Chapter 22 The

NEW DEAL

Why was the 1932 election an opportunity for

Democrats to unseat President Hoover?

• Many American believed Hoover was aloof and had not done enough to help citizens.

• 1932: One of the worst years of the G.D. – Unemployment = 23.6%– GNP falls 13.4%

Democrats run Franklin Roosevelt against

Hoover

3 Facts about FDR?

What two promises did FDR campaign on?

“I pledge to you, I pledge myself to a new deal for the American people”

• Promised relief for the poor

• Promised more public works programs

WHAT IS A PUBLIC WORKS PROGRAM?

Election of 1932

How did FDR’s personality help his political career?

• Warm, optimistic personality

• Effective speaker & communicator. People felt he talked directly to them.

• Ability to inspire and work with people.

FDR Inaugural Address:“The only thing we have to

fear…”

What was FDR’s core philosophy on how to end

the Depression?• FDR believed in expanding the

role of government to take direct action to provide relief for the American people, to help the economy recover & to bring increased regulation to businesses.

What kind of First Lady was Eleanor Roosevelt?

• One of the most active First Ladies in history– Travelled the country

speaking to the people– Wrote a newspaper

column – Supported civil rights for

African Americans

What was one of FDR’s first acts as President?

• Proclaimed a bank holiday– 1932: 1,456 banks failed– Between January 1933 - March 1933, many depositors were withdrawing & hoarding money- Banking system near collapseFDR orders all banks to close for 4 days (March 6-9)

Emergency Banking Act of 1933

• Allowed the Federal Government to examine banks during the bank holiday– Some unsound banks were closed & not

allowed to reopen– Sound banks were allowed to reopen – Provided confidence in the people that

reopened banks were sound & safe– When banks reopened, people began

returning money to the banks.

What was created to stabilize the banking

system into the future? • Federal government

insured deposits in banks up to $2,500.

• Why did this help solve the problem of bank runs?

The New Deal FDR used his first 100 days in office to push

through economic programs to try to deal with the Great Depression.

WHAT WERE THE 3 R’S OF FDR’S NEW DEAL?

R – Relief = Immediate action to halt the economic depression & help the suffering of Americans from its effects

R – Recovery = Action to help the economy recover & to encourage consumer demand & regulate businesses.

R – Reform = Reforms to the American economy to try to prevent future economic disasters

Key Legislation of the New Deal (Alphabet soup)

• Agricultural Adjustment Act (AAA)– Government payment to farmers to not

produce food. (Lower supply Increased price)

• Tennessee Valley Authority (TVA)- Built dams along TN River. Provided irrigation

& electricity to people 7 states.• Civilian Conservation Corps

- Provided work for jobless men (18-25) conserving natural resources (reforestation, etc.)

Key Legislation of the New Deal (Alphabet soup)

• Securities & Exchange Commission (SEC)– Provided government oversight over stock

market (prevent fraud, insider trading & regulate margin rates)

• Works Progress Administration (WPA)- Provided government jobs doing manual

labor on infrastructure projects (public buildings & roads)

• Social Security Administration - Government pension plan for retirees 65+.

What significant change did the New Deal make in U.S. history?• Increased the size and

power of the U.S. Federal government larger than it had ever been.

• Government played a larger role in the lives of citizens & businesses than ever before.

Debate continues to this day…What is the proper role of

government? Should it take an active role or not?

How did the Supreme Court challenge parts of the New

Deal?• Schechter Poultry Corp. vs. the United

States– Supreme Court rules that FDR’s National

Industrial Recovery Act was unconstitutional.• NIRA gave the President the power to implement

industrial codes on businesses to regulate employment hours, wages, ages of employment, & prices.

• Supreme Court ruled that the Constitution did not give the President authority to make these codes.

• United States vs. Butler - Found portion of the Agricultural Adjustment

Act unconstitutional

What did FDR do to prevent the Supreme Court from ruling more of

the New Deal unconstitutional? • FDR introduces Judicial Procedures

Reform Bill of 1937 (“Court-Packing plan”)– Would have given FDR the power to add 6

new Justices to the Supreme Court– Seen as a way for FDR to appoint “pro-New

Deal” Justices to the Court so that the Court would support his programs- Public opinion turned against FDR.- Congress rejected the plan.

New Deal strengthens Unions

• FDR supports & signs the Wagner Act (National Labor Relations Act)– Government supported worker’s right to

organize– Gave workers rights to vote to decide if they

wanted to unionize – Made it illegal for businesses to fire workers

for participating in union activities – Banned company sponsored unions** Result: Union membership increases (3

million in early 1930’s to 10 million by 1941) **

What ended the New Deal & the Great Depression?