Tuccinardi 6/2/14 Chapter 33 33.1 Introduction Franklin D. Roosevelt Raised in a wealthy New York family Attended private school Became a skilled politician 1932 Presidential election Stormed to victory due to promise to help the working men and women whose labor energized the american economy. Eleanor Roosevelt She broadened FDRs awareness Took him to a tenement. Opened FDRs eyes to the harsh reality of life for the poorest americans/ 33.2 The First New Deal By 1933, 13 million AMericans- nearly one fourth of the workforce were unemployed. Banks had closed their door and FDR calmed the people with radio addresses called fireside chats. Helped him gain public trust. Backed the New Deal programs of the First Hundred days/ Restructuring the Financial Sector FDR attacked problems in the financial sector. Ordered all banks to close temporarily Stopped the steady withdrawal of funds from financial institutions Emergency Banking act Gave the federal government more power to supervise bank activities. His fireside chats restored public confidence in banks. Banking Act of 1933 Created the Federal Deposit Insurance Corporation Guaranteed individual bank deposits up to $5000. Limited the freedom of banks to trade in stocks and bonds. Speculation in stocks caused the 1929 stocks part of the problem was ignorance Creation of the Securities and Exchange Commision in 1934 Regulated the businesses of stockbrokers. Shoring Up the Free Enterprise System FDR wanted to help the enterprise system to recover. National Industrial Recovery Act of 1933 Was the centerpiece of the NEw Deals efforts to breathe life into the economy. With the NRA the New Deal increased government regulation and economic planning and moved away from laissex-faire policies of the past. Allotted $3.3 billion for various public works. Establishment of the Public Works administration Paying Farmers Not to Plant Agricultural Adjustment Administration (AAA) Tried to aid farmers by reducing crop production and raising prices. Aim of the AAA was to raise crop prices to reach parity The price that gives farmers the same purchasing power they had during an earlier, more prosperous time. To raise prices, the AAA paid farmers to plant fewer crops. This would call for an increase in Market demand. Promoting Economic Development and Homeownership Promote economic development in one of the poorest regions in the country. Tennessee River valley Built series of dams which provided flood control and hydroelectric power to seven southern states. Battled erosion and deforestation Gave Jobs to people in need. Two new agencies Home Owners Loan Corporation Provided loans to help people meet their mortgage payments. Federal Housing Administration Gave boost to the banking and construction industries by insuring mortgage loans up to 80 percent of a homes value. Remembering the Forgotten Man After FDRs inauguration 450,000 Americans wrote letters to the new president Many Pleaded for help. Pledged to remember the forgotten man. Under the First New Deal, he carried out that promise by providing relief programs designed to help normal Americans. Civilian Conservation Corps (CCC) Gave young men jobs planting trees and working on other conservation projects. Federal Emergency Relief Administration Took an approach different from providing people with work Sent funds to state governments which spread it among the needy. 33.3 Protests and Political Challenges Flurry of activity caught people by suprise Critics Attack the New Deal Right Wing ideological differences Conservative side of the political spectrum Thought the New Deal had gone too far in expanding the role of the federal government Left Wing ideological differences liberal side Thought New Deal should give greater aid to the needy. Robert La Follette Favored larger public works programs FDR was somewhere in the middle Demagogues Turn Up the Heat Demagogues A political leader who appeals to peoples emotions and prejudices Charles Coughlin Hater of Wall Street and critical of Roosevelt Huey Long colorfully portrayed himself as the hero of the common man in the fight against big business Wanted to take money from the rich and give every American family a grant of $5,000 33.4 The Second New Deal In order to Counter the demagogues, FDR shifted his focus away from recovery and toward social and economic reforms. Energizing the Country with Electricity and Jobs Congress passed FDRs Emergency Relief Appropriation Bill Called the Big Bill because it created several new agencies and called for nearly $5 billion in new spending. Rural Electrification Administration Established hundreds of publicly owned electric cooperatives, built generation plants, and strung power lines. Works Progress Administration Put more than 3 million Americans to work in it first year Created buildings and established art projects. Conservatives denounced the cost Labor unions attacked it for depressing wage rates. Employed 7 percent of the American workforce. The Supreme Court Attacks the New Deal Schechter Poultry Corp. v. United States Struck down the National Industrial Recovery act unconstitutional. Agricultural Adjustment Act Regulation and control agricultural production Struck down Roosevelt fumed that the Court had created a No mans land where no government, state or federal, could act effectively. Bill of Rights for workers. FDR continued to push for reform legislation The National Labor Relations act, also called the Wagner act was seen as the bill of rights for organized labor. Creation of the National Labor Relations Board Had the power to supervise union elections to ensure that they were free and democratic. Congress passed the Fair Labor Standards Act in 1938 regulated conditions in the workplace Set a minimum wage of 25 cents an hour. Economic Security for Americans. Social Security Act Passed in June and in August, the president signed it into the law Addressed the long-term problems of the aged and unemployed Created a social insurance program that provides two main types of benefits: retirement and disability. Also set up an unemployment insurance program for workers. Funding comes from taxes on employers. Battling the Supreme Court FDR won his second term in 1936 by a landslide Viewed win as a mandate A grant of authority- to extend the New Deal further Feared the supreme court 1937- FDR presented Congress with legislation to redesign the Supreme Court Bill called for adding a new justice for every sitting justice over age 70. Claimed the court was behind in work Wanted to pack the Supreme Court with liberal justices who would favor NEw Deal programs Both parties expressed outrage at this. THe court redefined its understanding of liberty. 33.5 Social and Political Impacts A Good Deal for Workers The NIRA and the Wagner Act guaranteed the righ of workers to form unions and to bargain collectively. Growth presented a challenge to the American Federation of Labor, a large and powerful alliance of unions. 1930s- activists within the AFl began demanding that it organize workers not by craft but by industry Congress of Industrial Organization Organized workers in mass production industries Formed an independent federation Accepted African American workers and others shunned by the AFL. Organized unions in the automobile, rubber and steel industries. CIOs success boosted by the New Deal helped swell union membership. A Mixed Deal for Women Women made some advances Help from Eleanor Roosevelt Played key role in the Roosevelt Administation. Met with woman and tried to advance the rights of women. talented women were integrated into the government. Many other women were pressured to leave the workforce to free up jobs for men with families Economy Act of 1932 Prohibited a man and his wife from both working for a federal agency. A Disappointing Deal for African Americans New Deal offered some hope for black Americans They were hit especially hard by Depression Competition for jobs along with discrimination pushed the unemployment rate for blacks well above that for white americans. WPA and the CCC Helped many poor african americans survive. William Hastie Rose from a position as an adviser to the president on race relations to become the first African American to serve on a federal court. Roosevelt Failed to prevent lynching Declined the federal anti lynching bill for fear of offending powerful southerners in Congress Eleanor Roosevelt Took a stand and arranged for Marian Anderson to sing on the steps of the Lincoln Memorial. A Better Deal for American Indians Many natives lived in poverty FDRs commissioner of Indian affairs, John Collier hoped to repair some of the damage with an indian New Deal Ended the policy of forced assimilation replacing government-run boarding schools with public schools Encouraged greater cultural awarness Improved health care Gave natives more control over policies Indian Reorganization Act of 1934 Indian communities recied the righ to set up their own tribal government. A Tough Deal for Mexican Americans Mexican Americans were not hired due to low money. Were deported and returned to mexico Depended on relief. The Emergence of a New Deal Coalition in Politics The belief that government could make a difference in voters lives inspired many people to become more involved in politics. African American voters cast their vote for Roosevelt and helped him win in 1936. 1936 election signaled the emergence of a new political partnership known as the New Deal Coalition Included many groups. 33.6 Legacy of the New Deal Unalienable Rights: Life Liberty and Economic Security Welfare state A social system in which the government takes responsibility for the economic well being of its citizens. A Larger Role for uncle Sam in Peoples Everyday Lives deficit spending Spending more than the government receives in revenues.