Launching The New Deal


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  • Launching The New Deal

    1. 1. NEW DEAL 1933-1940 Launching the New Deal
    2. 2. Questions of the Day <ul><li>What happened during the four months between the presidential election and Roosevelt’s inauguration? </li></ul><ul><li>What major action did Roosevelt take on his second day as president, and why did he do it? </li></ul><ul><li>What was the goal of the TVA? </li></ul><ul><li>How did the public benefit from the Federal Securities Act? </li></ul><ul><li>What are the three main categories of the programs of the New Deal? </li></ul><ul><li>What did Huey P. Long’s Share our Wealth Society want to do? </li></ul><ul><li>Why did the American Liberty League appeal to both Democrats and Republicans? </li></ul>
    3. 3. Roosevelt Takes Action <ul><li>Economic crisis worsened in months before Roosevelt took office </li></ul><ul><li>U.S. Banking system was most immediate problem Roosevelt faced </li></ul>
    4. 4. Roosevelt Takes Action <ul><li>“ So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” – March 4, 1933 </li></ul>
    5. 5. Solving the Banking Crisis <ul><li>People withdrew their money from banks to avoid losing their savings </li></ul><ul><ul><li>Created panic, more withdraws </li></ul></ul><ul><li>To stop this: </li></ul><ul><li>Roosevelt issued an executive order to CLOSE ALL THE NATION’S BANKS </li></ul><ul><ul><ul><li>Called it a “Bank Holiday” </li></ul></ul></ul><ul><li>Passed Emergency Banking Act </li></ul><ul><ul><ul><li>Allowed government officials to evaluate banks </li></ul></ul></ul><ul><ul><ul><li>Determine if it should stay open or close the bank </li></ul></ul></ul><ul><ul><ul><li>Decide on steps to correct problems </li></ul></ul></ul><ul><li>Explained his actions in the first “fireside chat” </li></ul>
    6. 6. Success of the Emergency Banking Act <ul><li>Things improved within a few days </li></ul><ul><ul><li>Banks began to reopen w/ government assurance </li></ul></ul><ul><ul><li>People started to return their funds </li></ul></ul><ul><ul><li>Nation regained confidence in the financial system </li></ul></ul>
    7. 7. More Banking Reforms <ul><li>The Glass-Steagall Act </li></ul><ul><ul><li>Passed in 1933 </li></ul></ul><ul><ul><li>Created FDIC - (Federal Deposit Insurance Corporation) </li></ul></ul><ul><ul><ul><li>Provided insurance for depositors’ savings </li></ul></ul></ul><ul><li>Within a month $1 billion in new deposits entered the system </li></ul>
    8. 8. The Hundred Days and The New Deal <ul><li>Solving the banking crisis began an important period of government activity known as the </li></ul><ul><li>HUNDRED DAYS </li></ul><ul><ul><li>A time in which Roosevelt pushed Congress to put in place key parts of: </li></ul></ul><ul><li>THE NEW DEAL </li></ul><ul><ul><li>A plan meant to accomplish three main goals: (the three R’s) </li></ul></ul><ul><ul><ul><li>Relief for those suffering the effects of the Great Depression </li></ul></ul></ul><ul><ul><ul><li>Recovery of the depressed economy </li></ul></ul></ul><ul><ul><ul><li>Reforms that would prevent serious economic crisis from happening in the future. </li></ul></ul></ul>
    9. 9. The New Deal - CCC <ul><li>The Civilian Conservation Corps. (CCC) </li></ul><ul><ul><li>An effort to solve problem of unemployment for men age 18-25 </li></ul></ul><ul><ul><li>Americans enrolled in CCC were paid to work on various conservation projects </li></ul></ul><ul><ul><ul><li>Ex: planting trees </li></ul></ul></ul><ul><ul><li>Lived in army-style camps </li></ul></ul><ul><ul><li>Sent money to their families </li></ul></ul>
    10. 10. Help for Agriculture and Industry <ul><li>Agricultural Adjustment Act (AAA) </li></ul><ul><ul><li>Gave farmers a subsidy to grow fewer crops </li></ul></ul><ul><ul><ul><li>Subsidy = government payment </li></ul></ul></ul><ul><ul><li>supply, demand, price </li></ul></ul><ul><li>National Industrial Recovery Act (NIRA) </li></ul><ul><ul><li>Mandated that businesses in the same industry work together to set prices and levels of production </li></ul></ul><ul><ul><li>Included $3.3 billion for public works programs </li></ul></ul>
    11. 11. The PWA, FSA and SEC <ul><li>Public Works Administration (PWA) </li></ul><ul><ul><li>Helped manage public works projects </li></ul></ul><ul><li>Federal Securities Act </li></ul><ul><ul><li>Forced companies to share certain financial info with the public </li></ul></ul><ul><li>Securities and Exchange Commission (SEC) </li></ul><ul><ul><li>Monitored fairness of stock market </li></ul></ul>
    12. 12. Tennessee Valley Authority (TVA) <ul><li>Massive program </li></ul><ul><li>Goal: developing the resources of the entire Tennessee River Valley </li></ul><ul><li>Built dams and other projects along Tennessee River </li></ul><ul><ul><li>Helped control floods </li></ul></ul><ul><ul><li>Aided navigation and shipping on the river </li></ul></ul><ul><ul><li>Provided hydroelectric power for industries </li></ul></ul>
    13. 13. TVA
    14. 14. TVA
    15. 15. Beyond the Hundred Days <ul><li>Roosevelt promised “bold, persistent experimentation” and he delivered </li></ul><ul><li>But the effort wasn’t over </li></ul><ul><li>Nov. 1933 – Civil Works Administration (CWA) </li></ul><ul><ul><li>Provided winter employment for 4 million workers </li></ul></ul><ul><ul><li>But highways, sewer lines, airports, etc. </li></ul></ul><ul><li>June 1934 – Indian Reorganization Act </li></ul><ul><ul><li>Recognized tribes as key social units </li></ul></ul><ul><ul><li>Limited sale of Indian lands </li></ul></ul><ul><ul><li>Assisted them in developing resources, economy and culture </li></ul></ul><ul><ul><li>Granted some rights of self-rule </li></ul></ul>
    16. 16. Trouble for the New Deal <ul><li>New Deal greatly increased the role of government in business and peoples lives </li></ul><ul><ul><li>Not supported by everyone </li></ul></ul><ul><li>Some said the New Deal didn’t do enough </li></ul><ul><ul><li>Complained that it propped up the system which had caused all the problems in the first place </li></ul></ul><ul><li>Others complained that it ignored traditional American values </li></ul>
    17. 17. Critics of the New Deal
    18. 18. Opposition from the Courts <ul><li>Courts were more skeptical than American people </li></ul><ul><ul><li>Thought New Deal gave the President too much power </li></ul></ul><ul><ul><li>President appointed officers made decisions Congress used to </li></ul></ul><ul><li>By 1935, New Deal cases hit the courts </li></ul><ul><ul><li>Sent a swift blow to Roosevelt’s programs </li></ul></ul><ul><li>1935 Schechter Poultry Corporation vs. U.S. </li></ul><ul><ul><li>Destroyed parts of NIRA </li></ul></ul><ul><li>1936 United States vs. Butler </li></ul><ul><ul><li>Found AAA’s tax used to raise money for farm subsidies unconstitutional </li></ul></ul><ul><li>Courts accomplished what New Deal critics could not </li></ul>
    19. 19. For Next Class… <ul><li>Research one New Deal program </li></ul><ul><li>Make poster, visual display </li></ul><ul><li>Be sure to explain: </li></ul><ul><ul><li>What is the program supposed to accomplish? </li></ul></ul><ul><ul><li>What benefits might the program have? </li></ul></ul><ul><ul><li>Who will the program benefit? </li></ul></ul><ul><ul><li>What might be some downsides to the program? </li></ul></ul><ul><li>Be prepared to share next class </li></ul>