FDR’s “New Deal”

1. FDR’s “New Deal” Libertyville HS FDR and Eleanor, 1936

2. “The First Hundred Days” • FDR’s emergency plan, approved by Congress • Based on “3 Rs” • Relief (for banks & unemployed) • Recovery (for agr, industry, commerce, labor) • Reform (of economy) • Relief • Emergency Bank Relief Act • Bank holiday” closed all banks for four days • Inspectors reopened only financially secure banks • Restored confidence in banks

3. Relief • Federal Emergency Relief Admin. (FERA) (1933): $3 billion in grants to states, for relief of destitute • Public Works Admin(PWA) (1933): Ks to private firms to build public works • Works Progress Admin (WPA) (1935): $6.3 billion to create (public) jobs (largest New Deal agency)

4. Relief • Civil Conservation Corps (CCC)(1933): jobs for unemployed, focused on natural resource conservation • National Youth Admin (NYA) (1935): part time jobs for HS, college men & women

5. Relief Recovery • Farm Credit Admin. (FCA) (1933): farmers refinanced mortgages • Agricultural Adjustment Admin (AAA) (1933): created higher food prices through restrictions & subsidies • AAA Problem: favored farmers (1/4 of population) • Farmers purchase power up • Large farms = most benefit

6. Recovery • National Industrial Recovery Act (1933) (NRA) • Cooperation, not competition • Developed “code of practice” • Pro NRA • Labor’s right to organize • Ended child labor • Ended unfair trade practices • Anti NRA • Big business made codes • Codes enforced against small businesses • Costs passed on in higher prices • Stimulation of unionization • Ruled unconstitutional, 1935

7. Recovery • US and the gold standard • FDR ordered citizens to turn in all gold to Fed Reserve bank • Paid $20.67 / oz • Hoarding gold made a crime = ten years in prison • After confiscation of gold, gov’t set price of gold at $35 / oz • Effect = Dollar devalued by 40% • Gov’t also got gold from Europe

8. Reform • Federal Deposit Insurance Corporation (FDIC)(1933): Insured bank deposits • Fed. Savings & Loan Ins. Corp.: insured S&L acc’ts • Securities & Exchange Commission (SEC): supervises securities, stock exchanges • Home Owners Loan Corp. (HOLC)(1933): lent $ to people facing foreclosure

9. Reform • Federal Housing Admin. (FHA) (1934): housing loans to middle inc. families • Tennessee Valley Authority (TVA) (1933): provided power, flood control, conservation, employment in seven southern states • Objections: tax free monopoly, gov’t interfering in private sector

10. 1934 Congressional Elections • First opportunity to test popularity of New Deal • Critics of FDR, from the Right • Cons. opposed to public relief, gov’t interference, financial interference • Critics of FDR, from the Left • Senator Huey Long (LA): Populist: “Share the wealth” (100% tax over $1 million inc.) • Dr. Francis Townsend: radio personality; called for $200 / month pension for elderly (founded Union Party) • Al Smith, NY gov. & the Liberty League – pro bus, anti New Deal (former ally of FDR)

11. “Second New Deal” • Tax changes • 1935 Revenue Act created graduated tax system • $50k-$1 million = 31% • Over $1 million = 75% • Public Utility Holding Co. Act (1935): regulated gas, electric companies

12. “Second New Deal” • Social Security Act of 1935 • Tax to pay for direct aid (Unemployment, old age pensions, subsidies to certain groups) • National Labor Relations Act (“Wagner Act”) (1935) • Guaranteed right to union organizing • Right to collective bargain agreements • Est. National Labor Relations Board

13. “Second New Deal” • Impact of NLRA on Unions • AFL organized trade unions • New group, Committee of Industrial Organizations (CIO) formed to unionize industrial labor • Competition between AFL, CIO • Jurisdictional strikes • NLRB mediated differences • AFL & CIO merged, 1955