The New Deal: 1933-1939

Franklin D. Roosevelt and the New Deal

“ I pledge to the American people a NEW DEAL….”

“ We have nothing to fear but fear itself.”

Hoover , RepublicanHoover , Republican Roosevelt, DemocratRoosevelt, Democrat

Herbert Hoover and Franklin D. Roosevelt, Herbert Hoover and Franklin D. Roosevelt, 19321932

WHAT WAS THE NEW DEAL???WHAT WAS THE NEW DEAL???Phase I: The First Hundred DaysPhase I: The First Hundred Days

THE HUNDRED DAYS: Between March 9 and June 16 of 1933 FDR signed 1515 historic bills for…

1. Relief for the unemployed 2. Reform of business practices 3. Recovery of the economy during the Great

Depression. These programs came to be known as the “NEW

DEAL”.Many historians believe this to be one of the most

creative periods in American political history and and we still feel its impact today.we still feel its impact today.

From the Great Depression to the New Deal: 1929-1930s

Cause: Great Depression=A severe economic crisis followed the rapid economic expansion and buying on credit that occurred in the 1920s. The economy collapsed and many Americans lost their jobs and homes, banks failed, and the depression spread around the globe.

Effect: New Deal=a set of programs put into place by the federal government to address the economic problems.

The Debate: What Caused the Great Depression?

Economists still disagree and argue about the causes of the Great Depression.

John Maynard Keynes believed that the government failed to act to stop the economic crisis by regulating the money supply.

Keynes recommended in hard times, the government should spend more money to keep people employed, EVEN IF THAT MEANT GOING INTO DEBT. This is a controversial economic theory also known as DEFICIT SPENDING.

FDR Takes Action—First Days in Office

1. Two days after taking office, FDR declared a “Banks Holiday and passed the Emergency Banking Act.

2. Uses the radio to communicate with the American people and gain their support …fireside chats

3. Economy Act—assured Americans the government was going to balance the budget

4. Legalized the manufacture and sale of beer

Prohibition Ends

Fireside Chats

New Deal Programs= “ALPHABET SOUP”

1. AAA= Agricultural Adjustment Act, 1933 Provided subsidies to farmers to lower production and help raise commodity prices

2. NRA=National Recovery Administration, 1933 Established codes to regulate wages and prices,

encourage consumer spending and promote fair competition (Symbol was the blue eagle)

3. TVA=Tennessee Valley Authority, 1933 Government funded a dam project to

electricity and put people to work

What actions were taken to REFORM THE BANKING and FINANCIAL

SYSTEMS?1. Roosevelt went off the gold standard2. Passed Banking Regulations FDIC=Federal Deposit Insurance to insure deposits in banks SEC=Securities and Exchange

Commission to police the stock market

Quiz Jan 30

1. Which president proposed an economic domestic policy called the “New Deal”?

2. How did Franklin Roosevelt communicate with the American people?

3. Which group of Americans was the AAA designed to help?

4. List the primary goals of the New Deal (three “Rs”)

5. Which government agency provided insurance for bank deposits?

Which New Deal Programs created Jobs for Americans?

1. WPA=Works Progress Administration 2. CCC=Civilian Conservation Corps

Both of these programs were designed to give Americans jobs ---not direct relief.

WPA workers at a zoo

WPA artist at work

ER at a WPA nursery

CCC workers at Rocky Mountain National Park, 1933

CCC workers building a road, 1933

CCC camps, tents were replaced by barracks

What was the Immediate Impact of the New Deal? (2 slides)

1. Rescued the banking system and set up system of deposit insurance (FDIC)

2. Regulated stock exchanges3. Saved the failing railroad system4. Went off the gold standard which

raised farm prices5. Refinanced farm mortgages and

rescued farmers.

Immediate Impact of the New Deal continued…

6. Sent $500 million to the states for direct relief

7. Saved a fifth of all homeowners from foreclosure

8. Put millions of men and women to work on public works projects ……roads, dams, bridges, parks, schools, …..

9. Raised the moral of the American people

IN 1935 Franklin Roosevelt introduced new programs to help unions, the elderly, and the unemployed.

The Second New Deal

Why were some Americans critical of the New Deal?

1. FDR had begun to spend more money than the government took in. Deficit spending occurs when the government has to borrow money to pay for programs.

2. Some believed the federal government expanding its power at the expense of the states’ rights.

3. Others believed the New Deal placed too many limits and regulations on businesses.

4. American Liberty League—opposed the New Deal

Who were the Critics of the New Deal?

1. Conservative Republicans

2. Huey Long “Share the Wealth”

3. Supreme Court

Huey Long, governor of Louisiana suggested Americans should “Share

Our Wealth”

http://www.history.com/videos/the-new-deal

What programs were put into place during the “Second New Deal”?

1. Highest peacetime progressive tax rate (high taxes!)

2. ***Wagner Act--Gave more power to labor and unions grew—there were 5,000 strikes in 1937

3. ***Social Security Act—created an unemployment system, disability insurance, old age pension, and child welfare benefits.

***The Social Security Act established the principle that the federal government should be responsible for those, who through no fault of their own, were unable to work.

4. WPA=Works Progress Administration –to end unemployment and create jobs

5. REA=Rural Electrification Administration –

brought electricity to isolated rural areas 6.Banking Act –to strengthen the Federal

Reserve

Putting America to Work

Rockefeller Center Under Construction

Men on A Girder, 1932, New York

Men Asleep on Girder

Election of 1936—FDR wins by landslide

FDR won by greatest margin in American history

Political loyalties of the American people had shifted to the Democratic Party

The Democrats will control government for 30 years

People will look to the government to solve problems

How did the New Deal Give More Power to Labor? (workers)

National Labor Relations Act (1935) –which is also called the Wagner Act—guaranteed workers the right to organize unions without interference from employers

Many people joined unions during this time and during the next two decades

Why did FDR attack on the Supreme Court?

In 1935, the US Supreme Court ruled that some of the New Deal programs were unconstitutional.

FDR tries to add justices to the Supreme Court to raise the number from 9 to 15 in order to gain support for his New Deal Programs.

There is a huge backlash against FDR by both Democrat and Republicans

FDR fails and the “Court Packing” scheme damages him politically

Eleanor Roosevelt with Marian Anderson

What was role of Women in the New Deal?

Frances Perkins was the first female cabinet member. She served as Secretary of Labor, but had very traditional ideas about the role of women in society.

Lorena Hickok travels across the nation

Eleanor Roosevelt

Federal Art Project: New Deal Art

***What ended the Great Depression?

1. Many believe THE NEW DEAL DID NOT END THE GREAT DEPRESSION but it did help stabilize the economy and kept the crisis from getting worse.

2. WWII ended the economic crisis—war production and rearmament

Employment statistics from 1920-1940

Accomplishments and Failures

What is the Legacy of the New Deal?

***What impact does the New Deal have ***What impact does the New Deal have on our lives today? (T) on our lives today? (T)

1. Set up agencies to regulate the stock market and the banking system (FDIC, SEC, …) 2. Set up the welfare state through relief programs, especially Social Security. 3. Gave the government a set of tools for regulating the economy in the future 4. Created a much larger and more powerful federal government 5. Americans expect government action to solve problems

Debate: Should the Government Spend Money During an Economic

Crisis?

Economist John Maynard Keynes John Maynard Keynes suggested suggested that during a severe economic depression the that during a severe economic depression the federal government should federal government should INCREASEINCREASE spending even if they have to borrow money to spending even if they have to borrow money to do so. do so. (Keynesian Economics) (Keynesian Economics)

Deficit Spending: When the government spends more money than it collects from taxes. Many believe this is necessary to create jobs and jump start the economy during a severe economic depression. Others disagree.

Summary: New Deal

1. The New Deal was a period of remarkable changes in government. Government would be expected to manage the economy and step in to correct problems in the future.

2. *****FDR served longer than any other president in US history and his administration put together a series of programs that permanently altered the relationship between the federal government and the American people.

20132013 1930s1930s

7-8% unemploymentTaking actionFederal Reserve lowers

interest ratesYears of government

experience in regulating the economy

Global leaders working together

FDICGovernment safety nets

25% unemploymentSlow to reactFederal Reserve

raises interest ratesGovernment had

almost no experience in regulating the economy

No federal welfare agencies

Are We Headed into Another Great Depression?

American Recovery and Reinvestment Act, 2009

$800 Billion: Education, infrastructure, healthcare, energy…

Practice Question: SATP

The election of Franklin D. Roosevelt to the Presidency in 1932 reflected the desire of many Americans to 1. return to a policy of laissez faire 2. abandon capitalism in favor of socialism 3. continue the domestic policies of the Hoover administration 4. have government take an active role in solving economic problems

1-29-2013 Quiz Great Depression 1-29-2013 Quiz Great Depression

1.In what decade were Americans hardest hit by the Great Depression?2.True or False? The Great Depression was the most severe and longest lasting economic crisis in U.S. history.3. Name the environmental disaster that impacted the Great Plains during the Great Depression.4. Name the event: Thousands of WWI veterans marched on Washington, DC demanding pay owed to them for service in the military.5. True or False? Thousands of Americans migrated from place to place during the Great Depression seeking employment and shelter.