The New DealThe New DealThe New DealThe New Deal

Vocab • 20th amendment• relief• recovery• reform• bank holiday• New Deal• lame duck

amendment• 100 days (hundred

days)• direct relief

• indirect relief• brain trust• public works

program• Second New Deal• Wagner Act• closed shop• Social Security

System• Fireside chat

Relief-Recovery- Reform

relief- 1st ASAP money ,food or other help given to those who need it.

recovery- 2nd to regain or make improvements from on state or

condition.

reform- 3rd fix what is broke so it does not break again

Goals of the New DealFirst 100 Days1. Restore the nations hope2. Stabilize financial institutions3. Provide relief to the poor and

create jobs DIRECT VS INDIRECT RELIEF

4. Create a plan to regulate the economy

Second 100 Days1. Pass new labor laws2. Create and expand the New Deal

agencies3. Establish Social Security to

provide old age pension and unemployment insurance.

Restore the nations hope

How?“The only thing we have to fear is fear

itself”.Eleanor visits the Bonus ArmyFireside chats promising the New DealRRR to fight the Great DepressionFirst 100 days provide relief, create jobs

and stimulate economic recovery and hopefully reform (change) will follow

Stabilize financial institutions

How?Bank holiday Emergency Banking ActGlass Stegal Banking Act creates the FDICFederal Securities ActSECUS goes off gold standard

Provide Relief - Create JobsFERA Harry Hopkins

$ into public works programsCWA Civil Works AdministrationCCC Civilian Conservation CorporationIndian Reorganization ActWomen

Plan and Regulate the Economy

NIRA National Industrial Recovery Act creates the NRA National Recovery Administration to help balance the economy

PWA Public Works Administration with Harold Ickes

Helping the farmer and homeowner

FHA Federal Housing AdministrationAAA Agricultural Adjustment ActTVA Tennessee Valley Authority

Key PlayersBraintrust FDR first president to appoint a women to

a cabinet positionFrances Perkins became the Sec. of LaborFDR also hired African AmericanBethune headed a part of the NYA who

created the “black cabinet”Eleanor his wife

New Deal SetbacksNot enough results = blame gameCourt declared the NIRA

unconstitutional. Gave FDR too many powers not written the

constitution.Court struck down the tax that helped

farmers in the AAA.Time to regroup.

Support still there: wins 1934 election

Second New Deal Goals Create and expand the New Deal agencies

• Created more social welfare ( to help those in need)

• Put stricter controls on business. Limit unfairness• Support for unions• Taxes on the rich

New Agencies• WPA Work Progress Administration

created jobs in construction and arts program

• Resettlement Administrationhelped tenant farmers and share croppers

• REA gave loans to for power plants to create electricity in rural areas

New Labor Laws• Wagner Act allowed collective

bargaining and closed shops (union members only) and sets up the NLRB

to be the police force to enforce• Fair Labor Standards act bans child

labor and creates a minimum wage• Social Security System

The Alphabet Soup

FOLDABLE:CATEGORIZE AGENCIES AS

RELIEFRECOVERYREFORM

Relief • FERA• CCC• CWA• NYA• WPA• HOLC• TVA

Recovery• AAA WAGNER ACT NLRB• NRA• PWA• FDIC• FHA• Resettlement administration• FSA• REA

Reform• FDIC• SEC• SSA

FDR wins 1936 electionFDR WINS BY A LANSLIDE BUT

THERE WERE MANY CRITICS WAITING TO ADD THEIR 2 CENTS!

FDR’s Critics16:2 Vocab

• American Liberty League• Demagogue• Nationalization• Deficit spending• Court packing

Criticisms of the New Deal

pp 545-551LIMITATIONS Women and Blacks• The New Deal fell short of many people’s

expectations.• The Fair Labor Standards Act covered fewer

than one quarter of all employed workers. It set the minimum wage at 25 cents an hour, which was below what most workers already made.

• The NRA codes, in some cases, permitted lower wages for women’s work, and gave boys and men strong preference in relief and job programs.

MORE Limitations• No New Deal programs protected domestic

service, the largest female occupation.• Many federal relief programs in the South

reinforced racial segregation. WHY? • The Social Security Act excluded farmers

and domestic workers AND it failed to cover nearly two thirds of working African Americans.

MORE LIMITSFDR also refused to support a bill

to make lynching a federal crime because he feared that his support of the bill would cause southern Congressmen to block all of his other programs.

Political CriticsNew Deal Does Too Much• A number of Republicans, in Congress

and elsewhere WERE AGAINST Roosevelt because they believed that the New Deal did too much.

• Wealthy people regarded FDR as their enemy because he taxed them more to help others out and pay for the help he provided to all.

Political Critics• FDR’s political enemies felt the SSA

penalized the successful when people were assigned SS #’s

• A group called the American Liberty League charged the New Deal with limiting individual freedom in an unconstitutional, “un-American” manner.

Progressives and SocialistsNew Deal Does Not Do Enough• Many Progressives and Socialists attacked the New

Deal because they believed that the programs did not help enough .

• Novelist Upton Sinclair believed that the entire economic system needed to be reformed. Maybe???? His “End Poverty in California” (EPIC), called for a new economic system in which the state would take over factories and farms.

• Truth be told… The New Deal was not successful at eliminating poverty. It did give American’s hope!

Other Critics• Other New Deal critics were demagogues, leaders who

manipulate people with half-truths, deceptive promises, and scare tactics.

• Father Charles E. Coughlin often contradicted himself. He believed the nationalization, or government takeover and ownership, of banks and the redistribution of wealth was a good idea.

• Huey Long, one time governor of Louisiana, and then United States senator, was also a demagogue. He wanted a redistribution of wealth and developed a program called Share-Our-Wealth. The goal was to limit individual personal wealth and increase the minimal income of all citizens. Long also called for increased benefits for veterans, shorter working hours, payments for education, and pensions for the elderly.

Modern Critics

• Some historians and economists believe that the New Deal did not achieve the greatest good for the greatest number of Americans.

• They argue that New Deal programs slowed economic progress and threatened America’s belief in free enterprise an economic and political belief that says a capitalist economy (private owned) businesses will fix itself through competition with supply and demand instead of the government stepping in to fix and be the police with new rules.

Modern Critics• Modern critics attacked the policy of

paying farmers not to plant. In a time of hunger, the program wasted precious resources. Farm production quotas penalized efficient and less-efficient farmers equally, while the free market would have weeded out inefficiency and rewarded productivity. Survival of the fittest???

• Finally, the New Deal receives criticism from people who oppose deficit spending–paying out more money from the annual federal budget than the government receives in revenues.

• Debate about the New Deal continues today. Critics believe that the programs violated the free market system. Too much government help.

• Supporters believe that providing relief to the poor and unemployed was worth the compromise.

Court Packing Fiasco• Roosevelt received criticism not only for his

programs, but for his actions.

• In an effort to gain more support in the Supreme Court, proposed a major court-reform bill. He recommended that Congress allow him to add six additional Supreme Court justices, one for every justice over 70 years old. His argument was that this would lighten the case load for aging justices. His real intention, however, was to “pack” the Court with judges supportive of the New Deal.

• Critics said that FDR was trying to undermine the constitutional separation of powers. They were concerned that Roosevelt was trying to gain unchecked powers.

• FDR still wound up with a Court that tended to side with him. Some of the older justices retired and Roosevelt was able to appoint justices who favored the New Deal but suffered political damage. Many Republicans and southern Democrats united against New Deal legislation. This alliance remained a force for years to come.

Effects of the New Deal16:3 Vocab pp 553-559

• Recession• National debt• Revenue• Coalition• Sit down strike

Economical Effects• Relieved poverty in some segments• Created much more debt• Strengthened unions• Created big public works prjects

that cost BIG bucks• Strengthened banks and the stock

market

ECONOMICAL

• The New Deal worked hard to fix the depression. Massive government spending was a temporary fix. Then in August of 1937, the economy collapsed again. Industries made less so people lost their jobs.

• The nation entered a recession, a period of slow business activity. The new Social Security tax was partly to blame. The tax came directly out of workers’ paychecks, through payroll deductions. With less money in their pockets, Americans bought fewer goods.

Economical• Americans also had less money because FDR had to cut

back on expensive programs such as the WPA that gave people jobs

• The President had become concerned about the rising national debt, or the total amount of money the federal government borrows and has to pay back. The government borrows when its revenue, or income, does not keep up with its expenses.

• To fund the New Deal, the government had to borrow massive amounts of money. As a result the national debt rose from $21 billion in 1933 to $43 billion by 1940.

• 2008 over 10 trillion

Economical: union impact

• AFL (skilled workers) vs CIO (unskilled workers)

• In 1935, some union representatives wanted to create a place for unskilled laborers within the American Federation of Labor. They created the Committee for Industrial Organization (CIO). The AFL did not support this effort and suspended the CIO in 1936. Booted em out more or less.

• By 1938, the CIO coalition, or alliance of groups with similar goals, had 4 million members. John L. Lewis became president of the CIO, which changed its name to the Congress of Industrial Organization. The aim of the coalition of industrial unions was to challenge the working conditions in factories. Their main tool was the strike.

Unions• The Wagner Act, in 1935, legalized collective

bargaining and led to many strikes in the work place. Many work stoppages took the form of sit-down strikes, in which laborers stop working, but refuse to leave the building and supporters set up picket lines outside. Together the strikers and the picket lines prevent the company from bringing in scabs, or non-union substitute workers. These tactics, although not always successful, proved quite powerful. In 1939, the Supreme Court outlawed the sit-down strike as being too potent a weapon and prevented workers and the bosses from working out their differences.

PoliticalChanged peoples view of the role of the

governmentExpanded the federal government in

peoples livesProduced much political controversy.Extended the power of the president.Was the New Deal a benefit to America or

a hindrance

Social• Left out help for tenant farmers• Discriminated against women• Provided hope for Americans• Renewed peoples faith in their

government

Cultural• Government provided $ to encourage

popular and fine artists with jobs• Funded research for James Magee and

Walker Evans to stay with sharecroppers• Created a federal writers project• Created a federal music project• Created a federal theater project• FRD believed that the arts should be

available to all Americans

The LegacyThe New Deal attempted to help all but

fell short at times. These federal agencies still exist todayTVASECSSAMany public works projects still existMost of all…HOPE was the true legacy!