12.1: The First New Deal

1932 Election 32nd President (vs. Hoover)

A. Franklin D. Roosevelt: The “can-do” president

1. Landslide win2. All “things” democratic

a. Pres. and congressb. Pres. Obama

3. Worked while waiting for inauguration March; 20th Amend. to

Jan. 1933

B. What was the New Deal?

Policies developed by FDR that would give relief to the needy, economic recovery, and financial reform (3 R’s)– What kind of issues does he have to address in

order to make changes related to the 3 R’s?

C. First Hundred Days

1. Precedent set by FDR2. Represents the time period in which the

sitting president tries to pass as many bills as possible

D. Concern of the people

1. Gold standard: a. 1 oz. of gold = set dollar

amountb. Thought it would reduce

value of the dollar = increased bank runs

2. Bank Holidaysa. Closed banks before

bank runs bankrupt them

b. Inspected by gov’t to ensure they were secured = Emergency Banking Relief Act

c. Restores confidence by the people

E. Fireside Chats

1. Talking directly to Americans

2. Informing them of plans/policies

3. Build confidence in banks

http://www.loc.gov/exhibits/bobhope/images/vc93a.jpg

F. Glass-Steagall Banking Act

Est. Federal Deposit Insurance Corporation (FDIC)

– $5,000– $100,000– $200,000

G. Reforming Banking and Finance

Finance/Stockmarket– Federal Securities Act: co. makes stock info public– Securities and Exchange commission (SEC): regulate

stock market, “insider trading”

H. Home Owners Loan Corporation (HOLC)

Gov’t loans to avoid foreclosure, only if you still have an income

I. Helping America’s Farmers

1. Agricultural Adjustment Act

a. Lower production = _____ prices

b. Gov’t will pay subsidy (financial support/price supports)

c. Commercial farmers benefited most

d. Tenant farmers lost jobs and homes (AA)

2. Farm Credit Administration (FCA)

a. Helped farmers refinance their mortgagesb. Usually helped farmers who were not

prosperous – money could have went to those businesses who were more profitable = better economic benefit

J. Helping Industry:

1. National Industrial Recovery Act a. Established fair practice codes and regulationsb. Considered unconstitutional - Why?

2. National Recovery Administration

– Set prices on products to ensure fair competition, banned child labor, and set work hours

– Allowed for unions

K. Relief Programs

1. Civilian Conservation Corp a. Roads, planting trees, flood control, soil erosionb. $5/$25c. Free food & uniforms

2. Federal Emergency Relief Administration

Direct aid for food & clothes

L. Creating Jobs

1. Public Works Admin (PWA) turned to the Civil Works Admin (CWA)

a. PWA for all types of construction b. Ineffective; awarded contracts, not direct hire

2. CWA more effective due to direct hiring

                                                       

M. 1933: 21st Amendment

Taxes applied to raise revenue for federal government