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New Deal

New Deal. First Hundred Days. Brain Trust – FDR’s Advisors 20 th Amendment – shortened lame duck period FDR and his advisors created any programs in which Congress approved the first 100 days. Banking Crisis was biggest Push to end Prohibition – 21 st Amendment

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New Deal

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  1. New Deal

  2. First Hundred Days • Brain Trust – FDR’s Advisors • 20th Amendment – shortened lame duck period • FDR and his advisors created any programs in which Congress approved the first 100 days. • Banking Crisis was biggest • Push to end Prohibition – 21st Amendment • Tax money from alcohol / less spent on enforcement – pay for New Deal programs

  3. Think of everything according to the: • The Three Rs • Relief • Recovery • Reform • Early focus on Relief • Federal Emergency Relief Act – help state/local • Bank Holiday / Emergency Banking Act • Start of the “Alphabet Soup” programs

  4. Conservative Critics of New Deal • Felt that the federal government was gaining too much power (and growth of national debt) • American Liberty League – claimed FDR was using “dictatorial policies against free enterprise.” • DuPont Family • Sen. Robert Taft – too much protection for Unions

  5. Liberal Critics of New Deal • Many supported him in beginning, but they felt that FDR’s New Deal programs did not go far enough with government intervention. • Father Charles Coughlin – radio star (and anti-Semite) • Huey Long – “Share the Wealth” plan – guaranteed a salary for everyone

  6. Going into Debt • Keynesian Economics • “Priming the Pump” • Going into debt to get out of a crisis • Hoover had tried to balance the budget, FDR did not • Part of the reason there were conservative critics

  7. Court Packing Plan • Many of the New Deal programs were being declared unconstitutional by the Supreme Court. FDR had a bill introduced that would “pack the court” with more friendly justices. • Judicial Reorganization Act was never passed as Congress said no to FDR’s plan. • But the Supreme Court did not strike down as many programs after 1937.

  8. More New Deal Cartoons

  9. Farmers and New Deal Programs • AAA – Agricultural Adjustment Administration • Limited farm production (supply). Criticized as some farmers were paid to plow under fields. But crop prices increased. • Declared unconstitutional by Supreme Court in 1936. • But replaced with Soil Conservation Act that was approved. • REA – Rural Electrification Administration • Any guess at what this helped? • RA – Resettlement Administration • Gave loans to sharecroppers and tenant farmers to get their own land. Ended many of the systems in place since reconstruction.

  10. Banking • (Relief) – Bank Holiday – shut down banks until government said they were strong enough to reopen • (Recovery) – Glass-Steagall Act – created FDIC after making regulations • (Reform) – FDIC (Federal Deposit Insurance Corporation) – gov’t bank insurance on people’s money in banks

  11. Young Men • CCC – Civilian Conservation Corp • Young men worked in environmental projects • Over 25 million young men given uniforms, housing, food and a small monthly salary. • One of the most successful relief programs

  12. Two Successful Programs • TVA – Tennessee Valley Authority • Flood control • Hydro-electric dams • Cheap power to rural south • Jobs are created for many in southern states • Social Security • FDR took the idea promoted by Dr. Francis Townsend of a old-age pension system • Before program – elderly had the highest percentage of people living in poverty • (What group is it today?)

  13. Industrial Recovery and Labor • NRA – National Recovery Administration • Tried to set prices and wages to help industries • Declared unconstitutional in Schechter v. U.S. (1935) • Wagner Act / National Labor Relations Act (’35) • Guaranteed worker’s rights to join a union and for unions to have collective bargaining • Established the National Labor Relations Board

  14. SEC – Security and Exchange Commission • Created to reform and regulate the stock market • Indian Reorganization Act • John Collier – head of the Indian Bureau • Ended many of the Dawes Act policies of assimilation

  15. Works Programs • CWA- Civil Works Administration – Federal gov’t headed construction projects • PWA- Public Works Administration – gave money to states for building roads, bridges, dams, and other public works. • WPA – Works Progress Administration (1935-1940), headed by Harry Hopkins • Employed over 3 million in construction projects and also Federal Arts Project

  16. FDR’s 2nd Term • 1936 Election – FDR defeats Alf Landon in a Landslide (only Maine and Vermont go to Reps) • Democrats first time getting votes from many African Americans. Why the Change? • 2nd New Deal – Focused on Recovery and Reform • Recession of 1937-8 – FDR and Democrats said there needed to be more gov’t. Republican said less. • What would truly get us out of the Depression?

  17. Women to remember: • Frances Perkins • 1st Female Cabinet member • Sec. of Labor • Mary McLeod Bethune • Part of Black Cabinet which advised FDR on race issues • Long Term Effects of New Deal: • Improvements in South and West (RA, TVA, dams) • Social Security • Reforms: FDIC, SEC • Idea of Keynesian economics

  18. New Deal

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