FDRs NEW DEAL The New Deal refers to

FDR’s NEW DEAL • The New Deal refers to the relief, recovery, and reform programs of FDR’s administration that were aimed at combating the Great Depression.

Key Goals of the New Deal • • • The First Hundred Days Restore the nation’s hope Stabilize financial institutions Provide jobs and relief to the poor Plan and regulate the economy

New Deal The Second Hundred Days Pass new labor laws Create and expand New Deal agencies Establish Social Security to provide old-age pensions and unemployment insurance

FDR Addresses Major Issues • Lack of Confidence in Banks, people will not put money back in • By 1933 USA experiences widespread bank failures • Loss of savings, overextended on loans, etc. • FDR’s first step of New Deal

Response to Bank Failures • Emergency Banking Relief Act (EBRA) 1933: • Allowed a plan to close down insolvent banks and reorganize and reopen those banks strong enough to survive. • Only banks declared to be financially secure would be allowed to reopen after federal inspectors investigated. • Within 3 days 5, 000 banks passed and reopened • 2/3 of Banks were given loans and would reopen under this act and faith in banking institutions was somewhat restored

• Glass-Steagall Act 1933: Created the FDIC (Federal Deposit Insurance Corp. ) • Insurance for individual accounts up to $5, 000 • Now $250, 000

Little Confidence in the Stock Market • Crash of 1929 “Black Tuesday” • Speculation, buying on margin, etc.

Response to Lack of Confidence in Stock Market Federal Securities Act (FSA) 1933: Complete info on all stock offerings Liability for any misrepresentations Securities and Exchange Commission (SEC) 1934: • Power to license and regulate stock exchanges, the companies whose securities traded on them, and brokers and dealers who conducted trading • •

Low Farm Prices Crop prices to low, large surplus Response: Agricultural Adjustment Act (AAA) 1936: Lowered production, reduced surpluses, and competition to increase demand prices • Government payments for not farming land • •

Massive Unemployment

Solutions to Unemployment • Goal: provide relief through public work projects and cash payments • Civilian Conservation Corp. (CCC) 1933: • Employ poor to work on natural resource conservation and public works • Paid $30/ month • Run quasi-military style

CCC

CCC

CCC

Solutions to Massive Unemployment • Federal Emergency Relief Admin. (FERA) 1933 • Goal: Alleviate adult unemployment • Fed. Gov. t gave $3. 1 Billion to state Gov. t to operate local work projects • Provided work for over 20 million people

Massive Unemployment • Public Works Administration (PWA) 1933: • Allowed $3. 3 Billion to be spent on construction of public works to provide employment, stabilize purchasing power, provide public welfare, and contribute to a revival of American industry

PWA

PWA

Massive Unemployment • Civil Works Administration (CWA) 1933: • Created 4 million temporary jobs between ’ 33’ 34 • Laid 12 million feet of sewer pipe • Made improvements to 255, 000 miles of road, 40, 000 schools, 3, 700 playgrounds, 1, 000 airports

Poverty in TN River Valley • Area greatly depressed and destroyed by floods • Solution: TN Valley Authority (TVA) 1933: • Renovate damns and construct new ones • Provide 1, 000 s of jobs in flood control • Today is nation’s largest public power company, providing electric power to nearly 8. 5 million customers in the TN Valley

TVA

TVA

TVA

Mortgage Foreclosures • Many people lost their homes, could not afford to pay mortgages • Solutions: • Home Owners Loan Corp. (HOLC) 1933: • Refinance homes, provide loans to homeowners who were about to forclose • Only applicable to nonfarm homes worth less than $20, 000

Mortgage Foreclosures • Federal Housing Administration (FHA) 1934: • Goals: Improve housing standards and conditions • Provide adequate home financing system through mortgage loans and to stabilize the mortgage market

Economic Effects of New Deal • • • Relieved poverty in some segments of society Created large deficits; raised the national debt Strengthened unions Created big public works projects Strengthened banks, stock market

Political effects of the New Deal • Changed people’s view of the role of government • Expanded the federal government • Produced much political controversey

Social effects of the New Deal • Excluded help for tenant farmers • Discriminated against women • Provided hope to many Americans

Social Security “Fast Forward to Today” on page 557

Cultural effects of New Deal • Encouraged popular and fine arts • Funded research by James Agee and Walker Evans • Created Federal Writer’s Project • Created Federal Music Project • Create Federal Theatre Project

Critics of New Deal Political Cartoon on page 548 Demagogues (Leaders who manipulate people with half truths, deceptive promises, and scare tactics) such as… Father Coughlin on page 548 Huey Long on page 549

Criticisms of the New Deal • The New Deal Goes Too Far: – Overtaxes the rich – Is Socialistic – Social Security penalizes successful people – Put unconstitutional limits on individual freedom – Deficit spending and debt

Deficit and Debt “Focus on Economics” Page 550 Graphs on page 550

Criticisms of the New Deal • The New Deal does not go far enough: – Should create a new economic system – Government should take over factories, farms – Government should redistribute wealth