THE NEW DEAL Franklin Roosevelt Becomes president in

THE NEW DEAL

Franklin Roosevelt � Becomes president in 1932 � Campaign speech promised a “new deal for the American people. ” � THREE GOALS: relief for the needy, economic recovery, financial reform

Early Accomplishments (first 100 days) � Declared a bank holiday on his first day in office � Emergency Banking Relief Act – Treasury Department inspected banks � Glass-Steagall Act – Established the FDIC ($5, 000) � Federal Securities Act – Established the SEC to regulate the stock market

Fireside Chats � Radio talks about public concerns � Explained his New Deal in plain, clear, simple language � Designed to be informal � Tried to explain the role of the average person within the American economy � Spoke as if he was talking to you face to face

AAA – Agricultural Adjustment Administration � Intent was to raise crop prices by lowering production � Government paid farmers to leave a portion of every acre unseeded � Cotton – too far advanced – government paid $200 million to plow under 10 million acres of land � 6 million pigs slaughtered.

� Agricultural Adjustment Administration poster

CCC – Civilian Conservation Corps � Put 18 -25 year old men to work building roads, developing parks, planting trees, and helping in soil-erosion and flood control projects. � 3 million trained by 1932 � Wage was $30/month and $25/month was sent straight home to your family

� Civilian Conservation Corps poster

NIRA – National Industrial Recovery Act � Created the PWA � Provided money to states to create jobs in the construction of schools and community buildings

CWA – Civil Works Administration � Addressed unemployment that was not covered by the NIRA and the PWA � Immediately provided 4 million jobs during the winter of 1933/34. � Built 40, 000 schools � Built 500, 000 miles of roads � Paid 50, 000 teachers

HOLC (home owners loan corp) and the FHA (federal housing administration) � Provided government loans to homeowners who faced foreclosure � Furnish loans for home repairs � The FHA is still with us today

� Notice the eagle in the middle

FERA – Federal Emergency Relief Fund � $500 million to provide direct relief for the needy � Half was given to states as direct grants to help furnish food and clothing to the unemployed, aged, and ill � The rest went to support work relief programs

Deficit Spending � President Roosevelt agreed to spending more money than the government was receiving in revenue. � FDR believed deficit spending was a necessary evil only to be used in a time of crisis. � Keynes – and influential British economist promoted this idea

Deficit Spending � Millions of American benefitted � Public confidence rebounded � DEFICIT SPENDING – the government spends more than it receives in revenue � LIBERALS – the New Deal is too small � CONSERVATIVES – spending too much and creating socialism

THE SECOND NEW DEAL � FDR called on congress to provide more extensive relief for both farmers and workers � Eleanor had deep humanitarian impulses and also influenced him � Reelected in 1936

WPA (works progress admin) � Spent $11 billion dollars to create 8 millions jobs for mostly unskilled workers. � Built 850 airports � Constructed or repaired 651, 000 miles of road � Erected 125, 000 public buildings � Women sewed 300 million garments for the needy

NYA (National Youth Admin. ) � Created specifically to provide jobs, education, counseling, and recreation for young people. � Provided student aid to high school, college and graduate students � In exchange students worked part time at their schools

NYA Journalism Students

NYA Auto mechanics

CRITICS � � � Huey Long is considered to be the most serious critic Senator from Louisiana who was running for president “Share-Our-Wealth” clubs 1935 – 27, 000 S. O. W clubs with 7. 5 million members Long was assassinated by a lone gunman

Lasting Effects � Reformed banking and finance � Government takes a more active role in the economy � Workers benefit from labor standards � Social security provides for the needy � Conservation efforts preserve the environment

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