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New Deal (PowerPoint download) by xuyuzhu

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									THE NEW DEAL
  CHAPTER 15
            ELECTION OF 1932

• Franklin D. Roosevelt
  (Democrat) elected
   •Governor of New
    York since 1928
   •Started some state
    reforms when
    Depression hit
   •People were not so
    much voting for
    Roosevelt, but
    were voting
    against Hoover
    and Republicans
POPULAR VOTE: DEMS: 23 MIL VS. REPS: 16 MIL

ELECTORAL COLLEGE:
           A “2 FOR 1” DEAL …

• His wife Eleanor
  Roosevelt gets
  involved in political
  issues
   •One of FDR’s most
    trusted advisor, he
    called her his
    “eyes and ears”
   •She traveled the
    country observing
    the depression
    and reported
    back to FDR
FRANKLIN D. ROOSEVELT

• Upper class, Harvard educated
• Teddy Roosevelt’s cousin
• Contracted Polio at age 39
   • virus that affects nerves and can
     lead to paralysis.
   • Spreads by direct person-to-
     person contact or by contact with
     infected mucus or phlegm
   • Between 1840 and the 1950s, polio
     was a worldwide epidemic.
   • Since the development of
     vaccine in 1952, Polio has been
     wiped out in many countries.
  • https://health.google.com/health/ref/Poliomyelitis
FRANKLIN D. ROOSEVELT

•Illness impacts his
 personality:
  • Warm and
    understanding
  • Sympathetic to
    hardships
  • Focused on working
    toward solutions
  • Didn’t blindly trust the
    “experts” because of
    bad experience with
    doctors
  • willing to try new ideas
ROOSEVELT’S APPROACH TO PROBLEM
             SOLVING
• Assembled the “brain
  trust” of advisors
  (professors, lawyers,
  journalists etc)
   • His cabinet represent
     a variety of views:
     Northerners,
     Southerners, liberals,
     and conservatives
   • Approach to solving
      problems: get
      conflicting opinions
      and facts about a
      subject and decide
      which is best
          INAUGURAL ADDRESS

• President Hoover, Mr. Chief Justice, my friends:
• This is a day of national consecration. And I am certain
  that on this day my fellow Americans expect that on my
  induction into the Presidency I will address them with a
  candor and a decision which the present situation of our
  people impels. This is preeminently the time to speak the
  truth, the whole truth, frankly and boldly. Nor need we
  shrink from honestly facing conditions in our country
  today. This great Nation will endure as it has endured, will
  revive and will prosper.
• So, first of all, let me assert my firm belief that the only
  thing we have to fear is fear itself--nameless,
  unreasoning, unjustified terror which paralyzes needed
  efforts to convert retreat into advance. In every dark
  hour of our national life a leadership of frankness and of
  vigor has met with that understanding and support of
  the people themselves which is essential to victory. And I
  am convinced that you will again give that support to
  leadership in these critical days.
• In such a spirit on my part and on yours we face our
  common difficulties. They concern, thank God, only
  material things. Values have shrunken to fantastic levels;
  taxes have risen; our ability to pay has fallen;
  government of all kinds is faced by serious curtailment of
  income; the means of exchange are frozen in the
  currents of trade; the withered leaves of industrial
  enterprise lie on every side; farmers find no markets for
  their produce; and the savings of many years in
  thousands of families are gone.
               20TH AMENDMENT
• 1933
• changed the presidential
  inauguration from March 4 to
  January 20.
   • From November to March
     while Hoover was still
     president, the economy
     spiraled out of control
   • So Hoover was a lame
     duck (an officeholder with
     little influence because his
     term was ending) thus the
     nation was virtually
     leaderless and the banks
     further collapsed
               21ST AMENDMENT

• 1933
• repealed Prohibition
• Problems with
  Prohibition
 • Had led to increased crime
   (mafia, bootlegging etc)
 • Eliminated an easily taxable
   item / money goes into the
   black market
               THE NEW DEAL

•  Roosevelt’s plan to
   restore the economy.
   Based on campaign
   slogan.
Three purposes:
   • Relief for the needy
   • Recovery for the
      economy from the
      Depression
   • Reform of the
      economic system
      to prevent from
      happening again
    THE FIRST HUNDRED DAYS

• March to June, 1933
• Congress passed 15 major
  bills that expanded the federal
  government's role
• Begins “fireside chat” (radio
  address)
 • Speaking directly to the people in
   simple terms about his plans
• “The Second Hundred Days”
  or “Second New Deal” in the
  summer of 1935
ROOSEVELT’S PROGRAMS
1. BANKING REFORM
a. Bank failures = lack of confidence in banks, people refused
   to trust banks with money.
b. 4 day Bank Holiday, March 5th – a way to temporarily “stop
   the bleeding” and time for the government to investigate
c. Emergency Banking Relief Act
  i.   Treasury Department inspected banks; those that were stable
       reopened. Bad banks remained closed.
  ii. Gave customers faith that banks that were allowed to open
       were safe
  iii. Impact: as trust in banks grew, people’s deposits begin to
       exceed withdrawals.
  iv. Enables banks to begin making loans to people and businesses
                 BANK REFORM

d. Glass-Steagall Act
   i. Founded (FDIC) Federal Deposit Insurance
        Corporation to insure savings accounts
   ii. Insured money up to $5000. Today it is up to $250,000.
   iii. Required banks to follow new rules
            2. FINANCIAL REFORM

a. Federal Securities Act: Companies also had to
   provide truthful information to stock buyers
b. Securities and Exchange Commission (SEC):
   Established to regulate the stock market. Helped
   eliminate inflation schemes, insider trading, and
   other unfair trade practices
c. Public Utility Holding Company Act: Aimed at
   correcting financial corruption in the public utility
   industry
    i.   Outlawed the ownership of utilities by multiple holding
         companies—practice known as the pyramiding of holding
         companies
3. WORKING CONDITIONS REFORM

a. National Recovery Administration (NRA):
   i.   Effort to control wages, falling prices, layoffs, forty-hour
        workweek, end child labor, etc
   ii. Set codes of fair practice for businesses
   iii. set prices of many products
   iv. Gave right to unionize
   v. But found to be unconstitutional (1935)
WORKING CONDITIONS REFORMS

b. National Labor Relations Act (NLRA) (Wagner Act)
  i.     Replaced unconstitutional NRA
  ii.    Gives workers power to unionize and prohibits unfair labor
         practices
  iii.   Ordered employers to stop anti-union activities like firing
         union members
  iv.    Established National Labor Relations Board (NLRB) to hear
         testimony about unfair practices and to hold secret union
         elections in factories
c. Fair Labor Standards Act
   i. Set maximum work week at 44 hours / week
        (reduced to 40 hours two years later)
   ii. Set minimum wage at 25 cents / hour (40 cent
        in 1945)
   iii. Rules for workers under 16
            4. RELIEF FOR FARMERS

a. Agricultural Adjustment Administration (AAA) –
  i.    Government paid farmers to reduce production in order to
        raise prices;
  ii. Protested by many because food is wasted; later found to be
        unconstitutional.
  iii. Replaced by: Soil Conservation and Domestic Allotment Act:
         i. Paid farmers for cutting production of soil depleting
             crops and rewarded farmers for practicing soil
             conservation
         ii. Agricultural Adjustment Act II – constitutional version of
             first AAA
b. Farm Security Administration (FSA): formed to give loans to help
     tenants purchase land and set up camps for migrant workers
HELPING FARMERS
                5. WORK RELIEF
a. Work Progress Administration (WPA) - Work relief for
    the jobless
  i. Built buildings, airports, schools, roads, etc.
  ii. Creates jobs for writers, artists, historians, etc.
     a. Collect historical narratives, paint murals on
        public buildings, perform in theater troupes, etc.
b. National Youth Administration (NYA)
  i. Created to provide education, jobs, counseling,
      and recreation for young people
  ii. Provided student aid to high school, college, and
      graduate students in return for required part-time
      position at their schools
                  WORK RELIEF

c. Public Works Administration (PWA):
   i. money to states provided funds for construction
       projects like improving highways, and building
       dams, sewer systems, waterworks, schools, and
       government buildings.
d. Civil Works Administration (CWA)
   i. 4 million jobs immediately during the winter of
       1934 – 1935
   ii. Built ½ million miles of road and 40,000 schools &
       paid 50,000 teachers
              WORK RELIEF

e. Civilian Conservation Corps (CCC)
  i. Outdoor work to unemployed single men
       ages 18-25
  ii. 3 million men through the program by 1942
  iii. Built roads, developed parks, planted trees,
       fought fires, built reservoirs, and stopped soil
       erosion – 200 million trees planted in the Great
       Plains in an efforts aimed at stopping future
       Dust Bowls
  iv. Received $30, food and housing; $25 sent
       home to worker’s family
          6. DIRECT RELIEF

a. Home Owners Loan Corporation (HOLC)
 Loans to home owners who could not meet their mortgage
 payments
b. Federal Housing Administration (FHA)
 Loans for home mortgages and repairs
c. Federal Emergency Relief Administration
   (FERA)
 a. gave grants to states to help the needy:
   a. ½ provided money, food, clothing, etc.
   b. ½ was to establish work relief programs
                   DIRECT RELIEF
•Social Security Act (SSA)
 • Old-age insurance for retirees 65 or older and their spouses;
   Pension fund with half provided by worker and half from the
   employer
 • Aid to families with children and the disabled
   •Aid paid for by federal funds and made
    available to states
• Unemployment compensation system
   •Funded by a federal tax on employers and
    administered at state level
          LARGE SCALE PROJECTS
Rural Electrification Administration (REA)
  • provided electricity to rural areas lacking public utilities
    • BY 1945, 48 percent of America’s farms had electricity; by 1949, 90
      percent
                        TVA

Tennessee Valley Authority
 • Designed to promote the development of seven-state
   region
 • Renovated old dams and constructed 20 new dams to
   provide flood control and hydroelectric power
 • Created thousands of jobs
         DEFICIT SPENDING

• “Pump priming:” to kick start the economy:
  pour government funds into it – get jobs
  created so people would have money to
  spend
 • In order to do so the government would have to start
   deficit spending: the government borrows money –
   going into debt - in order to spend on programs
     RECESSION OF 1937: THE
    “ROOSEVELT DEPRESSION”
• In 1936 Roosevelt, in response to criticism of excessive deficit
  spending, began cutting back on New Deal relief
• Industry was not strong enough to support economy without
  government help
• 1937, factories were closing / unemployment was rising
• Roosevelt and Congress again increased deficit spending
• By 1938, unemployment had once again declined
 OPPOSITION TO THE NEW DEAL

• Supreme Court ruled NRA and AAA unconstitutional
• Roosevelt responds with “court packing” bill:
  • add a judge for every justice over the age
    of 70 (at this time, six new justices)
  • Bill was rejected; FDR seen as undermining
    system of checks and balances
    Opposition to the New Deal
• Conservatives:
   • think FDR made federal
     government too large
   OPPOSITION TO THE NEW DEAL

American Liberty League
 • Conservative opponents of
   the New Deal who believed
   that the New Deal violated
   respect for the rights of
   individuals and property
                  LIBERALS:

• he didn’t do enough to socialize economy and end
  inequalities
        OPPOSITION

Father Coughlin


   •“Radio Priest” who accused
    Roosevelt of turning the New Deal
    into a “raw deal”
   •Called for socialistic measures like
    heavy taxes on the wealthy and a
    guaranteed annual income for
    everyone
           OPPOSITION

Senator Huey Long
  • Louisiana senator who had a powerful
    backing of the rural poor
  • Share Our Wealth (“Every Man a King”):
    confiscate the property of rich and give
    every family a home, $2,000 a year,
    food, clothes, and a free college
    education for children
  • Long was assassinated
  THE END OF THE NEW DEAL


• By 1937, economic improvement convinces
  many that the Great Depression is ending
 • But the New Deal did not end the Great Depression; it
   did reduce suffering, gave hope / restored confidence
• WWII would return the American economy to
  full production and full employment by
  massive government spending.
THE LEGACY OF THE NEW DEAL

1. extension of the power of the federal
 government into everyday life
 • FHA insures mortgage loans
 • AAA pays farm subsidies
 • FDIC insures bank deposits
 • SEC watches over the stock exchange
2. extension of the power of the President
3. deficit spending: government spends more
 than it raises in taxes
THE LEGACY OF THE NEW DEAL

4. federal social programs
  • Established a welfare state – government based
    on the view that the state is responsible for the
    economic security of its people
  • Social Security still administered today: Provides
    for aged, disabled, needy
5. Protecting Workers’ Rights
  • New Deal laws set standards, ban child labor,
    permit unions and establish policies followed
    today
  • National Labor Relations Board (NLRB) still
    mediates labor disputes
THE LEGACY OF THE NEW DEAL

6. Maintained democracy at a critical time
 • European nations falling to dictators like
   Mussolini in Italy and Hitler in Germany
7. Protects the Environment
 • CCC plants trees, builds hiking trails, fire lookout towers
 • Soil Conservation Service teaches methods to preserve
   soil
 • Government adds national parks, wildlife refuges,
   wilderness areas

								
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