Relief, Reform, & Recovery THE NEW DEAL & ITS LEGACY.

Relief, Reform, & Recovery

THE NEW DEAL & ITS LEGACY

Did not believe the government should give aid to the needy Worried aid would undermine self-reliance and encourage people to become

reliant on the government Believed his job to generate optimism and restore public confidence

Hoovervilles: Homeless Americans built cities out of cardboard boxes

Asked healthy banks to loan money to failing ones

Reluctantly created the Reconstruction Finance Corporation (RFC)- issued government loans to banks, railroads, and big business RFC loaned money to states to help with needy- financed public works

projects

HOOVER’S RESPONSE

HOOVER’S RESPONSE

Trickle-Down Theory: Government gives money to business they hire more employees more people earn money The problem with the trickle

down solution – the poor could not wait for money to trickle down.

Hoover battled the Bonus Army Hoover called in troops to push

the Bonus Army out of DC - used tear gas and tanks

Americans mad at the use of tanks to push out disabled veterans

HOOVER’S RESPONSE

Republican – Herbert HooverDemocrat – Franklin

Roosevelt 2-term governor of New York Distant cousin of Theodore

Roosevelt

Roosevelt won an overwhelming victory Immediately set to work

formulating a set of policies for his administration

Came to be known as the New Deal Focused on 3 general goals: Relief,

Recovery, & Reform Expanded the role of the federal

government

ELECTION OF 1932

Emergency Banking Act - Reformed banking system giving the federal government more power to supervise banksMarch 5 – Bank holidaySound banks would reopen

Insolvent banks would remain closed

March 12 – 1st Fireside Chat

THE FIRST ONE HUNDRED DAYS

Banking Act of 1933 Created the FDIC -

ensured every account up to $5,000

Limited freedom of banks to invest in stocks and bonds

Securities Exchange Commission (SEC) Required companies to

publish important facts about their business


National Industrial Recovery Act (NIRA) Established the National Recovery Administration (NRA) – Set minimum wages, maximum working hours, & minimum prices at which goods could be sold

Created the Public Works Administration (PWA) – oversaw large-scale construction projects


Agricultural Adjustment Administration (AAA) Helped farmers by

reducing crop production & raising prices

Tennessee Valley Authority (TVA) Developed construction

jobs in the Tennessee Valley


Civilian Conservation Corp (CCC)Gave young men jobs planting trees & working on other conservation projects

Federal Emergency Relief Act (FERA)Sent funds to states to distribute to the needy


By the end of his first term, FDR faced opposition from the Supreme Court In 1935, the Court

ruled that the National Industrial Recovery Act (NIRA) was unconstitutional

The following year, they struck down the Agriculture Adjustment Act (AAA)

FDR VS. THE SUPREME COURT

After winning re-election, FDR was ready to take on the Supreme Court He proposed a

plan to add a new justice for every justice over 70 years old

Labeled by critics as “court-packing”

FDR VS. THE SUPREME COURT

Wagner Act Protected the rights of workers

who joined unions & went on strike

Fair Labor Standards Act Regulated conditions in the

workplace Set a minimum wage- .25 Set maximum hours- 44 Ended oppressive child labor

Social Security Act Provided a pension for retired

workers & their spouses & helped people with disabilities

THE SECOND NEW DEAL

Rural Electrification Administration (REA) Established hundreds of

publicly owned electric cooperatives, built generating plants, & strung power lines

Works Progress Administration (WPA) Set out to create as many

jobs as possible as quickly as possible

In its 1st year, the WPA put 3 million Americans to work

THE SECOND NEW DEAL

Conservative Critics Believed that New

Deal had gone too far in expanding the role of government

Compared the New Deal to socialism

Father Charles Coughlin

Al Landon Robert Taft

CRITICS OF THE NEW DEAL

Radical Critics Believed the New Deal

should give greater aid to the needy

Huey Long (LA) “Every Man a King” Wanted to take money from

rich & give every family a grant of $5,000, a guaranteed job, & an income of $2,500 a year

Frank Townshend Proposed a guaranteed

income plan for senior citizens

Led to the creation of the Social Security Act

CRITICS OF THE NEW DEAL

Established the concept that Americans have the right to economic security, including: A job Adequate wages A decent home Medical care Good education

Expanded the role of government

Increased deficit spending FDR borrowed money to pay for his New Deal

programs

THE LEGACY OF THE NEW DEAL

Relief, Reform, & Recovery THE NEW DEAL & ITS LEGACY.

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