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The New Deal
President Franklin D.
Roosevelt’s New Deal
programs stimulate the
economy and the arts.
The New Deal leaves a
lasting, yet controversial
mark on American
government.
President Franklin Delano
Roosevelt sitting in the
Oval Office.
NEXT
Chapter 23 Objectives
• Understand the impetus for FDR’s
New Deal legislations and the impact
of these policies on the American
public.
The New Deal
SECTION 1 A New Deal Fights the Depression
SECTION 2 The Second New Deal Takes Hold
SECTION 3 The New Deal Affects Many Groups
SECTION 4 Culture in the 1930s
SECTION 5 The Impact of the New Deal
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Section 1
A New Deal Fights
the Depression
After becoming president, Franklin Delano
Roosevelt uses government programs to combat
the Depression.
NEXT
Chapter 23 Section 1
Objectives
• Summarize the initial steps Roosevelt
took to reform banking and finance.
• Describe New Deal work programs.
• Identify critics of FDR’s New Deal.
FDR
New Deal
7.5 – P:1
• This is one of the most complex indicators in the United States
History standards and is an area of emphasis in USHC 7.
• It is essential for students to understand that the New Deal was
not an attempt to introduce socialism in the United States,
although many critics branded it as such.
• Indeed, some historians argue that because of the New Deal
policies, capitalism was saved.
• It is also essential for students to understand that, although the
New Deal policies alleviated some suffering and offered hope to
Americans in their bleakest hour, they did not solve the
economic problems of the Depression.
• Rather, government spending during World War II ended the
Depression.
• They must also understand that, as a result of the reforms
initiated during the New Deal, the United States has not
suffered another economic depression of the magnitude of the
Great Depression.
• Although it is not essential for students to remember the names
of the legislation passed during the New Deal, it is essential that
they understand how each of the agencies established was
intended to address the goals of relief, recovery and reform.
SECTION
1 A New Deal Fights the Depression
Americans Get a New Deal
Electing Franklin Delano Roosevelt
• Democrats nominate NY governor Franklin
Delano Roosevelt
- reform-minded; projects friendliness, confidence
• Democrats overwhelmingly win presidency,
Senate, House
Waiting for Roosevelt to Take Over
• With “Brain Trust,” FDR formulates policies to
alleviate problems
• New Deal—relief for needy, economic recovery,
financial reform
Continued . . .
NEXT
SECTION
1
continued Americans Get a New Deal
The Hundred Days
• FDR launches Hundred Days; passes over 15 major
New Deal laws
• Emergency Banking Relief Act permits Treasury
Dept. to inspect banks
- decides which are insolvent, sound, or need
loans
- public confidence in banks revived
An Important Fireside Chat Image
• FDR gives fireside chats—radio talks explaining New Deal
measures
• First chat discusses need for public support of government, banks
Continued . . .
NEXT
SECTION
1
continued Americans Get a New Deal
Regulating Banking and Finance
• Glass-Steagall Act establishes Federal Deposit
Insurance Corporation
- restores public confidence in banks
- insures individual bank accounts, regulates banking
practices
• Federal Securities Act—companies must give all
information on stocks
- restores public confidence in the stock market
• Securities and Exchange Commission created to
regulate stock market
• FDR gets law allowing production of some alcoholic
beverages
• 21st Amendment repeals prohibition by end of 1933
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7.5 – P:2
• This indicator requires that students be able to compare the first
and second New Deals.
• They should be able to identify the first New Deal as the initial
response started during the First Hundred Days that attempted
to stabilize the economy, help it recover and relieve human
suffering.
• It also included some successful and enduring reforms.
• The closing of the banks for a bank holiday stopped the
escalating collapse of the banking industry.
• Roosevelt’s first fireside chat encouraged people to trust in the
banks and when the banks reopened, the panic had subsided.
• Government insurance of bank deposits instilled confidence in
the safety of banks [Federal Deposit Insurance Corporation
(FDIC)].
• Regulations were placed on the stock market to prevent the
conditions that led to the crash [Securities and Exchange
Commission (SEC)].
• The federal government sent millions of dollars to the states to
use for relief, using deficit spending to boost the economy and
‘prime the pump.’
SECTION
1
Helping the American People
Rural Assistance
• Agricultural Adjustment Act (AAA) raises
food prices, lowers supply
- pays farmers to lower production
• Tennessee Valley Authority creates jobs
renovating, building dams
- creates prosperity in the impoverished
Tennessee Valley
Chart
Providing Work Projects
• Civilian Conservation Corps—public works jobs for young
men building roads, and conservation projects
• Public Works Administration—money to states to create jobs
• Civil Works Administration created 4 million new jobs building
rural schools, and paying teachers Continued . . .
- All of these helped reduce unemployment NEXT
7.5 – P:2
• Farmers were paid government
subsidies so that they would not plant
so many crops, which addressed the
traditional problem of overproduction
and low prices [Agricultural
Adjustment Act (AAA)] (USHC 5.3).
• Although this program stabilized prices
and raised farm income, it hurt
sharecroppers and tenant farmers by
taking some farm land out of
production.
7.5 – P:3
• Unemployed young men were given
work in the nations’ parks [Civilian
Conservation Corps (CCC)].
SECTION
1
continued Helping the American People
Promoting Fair Practices
• NIRA establishes codes of fair practice for
industries
- creates National Recovery Administration (NRA)
• NRA sets standards, prices, limits production
• It ensures fair business practices and promotes
industrial growth
Food, Clothing, and Shelter
• Home Owners Loan Corporation gives loans to prevent
foreclosures this helped families keep their homes
• Federal Housing Administration gives loans for mortgages,
repairs
• Federal Emergency Relief Administration—direct relief to
needy
- provided basic needs for people hit hardest by the
NEXT
Depression
SECTION
1
The New Deal Comes Under Attack
Opposition to the New Deal
• Deficit spending—spending more money than
government takes in
- funds New Deal
• Liberals: New Deal does not do enough to help
poor, fix economy
• Conservatives: New Deal used to control
business, socialize economy
The Supreme Court Reacts
• Supreme Court strikes down NIRA, AAA as
unconstitutional
• FDR proposes “Court-packing bill”; Congress,
press protest
• Starting in 1937, justices retire; FDR appoints
seven new ones Continued . . .
NEXT
7.5 – P:4
• The conservative Supreme Court undermined New Deal
programs.
• The Court struck down a program designed to help the
economy stabilize and recover by establishing business codes of
fair practices written by representatives of business, labor and
government [NRA].
• By declaring this program [NRA] unconstitutional, the court
also struck down other provisions that it included such as the
right of labor unions to organize and bargain collectively for
workers and minimum wage and maximum hour provisions.
• The court also struck down the subsidies for farmers [AAA].
• The court-packing plan fueled this criticism from the Right.
• Although the court-packing plan promoted a backlash against
Roosevelt, afterwards the court did not overturn any
subsequent New Deal legislation.
• FDR was also criticized for the unbalanced budget.
• Critics on the political Left claimed that Roosevelt was not
doing enough to redistribute income and help the elderly and
the poor.
• Labor unions demanded recognition.
SECTION
1
continued The New Deal Comes Under Attack
Three Fiery Critics
• Some conservative opponents form American
Liberty League
• Think measures violate respect for personal
rights, property
• Father Charles Coughlin withdraws initial
support of New Deal
- wants guaranteed income, banks nationalized
• Dr. Francis Townsend devises pension plan for
elderly
• Presidential hopeful, Senator Huey Long has Image
popular social program
- Share our Wealth
- assassinated in 1935
- spokesman for the poor
- former governor of Louisiana, and Senator NEXT
7.5 – P:4
• Students should understand that criticism of
the New Deal from both conservatives and
liberals and rulings by the Supreme Court that
struck down some New Deal programs led to
the Second New Deal.
• Criticism from the political Right was that
the New Deal was too expensive and
socialist.
• Franklin Delano Roosevelt was accused of
taking too much power for the federal
government and the executive branch and
critics compared him to fascist leaders in
Europe.
Section 2
The Second New Deal
Takes Hold
The Second New Deal includes new programs
to extend federal aid and stimulate the nation’s
economy.
NEXT
Chapter 23 Section 2
Objectives
• Describe the purpose of the second New
Deal.
• Summarize New Deal programs for
farmers.
• Identify the Second New Deal programs
aimed at assisting young people and
professionals.
• Summarize labor and economic reforms
carried out under the Second New Deal.
2nd New Deal – E. Roosevelt
SECTION
2 The Second New Deal Takes Hold
The Second Hundred Days
Furthering the New Deal
• By 1935, economic recovery not as great as FDR
had expected
• FDR launches second phase: more relief for
farmers, workers
• First Lady Eleanor Roosevelt, a social Image
reformer, prods president
Reelecting FDR
• 1936, Democrats win presidency, large majorities in
both houses
• First time most African Americans vote Democratic
• First time labor unions support presidential
candidate
NEXT
SECTION
2
Helping Farmers
Focusing on Farms
• Some of the problems farmers endured during
the Depression was: soil depletion, foreclosure,
dust storms, lack of electricity and large debt
• 1936 Soil Conservation and Domestic Allotment
Act replaces AAA
- rewards farmers for practicing soil
conservation
• New Agricultural Adjustment Act avoids
unconstitutional provision
• Resettlement Administration gives loans to Image
small farmers to buy land
• Farm Security Administration—loans to tenant
farmers to buy land
• FSA hires photographers to shoot rural towns,
farms, farmers NEXT
SECTION
2
Roosevelt Extends Relief
Programs for Urban Workers
• Works Progress Administration (WPA)—creates
jobs
• Helps the unemployed, and tries to curb the
hopelessness, loss of dignity, poverty, and lack
of spending money
• WPA workers build airports, roads, public buildings
• Women workers sew clothes for the needy
• WPA employs professional writers, artists,
performers
• National Youth Administration (NYA)—education,
jobs, counseling
• Gives aid to students in exchange for part-time work
NEXT
7.5 – P:3
• Other programs built bridges, hospitals,
schools and air fields.
• Spending on cultural programs provided
work to thousands of writers, artists and
actors and established the precedent for federal
support of the arts [Works Progress
Administration (WPA)].
• Job creation programs put some people to
work, alleviated their despair and economic
hardship and pumped some money into the
economy.
• However, the New Deal did not result in
economic recovery.
SECTION
2
Improving Labor and Other Reforms
Improving Labor Conditions
• National Labor Relations Act, or Wagner Act,
replaces NIRA:
- protects right to join unions, collective
bargaining
- prohibits unfair labor practices
• National Labor Relations Board hears testimony
about labor practices
• Holds elections to determine if workers want
unions
• Fair Labor Standards Act sets maximum hours,
minimum wage
Continued . . .
NEXT
7.5 – P:5
• The second New Deal started in 1935 with a Second Hundred Days
that rejected the criticisms of the Right and responded to the criticisms of
the Left.
• It placed an emphasis on reform of the system while maintaining relief
and recovery efforts.
• The New Deal established minimum wage and maximum hours [Fair
Labor Standards Act] and recognized the right of workers to
organize in labor unions and bargain collectively [Fair Employment
Practices Act (Wagner Act)].
• A national insurance policy was established for the unemployed, the
disabled, the elderly and dependent children [Social Security Act].
• Workers would pay into the plan for protection against unemployment
and for retirement.
• Although the program did not cover all workers, it became the most
significant and enduring part of the New Deal and later significantly
impacted the poverty level.
• Social Security, however, did nothing to immediately aid the
recovery from the Depression since it took money out of paychecks
and did not make payments immediately.
• Critics of the New Deal cite the Social Security Act as evidence of
going too far and laying the foundation for excessive social welfare.
SECTION
2
continued Improving Labor and Other Reforms
The Social Security Act
• 1935, Social Security Act creates Social Security
system; provides:
- insurance for retirees 65 or older
- unemployment compensation
- aid to disabled, families with children
Expanding and Regulating Utilities
• Rural Electrification Administration brings
electricity to farms
• Public Utility Holding Company Act aims to stop
financial corruption
NEXT
7.5 – P:2
• Rural electrification programs
brought power to many.
Section 3
The New Deal Affects
Many Groups
New Deal policies and actions affect various
social and ethnic groups.
NEXT
Chapter 23 Section 3
Objectives
• Analyze the effects of the New Deal
programs on women.
• Describe Roosevelt’s attitude toward
African Americans.
• Identify the groups that formed a New Deal
Coalition.
• Describe the supporter of FDR’s New Deal.
SECTION
3 The New Deal Affects Many Groups
The New Deal Brings New Opportunities
Women Make their Mark
• Frances Perkins, secretary of labor, is first
female cabinet member
• FDR also appoints 2 women as diplomats, 1 as
federal judge
• Women still face discrimination in workplace
from male workers
• NRA sets some lower minimum wages for
women
• Federal work programs hire far fewer women
than men
• Only slight increase in overall % of women working
for wages
NEXT
7.5 – P:7
• During the Depression, women had to “use it up, wear
it out, make it do or do without.”
• They also had to find whatever work they could to
help their families, despite job discrimination based
on the idea that they were taking jobs away from men.
• The New Deal did not address the specific problems
of women.
• The CCC was limited to young men and other New
Deal programs hired many more men than women.
• Some early business codes [National Recovery
Administration (NRA)] allowed a lower minimum
wage for women.
• The Social Security Act failed to provide coverage
for many women workers.
• However, President Roosevelt named the first
woman to a cabinet level position and relied upon
his wife Eleanor for advice and information.
SECTION
3
African-American Activism
African Americans Take Leadership Roles
• FDR appoints more than 100 African Americans to
government
- Mrs. Roosevelt plays key role
• Educator Mary McLeod Bethune heads
Division of Negro Affairs of NYA
• Helps organize ―Black Cabinet‖ of African-
American advisers
• Daughters of American Revolution refuse Marian
Anderson concert
• Mrs. Roosevelt resigns; arranges for Lincoln
Memorial concert
• Segregation, discrimination, poll taxes, racism,
and racial violence are some problems not
solved by the New Deal Continued . . .
NEXT
7.5 – P:6
• African Americans were affected by the privation of the Depression
and by discrimination and racial hostility.
• They were the last hired and the first fired.
• Forty-eight percent of black workers were unemployed in 1933 and the
programs of the New Deal did not protect them.
• The farm subsidies paid to landowners hurt the sharecropper and
tenant farmers, who were often African American.
• The CCC was racially segregated and the TVA gave skilled jobs to
whites.
• However there were significant attempts to address racial
discrimination as President Roosevelt consulted the “Black Cabinet,”
a group of African American government employees (not Cabinet
members, however).
• Eleanor Roosevelt championed Marian Anderson against the
Daughters of the American Revolution and arranged for her concert on
the steps of the Lincoln Memorial.
• After African Americans threatened a march on Washington, a
commission was established to protect the rights of African American
workers in wartime industries [Fair Employment Practices
Commission (FEPC)].
• Consequently, northern blacks began to vote for the Democratic
Party.
SECTION
3
continued African-American Activism
The President Fails to Support Civil Rights
• FDR afraid of upsetting white Southern Democratic
voters
• Refuses to approve antilynching law, end to poll tax
• New Deal agencies discriminate against African
Americans
- pay them lower wages, favor whites
• African Americans help organize Southern Tenant
Farmers Union
• Generally support Roosevelt administration,
New Deal
NEXT
SECTION
3
Mexican-American Fortunes
Mexican Americans Under FDR
• Mexican Americans generally support New Deal
• Many come to U.S. in 1920s, settle mainly in Image
Southwest
- work on farms
• CCC, WPA help some Mexican Americans, but
for the most part, Mexican Americans received
few benefits from New Deal programs
• Disqualify migrant workers with no permanent
address
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SECTION
3
Native Americans Gain Support
Native Americans and the New Deal
• 1924, Native Americans receive full citizenship
• John Collier, commissioner of Indian affairs,
changes policies
• Indian Reorganization Act favors native
autonomy, mandates changes:
- lands belong to entire tribe; government can’t
sell unclaimed areas
- children can attend schools on reservations
- tribes elect tribal councils to govern
reservations
NEXT
SECTION
3
FDR Creates the New Deal Coalition
The New Deal Coalition
• New Deal Coalition—different groups that
support Democratic Party
Labor Unions Flourish
• Prolabor legislation leads unions to donate money for FDR
reelection
• A major problem was that big businesses did not like unions
because it usually led to violence and work stoppage
• 1933–1941, union membership grows from 3 million to over
10 million
• American Federation of Labor traditionally craft unions only
• Committee for Industrial Organization organizes industrial
unions
• Expelled by AFL, becomes Congress of Industrial
Organizations (CIO) Continued . . .
NEXT
SECTION
3
continued FDR Creates the New Deal Coalition
Labor Disputes Image
• Sit-down strike important bargaining tactic of
1930s
- prevents owners from hiring strikebreakers
• NLRB forces Republic Steel to negotiate after clash
with strikers
• Gains unions made under the New Deal:
- better working conditions
- Increased bargaining power
- increase in union membership
FDR Wins in 1936
• Political organizations in large Northern cities support FDR
• Urban, religious, Southern whites, various ethnic groups also
support FDR
- FDR appoints officials of urban-immigrant background
NEXT
1936 Election
Section 4
Culture in the 1930s
Motion pictures, radio, art, and literature blossom
during the New Deal.
NEXT
Chapter 23 Section 4
Objectives
• Describe the entertainment provided
by motion pictures and radio.
• Identify some of the artists and
writers of the New Deal era.
Hindinberg
SECTION
4 Culture in the 1930s
The Lure of Motion Pictures and Radio
Movies are a Hit
• About 65% of population goes to movies once a week
• Films offer escape from reality; show wealth, romance, fun
• Gone With the Wind—perhaps most famous film of era (Clark
Gable, Vivien Leigh) It was a movie about life of Southern
plantation owners during the Civil War Image
• Musicals—live action or animated—way to forget problems
• Comedies, realistic gangster movies especially popular
• Several films present New Deal policies in positive light
• Mr. Smith goes to Washington is a film by Frank Capra. It
shows kindhearted honest people winning out over greedy
special interest groups
Continued . . .
NEXT
SECTION
4
continued The Lure of Motion Pictures and Radio
Radio Entertains
• 90% of households have a radio; families listen
together every day
• Dramas, variety shows play in evening
• Orson Welles—actor, director, producer, writer
- War of the Worlds was a radio drama, by
Orson Wells, of the Martians invading the earth
• Soap operas for homemakers broadcast in middle
of day
• Children’s shows after school hours
• Immediate news coverage becomes customary
NEXT
Orson Wells
SECTION
4
The Arts in Depression America
Artists Decorate America
• Federal Art Project pays artists to make art,
teach in schools
• Aim to promote art appreciation, positive image
of America
• Murals typically portray dignity of ordinary people
at work
• Many outstanding works painted by artists, Image
including Grant Wood’s (American Gothic)
Two stern faced farmers during the
Depression
• Federal Theater Project hires actors, artists
Woody Guthrie Sings of America
• Singer, songwriter Woody Guthrie sings of plight
of poor Continued . . .
NEXT
SECTION
4
continued The Arts in Depression America
Diverse Writers Depict American Life
• Federal Writers’ Project supports many who become major
writers
• Richard Wright, African-American author, writes Native Son.
- It describes the difficulties faces by a young man trying to
survive in a racist world
• John Steinbeck writes The Grapes of Wrath about Dust Bowl
migrants that leave for California
• Some writers examine difficulty of life in 1930s
• Others show dignity of ordinary people, values of small-
town life
• Waiting for Lefty is a play by Clifford Odets that describes
the labor struggles of the 1930’s
• Our Town is a play by Thornton Wilder that shows the
warmth and beauty of small town life in New England
NEXT
Section 5
The Impact of the
New Deal
The New Deal affects American society not only in
the 1930s but also in the decades that follow.
NEXT
Chapter 23 Section 1
Objectives
• Summarize opinions about the
effectiveness of the New Deal.
• Describe the legacies of the New
Deal.
SECTION
5 The Impact of the New Deal
New Deal Reforms Endure
The New Deal Ends
• By 1937, economic improvement convinces many
Depression is ending
• Congress wants to cut back programs; by 1939,
New Deal over
Supporters and Critics of the New Deal
• Conservatives think FDR made federal
government too large
- stifled free enterprise, individual initiative
• Liberals: didn’t do enough to socialize
economy, end inequalities
• Supporters: did help country recover from
economic difficulties
Continued . . .
NEXT
SECTION
5
continued New Deal Reforms Endure
Expanding Government’s Role in the
Economy
• FDR expands power of federal government,
president
• Federal Deposit Insurance Corporation (FDIC)
regulates banking
• Securities and Exchange Commission (SEC)
regulates investment
• New Deal does not end Depression; does
reduce suffering, give hope
• Federal government goes deeply into debt to
create jobs, give aid
• Massive spending on equipment, supplies for
WW II end Depression
Continued . . .
NEXT
SECTION
5
continued New Deal Reforms Endure
Protecting Workers’ Rights
• New Deal laws set standards, ban child labor,
permit unions (Wagner Act)
- establish policies followed today
• National Labor Relations Board (NLRB) still
mediates labor disputes
Banking and Finance
• SEC still monitors stock market, enforces laws on stock,
bond sales
• FDIC still protects individual investors in case of bank
failure
Agriculture
• AAA gave aid to farmers for crop rotation, contour
plowing, terracing and farm price supports NEXT
SECTION
5
Social and Environmental Effects
Social Security
• Federal government takes responsibility for
citizens’ welfare
• Social Security Act gives a form of
responsibility to the government for the social
welfare of its citizens
• Provides for aged, disabled, needy
The Rural Scene
• Commodity Credit Corporation makes loans to farmers
- based on amount of farmer’s surplus, parity price
• Parity price—price intended to keep farmers’
income steady
• Agricultural price supports set precedent of federal aid
to farmers
Continued . . .
NEXT
SECTION
5
continued Social and Environmental Effects
The Environment
• CCC plants trees, builds hiking trails, fire
lookout towers
• Soil Conservation Service teaches methods to
preserve soil
• Taylor Grazing Act reduces grazing on public
lands Chart
• Tennessee Valley Authority (TVA) creates
electricity, prevents floods Image
• Government adds national parks, wildlife refuges,
wilderness areas
• Government-sponsored strip-mining, coal burning
cause pollution
• These programs protect the nation’s natural
resources and help deter pollution
NEXT
7.5 – P:2
• The government built dams to
generate electricity for people in
seven states [Tennessee Valley
Authority (TVA)].
• This created jobs for thousands of
people who spent their government
paychecks and thus stimulated the
economy.
7.5 – P:8
• The New Deal should be understood as part
of the pattern of reform movements in the
United States.
• Although the New Deal recognized the role
of labor unions and established minimum
wage and maximum hours standards that
were a goal of the unions of the late 1800s
and the progressive movement of the early
20th century, advancements for unions came
under attack again in the 1950s.
• The New Deal was both a continuation of the
progressive movement and a precursor to
the reform movement of the 1960s, including
the civil rights movement and the Great
Society.
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