““The only The only thing we have thing we have to fear, is fear to fear, is fear

itself”itself” REMEMBER THIS REMEMBER THIS

QUOTE!!!QUOTE!!!– Franklin Delano Roosevelt, – Franklin Delano Roosevelt,

19331933

The New DealThe New Deal 1933 – 19381933 – 1938 FDR was willing to FDR was willing to

experiment – it was experiment – it was better to try better to try something and have something and have it fail, than to sit and it fail, than to sit and do nothing at alldo nothing at all

Focus on Focus on relief, relief, recovery, and recovery, and reformreform

Deficit SpendingDeficit Spending Roosevelt’s plans would Roosevelt’s plans would

require the government require the government to spend more than to spend more than it took in in taxes, it took in in taxes, creating a national creating a national deficitdeficit

Roosevelt assured Roosevelt assured Congress that the Congress that the deficit was an deficit was an emergency measure emergency measure which would be which would be temporary (it wasn’t)temporary (it wasn’t)

John Maynard John Maynard KeynesKeynes

1883 – 19461883 – 1946 British economist British economist

who argued that the who argued that the best way to end an best way to end an economic recession economic recession was through was through government government spending spending programs which programs which create a national create a national debtdebt

The The First Hundred First Hundred DaysDays

Between March 9 & Between March 9 & June 16, 1933 June 16, 1933 (FDR’s first 100 (FDR’s first 100 days in office) he days in office) he got Congress to got Congress to pass pass 15 major 15 major acts which acts which launched his New launched his New Deal reformsDeal reforms

Emergency Banking Relief Emergency Banking Relief ActAct

Upon assuming office, Upon assuming office, FDR FDR declared a federal declared a federal banking holiday and banking holiday and closed all banks and closed all banks and called Congress into a called Congress into a special sessionspecial session

Both houses of Congress Both houses of Congress passed the Emergency passed the Emergency Banking Relief Act in a single Banking Relief Act in a single afternoonafternoon

The act called for all banks The act called for all banks to be assessed for credit-to be assessed for credit-worthiness by the US worthiness by the US government and banks government and banks found to be stable enough found to be stable enough were issued special federal were issued special federal licenses to operatelicenses to operate

Fireside ChatsFireside Chats Roosevelt then Roosevelt then went on the went on the

radio and assured radio and assured Americans that it was Americans that it was safe to put their money safe to put their money back in these newly back in these newly licensed bankslicensed banks

Americans believed him and Americans believed him and stopped withdrawing their stopped withdrawing their money from the banking money from the banking system and began resuming system and began resuming depositsdeposits

Throughout his presidency, Throughout his presidency, FDR would keep America FDR would keep America informed of his intentions informed of his intentions and progress through these and progress through these radio-broadcast “radio-broadcast “fireside fireside chatschats” ”

Securities ActSecurities Act 19331933 Required all securities Required all securities

sold in the US to be sold in the US to be registered with the registered with the US governmentUS government

Required companies Required companies which sold stocks which sold stocks and bonds to and bonds to provide complete provide complete and truthful and truthful information to information to investorsinvestors

Securities and Exchange Securities and Exchange CommissionCommission

Created in 1934Created in 1934 Government Government

agency which agency which enforces the enforces the Securities ActSecurities Act

Responsible for Responsible for supervising supervising companies in US companies in US which deal in which deal in securities (stocks, securities (stocks, bonds, and other bonds, and other financial investments)financial investments)

Glass-Steagall ActGlass-Steagall Act 19331933 Separated commercial Separated commercial

banking (everyday banking (everyday banks that accept banks that accept deposits, make deposits, make mortgage loans, etc.) mortgage loans, etc.) from investment from investment banking by banning banking by banning commercial banks from commercial banks from risking customers risking customers deposits with deposits with investments in the investments in the stock marketstock market

Established the FDICEstablished the FDIC

Federal Deposit Insurance Federal Deposit Insurance CompanyCompany

FDICFDIC Designed to boost Designed to boost

Americans’ confidence in Americans’ confidence in banksbanks

Government program Government program which insures bank which insures bank deposits up to deposits up to $250,000 per person $250,000 per person per bankper bank

Also supervises all banks Also supervises all banks in the US to ensure that in the US to ensure that they are stable and they are stable and manages the assets of any manages the assets of any banks which failbanks which fail

Civilian Conservation Civilian Conservation CorpsCorps

1933 - 19421933 - 1942 Government agency which Government agency which

offered work to offered work to unemployed men unemployed men between 17 and 25 in between 17 and 25 in the forestry servicethe forestry service

Workers planted trees, Workers planted trees, fought forest fires, and built fought forest fires, and built drinking water reservoirsdrinking water reservoirs

Workers lived in special Workers lived in special camps and earned $30 per camps and earned $30 per monthmonth

Over 3 million men worked Over 3 million men worked for the CCC over its 9 yearsfor the CCC over its 9 years

Federal Emergency Relief Federal Emergency Relief AdministrationAdministration

19331933 Created by the Federal Created by the Federal

Emergency Relief ActEmergency Relief Act Provided work for over 20 Provided work for over 20

million by giving over $3 million by giving over $3 billion to state and local billion to state and local governments so they could governments so they could create jobs for unskilled create jobs for unskilled laborlabor

Many of these jobs were in Many of these jobs were in manufacturing consumer manufacturing consumer goods for the needy – goods for the needy – canning fruits & vegetables, canning fruits & vegetables, making mattresses and making mattresses and bedding, distributing bedding, distributing surplus food to the hungrysurplus food to the hungry

Replaced by the WPA in Replaced by the WPA in 19351935

Civil Works AdministrationCivil Works Administration

1933 – 341933 – 34 Part of FERAPart of FERA Provided short-term Provided short-term

work to 4 millionwork to 4 million Built sewers and Built sewers and

other sanitation other sanitation systems, roads, systems, roads, airports, and over airports, and over 40,000 schools40,000 schools

Spent over $1 billion Spent over $1 billion in just over 5 months in just over 5 months

Works Progress Works Progress AdministrationAdministration

1935 – 19431935 – 1943 Largest New Deal Largest New Deal

organization, at one time organization, at one time it was the largest single it was the largest single employer in the USemployer in the US

Spent over $11 billionSpent over $11 billion Government program Government program

designed to provide designed to provide jobs to unskilled jobs to unskilled laborerslaborers

Constructed many Constructed many government buildingsgovernment buildings

Also hired artists, writers, Also hired artists, writers, and others who were paid and others who were paid to expand US cultural artsto expand US cultural arts

National Recovery National Recovery AdministrationAdministration

1933 - 19351933 - 1935 Created by the National Created by the National

Industrial Recovery Act Industrial Recovery Act (NIRA)(NIRA)

Mission was to stabilize Mission was to stabilize prices for manufactured prices for manufactured goods and prevent any goods and prevent any more businesses from more businesses from failingfailing

Helped create codes of fair Helped create codes of fair competition and reductions competition and reductions in competitionin competition

Struck down as Struck down as unconstitutional by the unconstitutional by the Supreme Court in case of Supreme Court in case of Schechter v. US in 1935Schechter v. US in 1935

Public Works Public Works AdministrationAdministration

1933 - 19391933 - 1939 Created by the NIRACreated by the NIRA Government agency Government agency

which created jobs for which created jobs for skilled workers skilled workers through large-scale through large-scale public works projects, public works projects, such as the such as the construction of dams, construction of dams, bridges, and highwaysbridges, and highways

Spent over $6 billionSpent over $6 billion

Tennessee Valley Tennessee Valley AuthorityAuthority

1933 - Today1933 - Today Built Built damsdams in the in the

South to create jobs, South to create jobs, bring electric power, bring electric power, and provide flood and provide flood control to some of control to some of the poorest and the poorest and most rural parts of most rural parts of the nation the nation (Appalachian (Appalachian Mountains)Mountains)

National Labor Relations National Labor Relations BoardBoard

1935 - Today1935 - Today Created by the National Created by the National

Labor Relations Act Labor Relations Act (also called the Wagner (also called the Wagner Act)Act)

Designed to monitor Designed to monitor unfair management unfair management practices, monitor labor practices, monitor labor unions, and unions, and act as an act as an arbitrator between arbitrator between management and management and unionsunions

Social Security Social Security AdministrationAdministration 1935 - Today1935 - Today

Provides retirement Provides retirement income for all workers income for all workers once they reach age 65; once they reach age 65; also provides payments also provides payments to needy children and to needy children and people with permanent people with permanent disabilitiesdisabilities

Also included the Also included the first form first form of unemployment of unemployment insuranceinsurance

All of this is paid for through All of this is paid for through a a payroll tax payroll tax which every which every worker in America paysworker in America pays

Fair Labor Standards Fair Labor Standards ActAct

19381938 Raised minimum wage Raised minimum wage

to to $.40/hour$.40/hour Set maximum number Set maximum number

of work hours atof work hours at 44 44 hours/weekhours/week

Required payment of Required payment of overtime wagesovertime wages

Banned child labor for Banned child labor for

those under those under 1616 years years of ageof age

Agricultural Adjustment Agricultural Adjustment AdministrationAdministration

19331933 Provided Provided government government

loans to farmersloans to farmers Paid farmers to not Paid farmers to not

grow crops in order grow crops in order to reduce supply and to reduce supply and push up crop pricespush up crop prices

Program saved Program saved American farmers from American farmers from ruin, but angered ruin, but angered consumers because it consumers because it increased the price of increased the price of foodfood

Home Owners’ Loan Home Owners’ Loan CorporationCorporation

1933 – 19351933 – 1935 Created to save Created to save

homeowners from homeowners from evictioneviction

US government bought US government bought mortgages from banks mortgages from banks and then restructured and then restructured them with lower interest them with lower interest rates and longer termsrates and longer terms

About 10% of home About 10% of home owners in the US had owners in the US had mortgages with the HOLCmortgages with the HOLC

Still, thousands could not Still, thousands could not make even the adjusted make even the adjusted payments and the HOLC payments and the HOLC foreclosed on many foreclosed on many homeshomes

Farm Credit Farm Credit AdministrationAdministration

Farmers’ version Farmers’ version of the HOLCof the HOLC

Helped farmers Helped farmers refinance the refinance the mortgages on mortgages on their farmstheir farms

Saved thousands Saved thousands of family farms of family farms

National Housing National Housing ActAct

19371937 Created the US Housing Created the US Housing

Authority (USHA)Authority (USHA) Subsidized loans to Subsidized loans to

builders who were builders who were willing to tear down old willing to tear down old tenements and build tenements and build large tracts of low-cost large tracts of low-cost housing to help the housing to help the poorpoor

First public housing First public housing (“projects”) effort in (“projects”) effort in the USthe US

Farm Security Farm Security AdministrationAdministration

The programs of the The programs of the AAA had helped AAA had helped farmers who owned the farmers who owned the land they worked, but land they worked, but had hurt tenant farmershad hurt tenant farmers

1937: The FSA was 1937: The FSA was created to loan money created to loan money to tenant farmers so to tenant farmers so that they could buy that they could buy their own farmstheir own farms

Loaned over $1 Loaned over $1 billionbillion

American Liberty American Liberty LeagueLeague

Created in 1934Created in 1934 Conservative Conservative

opposition to FDR’s opposition to FDR’s programsprograms

Combined business Combined business leaders with anti-New leaders with anti-New Deal politiciansDeal politicians

Organized opposition Organized opposition to the New Deal, to the New Deal, especially Social especially Social Security and the AAASecurity and the AAA

Huey LongHuey Long 1893 – 19351893 – 1935 Very popular Democratic Very popular Democratic

Senator from LouisianaSenator from Louisiana Head of a powerful (and Head of a powerful (and

corrupt) political corrupt) political machinemachine

Ran a “Ran a “Share Our Share Our WealthWealth” campaign ” campaign which called for taxes on which called for taxes on the rich to pay for the rich to pay for programs to help the programs to help the poorpoor

Assassinated in 1935Assassinated in 1935

Father Charles Father Charles CoughlinCoughlin

1891 – 19791891 – 1979 Catholic priest who used Catholic priest who used

his weekly radio show to his weekly radio show to call on FDR to do more to call on FDR to do more to help the poor, such as help the poor, such as raising taxes on the raising taxes on the wealthy and wealthy and nationalization of the nationalization of the banking industrybanking industry

During WWII, he was During WWII, he was arrested for violation of arrested for violation of the Espionage Act for his the Espionage Act for his continued criticisms of continued criticisms of FDR and the Catholic FDR and the Catholic Church ordered him to end Church ordered him to end his radio programhis radio program

Dr. Francis Dr. Francis TownsendTownsend

1867 – 19601867 – 1960 Proposed in his Townsend Proposed in his Townsend

Plan that the government Plan that the government provide all citizens over 60 provide all citizens over 60 with a $200/month pension with a $200/month pension with the requirements that with the requirements that they must retire (creating they must retire (creating jobs for young people) and jobs for young people) and must spend the entire $200 must spend the entire $200 each month (which would each month (which would boost the economy)boost the economy)

Townsend Plan gained Townsend Plan gained widespread support among widespread support among the elderly and increased the elderly and increased political activism among political activism among seniorsseniors

The Supreme CourtThe Supreme Court Starting in 1935, the Starting in 1935, the

Supreme Court began Supreme Court began attacking Roosevelt’s attacking Roosevelt’s New Deal programs, New Deal programs, striking down striking down several as several as unconstitutionalunconstitutional

These attacks worried These attacks worried Roosevelt, prompting Roosevelt, prompting him to take action to him to take action to swing the Court in his swing the Court in his favorfavor

FDR’s FDR’s Court Packing Court Packing SchemeScheme FDR proposed a bill to FDR proposed a bill to

Congress which would Congress which would allow the President to allow the President to appoint extra Justices to appoint extra Justices to the Supreme Court the Supreme Court anytime a Justice had anytime a Justice had served 10 years or had served 10 years or had passed the age of 70passed the age of 70

This would have allowed FDR This would have allowed FDR to appoint 6 new justices to appoint 6 new justices almost immediately, ones almost immediately, ones who would have supported who would have supported his New Deal programshis New Deal programs

Congress refused to Congress refused to expand the Courtexpand the Court, but the , but the Supreme Court sensed the Supreme Court sensed the danger and did not attack danger and did not attack any more New Deal programsany more New Deal programs

US as a “US as a “Broker Broker StateState””

Federal Federal government government assumed the new assumed the new role of balancing role of balancing and mediating the and mediating the competing competing economic interests economic interests of businesses, of businesses, farmers, workers, farmers, workers, and consumersand consumers

US as a “US as a “Welfare Welfare StateState””

FDR’s New Deal FDR’s New Deal programs also began programs also began to shift spending to shift spending priorities in the budgetpriorities in the budget

As Americans became As Americans became used to the idea of used to the idea of government government assistance for the assistance for the needy, more and more needy, more and more of the federal budget of the federal budget was spent on public was spent on public welfare programswelfare programs