A “New Deal” for America

A Reform-Minded Candidate

Takes Charge

Franklin Delano Roosevelt

•Energetic

•Optimistic

•Aggressive

“The only thing we have to fear is fear itself.”

Roosevelt’s 100 Days

• 15 Proposals for recovery sent to Congress

• Major expansion of the Federal Gov’t’s power

• Opposite approach from Hoover’s “do nothing” stand

• Based on Relief, Recovery and Reform

Banking and Finance• “Bank Holiday” – Restore people’s faith

• Banking Relief Act» Failures caused withdrawals» Banks had to prove solvency to re-open» Loans to those that could not

• “Fireside Chats” to explain how banking worked – asked people to use banks again.

• Glass-Steagle Banking Act – 1933» Est. Federal Deposit Bank Insurance » Amounts up to $2,500

Stock Market Regulation

• Addressed reasons for Stock Market Crash

• Federal (Truth In) Securities Act»Complete Disclosure about Stocks

• Securities & Exchange Commission – (SEC)

»Stopped Insider Trading»“Rigging” of stock Offerings

Relief For Americans

• Federal Emergency Relief Agency (FERA)» Gov’t Agency – gave grants to states» $500 Million to help local relief agencies

• Public Works then Civil Works Administration» Gave states $ to create 4 million jobs in

construction.» Built schools, roads & bridges

• Civilian Conservation Corps» Young men built roads, parks, planted 200 Million trees to try to help prevent

erosion in Dust Bowl again.

Regional Relief

• Agricultural Adjustment Act (AAA) – Farmers

» Reduced production to end surplus

» Drive prices up & leave land bare

» Slaughter livestock ---it worked.

• Tennessee Valley Authority (TVA)

» Built Dams in TN, AL, NC & GA

» Supplied 1st time cheap power to the south

» Eliminated flooding & improved transport.

» Created thousands of jobs

TVA Projects

Industrial Relief

• National Industrial Recovery Act (NIRA)

Creates Nat’l. Recovery Agency (NRA)

- Codes for fair pricing

- Set prices for fair competition

- Standards for work hours/banned child labor

- Unions can organize & bargain collectively

Homeowners Get Relief

• Home Owners Loan Corp (HOLC)»Loans to people who couldn’t pay

mortgages @ low interest rates

• National Housing Act »Created the Federal Housing Authority»Provides low interest loans for 1st time

homeowners, and to refinance schools, hospitals, nursing homes

Labor Reforms• Wagner Act – 1935 (Nat’l Labor Relations Act)

• Supported Collective Bargaining rights• Specified unfair labor practices as:

– Threatening workers– Firing Union members– Prohibiting union organization– Establishes Nat’l Labor Relations Board to hear

testimony about unfair practices.

• Fair Labor Standards Act - Minimum wages; Set work week – 44 hrs.; No Child

Labor

Something for

everybody

FDR’s "alphabet soup"

agencies

Critics of the New Deal

thought there was no real

direction, that it would be

more encouraging talk without

action.

Critics of the New Deal

Huey Long

»Governor of Louisiana

»“Share Our Wealth”

»Take from rich – Give to Poor - Robin Hood!

»Assassinated in1935

Critics of the New Deal

Father Charles Coughlin

- Energetic radio sermons denounced Roosevelt’s programs – NOT

ENOUGH

- He wanted guaranteed incomes and federal ownership of banks

Dr Francis Townshend - Townshend Plan – Elderly get $200/mo.

- Must spend it all – Good public support! - Set the stage for the Social Security program

Supreme Court Stalls Programs

• Conservative Supreme Court declared two Roosevelt programs unconstitutional b/c…

• NIRA regulated national industries, but the

Federal Gov’t could regulate only interstate commerce.

• AAA interfered with state matters - agriculture should be regulated only by states.

Roosevelt Strikes Back!• Alarmed about future Court decisions

• Proposes Court Reform Bill to seat 6 more judges to Supreme Court to make it more “effective”.

• “Court Packing” bill widely criticized for violating ‘separation of powers’ clause.

• Damaged Roosevelt in eyes of conservatives

http://www.aroberts.us

Social Reforms• Social Security Act – Social Security Program

Most important social legislation of New Deal to date

Old age insurance for retirees 65 + & spouses Supplement to retirement plans

• Welfare Aid to Families with Dependent ChildrenNeedy elderly, blind, handicapped

• Unemployment CompensationFederal tax on employers to help pay benefits to workers

who lost their jobs until they get new ones.

Impact of the New Deal

• Expanded Government’s role and power.• Workers rights recognized and expanded

• Farm price supports and subsidies

• Investor Protection in Stock Exchange

• Savings Accounts Insured

• Social Security and Welfare protection against total poverty.

• National Parks System and wildlife refuges expanded