FDR and the New Deal

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When FDR was elected he promised “bold, persistent experimentation”

• People didn’t know what he meant but they knew he would do something

Relief, recovery, and reform programs set up by the FDR administration

• First hundred days Roosevelt pushed programs through congress

 Provide relief

 Create jobs

 Stimulate the economy

Banks were closed for 4 days to be inspected to see if they were “healthy”

• Most banks were healthy

Brought confidence to the people and they began to put money back in the banks

FDIC- Federal Deposit Insurance Corporation

 Insured bank deposits

Federal Securities Act- required companies to provide info about their finances if they offered stock for sale

Securities and Exchange Commission

(SEC)

• Regulated the stock market

Federal Emergency Relief Administration

(FERA)

• Sent funds to agencies to create jobs

Public Works program

• Government funded projects to build public facilities

Civil Works Administration- built or improved roads, parks, airports etc

• 4 million employees

Civilian Conservation Corps

• 2.5 million young unmarried men

Maintaining forests, beaches, and parks

 Made $30 a month, lived in camps rent free

 Received food, medical care, and job training

National Recovery Administration (NRA)

• Regulated wages, controlled working conditions, production and prices, set a minimum wage

Organized labor had collective bargaining

The Home Owners Loan Corporation

(HOLC)

• Refinanced mortgages to make it easier to pay

Agricultural Adjustment Administration

(AAA)

• Tried to raise farm prices with government assistance

Tennessee Valley Authority (TVA)

• Provided cheap electric power with

Hydroelectric power facility

Roosevelt appointed many new people to office including women and African

Americans

His wife Eleanor worked side by side with him reporting conditions and working on social reforms

Many were impressed with the New Deal but it did not bring about significant change

Included more social welfare benefits, stricter controls over business, stronger support for unions and higher taxes for the rich

FDR expanded on many of the agencies to give more relief

Wagner Act

• Legalized collective bargaining and closed shops

 Which allowed workplaces to only allowed to union workers

• Outlawed spying on union activities and blacklisting

National Labor Relations Board (NLRB)set up to enforce provisions

NLRB v Jones and Laughlin (1939)

 The Supreme Court upheld the Wagner Act

1935- Congress passed the Social

Security Act

• Old age pensions

Unemployment insurance

Aid for dependent children, the blind, and disabled

Minimum wage at $0.25/ hour- less than what some people were already making

Less helpful to women and minorities than white men

New deal permitted lower wages for women

Relief and job programs were geared toward men

Jobs went to men or “head of families” unless they couldn’t work

New Deal public works projects reinforced segregation

• not offered professional positions

Kept out of skilled labor jobs

Received lower wages than whites •

New deal did nothing to stop discriminatory practices

• Whites would only hire whites

 African American’s boycotted

 “don’t shop where you can’t work”

Senate got rid of a bill that made lynching a federal crime

• FDR appointed African Americans to policy making posts

• FDR seemed genuinely concerned about the fate of African Americans

Led to strong support for FDR from

African Americans

Does too much

The rich were taxed- based on income and price of house

Claimed in penalized successful, hardworking people

American Liberty League- Led by Alfred

E Smith

• Said New Deal limited individual freedom in an

“un-American” manner

Often called it “bolshevism”

Does not do enough

Upton Sinclair believed US was in a

“permanent crisis”

• Entire economic system needed to be reformed

Ran for governor of California

 Lost- was painted as a socialist and associated with communism

Father Coughlin

Called himself the “radio priest” and had a huge following in Detroit

Advocated the nationalization (government ownership of banks and redistribution of wealth) of government

Supported FDR and the New Deal but later denounced him on the radio and National Union for Social Justice

 Called FDR “Franklin ‘Double-crossing’ Roosevelt” and great betrayer and liar

Began to issue anti-Jewish statements and praised Hitler and Mussolini

 People became alarmed and he was ordered to stop his radio show

Huey Long

Lawyer and grew up in southern poverty

Never used racial attacks to build power

Worked to help underprivileged by improving education, medical care, and public services

Wanted to redistribute wealth by Share-Our-Wealth

 Personal income could not exceed 1 million

 Inheritance could not exceed 5 million

 The money taken would go to make sure all families had a minimum $5,000 household estate and minimum annual income of $2,500

Also wanted shorter working hours, more veteran benefits, payments for education, and pensions for the elderly

Some people believe the New Deal actually hindered economic progress

Was too powerful of a federal government

Hurt the idea of a free market economy

Used heavy taxes

Use of deficit spending

- spending more money than what the government receives in revenues

FDR wanted to appoint 6 new Supreme

Court Judges

There was strong opposition to this because people thought he just wanted to appoint judges who would side with him

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