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newdeal

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newdeal

  1. 1. Franklin Delano Roosevelt and the New Deal
  2. 2. <ul><li>Industries were not making profits, demand for cars, housing, railroads, textiles decreased </li></ul><ul><li>Farmers were losing big money; crop prices fell 50% </li></ul><ul><li>People were living on credit, meaning they signed up with businesses to buy now and pay later which made them accumulate lots of debt </li></ul><ul><li>There was a rising gap between rich and poor </li></ul>
  3. 3. <ul><li>Speculation: people bought a lot of stocks and bonds hoping to make money and ignored the risk </li></ul><ul><li>Buying on margin: people bought the stocks and bonds “on margin”, meaning they paid a small percentage of the actual price and borrowed the rest </li></ul><ul><li>Black Tuesday: People started to get nervous about the market and started to pull out the money they invested and frantically tried to sell their stocks (which made them almost worthless) </li></ul>
  4. 4. <ul><li>Hoover believed that people should succeed based on their own individual work and effort </li></ul><ul><li>Hoover did little at first, simply asked employers to not lay people off or cut wages </li></ul><ul><li>Started to build the Boulder Dam to add jobs with federal funds </li></ul><ul><li>The Reconstruction Finance Corporation was set up to give emergency funds (from the government) to banks, businesses, insurance companies </li></ul><ul><li>Hoover never really addressed the poor, he thought that the relief would “trickle down” from the big companies and businesses </li></ul>
  5. 5. <ul><li>FDR takes office in 1932 </li></ul><ul><li>He immediately began reforms in the first “Hundred Days”: he reopened banks, established the FDIC to insure bank accounts, initiated the Federal Securities Act to make companies give buyers complete stock information </li></ul><ul><li>Began “fireside chats” over the radio to make Americans feel safe- “The only thing we have to fear is fear itself.” </li></ul>
  6. 6. <ul><li>AAA- Agricultural Adjustment Act raised crop prices to help farmers </li></ul><ul><li>CCC- Civilian Conservation Corps gave young men construction jobs </li></ul><ul><li>FERA- Federal Emergency Relief Administration gave fund directly to the poor </li></ul><ul><li>PWA- Public Works Administration gave money to states to create jobs </li></ul><ul><li>NIRA- National Industrial Recovery Act set prices and tried to regulate competition between businesses </li></ul><ul><li>TVA- Tennessee Valley Authority set up jobs renovating and constructing dams </li></ul>
  7. 7. <ul><li>Father Coughlin- wanted to nationalize banks and a guaranteed yearly income for every U.S. citizen </li></ul><ul><li>Huey Long- wanted to “Share Our Wealth”, and make “Every Man a King”. </li></ul><ul><li>Francis Townsend- wanted to create a program to give a monthly allotment to the elderly </li></ul>
  8. 8. <ul><li>FDR targeted farmers and workers during the “Second Hundred Days” </li></ul><ul><li>For farmers: they could get loans, get land, took pictures of devastated farmers </li></ul><ul><li>For workers: the WPA (Works Progress Administration) set up government funded jobs all over the country </li></ul>
  9. 9. <ul><li>National Recovery Administration protected workers, ensured 40-hour work week and a ban on child labor </li></ul><ul><li>Wagner Act: supported workers in unionization and collective bargaining with employers, it also made it illegal for employers to threaten or fire unionized workers </li></ul><ul><li>National Labor Relations Board was set up to hear workers’ complaints and evaluate unfair working conditions </li></ul><ul><li>The Fair Labor Standards Act set a minimum wage and maximum work hours </li></ul>
  10. 10. <ul><li>FDR set up a system of social security to protect people from future depressions </li></ul><ul><li>Social Security Act of 1935 set up: </li></ul><ul><ul><ul><li>Old Age Insurance for those 65 and up </li></ul></ul></ul><ul><ul><ul><li>Unemployment compensation </li></ul></ul></ul><ul><ul><ul><li>Aid to families with dependent children </li></ul></ul></ul>

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