still More…

31. The WPA “Dollar”

42. WPA: The Federal Arts Project

45. Artists of the WPA

46. Kansas Cityfrom Politics, Farming, & the Law Thomas Hart Benton,1936

47. The Annual Moveby Otis Dozier, 1936

48. Construction of the Damby William Gropper

49. Women of Flint, MIby Joseph Varak