Roosevelts New Deal Roosevelts New Deal l l

Roosevelt’s New Deal

Roosevelt’s New Deal l l Roosevelt’s approach to helping things was very different from Hoover--not locked into one philosophy. He was going to go at the problem from several different directions. PRAGMATIST In Roosevelt’s first 100 days of office – The Congress passed more pieces of legislation at Roosevelt’s urging than Congress normally does in 2 years.

New Deal, cont’d: l That “New Deal” legislation came to be known as “alphabet soup” l Created many agencies, administrations, acts (using acronyms=Securities and Exchange Commission becomes SEC) that would help unemployment, hunger, low farm prices, provide cheap electricity, give loans, provide job training, etc.

“Alphabet Soup” Agencies l l Roosevelt believed that the best way to put the country back on track was to get people to work. Employment is at the heart to solving people’s problems. One of the first agencies he created was called the Civilian Conservation Corps (CCC). The CCC provided jobs for young men from 18 to 25 in works of reforestation, building roads, flood control projects, and other conservation areas. $30/month, $25 automatically sent home to one’s family, provided uniforms as well as room & board Ended in 1942—CCC had planted 200 millions trees in Great Plains to prevent another Dust Bowl

CCC in action

“Alphabet Soup” Agencies l l l Next, he took to helping the farming industry. The Agricultural Adjustment Administration (AAA) was created. It was to raise farm prices by paying farmers to take land out of production. Q: Why would we want land out of production? Does that make sense? A: Yes, because then the surplus of crops will drop – supply drops but demand is still high – results in better prices for farmers Gov paid cotton growers $200 mil to plow under 10 million acres of their crop, hog farmers paid to slaughter 6 million pigs Got some bad press—destroying food when so many are hungry—but it did raise prices and put $$ in farmers’ pockets

“Alphabet Soup” Agencies l Tennessee Valley Authority – renovated existing dams on Tennessee River and built new ones l Created thousands of jobs, provided flood control, hydroelectric power, electrified rural areas, etc…

Other Alphabet Soup Agencies that might sound familiar…. l Civil Works Programs—put unemployed to work building airports, parks, repairing roads, about 4 million workers l Federal Housing Administration—loans for mortgages and home repairs l Securities & Exchange Commission—regulates stock market l Works Progress Administration—repaired/built public buildings (schools, hospitals, post offices, etc…) about 8 million workers l Social Security Act--a system that provided old-age pensions for workers, survivors benefits for victims of industrial accidents, unemployment insurance, and aid for dependent mothers and children, the blind and physically disabled

“Fireside Chats” l “Fireside Chats” – addresses from FDR to the people over the radio on a regular basis to keep people up to date l For many, it was the first time they heard a president speak l Made people feel Roosevelt was “just like them” l spe_1933_0312_roosevelt. mp 3

You can’t please everyone… l Liberals said FDR wasn’t doing enough; Conservatives said he was trying to control business & socialize the economy l Supreme Court struck down 2 acts as unconstitutional l 1937—Roosevelt proposed a “court-reform” bill that would allow him to appoint 6 new judges; wanted judges who were sympathetic to the New Deal l Congress didn’t pass it; gave FDR some bad PR.

How did the New Deal change the role of Government for America? l Roosevelt’s approach, while it seemed to be effective, did change the relationship between Americans and the federal government. l Responsibilities of government had now changed. The federal government was once just a regulator of the economy. l Roosevelt had given the government a much more active role in the economy. People began to rely on the government to take care of the economic welfare of the people.