The New Deal

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The New Deal

• Chapter 13

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Chapter 13Sections 1 2

• FDR wins the 1932 election
• -Takes office on March 4, 1933
• -Creates a plan called The New Deal
• -FDRs plan to fix the Depression
• -Promised drastic changes
• -Major changes come in 1st Hundred Days
• -March June 1933

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Franklin Delano Roosevelt
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Fixing the Banks

• -FDRs 1st step was to fix the banks
• -March 5, 1933, FDR orders all the banks in the
  U.S. to close
• -Passes the Emergency Bank Act
• -Govt. inspects banks to see how to fix them
• -2/3 of banks re-open by March 15
• -Becomes known as the Bank Holiday
• -When banks re-open, deposits far out weigh
  withdrawals
• -FDRs final step in giving confidence back to
  the banks was to create the Federal Deposit
  Insurance Corp.
• -FDIC
• -Insures your money in the bank up to 5000 in
  1933
• -Today it is 100,000

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Helping Business

• -FDR creates the National Industry Recovery Act
• -NIRA
• -Controlled industry prices
• -Next creates the National Recovery
  Administration
• -NRA
• -Created industry wide rules
• -Set wages
• -Rules for safe working conditions
• -Set prices for goods
• -NIRA also put people to work
• -NIRA creates the Public Works Administration
  PWA
• -Build the Grand Coulee Dam Wa.
• -Built Triboro Bridge NYC
• -Built bridge connecting Florida Keys

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Grand Coulee Dam
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Triboro Bridge
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Florida Keys Causeway
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Helping the Stock Market

• -1933 FDR passes the Federal Securities Act
• -Companies must report to stockholders how the
  business is doing
• -Next creates Securities and Exchange Commission
• -SEC
• -Regulate the stock market
• -Finally creates Federal Reserve Board
• -Regulating buying stocks
• -Controls interest rates today

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Saving Farms and Homes

• -Many Americans lost their homes and farms b/c of
  Depression
• -Others were about to lose them
• -FDR creates the Home Owners Loan Corp. HOLC
• -Reshaped mortgages to allow people to keep or
  re-buy their homes
• -Also saved farms by creating Agricultural
  Adjustment Administration
• -AAA
• -Helped raise farm prices
• -Paid farmers not to grow certain crops
• -Finally creates the Tennessee Valley Authority
• -TVA
• -Public works program
• -Hired thousands to create hydroelectric power
  plants
• -Built flood control and dams
• -Mostly in Tennessee River valley

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TVA
TVA Area
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TVA dam building
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TVA hydroelectric power plant
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Creating Jobs

• -FDR needed to help Americans get jobs
• -Creates the Federal Emergency Relief
  Administration
• -FERA
• -Gives money to local agencies to help poor and
  unemployed
• -Next creates Public Works Programs
• -Govt. funded jobs to build public facilities
• -1st program was created called the Civil Works
  Administration
• -CWA created November 1933
• -Hires 4 million Americans
• -Build parks and airports
• -2nd program was the Civilian Conservation Corps
• -CCC
• -2.5 million hired
• -Restore and maintain forests, beaches and parks
• -Earned 1 per day but lived for free
• -Sent money home to workers families

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The Second New Deal

• -The New Deal progress slowed late in 1930s
• -Many began to criticize it as too Communist
• -Supreme Court rules NIRA unconstitutional
• -Also says AAA unconstitutional
• -FDR needed a new plan
• -Called 2nd New Deal

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5 Major Parts of 2nd New Deal

• 1. Wagner Act
• -Granted workers and unions rights
• 2. National Labor Relations Board
• -Used to enforce Wagner Act
• -Middleman between unions and business
• 3. Fair Labor Standards Act
• -Outlawed child labor
• -Set minimum wages
• 4. Works Progress Administration
• -Hires 8 million
• -Build playgrounds, schools, hospitals
• -Built Lookout
• 5. Social Security System
• -Monthly pension for elderly
• -Covered workers spouses once they reached 65
• -Aid to children, blind, physically handicapped

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Unions

• Union membership rose dramatically in 1930s
• Mainly b/c workers rights were protected by
  Wagner Act
• 2 new unions emerge in 1930s
• American Federation of Labor AFL
• Congress of Industrial Organization CIO
• These two unions join a Coalition
• -Alliance
• Called the AFL-CIO
• Led by John L. Lewis

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• -Unions used Wagner Act to gain more rights
• -Began using Sit Down Strikes
• -Workers stop doing their jobs, but refuse to
  leave worksite
• -Prevented owners from using Scabs
• -Substitute workers
• -1st sit down strike is in Akron, Ohio at tire
  plants in 1936
• -Later spread to GM plants in Michigan
• -In 1939, the Supreme Court rules sit down
  strikes illegal

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New Deal Culture

• -3 parts of American life grow during New Deal
• 1. Literature
• The Grapes of Wrath -John Steinbeck
• The Good Earth Pearl S. Buck
• 2. Radio
• A. George Burns
• B. Jack Benny
• 3. Movies
• Mr. Smith Goes to Washington
• -Jimmy Stewart
• Monkey Business Duck Soup
• -Marx Brothers
• Snow White The 7 Dwarfs
• -Walt Disney
• The Wizard of Oz
• -Judy Garland

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The Grapes of Wrath
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The Good Earth
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George Burns and Jack Benny
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