15.1 – A New Deal Fights the Depression

A New President• 1932: Franklin D.

Roosevelt (Democrat) beats Hoover– Overwhelming victory

• Election = proof of people’s anger w/ Hoover

• Two-term governor of New York

• Known for reform and combating unemployment & poverty

Waiting & the Hundred Days• FDR organizes the “Brain

Trust” to set policies• Creates the New Deal• Hundred Days – intense

activity to pass New Deal actions– Government’s role in

economy expands• Passes the Emergency

Banking Relief Act– Revives public’s trust in

banks• Fireside Chats – Radio

talks about public concern

Regulation• Glass-Steagall Act: Establishes the Federal Deposit Insurance Corporation– $5k insurance for

personal banks accounts• Federal Securities Act:

Corporations must provide accurate information on stocks

• Securities & Exchange Commission – Regulates the stock market

• 21st Amendment: Repeals Prohibition

Rural Assistance• Farmers = Hardest hit

during the Depression• Agricultural Adjustment

Act – raises crop prices by lowering production

• Pay farmers to leave lands unseeded or destroy goods– Angers many, but raises

prices & helps farmers• Tennessee Valley

Authority – Rebuilds infrastructure of the Tennessee River Valley & creates jobs

Work Projects• Civilian Conservation Corps– Jobs for young men, free

food, uniforms, & lodging– Plant millions of trees = soil

erosion prevention• National Industrial

Recovery Act – creates the Public Works Administration– Money to build community

buildings (fails)• Civil Works

Administration – provides 4m jobs (50k teachers), builds 40k schools, and roads

Fairness & Necessities• National Recovery

Administration – sets prices, limits production, & established standards

• Direct relief programs– Grants to states for food

& clothing for the poor– Work programs created

to support food & clothing relief efforts

New Deal Attacked• New Deal operated under deficit spending– Spending > Making

• Depression not ended• Conservatives: FDR trying

to control business & socialize economy

• Supreme Court– NIRA labeled

unconstitutional, AAA too

• 1937: FDR tries to appoint new court justices– Violation of separation of

powers

Attacks Continue • 1934: Conservative opponents form the American Liberty League

• Charles Coughlin – pushes for nationalization of banks

• Francis Townsend – wanted a pension plan for the elderly

• Huey Long – Strongest opponent: Share-Our-Wealth Program