Roosevelt and the New Deal

1. Roosevelt and the New Deal The First New Deal

2. The Hundred Days Begins • FDR’s new plan – he did not really have one…except to try something bold and new. • Btw March 9 – June 16… Hundred Days • Congress passed 15 major acts • First New Deal

3. Origins of the New Deal • No one philosophy or plan • Got advice from many advisors – some were picked because they did not agree.

4. A Divided Administration • 3 groups • “New Nationalism” – business and govt. should work together to regulate wages prices and production like during WWI • Blamed business for the Depression. Wanted govt. to run key parts of economy. • “New Freedom” – blamed large trusts for the Depression- but govt. had to restore competition to the economy. Break up large companies and allow competition to set prices etc. Govt. should impose regulations to keep competition fair.

5. Fixing the Banks and the Stock Market • Emergency Banking Relief Act • 1st day in office – wanted banking bill in 5 days • 2nd day – called a national bank holiday • Congress passed after 38 minutes • Issue Treasury licenses • March 12 – FDR addressed the nation by radio • 60 million listened • “fireside chats” – to talk directly to people to let them know what he was trying to day • Assured people that the banks were safe.

8. Regulating Banks and Brokers • Securities Act of 1933 • Provide complete and truthful info to investors • Congress created Securities and Exchange Commission (SEC) to regulate the stock market and regulate fraud • Glass-Steagall Act • Separated commercial from investment banking • Commercial banks no longer able to speculate • Federal Deposit Insurance Corporation (FDIC) – provides govt. insurance for deposits up to a certain amount

9. Managing Farms and Industry • Agricultural Adjustment Act • Idea was that prices were low because farmers grew too much • Now- govt. would pay farmers not to raise certain livestock or grow certain crops • Agricultural Adjustment Administration (AAA) • Had to destroy some crops already planted • The program worked – surplus fell and prices went up

10. However • Commercial farmers profited more than small farmers. • Many tenant farmers became homeless and jobless when their land was taken out of production. • Not everyone could afford higher food prices

11. A Blueprint for Industrial Recovery • 1933 – National Industrial Recovery Act (NIRA) • Allowed business, labor and govt. to set up rules of fair trade • Set prices, minimum wages, limited shifts to 2/day, shortened hours and gave workers the right to form unions • National Recovery Administration (NRA) ran the program • Urged people to buy from companies that displayed the logo • Did not work for long – too many complaints • 1935 – Supreme Ct ruled as unconstitutional

12. TVA • Tennessee Valley Authority • Make Tenn. River navigable and control floods • Reforestation and land reclamation • Generating electrical power – steam and dams • Directly affected 7 states • Built 20 dams – employed 40,000 at a time • Today provides power to 8 million people

13. Providing Debt Relief • People were scared to spend money • The Home Owners’ Loan Corporation (HOLC) • Bought mortgages of many who were behind in payments and restructured payments • Only to homeowners still employed • Farm Credit Administration (FEA) did the same for farmers

14. Spending and Relief Programs • Many thought the cause of the Depression was low consumption • Best way- let people earn money and develop skills

15. The Civilian Conservation Corps (CCC) • Age 18-25 – work under direction of national forestry service, plant trees, control forest fires and build reservoirs • People lived in camps and earned $30/month • 1,500 camps • Most stayed between 6 months- 1 year • By 1942 had employed 3 million

18. Public Works and Emergency Relief • Federal Emergency Relief Administration (FERA) • Gave money to state and local agencies to fund relief projects • Harry Hopkins – spent $5 million in 2 hours • Public Works Administration (PWA) • Construction projects – did not hire directly • Highways, dams, sewer systems, waterworks, schools and govt. facilities • Insisted that African Americans be hired by construction companies. Break down racial barriers

22. The CWA • Civil Works Administration – fall 1933 • Hired workers directly-Harry Hopkins again • 4 million – 300,000 of them women • Built or improved • 1000 airports • 500,000 miles of roads • 40,000 school buildings • 3,500 playgrounds, parks and playing fields • Spent $1billion in 5 months • By April 1934 – FDR shut it down • Alarmed by amount of money spent • Didn’t want people to rely on govt. for jobs • Fired 4 million

23. Challenges • About 2 million new jobs created but 10 million still unemployed

24. Criticism from Left and Right • Right – too many regulations on business • Too much federal power • FDR had begun deficit spending – no balanced budget – borrow money to pay for programs • American Liberty League formed to oppose the New Deal • Left – New Deal did not go far enough

25. The Competition • Huey Long – Left winger from Louisiana • Champion of poor • Posed a threat if running – split Dem vote • Father Coughlin – Catholic priest from Detroit • Radio show 30-45 million • New Deal not far enough • Organized National Union for Social Justice • Francis Townsend • Proposed fed govt. pay citizens over 60 $200/month • Would have to retire and spend entire check Huey Long assassinated in 1935