Chapter 33: The Great Depression and the New Deal

Chapter 33: The Great Depression and the New Deal By the awesome: Lacey Lausch Be prepared to learn.

Essential Questions! • What exactly was the “New Deal?” • How did FDR’s Hundred Day’s Congress work on stomping out the Great Depression? What were some of the acts that were created when the Hundred Day’s Congress was taking place? • What are the three major administrations that were created during the period of the Great Depression, and what exactly did they do?

Vocabulary… • New Deal • Banking Relief Act of 1933 • Fire side chats • Glass-Steagall Banking Reform Act • Civilian Conservation Corps (CCC) • Federal Emergency Relief Administration (FERA) • National Recovery Administration (NRA) • Public Works Administration (PWA) • Agricultural Adjustment Administration (AAA) • Soil Conservation and Domestic Allotment Act of 1936 • Parity

Some More Vocabulary… • Tennessee Valley Authority (TVA) • Social Security Act of 1935 • Fair Labor Standards Act • Hatch Act of 1939

The Election of 1932 • Roosevelt ran up against Hoover in 1932. • Hoover was quickly swept out of office. • FDR preached about the New Deal and how he is going to help economy. • FDR’s major goals included.. • Balanced budget • “Happy days are here again.”

FDR and the 3 R’s • Inauguration Day • FDR gave people a newfound hope. • “Let me assert my firm belief that the only thing we have to fear is fear itself.” • FDR had a new idea in mind, the 3 R’s. • Relief, Recover, Reform • Hundred Days Congress: • Much laws and acts had been imposed • Roosevelt had a lot of leadership power, the most seen in Democracy in a while. • People were really hoping it would help get out of the Depression. • Before inauguration, Hooverites blamed Roosevelt for the worsening conditions of the depression because Hoover could not pass laws without the direct consent of FDR.

Let’s manage our.. (money!) • Banking Relief Act of 1933 • Gave Roosevelt the power to regulate banking transactions and foreign exchange. • Power to reopen solvent banks. • Passed within the first days of FDR’s presidency. • Glass-Steagall Reform Act • Provided for the Federal Deposit Insurance Corporation. • The Federal Deposit Insurance Corporation insured individual deposits up to $5,000 (later raised). • Fireside Chats • Roosevelt spoke over the radio. • Gave assurance that it was safer to keep money in reopened banks than under the mattress.

FDR wants to protect Gold reserve! • FDR ordered all private holdings of gold to be surrendered to the Treasury in exchange for paper currency. • Took the nation of the gold standard. • Why? • Reduce inflation • Make cheaper prices • Congress responded to FDR’s course of action • Cancelled the gold-payment clause in all contracts. • Authorized repayment in paper money.

Let’s get managed (currency) • FDR wants to rid inflation. • FDR instructed the Treasury to purchase gold at increasing prices • Sound Money critics • Disgusted with the “baloney dollar.”

Creating some jobs • Unemployment rates were at a record high, 25%. • 1 in every 4 workers had been without a job. • Civilian Conservation Corps (CCC) • Provided employment in government camps for about 3 million uniformed young men. • Work was useful to citizens, reforestation fire-fighting, flood control, and swamp drains. • Required to send home most of their pay to help their parents. • Later complaints of “militaring” the CCC.

Federal Emergency Relief Act • Imposed the Federal Emergency Relief Administration • Ran by Harry Hopkins. • In all granted $3 billion to states for wages on work projects.

We got relief for farm boys, and normal people too. • Agricultural Adjustment Act • Made millions of dollars available to help farmers meet their mortgages. • Home Owners Loan Corporation • Helped to refinance mortgages on non-farm homes. • Assisted about a million households.

Fair Competition Makes Leeway • National Recovery Administration (NRA) • Designed to assist industry, labor, and unemployed. • Public Works Administration (PWA) • Industrial recovery and unemployment relief • Long range recovery was the #1 purpose • $4 billion spent on 34,000 projects such as public buildings, highways/parkways. • Grand Coulee Dam (biggest structure since Great Wall of China). • Irrigation of millions of acres of land. • More electrical power. • Hours of labor had been reduced so that employment could be evenly distributed.

Paying Farmers not to Farm? • Agricultural Adjustment Administration (AAA) • Eliminate price-decreasing surpluses by paying grower to reduce crop acreage. • Since passed, it had first a wobbly start. • People were angered because farmers where throwing away food in a needed time. • Paying farmers not to farm increased unemployment. • Eventually killed by congress. • Second Agricultural Adjustment Act of 1938 • If growers observed acreage restrictions on specified commodities (cotton & wheat) they would be eligible for parity payments. • Parity: price set for a product that gave it the same value in purchasing power that it enjoyed from 1909-1914.

Tennessee Valley Authority (TVA) • Determined to discover how much the production and distribution of electricity cost so that a “yardstick” could be set up to test the fairness of rates charged. • Brought about full employment, cheap electric, low-cost housing, cheap nitrates, restoration of eroded soil, reforestation, improved navigation, and flood control. • Hydro-electric power was developed (not by TVA). • The electric power industry began to take hold of americans.

Housing time • Federal Housing Administration (FHA) • Building industry was to be stimulated by small loans to house holders. • Improvise dwellings and complete new ones. • United States Housing Agency (USHA) • Lend money to states or communities for low-cost construction. • For the first time in a century, slums decreased.

Social Security • Social Security Act of 1935 • Provide security for the old aged, blind, handicapped, delinquent children dependents, etc. • Payment made to people every so often (a certain amount of money.) • People had to be employed to get coverage.

New Labor Deals Arise • National Labor Relations Act of 1935 • Asserted the right of labor to engage in self organization, and to bargain collectively through representatives. • National Labor Relations Board • Created from the National Labor Relations Act. • Unskilled workers began to organize into unions • John L. Lewis- Committee for Industrial Organization (CIO)

The Committee of Industrial Organization has Tasks • The Automobile industry • Sit down strike: refused to leave the factory building of General Motors in Michigan. • Prevented importation of strike breakers. • CIO wins. • United States Steel Agency • Averted a costly strike, granted unionization to CIO organized employees.

Fair Labor Standards Act • Industries that had been involved in interstate commerce were to set up minimum wage and maximum hour levels. • First standard: • $0.40 / hour • 40 hours / week • (later changed and raised)

Election of 1936 • Landon was picked to try to beat out FDR • FDR beat him by a landslide, the first in a while. • FDR was doing so great with getting people out of the depression, the people did not want to risk anything.

FDR’s Plan Backfires • FDR’s plan failed and a Recession started • Sparked from Social Security. • Unemployment sparks again. • Congress puts FDR on halt for reforms, and got limited power. • Hatch Act of 1939 • Barred federal administrative officials from political campaigning and soliciting, • No government funds were to be used for political use and, or campaign contributions.

People HATE the New Deal, However Revolution was Avoided • In 1938 the New Deal loses its momentum. • People begin to hate Roosevelt for the New Deal. • Increased debt • Class strife provoked • “One man super government” • Failed to end depression

It’s Quiz Time! What Did You Learn?

Question one: What of the following was NOT the reason why FDR wanted to rid the Gold standard? • To rid inflation • Allow the Treasury to hold all gold • Decrease the price of all items • Allow there to be one way to pay, paper money

Question two: What did the Civilian Conservation Corps (CCC) do? • Provided employment in government camps for about 3 million uniformed young men. • Provided for economic stability. • Gave money to the people in the slums. • Provided money to states to build houses.

Question three: What was the act that was passed within the first day’s of FDR’s presidency that allowed FDR the power to regulate banking transactions and foreign exchange? • Agricultural Adjustment Act • Social Security Act • Banking Relief Act • National Labor Relations Act

Question four: The Tennessee Valley Administration did all of the following except: • Determined to discover how much the production and distribution of electricity cost so that a “yardstick” could be set up to test the fairness of rates charged. • Brought about restoration of eroded soil. • Brought about cheap electric. • Invented hydro-electric power.

Question five: What did the Public Works Administration (PWA) do? • Provided for industrial recovery, unemployment relief, and $4 billion had been spent on 34,000 projects. • Made farmers not able to farm causing them to basically throw their crops away. Which angered citizens of the USA. Eventually was not aloud to function anymore. • Made industries that had been involved in interstate commerce set up minimum wage and maximum hour levels. • Made millions of dollars available to help farmers meet their mortgages.

You are now done learning, be proud of yourself. Hopefully you got 5 out of 5! (: If not, I would re-read this PowerPoint.

Chapter 33: The Great Depression and the New Deal