The New Deal

1. The New Deal New Deal – Franklin Roosevelt’s plan to fix the depression. Consisted of a group of programs that would provide direct relief to the people. FDIC – Federal Deposit Insurance Corporation – insured people’s money in banks in case the banks ever failed. FERA – Federal Emergency Relief Administration – created to give lots of money to state and local governments for direct relief. CCC – Civilian Conservation Corps – paid young men to plant trees, national parks restoration, etc… gave 2.5 million people jobs throughout the 30’s. SEC – Securities and Exchange Commission – created to regulate the stock market, and make sure no more stock market crashes occur. AAA – Agricultural Adjustment Administration – paid farmers to reduce their crops. This would help raise demand and prices. TVA – Tennessee Valley Authority – created jobs in the TN valley area. Built dams, power plants with hydro-electricity, provided $ for educational programs, increased the standard of living in the area.

2. The New Deal • IRA – Indian Reorganization Act – tried to revive tribal rule, provided $ to start tribal businesses, and the college education of young Native Americans. • FDR: • Charismatic • Promised to fix economy • Wasn’t a communist or socialist • Did not support or pass anti-lynching bill • Segregation was still prominent • Hired more than 100 African Americans to Federal Government posts • Wife Eleanor Roosevelt fought for civil rights for all people. She resigned from the Daughters of the American Revolution because they refused to allow a Black singer, Marian Anderson sing at their hall. Eleanor had her sing at the Lincoln Memorial instead. • Critics of the New Deal: • Huey Long – socialist ideas, created a program called Share our Wealth, asked government to seize wealthy people’s money and give all American families a minimum income. He was assassinated in 1935 before the next election.

3. The Second New Deal Another group of programs to help people during the depression. WPA – Works Progress Administration – created jobs for people. Employed 8.5 million people over 8 years. Built roads, airports, bridges, etc… NYA – National Youth Administration – gave high schoolers and college students jobs that allowed them to stay in school. Social Security Act – gave unemployment money to the unemployed, gave pensions to retired workers, gave money to people with disabilities, orphans, widows, and widowers. FDR is reelected in 1936 for his second term. He will be reelected again for a third term in 1940. He is elected for a fourth term in 1944, but dies in office before the end of his term. Unprecedented popularity and trust in FDR. His programs were helping, but not ending the depression. FDR asked Congress to grant him the power to appoint one new supreme court judge for each old one. He was denied. Many saw this as an attempt to become a dictator. BY the end of his life, those old men had died or retired and 8/9 judges were appointed by him anyways.

4. FDR Labor unions made a comeback. There were sit down strikes, and organized protests including one organized by John L Lewis like during WW1. over 9 million people belonged to a union by 1939. Farmers – They were paid by the government to reduce the amount of land they used for farming and practice conservation. They would be paid for surplus crops and the government would store them for later. Migrant farm workers and sharecroppers also got loans to keep them going. FDR’s Recession: Programs were helping, but FDR was spending billions in just a few years. Reacting to criticism, he stopped funding some projects, which had an immediate impact on the economy. He then increased spending again to keep it from getting worse. It worked, but the economy had still not fully recovered. Congress granted FDR powers that the Presidency had never had before. The balance of power was shifted for FDR in a time of need, and the executive branch was easily the most powerful branch of government in the U.S.