Download The New Deal, Court Packing, and the 1930s

A New Deal for America
Welcome, FDR!
• FDR is inaugurated on
March 4, 1933
• “The nation asks for
action and action now.”
• FDR had campaigned
with the promise of
“bold, persistent
experimentation” to
solve the issues of the
Depression
Initial push is for Relief and Recovery…
• Relief – relieve the stresses of the
Depression and the Dust Bowl for the
American People
• Recovery – help the economy recover
• Reform – reform the economy and
government to ensure that the
circumstances could never be repeated.
Mostly focused on in the Second New
Deal (1935-36).
“The First 100 Days”
• March-June 1933
• FDR gathers together his “Brain Trust” of
economic advisors
• Staff is instructed to “Take a method and
try it. If it fails, try another. But above all,
try something.”
• FDR calls Congress into emergency
session and launches a record 15 major
pieces of legislation
Changes in Monetary System
• First step to change was to restore the public
confidence in the banking system
• March 5, 1933, he ordered banks to close for a
“Bank Holiday” of four days while Congress
passed the Emergency Banking Act. This act
allowed the government to inspect the health of
banks before they reopened. Most banks were
found healthy, and 2/3 of them were reopened
by March 15.
• Once people put their money back into banks,
the banks were able to lend money to the
government to stimulate the economy.
• Federal Deposit Insurance Corporation (FDIC)
was established to insure deposits up to $5,000
Relief and Jobs Measures
• Federal Emergency Relief Administration – FERA,
established to send money to local relief agencies.
$5 million handed out in the first 2 hours!
• Civil Works Administration – CWA, November
1933, established to give jobs improving roads,
parks, airports, and other facilities
• Civilian Conservation Corps – CCC, March 1933,
hired young, unmarried men to maintain forests,
parks, beaches
• Indian Reorganization Act – ended the sale of
tribal lands and allowed for ownership of land by
Indian tribal groups
Business Legislation
• National Industrial Recovery Act – NIRA,
sought to increase prices of major
industries
• National Recovery Administration – NRA –
established by the NIRA, to balance the
unstable economy through sensible
planning and industry-wide codes for fair
practices.
• Public Works Administration – PWA –
launched projects including Grand Coulee
Dam, Key West causeway, NYC’s
Triborough Bridge
• Federal Securities Act – May 1935,
requires companies to provide information
about their finances to the public if they
offer stock for sale
• Securities and Exchange Commission
(SEC) – set up to regulate the stock
market, told companies what info they had
to include on financial statements
• Federal Reserve Board – given the power
to regulate trading of stocks, specifically to
outlaw buying on margin.
Homes and Farms
• Homeowners’ Loan Corporation – HOLC –
refinanced and reshaped mortgages to make the
loans more manageable
• Agricultural Adjustment Act – AAA - May, 1933,
tries to raise farm prices and production through
subsidies… paid farmers not to grow certain
crops, not to raise certain animals
• Tennessee Valley Authority – TVA – created
jobs in one of the country’s least developed
regions. Worked with hydroelectric power,
provided cheap electricity, flood control,
recreation
• Fair Labor Standards Act –
– last major piece of New Deal legislation.
– minimum wage and maximum hour standard.
– severely curbs the use of child labor
The Common Man’s
Reaction to the
New Deal