A New Deal Fights the Depression Ch 23

A New Deal Fights the Depression Ch 23 Sec 1 (p. 694 -700)

Election of 1932 Republicans nominate Hoover again l Democrats nominate Franklin Delano Roosevelt (FDR) l – 3 term governor of New York

FDR wins l Roosevelt won in a landslide. – Won pop. vote by 7 million l Democrats gained seats in the House and the Senate.

FDR was active during the “lame duck” period l Carefully picked his advisers – the “Brain Trust” l Designed a plan to alleviate the country’s troubles. l Called the “New Deal” (from a campain promise)

The New Deal l Focused on 3 R’s – Relief – Recovery – Reform

Hundred Days l FDR’s administration very active after taking office

Banking Reform FDR declares “bank holiday” 1 day after taking office l Emergency Relief Banking Act - Authorized Treasury Dept. to inspect banks l Glass-Steagall Act (1933) – established Federal Deposit Insurance Corporation (FDIC) – insured individual bank accounts. l

Stock Market l Federal Securities Act – required corporations to provide info on stocks l Securities and Exchange Commission (SEC) – regulates stock market

Joe Kennedy l First Head of the SEC l The “Fox in the Hen House”

Help for Farmers l Agricultural Adjustment Act (AAA) – tried to raise crop prices by lowering production. Upset some. Later struck down by Supreme Court

AAA l Goal was “Parity” to purchasing power that was enjoyed 1909 -1014 l “subsidized scarcity” did raise farm income but met a lot of criticism

Rural Assistance Tennessee Valley Authority (TVA) – assisted Tennessee River Valley. l Provided flood control, electricity, and jobs. l

Fontana Dam – Western NC

Work Projects Civilian Conservation Corps (CCC) – put young men aged 18 -25 to work building roads, developing, parks, planting trees, other env. projects l National Industrial Recovery Act (NIRA) – gave money to states to create jobs in school and community construction. l Civil Works Administration (CWA) – teachers, etc. l

Fair Labor Practices National Recovery Administration (NRA) - set prices of many products and est. standards for labor l NIRA guaranteed workers’ right to unionize and bargain collectively. l

Help for Homeowners l Homeowners’ Loan Corporation (HOLC) and Nat’l. Housing Act assist Homeowners in paying mortgages.

Federal Emergency Relief Association l (FERA) needy. - $500 million in direct relief to the

Deficit Spending l Spending more $ than the government receives in revenue.

National Debt as of 2/27/06

Each citizen’s share of national debt l $27, 652. 30 l Daily Increase: – $2. 17 billion per day

New Deal Critics l Conservatives think government takes too much power l Liberals don’t think government does enough

l The New Deal: Hamiltonian or Jeffersonian?

The New Deal and the Supreme Court l The Supreme Court declared the NIRA and the AAA unconstitutional.

Court-Packing l FDR gets Congress to reorganize the judiciary so that he can appoint six new Supreme Court Justices l (a little like Adams’ Midnight Judges)

Court Packing l Caused a rift among many Roosevelt supporters l First of FDR’s bills to be defeated by Congress

Critics of the New Deal l Father Charles Coughlin l Dr. Francis Townsend – benefits for the aged l Huey Long – assassinated (“Every Man a King”)