MR. WILLIAMSONSOMERVILLE HS

The New Deal

The New Deal

Franklin Delano Roosevelt (FDR), Governor of NY, is the Democratic Nominee for President in 1932 Known as a reformer Pledged a “New Deal” to combat the Depression

1932 Election – Hoover vs. Roosevelt Roosevelt’s platform – Depression needed strong

action/leadership from federal gov’t

Roosevelt wins in a landslide, no public faith in Hoover

The New Deal

FDR presents the “First New Deal” to Congress with plan addressing 3 R’s Relief – immediate assistance Recovery – long-term economic health Reform – sought to prevent future depressions

FDR believed he needed to calm people’s fears Held radio “fireside chats”, brief broadcasts where FDR

explained his plans, ask for citizen support Was upbeat, had a soothing voice; greatly appealed to

people

The New Deal

First restores banking system 4-Day Bank Holiday for banks to shore up accounts

Creation of FDIC, Federal Deposit Insurance Corporation Insured bank deposits up to $5,000

Establishes the Securities and Exchange Commission (SEC) Regulate stock market/safer for investments

All done to restore citizen confidence in financial system

The New Deal

Agricultural Adjustment Act (AAA) – gave financial aid/subsidies to farmers

Tennessee Valley Authority (TVA) – built series of damns to control floods/generate electric power

Civilian Conservation Corps (CCC) – provided jobs planting forests, building trails

Federal Emergency Relief Act (FERA) – unemployment aid to local/state governments

The New Deal

National Industrial Recovery Act (NIRA) Designed to increase production while boosting

wages/prices Goals – make more goods available, give consumers $ to

buy them

Public Works Administration (PWA) – built bridges, dams, power plants, government buildings Improved nation’s infrastructure/created jobs

The New Deal

New Deal Debate

Conservatives (Republicans) say “Too Much” Made gov’t too powerful, was telling business how to

operate, spending too much gov’t $/high debt

Liberals (Democrats) say “Not Enough” Claimed Roosevelt was only saving the banking system

and ensuring profits for big business, needed to do more

How do you feel? Compose a short-paragraph on which side you would take. You must chose 1!

The New Deal

Jigsaw Activity – The Second New Deal1. Quickly summarize and create short bullet

points on your program/Identification A. Works Progress Administration (WPA) B. John Maynard Keynes C. Social Security Act D. Rural Electrification Administration (REA) E. Wagner Act/National Labor Relations Act F. Fair Labor Standards Act G. Collective Bargaining

2. Place summary on the board, we will review as a class

The New Deal

Election of 1936 – FDR easily re-elected but faces challenges from Supreme Court

Congress/President are from Democratic Party Need the approval of Supreme Court to pass New Deal

programs

Schechter Poultry v. US, Supreme Court decision NIRA was unconstitutional, president could not regulate

interstate commerce

Later ruled the AAA was unconstitutional as well

The New Deal

FDR responds - unveils a plan to dilute power of sitting justices on Supreme Court

Called for a bill adding 6 new Justices to 9-member court

Believed current justices were overworked/elderly, Constitution did not specify # of justices

Critics, realizing new appointees would be New Deal supporters, called the plan “court packing”

The New Deal

FDR accused of increasing presidential power, upsetting the balance of powers

Given his popularity, he may have convinced Congress to vote for his plan However, Court starts to rule in his favor Due to fear?

Court-packing weakened FDR politically He wasn’t challenged before, now will face more critics