The New Deal. Chapter 33
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1 The New Deal Chapter 33
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3 1932 Election Hoover Gov should not try to fix people s problems Believed direct relief would destroy people s self-respect Creating a big government would violate laissez faire heart Lame Duck Prez Uncertainty & fear vs. FDR Help people in need and provide direct relief Believed capitalism and laissez faire needed to be reformed Eleanor Brain Trust South Hard times ruined Rep. Victory More anti-republican 25% unemployed
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5 New Deal Govt. programs which provided direct relief through govt. spending What did he want to do? Renew democracy Restore confidence in the banking Stimulate economy Put people back to work. Restore self confidence How? Relief: ease suffering of the needy Recovery: begin economic growth Reform: help prevent future economic crises
6 First New Deal 100 Days Relief, Recovery, Reform March of 1933 to June of 1933 Roosevelt sent 15 proposals to Congress and all 15 were adopted Tried anything reasonable to overcome
7 First New Deal (Relief) Federal Emergency Relief Admin Hopkins Welfare to states $500 million of direct aid to unemployed workers Civilian Conservation Corp Work camps to build bridges, replant forests & conservation tasks. Develop job skills and improve environment. Removed surplus of workers from cities, provided healthy conditions, provided money for families.
8 First New Deal (Relief) Works Progress Admin In response to critics (Long, etc) Construction and other jobs Work in arts, theater, and literary projects Home Owner's Loan Corp US Govt. bought up mortgages and refinanced them so that homeowners could pay their mortgages.
9 First New Deal (Recovery & Reform) Banking Banking Holiday Emergency Banking Relief Act (33) Regulate Glass-Steagall Banking Reform Act FDIC Took off Gold Standard
10 First New Deal (Recovery & Reform) Stock Market Truth in Securities Act (1929) Soundness of stock SEC (1934) Regulated stock market & restricted margin buying, and frauds. National Industrial Recovery Act National Recovery Act Enforce codes of fair competition and minimum wages. Less hours, more employed Organize, collective bargaining Declared unconstitutional by the Supreme Court in 1935 because it violated laissez faire.
11 First New Deal (Recovery & Reform) Assistance for the Farmer Ag Adjustment Act/Admin Protected farmers from price drops and over production Farm Mortgages Parity Prices Subsidies not to grow crops, produce dairy products such as milk and butter or raise pigs and lambs. Prevent another Dust Bowl, teach farmers methods of preventing soil erosion. Resettlement Administration (1935)
12 First New Deal (Recovery & Reform) Tennessee Valley Authority (1933) Dams to prevent flooding & sell electricity Stimulate the economy & produce cheap electricity Control floods, plant new forests Gouging electric rates yardstick First public competition with private power Bring into the 20th century: 94% of property owners & 98% of tenants did not have electricity. 30% of property owners & 41% of tenants had no toilet facilities whatsoever
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14 Critics Father Coughlin International conspiracy of bankers FDR influenced by them Called for the nationalization of banks & utilities Fascist; Anti-Semitic overtones Dr. Francis Townsend Wanted the government to help older citizens $200 per month pension over 60 Influenced FDR s creation of Social Security Open jobs for the younger unemployed Townsend Clubs created all over the nation
15 Critics Huey Long Kingfish Modernization and reform in LA (Gov 1928) Building roads & bridges Provided free public education Expanded voting rights to all citizens Created opportunity to those trapped in poverty US Senator (1930) Prez Candidate 1934 Share the Wealth program (1934) provide a decent standard of living to all Americans by spreading the nation s wealth among the people Assassinated 1935 in LA
16 Second New Deal (Reform) Labor Legislation Wagner Act (1935) Right to unionize, prohibited unfair labor practices Created the National Labor Relations Board Arbitration = neutral party would listen to both sides & decide Authorized to investigate the actions of employers Power to issue cease and desist orders against unfair practices. Fair Labor Standards Act (1938) Minimum wage/max hours No child labor Excluded ag, service, domestics Farm Legislation 2 nd Ag Adjustment Act (1938) Acreage restrictions
17 Committee for Industrial Organization United Mine Workers organize workers in industries where unions did not exist Automobile & Steel December 1936, GM launched sit-down strike Violence broke out Afterward, GM broke down and recognized United Auto Workers as its employees sole bargaining organization led to others using the sit-down strike
18 Second New Deal (Reform) Quality of Life Legislation Social Security Act (1935) Protect Americans unable to support themselves Retirement for persons over 65 funded by a tax on wages paid equally by employee & employer Old age insurance Unemployment compensation Compensation to disabled workers Assistance to widows and children Federal Housing Act (1934) Loans to improve & build
19 Supreme Court Congressional opposition was beginning to grow Many laws, including the WPA, were taking a long time to get passed and met resistance. Schechter v. United States sick chicken case poultry business in Brooklyn Convicted in 1933 of violating NRA s Live Poultry Code Sold diseased chickens/violated wage & hour provisions SC said Constitution did not allow the Congress to lend its powers to the executive; the NRA was unconstitutional. Suggested Supreme Court would make similar decisions in regards to the New Deal.
20 Court Packing Striking down New Deal legislation Allow Prez to name a new federal judge for each who did not retire by age 70 and 1/2. 6 justices over age limit Increased the number of justices to 15 Giving FDR a majority of his own appointees on the court. The court-packing bill was not passed by Congress. Full retirement Hugo Black
21 Legacy of New Deal Criticisms US Govt. and President became too powerful Socialism vs. laissez faire Deficit spending and Welfare state Successes Restored self-confidence Put people back to work Renewed faith in democracy WWII ended the Great Depression
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