The New Deal

“We are at the end of our string. There is nothing more we can do.” - Herbert Hoover as a Lame Duck President

Hoover believed the promise of a “New Deal” with both socialistic and fascistic; it would lead the country on a “march to Moscow”.

Relief
* Focused on providing relief to those suffering from unemployment and homelessness.
* Attempts to put as many Americans back to work ASAP.
Recovery
* Focused on agricultural and industrial recovery.
* Attempted to stimulate the economy by increasing production and supporting workers.
Reform
* Focused on reforming the financial system of the USA

FDR was known for his “can do” attitude
He believed in the value of ideas (pragmatism)- there was no idea he wouldn’t try.
* If the idea worked, AWESOME…if not, put it in the “tried it” column and move on, but keep trying!
* Taking action- the world is changing so actions need to change too.
Created the Brain Trust
* A group of professionals organized to advise the President
* Professors of psychology, economists, etc.

2 days after taking office, FDR declared a bank holiday & closed all banks to prevent further withdrawals (March 6-13, 1933)
Emergency Banking Relief Act (3/1933): Banks would be inspected, only financially sound banks would reopen.
* Renewed confidence in banks

Weekly radio addresses made by FDR addressing public concerns, in plain English, about the New Deal
FDR seemed to personally connect with his audience
1st Chat: Explained banking system to nation, next day people began to deposit their money back in banks

Wins in a landslide election victory
Focus of the Second New Deal: Provide more extensive relief for both farmers and workers
Eleanor Roosevelt (First Lady)- traveled the country, observing social conditions
* Advocated for additional women’s, African American, and minority rights

Agricultural Adjustment Act (AAA)- paid farmers for cutting production of soil-depleting crops and rewarded farmers for practicing good soil conservation methods.
* Brought back in the 2nd New Deal without the provision that was declared unconstitutional.
Farm Security Administration (FSA)- aimed to assist tenant farmers and hired photographers and journalists to share their stories with the nation.

Works Progress Administration (WPA)
* Provided the unemployed with jobs in construction garment making, teaching, the arts, and other fields.
* WPA made special efforts to help women, minorities, and young people.
National Youth Administration (NYA)
* Provided young Americans with aid and employment during the Great Depression.
* Provided scholarships to students as well as part time jobs inside and outside of education to assist in paying for their schooling.

Court struck down the NIRA in 1935 as unconstitutional and did the same with the AAA in 1936.
1937, FDR tried to get Congress to pass the Court Reform Bill which would allow him to put 6 more justices in the Supreme Court (total of 15).
* That year FDR was able to appoint a liberal justice, Hugo Black, that shifted the Court to favor more of the New Deal policies and the Court Reform Bill and died in the Senate.
* FDR would appoint 7 new justices as President.

National Labor Relations Act (Wagner Act)- The federal government again protected the rights of workers to join unions and engage in collective bargaining with employers.
* The protection that labor unions gained from the Wagner Act helped them to grow quickly.
Social Security Act- provided aid to retirees, the unemployed, people with disabilities, and families with dependent children.

Secretary of Labor (Frances Perkins) became America’s first female cabinet member.
* Played a major role in creating the Social Security system and supervised labor legislation.
Roosevelt’s “Black Cabinet”- influential African Americans to advise the Roosevelt administration on racial issues.

Federal Deposit and Insurance Corporation (FDIC)
* Monitors the stock market and enforces laws regulating the sale of stocks and bonds.
Securities and Exchange Commission (SEC)
* Insured individuals’ bank accounts, protecting people against losses due to bank failures.
National Labor Relations Board (NLRB)
* Prevents unfair labor practices and to mediate disputes between workers and management.
Tennessee Valley Authority (TVA)
* Constructed dams and power plants in the Tennessee Valley region to generate electricity as well as to prevent floods.

Thought the New Deal provided relief, reform, and recovery for many Americans, it did not end the Great Depression.
President Roosevelt faced rising pressure from Congress to scale back New Deal programs and cut back on spending by the end of the decade.
World War II will eventually bring the US and the world out of the Great Depression.