Chapter Menu

1
Chapter Menu
Chapter Introduction Section 1 The First New
Deal Section 2 The Second New Deal Section
3 The New Deal Coalition Visual Summary
2
Chapter Intro

• Can Government Fix the Economy?
• During the 1930s, New Deal programs increased
  government regulation of banking, industry, and
  farming gave greater rights to workers and
  provided government aid to the unemployed and
  senior citizens.
• What kind of problems do you think government
  can solve?
• What difficulties can result when the
  government tries to regulate the economy?

3
Chapter Timeline
4
Chapter Timeline
5
Chapter Intro 1
The First New Deal In what areas did the New Deal
attempt to make major economic improvements?
6
Chapter Intro 2
The Second New Deal How did the Second New Deal
assist unions, the elderly, and the unemployed?
7
Chapter Intro 3
The New Deal Coalition What was the legacy of the
New Deal?
8
Section 1
Roosevelts Rise to Power
Franklin D. Roosevelt was governor of New York
when he was elected president in 1932, promising
a New Deal for the American people.
9
Section 1
Roosevelts Rise to Power (cont.)

• After losing the 1920 election as the Democratic
  vice presidential candidate, Franklin Delano
  Roosevelt temporarily withdrew from politics.

• The next year he caught polio, but refused to
  give in.
• In 1928, Roosevelt ran for governor of New York.
• He won the election and oversaw the creation of
  the first state relief agency to aid the
  unemployed.

10
Section 1
Roosevelts Rise to Power (cont.)

• Roosevelts popularity in New York paved the way
  for his presidential nomination in 1932.

• His policies for ending the Depression became
  known as the New Deal.
• On election day, Roosevelt beat Herbert Hoover in
  a landslide.

11
Section 1
The Hundred Days
Upon taking office, FDR launched the New Deal by
sending 15 major pieces of legislation to
Congress.
12
Section 1
The Hundred Days (cont.)

• Although Roosevelt won the presidency in November
  1932, the countrys unemployed and homeless had
  to endure another winter as they waited for his
  inauguration.

• Some of the bank runs occurred because people
  feared that Roosevelt would abandon the gold
  standard and reduce the value of the dollar in
  order to fight the Depression.
• In 38 states, governors declared bank holidays to
  save the remaining banks.

13
Section 1
The Hundred Days (cont.)

• By the day of Roosevelts inauguration, most of
  the nations banks were closed.

• One in four workers was unemployed.

• Between March 9 and June 16, 1933which came to
  be called the Hundred DaysCongress passed 15
  major acts to resolve the economic crisis.

• These programs made up what would later be called
  the First New Deal.

14
Section 1
The Hundred Days (cont.)

• To generate new ideas and programs, Roosevelt
  deliberately chose advisers who disagreed with
  each other.

• One group during the early years of his
  administration supported the New Nationalism of
  Theodore Roosevelt.
• A second group wanted government planners to run
  key parts of the economy.
• A third group supported the New Freedom of
  Woodrow Wilson.

15
Section 1
Banks and Debt Relief
President Roosevelt took steps to strengthen
banks and the stock market and to help farmers
and homeowners keep their property.
16
Section 1
Banks and Debt Relief (cont.)

• Roosevelt knew the first thing he had to do was
  restore confidence in the banking system.

• The House of Representatives unanimously passed
  the Emergency Banking Relief Act after only 38
  minutes of debate.
• On March 12, sixty million people listened to the
  first of many of Roosevelts fireside chats.

17
Section 1
Banks and Debt Relief (cont.)

• He assured people that their money was safe in
  banks, and the next day, deposits far outweighed
  withdrawals.

• Roosevelt listened to his advisers and supported
  the Securities Act of 1933 and the Glass-Steagall
  Banking Act.

• Congress also created the Securities and Exchange
  Commission (SEC) to regulate the stock market and
  prevent fraud.

The First Hundred Days
18
Section 1
Banks and Debt Relief (cont.)

• The Glass-Steagall Act created the Federal
  Deposit Insurance Corporation (FDIC) to provide
  government insurance for bank deposits up to a
  certain amount.

• To help homeowners make their mortgage payments,
  Roosevelt asked Congress to establish the Home
  Owners Loan Corporation (HOLC).

The First Hundred Days
19
Section 1
Banks and Debt Relief (cont.)

• Congress also authorized the Farm Credit
  Administration (FCA) to help farmers refinance
  their mortgages.

The First Hundred Days
20
Section 1
Farms and Industry
New Deal legislation tried to raise crop prices
and stabilize industry.
21
Section 1
Farms and Industry (cont.)

• To further help the nations farmers, Secretary
  of Agriculture Henry Wallace drafted the
  Agricultural Adjustment Act.

• Administered by the Agricultural Adjustment
  Administration (AAA), the government paid farmers
  not to raise certain livestock, not to grow
  certain crops, and not to produce dairy products.
• The plan worked, but did not benefit everyone,
  especially tenant farmers.

The TVA, 1940
22
Section 1
Farms and Industry (cont.)

• The government turned its attention to
  manufacturing in June 1933, when Roosevelt and
  Congress enacted the National Industrial Recovery
  Act (NIRA).

• Under the leadership of Hugh Johnson, the
  National Recovery Administration (NRA) ran the
  entire program.
• By the time the Supreme Court declared the NRA
  unconstitutional in 1935, it had already lost
  much of its political support.

The TVA, 1940
23
Section 1
Relief Programs
Programs such as the CCC, the PWA, and the WPA
provided jobs for some unemployed workers.
24
Section 1
Relief Programs (cont.)

• The most highly praised New Deal work relief
  program was the Civilian Conservation Corps (CCC).

• The CCC offered unemployed young men 18 to 25
  years old the opportunity to work under the
  direction of the forestry service planting trees,
  fighting forest fires, and building reservoirs.

25
Section 1
Relief Programs (cont.)

• Congress also established the Federal Emergency
  Relief Administration (FERA), led by Harry
  Hopkins.

• In June 1933 Congress authorized another relief
  agency, the Public Works Administration (PWA)
  which put civilians to work on government-funded
  construction projects.

26
Section 1
Relief Programs (cont.)

• Roosevelt authorized Hopkins to set up the Civil
  Works Administration (CWA), since FERA and the
  PWA werent reducing unemployment significantly.

• The agency did provide jobs through the winter,
  but Roosevelt insisted that it be shut down the
  following spring due to the large amount of money
  the agency spent.

27
Section 1
Relief Programs (cont.)

• Perhaps the most important result of the first
  New Deal was a noticeable change in the spirit of
  the American people.

• Roosevelts actions had inspired hope and
  restored Americans faith in their nation.

28
Section 1
Which of the following did the Civil Works
Administration build or improve? A. Airports
B. Roads C. Playgrounds D. Schools E. All of the
above

1. A
2. B
3. C
4. D
5. E

29
Section 2
Launching the Second New Deal
By 1935, the New Deal faced political and legal
challenges, as well as growing concern that it
was not ending the Depression.
30
Section 2
Launching the Second New Deal (cont.)

• Although New Deal programs had created more than
  2 million new jobs, more than 10 million workers
  remained unemployed, and the nations total
  income was about half of what it had been in 1929.

• Hostility toward Roosevelt came from both the
  political right and the left.
• To pay for his programs, Roosevelt had started
  deficit spending, and many business leaders
  became greatly alarmed at the governments
  growing deficit.

31
Section 2
Launching the Second New Deal (cont.)

• In August 1934 business leaders and anti-New Deal
  politicians from both parties joined together to
  create the American Liberty League.

• Three people who challenged Roosevelt were

• Huey Long
• Father Coughlin
• Francis Townsend

32
Section 2
Launching the Second New Deal (cont.)

• In 1935 Roosevelt launched a series of programs
  now known as the Second New Deal.

• Among these new programs was the Works Progress
  Administration (WPA), headed by Harry Hopkins.
• The WPAs most controversial program was Federal
  Number One, a program for artists, musicians,
  theater people, and writers.

33
Section 2
Launching the Second New Deal (cont.)

• In May 1935, in Schechter Poultry Company v.
  United States, the Supreme Court unanimously
  struck down the authority of the NRA.

• Roosevelt feared that the Court would strike down
  the rest of the New Deal and told Congress that
  they could not go home until they passed his new
  bills.

34
Section 2
Reforms for Workers and the Elderly
Roosevelt asked Congress to pass the Wagner Act
and Social Security to build support among
workers and older Americans.
35
Section 2
Reforms for Workers and the Elderly (cont.)

• In July 1935 Congress passed the National Labor
  Relations Act (also called the Wagner Act), which
  guaranteed workers the right to organize unions
  and to bargain collectively.

• Congress also set up the National Labor Relations
  Board (NLRB).
• The Wagner Act set up a process called binding
  arbitration.

36
Section 2
Reforms for Workers and the Elderly (cont.)

• The Committee for Industrial Organization (CIO)
  set out to organize unions that included all
  workers, skilled and unskilled, in a particular
  industry.

• Union organizers used new tactics, such as the
  sit-down strike.
• By using a sit-down strike, the United Auto
  Workers (UAW) became one of the most powerful
  unions in the U.S.

Union Membership, 19331940
37
Section 2
Reforms for Workers and the Elderly (cont.)

• In 1938 the CIO changed its name to the Congress
  of Industrial Organizations and became a
  federation of industrial unions.

• After passing the Wagner Act, Congress began work
  on one of Americas most important pieces of
  legislationthe Social Security Act.

• Although Social Security helped many people, it
  initially left out many of the neediestfarm and
  domestic workers.

38
Section 2
Reforms for Workers and the Elderly (cont.)

• Social Security did establish the principle that
  the federal government should be responsible for
  those who, through no fault of their own, were
  unable to work.

39
Section 3
Roosevelts Second Term
Roosevelt was easily reelected, but the New Deal
lost momentum during his second term due to his
court-packing plan and a new recession.
40
Section 3
Roosevelts Second Term (cont.)

• Since the Civil War, African Americans had been
  reliable Republican voters.

• However, in the 1930s, they became just one part
  of a new Democratic coalition that included
  farmers, industrial workers, African Americans,
  new immigrants, ethnic minorities, women,
  progressives, and intellectuals.

41
Section 3
Roosevelts Second Term (cont.)

• African Americans and women made some modest
  gains during the New Deal.

• The president appointed several African Americans
  to positions in his administration, where they
  informally became known as the Black Cabinet.
• FDR appointed the first woman to a cabinet post,
  Secretary of Labor Frances Perkins, and appointed
  many other women to lower-level posts.

42
Section 3
Roosevelts Second Term (cont.)

• In the election of 1936 the Republicans nominated
  Alfred Landon.

• Roosevelt swept to victory in one of the largest
  landslides in American history

• Although many people supported the New Deal, the
  Supreme Court saw things differently.

• In March 1937 Roosevelt sent Congress a bill to
  increase the number of justices.

43
Section 3
Roosevelts Second Term (cont.)

• The court-packing plan, as the press called it,
  was FDRs first serious political mistake.

• The Senate quietly killed the bill without
  bringing it to a vote.
• Roosevelt still achieved his goal of changing the
  Courts view of the New Deal.

44
Section 3
Roosevelts Second Term (cont.)

• In 1937 Roosevelts reputation again suffered
  when unemployment suddenly surged.

• The recession of 1937 led to a debate inside
  Roosevelts administration.
• Treasury Secretary Henry Morgenthau favored
  balancing the budget and cutting spending.

45
Section 3
Roosevelts Second Term (cont.)

• Harry Hopkins, head of the WPA, and Harold Ickes,
  head of the PWA, pushed for more government
  spending using a new theory called Keynesianism
  to support their arguments.

• Keynesianism was based on the theories of an
  influential British economist named John Maynard
  Keynes.

46
Section 3
Roosevelts Second Term (cont.)

• According to Keynesian economics, FDR had done
  the wrong thing when he cut back programs in 1937.

• Finally, in the spring of 1938, with no recovery
  in sight, Roosevelt asked Congress for money for
  the PWA, the WPA, and other programs.

47
Section 3
First Lady Eleanor Roosevelt demonstrated strong
sympathies toward which group? A. Native
Americans B. Unskilled workers C. African
Americans D. Immigrants

1. A
2. B
3. C
4. D

48
Section 3
The New Deal Ends
The New Deal expanded federal power over the
economy and established a social safety net.
49
Section 3
The New Deal Ends (cont.)

• One of the presidents goals for his second term
  was to provide better housing for the nations
  poor.

• He responded with the National Housing Act,
  establishing the United States Housing Authority.

• He also sought to help the nations tenant
  farmers.

What New Deal Programs Still Exist Today?
50
Section 3
The New Deal Ends (cont.)

• Congress created the Farm Security Administration
  to give loans to tenants so they could purchase
  farms.

• The Fair Labor Standards Act was the last major
  piece of New Deal legislation.

• By 1939, the New Deal era had come to an end.

What New Deal Programs Still Exist Today?
51
Section 3
The New Deal Ends (cont.)

• The New Deal had only limited success in ending
  the Depression.

• As a whole, the New Deal tended to balance
  competing economic interests.

• In taking on a mediating role, the New Deal
  established what some have called the broker
  state.

• This role has continued under the administrations
  of both parties ever since.

What New Deal Programs Still Exist Today?
52
Section 3
The New Deal Ends (cont.)

• FDRs programs also succeeded in creating a
  safety net for Americans.

• By the end of the 1930s, many Americans felt that
  the government had a duty to maintain this safety
  net, even though doing so required a larger, more
  expensive federal government.

What New Deal Programs Still Exist Today?
53
VS 1
Banking and Finances

• Emergency Banking Relief Act regulated banks.
• Federal Deposit Insurance Corporation insured
  bank deposits.
• Farm Credit Administration refinanced farm
  mortgages.
• Home Owners Loan Corporation financed
  homeowners mortgages.

54
VS 2
Agriculture and Industry

• Agricultural Adjustment Administration paid
  farmers to limit surplus production.
• National Industrial Recovery Act limited
  industrial production and set prices.
• National Labor Relations Act gave workers the
  right to organize unions and bargain
  collectively.
• Tennessee Valley Authority financed rural
  electrification and helped develop the economy of
  a seven-state region.

55
VS 3
Work and Relief

• Civilian Conservation Corps created forestry
  jobs for young men.
• Federal Emergency Relief Administration funded
  city and state relief programs.
• Public Works Administration created work
  programs to build public projects, such as roads,
  bridges, and schools.

56
VS 4
Social Safety Net

• Social Security Act provided
• income for senior citizens, handicapped, and
  unemployed
• monthly retirement benefit for people over 65

57
Figure 1A
58
Figure 1B
59
Figure 2
60
Figure 3
61
Figure 4
62
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Vocab1
polio abbreviated form of poliomyelitis, an
acute infectious disease affecting the skeletal
muscles, often resulting in permanent disability
and deformity
70
Vocab2
gold standard a monetary standard in which one
ounce of gold equals a set number of dollars
71
Vocab3
bank holiday closing of banks during the Great
Depression to avoid bank runs
72
Vocab4
fireside chats radio broadcasts made by FDR to
the American people to explain his initiatives
73
Vocab5
apparent appearing to be fact as far as can be
understood
74
Vocab6
ideology a system of thought that is held by an
individual, group, or culture
75
Vocab7
fundamental being of central importance
76
Vocab8
deficit spending government practice of spending
borrowed money rather than raising taxes, usually
in an attempt to boost the economy
77
Vocab9
binding arbitration process whereby a neutral
party hears arguments from two opposing sides and
makes a decision that both must accept
78
Vocab10
sit-down strike method of boycotting work by
sitting down at work and refusing to leave the
establishment
79
Vocab11
benefit to be useful or profitable
80
Vocab12
finance to provide money for a project
81
Vocab13
thereby by that means
82
Vocab14
court-packing the act of changing the political
balance of power in a nations judiciary system
whereby a national leader, such as the American
president, appoints judges who will rule in favor
of his or her policies
83
Vocab15
broker state role of the government to work out
conflicts among competing interest groups
84
Vocab16
safety net something that provides security
against misfortune specifically, government
relief programs intended to protect against
economic disaster
85
Vocab17
recovery an economic upturn, as after a
depression
86
Vocab18
mediate an attempt to resolve conflict between
hostile people or groups
87
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