Unit 8D: The New Deal

Key Points

• Deficit Spending

• New Deal

• Bank Holiday

• Fireside Chats

• First Lady Eleanor Roosevelt

• New Deal 3 R’s (Relief, Recovery, Reform)

• The Civilian Conservation Corps (CCC)

• Public Works Administration (PWA)

• Securities and Exchange Commission (SEC)

• The Federal Deposit Insurance Corporation (FDIC)

• The Tennessee Valley Authority (TVA)

• The Agricultural Adjustment Act (AAA)

• Works Progress Administration (WPA)

• Social Security Act

• Wagner Act

• AAA and NRA were declared unconstitutional

Notes

• FDR believed the gov’t should use deficit spending (spending that causes debt) to stimulate the economy

• In his first 100 days in office, FDR and Congress passed a broad platform of legislation to attack the depression called the “New Deal”

• FDR declared a four-day “bank holiday”

  • only healthy banks could reopen after bank holiday

• FDR used “Fireside Chats” to help people regain trust in the banks

• First Lady Eleanor Roosevelt served as FDR’s “legs and eyes” and changes the role of the first lady

• The New Deal Focused on the three R’s

  • Relief

    • Relief checks and job programs to lower unemployment

  • Recovery

    • Programs to stimulate agriculture, industry, and the economy to end the depression

  • Reform

    • Programs to correct problems in the economy and prevent future depressions

• The Greatest success of the New Deal was its ability to offer relief to unemployed citizens with unemployment checks and job programs

• The Government helped relieve unemployment by creating jobs

  • The Civilian Conservation Corps (CCC) was a work program for young men aged 18-25 years old

  • The Public Works Administration (PWA) hired 2 million to build airports, dams, schools, hospitals, and parks.

• The New Deal created long-term reforms to address weaknesses in the American economy and address the causes of the great depression

  • Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent another crash

  • The Federal Deposit Insurance Corporation (FDIC) was created to guarantee customer bank accounts an restore public confidence in banks

  • The Tennessee Valley Authority (TVA) was created to bring electricity to the South and create jobs

  • The Agricultural Adjustment Act (AAA) was created to help farmers and stimulate agricultural

  • The National Recovery Administration (NRA) was created to stimulate industry

• From 1933 to 1935, FDR’s New Deal programs helped lower unemployment and restored hope, but the great depression had not come to an end

• The most vocal critic was Louisiana Senator Huey Long

• In 1935, FDR began an aggressive series of laws called the second new deal

• the most ambitious works program was the Works Progress Administration (WPA)

  • The WPA was created to provide as many as 10 million jobs for men, women, and youths

• To combat poverty among the elderly and disabled, congress created the social security act

• One of the most important reforms on the new deal was the Wagner Act

• The law protected workers right to strike and collectively bargain

• om 1936, FDR was re-elected

• By 1937, President Roosevelt faced criticisms that the NEw deal was too expensive, did not eliminate unemployment, or end the depression

• The new deal was not stimulating the economy to end the great depression

• AAA and NRA were declared unconstitutional

• after 1938, Congress focused on trying to control spending and did not pass anymore New Deal Laws

• For the first time, the gov’t used deficit spending and created welfare programs to help groups in need

Dates

• 1933-1935 - Second New Deal

• 1936 - FDR Re-elected

• 1937 - New Deal faced criticism

• 1938 - New Deal ends

Vocab

• Deficit Spending - spending that causes debt