The New Deal

  • FDR
    • lost his legs before the election

    • Promised a new deal in Democratic nomination speech

    • Advocated for a balanced federal budget

    • Received 57% of popular votes in 1932

    • Conceived the new deal as in between socialism and Nazism

    • Large cooperations needed to be managed, not dismantled

    • Suspended banking by March 1933

  • Emergency Banking Act
    • Provided funds for threatened banks

  • Glass-Steagall Act
    • Repealed in 1990s

    • Prevented banks from buying and selling stocks

    • Established FDIC

  • Hundred days
    • Providing economical relief

  • National Industrial Recovery Act
    • Established National Recovery Administration

    • Recognized workers’ right to organize unions

    • Combated the sense that government was doing nothing

    • Invalidated by the supreme court

  • Federal Emergency Relief Administration
    • Financial relief for local agencies

  • Civilian Conservation Corps
    • Found jobs for unemployed young men

  • Civil Works Administration employed more than 4b people

  • The Tennessee Valley Authority
    • Built dams to prevent floods

  • Agricultural Adjustment Act
    • Set production quotas for crops

    • Pay farmers to plant less

    • 6m pigs slaughtered

    • Did not help farmers who did not own land

  • Dust Bowl
    • Affected Texas, Oklahoma, Kansas, and Colorado

    • Displaced more than 1m farmers

  • Federal Housing Administration
    • insured mortgages

    • Allowed home ownership for more families

  • Authorized 21 amendment

  • 20% of Americans remained unemployed

  • The first new deal halted in 1935 because of the supreme court and failure to end the depression

  • 2k total strikes in 1934
    • 400000 textile workers went on a single strike

  • John L. Lewis created Congress of Industrial Organizations from AFL

  • United Auto Workers had a sit down strike

  • Radio Priest Father Charles E. Coughlin

  • Fundamentalist used radio to broadcast anti-modern messages

The First New Deal

  • FDR experimented things

  • The fireside chat

  • Legislations passed
    • Relief

    • Recovery

    • Reform
      • Make the system better

  • Finances and Banking
    • Government ownership <=> do nothing

    • A bank holiday

    • Restored people’s confidence in banks

    • The Glass-Steagall Act

    • Security Exchange Commission: regulate stock market
      • Joseph Kennedy (father of JFK) as the first chair

    • “Priming the Pump” analogy

  • Unemployment and Relief
    • CCC: Civilian COnservation Corps
      • Gave jobs to unemployed young men

      • Plant trees

      • Build infrastructures

    • TVA: Tennessee Valley Authority
      • Built dams to provide hydroelectric power

      • Prevent flooding

      • Provided jobs to build and run the dam

      • Good source of fertilizer

      • Controversial because of concerns about socialism and competition of the government with private electric companies

    • FERA: Federal Emergency Act
      • Direct reliefs (money)

    • PWA: Public Works Administration

    • CWA: Civil Works Administration

  • Farming
    • AAA: Agriculture Adjustment Act
      • The gov paid farmers not to plant to decrease productions and increase price of the agricultural products

      • Hurt sharecroppers and tenant farmers

  • Industry and Labor
    • NRA: National Recovery Administration
      • Allow collective bargaining (unions)

      • Members display a blue eagle

The Second New Deal

  • Social Security
    • Old age pensions

    • Fundamentally liberal and conservative

    • 6.2% of paycheck (current) are taken out

  • The Wagner Act

  • The Revenue Act

  • WPA: Works Projects Administrations