THE NEW DEAL FIGHTS THE DEPRESSION MAIN IDEA AND OBJECTIVES Main Idea - After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression After this section, we should be able to: Summarize the initial steps Roosevelt took to reform banking and finance Describe New Deal work programs FRANKLIN DELANO ROOSEVELT Republicans knew that President Hoover wasn’t going to win re-election – too many people blamed him for problems Democrats nominated Franklin Delano Roosevelt Can-do attitude Air of friendliness and confidence Roosevelt won election of 1932 easily ROOSEVELT TAKES OVER During the waiting period between his election and inauguration, FDR collected a group of advisers known as his “Brain Trust” to formulate policies for his presidency Roosevelt proposed a new set of policies to alleviate the problems of the Depression programs would be known as the New Deal THE FIRST 100 DAYS In his first 100 days as president, FDR helped Congress pass 15 major pieces of his plan By 1933, many Americans had lost faith in the banking system – FDR wanted to restore that Emergency Banking Relief Act authorized Treasury Department to inspect banks and let them re-open if they were sound FIRESIDE CHATS FDR started giving fireside chats radio addresses, to help restore people’s confidence FDR spoke in clear, simple language to explain the problems with the banks Banks didn’t hold all the money in cash People should not lose confidence in the banks because of this Over the next few weeks, people began to return their money to the banks OTHER BANKING AND FINANCE CHANGES Glass-Steagall Act established the Federal Deposit Insurance Corporation (FDIC) government would insure accounts of up to $5,000 Securities and Exchange Commission (SEC) regulate stock market FDR also persuaded Congress to allow the sale of some alcoholic beverages Goal was to raise money through taxes HELPING AMERICANS - RURAL ASSISTANCE Agricultural Adjustment Act paid farmers to grow less produce and lower the supply Farmers plowed under acres of crops or destroyed other produce Many people angered by the destruction of food when many Americans were starving However, it helped raise farm prices and put more money in farmers’ pockets PROVIDING WORK Civilian Conservation Corps put young men to work building roads, parks, planting trees, etc. Public Works Administration (created as part of the National Industrial Recovery Act) gave states money to create jobs in construction of schools and other community buildings FOOD, SHELTER, AND CLOTHING The Home Owners Loan Corporation provided government loans to homeowners who faced foreclosure Federal Housing Administration still helps people get loans for home mortgages and repairs today Federal Emergency Relief Administration provided direct relief to the needy THE SECOND NEW DEAL By 1935, the first New Deal programs had improved the economy, but not as much as FDR had hoped Unemployment still high Production still lagged behind 1920 levels First New Deal had been very popular Election of 1936 was a landslide victory for FDR ROOSEVELT EXTENDS RELIEF Works Progress Administration set out to create jobs for youths, professionals, and other workers Used $11 billion to create jobs for more than 8 million workers Built 850 airports, constructed or repaired 651,000 miles of roads and streets, and put up more than 125,000 public buildings Many women worked in sewing groups to create clothes for the needy Helped restore dignity for a lot of people – they worked, they got paid ROOSEVELT EXTENDS RELIEF (PART II) National Youth Administration created to provide education, jobs, counseling, and recreation for young people Provided aid to high school, college, and graduate students In exchange, students worked at part time jobs at their schools IMPROVING LABOR AND OTHER REFORMS National Labor Relations Act or Wagner Act – reestablished the right for unions to engage in collective bargaining with employers They could discuss new contracts with their employers together Employers couldn’t threaten workers, fire union members, or interfere with unions LABOR (CONTINUED) Fair Labor Standards Act (1938) Set maximum work hours at 44 per week, decreasing to 40 after two years Set minimum wage at 25 cents per hour, increasing to 40 by 1945 Set rules for employment of people under 16 and banned hazardous work for anyone under 18 SOCIAL SECURITY ACT Social Security Act (1935) created the social security system Old-age insurance for retirees 65 years and older and their spouses Unemployment compensation system Aid to families with dependent children and the disabled Provided substantial benefits to many Americans