Chapter 33 American Pageant

Election of 1932

Democrat Franklin D. Roosevelt, beat the Republican, Herbert Hoover, who was running for reelection. FDR promised relief for the unemployed, help for farmers, and a balanced budget.

1st women in presidential Cabinet

Frances Perkins, secretary of labor

New Deal

A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression.

It was willing to experiment.

Characterized by the Three RRRs

Relief, Recovery, Reform

Alphabet Agencies

In 1933 President Franklin D. Roosevelt launched his New Deal to deal with the Great Depression. The administrative style was to create new agencies. Some were set up by Congress (such as TVA) and others by Roosevelt's Executive Order (such as WPA). The agencies were also referred to as "alphabet soup".FIB,CIA,EPA,etc.

Fireside Chats

informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people

Bank Holiday 1933

FDR declared that all banks were to be closed on March 6, 1933. A few days later he allowed the reopening of economically sound banks.

Emergency Banking Relief Act

(FDR) 1933 , gave the President power over the banking system and set up a system by which banks would be reorganized or reopened., HUNDRED DAYS STARTS

Glass-Steagall Act

the 1933 law that established the Federal Deposit Insurance Corporation to protect individuals' bank accounts

Up to 2,500$ would be insured in Bank deposits. (FDR) 1933 , gave the President power over the banking system and set up a system by which banks would be reorganized or reopened., HUNDRED DAYS STARTS

Securities and Exchange Commission

monitors the stock market and enforces laws regulating the sale of stocks and bonds

Relief

In 1933, _________ were unemployed

25%

Federal Emergency Relief Act

The Act was the first direct-relief operation under the New Deal, and was headed by Harry L. Hopkins, a New York social worker who was one of Franklin D. Roosevelt's most influential advisers , law provided money for food and other necessities for the unemployed Affected the people in trying to aid people feeling the effects of the depression, still in effect today

Relief

Civilian Conservation Corps (CCC)

New Deal program that hired unemployed men to work on natural conservation projects

Relief

Public Works Administration (PWA)

New Deal Project that gave federal money to state and local governments to help construction workers get jobs doing public projects (highways, bridges, sewers)

Relief

National Recovery Act

A New Deal legislation that focused on the employment of the unemployed and the regulation of unfair business ethics. The NIRA pumped cash into the economy to stimulate the job market and created codes that businesses were to follow to maintain the ideal of fair competition and created the NRA.

They set production limits

Set codes for wages and hours worked

Allowed Unions

Agricultural Adjustment Act

Forced Farmers to cut production so that they could raise their prices. The government paid them to compensate for this.

Dust Bowl

A nickname for the Great Plains regions hit by drought and dust storms in the early 1930s

Caused by overuse of the land and high winds

Thousands of people from Oklahoma fled to California looking for work

Tennessee Valley Authority

New Deal program that built dams to control flooding and produce cheap electric power

Second New Deal, 1935

Began in 1935 after the midterm congressional elections in 1934 which further expanded Democratic majorities in Congress thus giving FDR a mandate to go further with the New Deal. Created Works Progress Administration which put over 3 million people to work paid by the government among many other programs. Most important legacies: Social Security & Wagner Act

This one goes further with reform and direct relief

Workers Progress Administration (WPA)

employed unemployed workers; unskilled workers; artists; professionals; women workers; minority workers; and young workers.

Spent billions of dollars employing millions of unemployed.

Resettlement Administration (RA)

1935- provided loans to sharecroppers, tenant farmers and small farmers

Social Security Act of 1935

Provided old-age pension (retirement), and a program of unemployment insurance (temporary aid to help people who lose jobs to find a new job), and federal welfare program (aid for very poor). Most famous and important legacy of New Deal. Has resulted (along with Medicare) with drastic reduction in poverty among elderly in the US

National Labor Relations Act

A 1935 law, also known as the Wagner Act

guarantees workers the right of collective bargaining

sets down rules to protect unions and organizers

created the National Labor Relations Board to regulate labor managment relations and enforce labor laws

Challenges to the New Deal

The supreme court overturned many new deal programs as unconstitutional

Conservatives and business owners tended to dislike FDR

- They did not like government regulation or the increasing size of the government.

- Critical of deficit spending

Liberal Critics:

- Felt that New Deal programs were not doing enough for minority communities or the poor

Various demagogues challenge FDR and the New Deal

Court Packing Plan

Supreme Court ruled two kew New Deal Programs unconstitutional:

- National Recovery Act

- Agricultural Adjustment Act

For every judge over the age of 70, Roosevelt would be able to appoint an additional judge.

Both Democrats and Republicans see this as an abuse of Checks and Balances

Impact of the New Deal

Established that the federal government will actively intervene to fix economic problems

New Deal Democratic Coalition of farmers

New Deal does not end the depression, WW2 does

Continued debate over deficit spending and the welfare state

Theres a recession in 1937. Reduced Government spending on public works and relief programs

Keynesian economics- Government spendings help promote economic growth

Limited impact on gender and race issues. FDR did not want to loose support of racists and sexists.