Breakdown of the new deal

1. Chapter # 23Chapter # 23
“The New Deal”“The New Deal”
1933 - 19381933 - 1938

2. Causes of the Great
Depression
Agricultural overproduction
Industrial overproduction
Unequal distribution of
wealth
Over-extension of credit
International economic
situation
Stock market speculation
Under consumption

3. Here he comes to save the day!
In March 1933, the
country was virtually
leaderless and the
banking system had
collapsed.

4. FDR Restored Confidence
In his inaugural
address, he said “The
only thing we have to
fear is fear itself….”
He promised vigorous
leadership and bold
action, called for
discipline and
cooperation,
expressed his faith in
democracy, and
asked for divine
protection and

5. FDR’s Personal Qualities
Practical politician
 Practiced the art of the possible.
Charismatic person
 Warm, seemed to
understanding people.
He knew how to handle press
by focusing attention on
Washington.
He provided dynamic
leadership in a time of crisis.
He was willing to experiment.

7. The New Deal’s Three R’s…
1. Relief - Immediate action taken to
halt the economies deterioration.
 Provide jobs, stop farm foreclosures.
2. Recovery - "Pump - Priming"
Temporary programs to restart the flow
of consumer demand.
3. Reform - Permanent programs to
avoid another depression and insure
citizens against economic disasters.
 Regulate banks, abolish child labor, etc.

8. First New Deal (1933-1934)
Emphasis: reform
Political Position: conservative
Primary aim: economic
recovery
Philosophy: economic
nationalism and economic
scarcity (i.e., raise prices by
creating the illusion of
scarcity)
Objectives: higher prices for
agriculture and business
Beneficiaries: big business
and agricultural business

9. Section #1 Cont.
AgencyAgency PurposePurpose
Civilian Conservation Corps
(CCC)
Provided jobs to young, unmarried men (and later,
women) to work on conservation and resource
development projects.
Works Progress
Administration (WPA)
Gave the unemployed work in building construction and
arts programs.
Public Works Administration
(PWA)
Sponsored massive public works projects such as dams
and hydroelectric plants.
National Recovery
Administration (NRA)
Worked with industries to establish codes outlining fair
business and labor practices.
National Labor Relations
Board (NLRB)
Enforced provisions of the Wagner Act, which included
the right to collective bargaining and other union rights.
Federal Deposit Insurance
Corporation (FDIC)
Insured bank deposits up to $5,000.
Securities and Exchange
Commission (SEC)
Regulated the stock market and protected investors from
dishonest trading practices.
Agricultural Adjustment
Administration (AAA)
Attempted to raise farm prices by paying farmers to lower
farm output.
Social Security
Administration (SSA)
Provided old-age pensions, disability payments, and
unemployment benefits.

10. Civilian Conservation Corp (CCC)
Purpose: relief
Gave outdoor
work to
unemployed men
between the ages
of 17 and 29
They received
$30 per month,
but $22 went
back to the family
2 million jobs!!

11. WPA Buildings in Atlanta:
N. Fulton & Booker T Washington High Schools,
GT Chem Bldg & Dorms, Cyclorama, many others

12. TVA- Tennessee Valley Authority
Dams to control flooding & provide electricity
Replant forests, build industrial plants, create jobs, attract industry w/
cheap power
Monopoly?
Helps one of poorest regions

13. The Second New Deal
 More social welfare benefits,
stricter controls over business,
stronger support for unions, and
higher taxes on the rich.
WPA provided work for more than 8
mill.
 Playgrounds, airports, hospitals ect.
 Supported artists and writers.
FSA loaned more than $1 billion to
farmers and set up camps for migrant
workers.

14. Social Security Act
Purpose: reform &
relief
Gave money to states
for:
 aid to dependent
children & disabled
Established
unemployment
insurance through
payroll deduction
Set up old-age
pensions for retirees.

15. Reforms
Reform financial system
 Insure bank deposits - FDIC
 Regulate stock market – SEC (Securities &
Exchange Commission)

16. The New Deal on Trial
By 1935, political
disunity was
evident. There
were critics on the
right and the left. NEWNEW
DEADEA
LL

17. Criticisms of Conservative
Opponents
Conservative opponents said the New Deal went
too far:
 socialism (killed individualism)
 added to national debt ($35 billion)
 wasted money on relief and encouraged idleness
 violated the constitution & states rights
 increased the power of the
Presidency (FDR was reaching
toward dictatorship, independence
of judiciary threatened,
separation of powers shattered)

18. ““The New Deal CriticsThe New Deal Critics ””,,
Limitations…Limitations…
Women
 NRA codes permitted lower wages for women’s
work.
 Jobs went to male “head of families”.
 14-hour days for $6.50 per week.
African Americans
 Fed. relief programs (PWA) reinforced segregation.
 Not offered jobs at a “professional” level.
 Received lower pay than whites.
 Social Security failed to cover 2/3 of African
Americans.
 In the North: “Last hired, first fired.”
 “Don’t shop where you can’t work!”
 Fed offered no relief to lynchings.
 Anti lynching bills went down to defeat in 1935 &
1938.
 FDR did appoint more African Americans to policy-

19. Radical / Socialist Opponents
Radical opponents
said the New Deal
did not go far
enough.
They were
demagogues
(rabble-rousers) w/
popular followings,
FDR was
concerned.

20. Senator Huey Long (LA)
Senator Huey Long
said New Deal relief
measures were mere
crumbs and advocated
a share the wealth plan
guaranteed income of
$5,000 for everyone,
financed by
confiscating taxing
wealthy (people making
over $5 million per
year).

21. Section #1 cont.
1936 Election1936 Election
 FDR defeats Rep. Governor Alfred
M. Landon from Kansas
 FDR loses only two states.
 Maine & Vermont
 Landslide victory winning the
electoral college 523 – 8.
 Shows that Americans support the
New Deal.

23. The Roosevelt Coalition
While Republicans were still
relying on their traditional base of
political support (big business, big
farmers, and conservatives)
Democrats broadened their
constituency by appealing to
small farmers in the Midwest,
urban political bosses, ethnic blue
collar workers, Jews, intellectuals,
and African Americans.

24. Protection of New Deal
Accomplishments
FDR frustrated by Supreme Court
 They overturned several New Deal
agencies & acts
Steps FDR took to protect New
Deal accomplishments:
 Court-Packing Plan (proposed
increasing Supreme Court from 9 to
15 members, caused in revolt in
Dem. Party)
 This failed
 Violation of Separation of
Powers??!!

25. Last Days of the New Deal
The New Deal did not end the nation’s suffering,
but it did lead to some profound changes in
American life.
Voters began to expect a President to formulate
programs and solve problems.
Unfortunately there was The Recession of 1937
 Industrial production once again fell, as well as
employment levels.
 The new Social Security tax was partly to blame
 FDR also cut back on the WPA program
 The national debt rose from $21 billion in 1933 to $43
billion by 1940.

26. Labor Unions Increase
The Wagner Act (1935)
provided federal protection
unions.
Union membership rose from
3 million in 1933 to 10.5
million by 1941.
The CIO (Congress of
Industrial Organizations) was
est. by John L. Lewis.
The aim of this organization
was to challenge conditions
in industry, and their main
tool was the strike.

27. An Era of Strikes
Due to the Wagner Act, many unions went on strike.
Several strikes included “Sit-down” strikes. Where
the employees would not leave the building, they
would simply sit down and refuse to work.
The most famous sit-down strike began on Dec. 31,
1936. The UAW (United Auto Workers) occupied
GM’s main plant in Flint, Michigan.
 GM executives turned off the heat and blocked entry to
the plants so that the workers could not receive food.
 Violence erupted outside with the picketers.
 Many wives were able to get food in to their husbands
and later GM finally gave in to negotiations.

28. New Deal’s Effect on Culture
The WPA supported
unemployed artists,
musicians, historians,
theater people, and
writers. In 1935, the
program was called, “The
Federal Writers’ Project.”
In the end, 10,000 artists
painted some 2,000
murals, 100,000 other
paintings, 17,000
sculptures, and many
other works.

29. Lasting New Deal
Achievements
Many NEW DEAL bridges, dams, tunnels,Many NEW DEAL bridges, dams, tunnels,
public buildings, and hospitals stand to thispublic buildings, and hospitals stand to this
day.day.
The Tennessee Valley Authority remains aThe Tennessee Valley Authority remains a
model of government planning.model of government planning.
The Federal Deposit Insurance CorporationThe Federal Deposit Insurance Corporation
(FDIC) still guarantees bank deposits.(FDIC) still guarantees bank deposits.
The the workings of the stock exchange.The the workings of the stock exchange.
(Martha Stewart!)(Martha Stewart!)
Social Security is still around, though manySocial Security is still around, though many
worry if it will be available for you and yourworry if it will be available for you and your
children.children.

31. The woman behind the man

32. Eleanor – 6 kids, champion of
civil rights, seeking solutions for
un-employed, flying with
Tuskegee Airmen, advocating for
the UN
Persuaded FDR to stay in
politics after polio
Often appeared on his behalf
Outspoken
Publically supported causes
of the unemployed & WWII
refugees and civils rights of
women, African & Asian
Americans
sometimes obviously
disagreed with FDR policies
One of top 10 most admired
Americans of the 20th
century

36. In the end…
Of all of its achievements, perhaps the
New Deal’s greatest was to restore a
sense of hope!
What finally brought the U.S. out of the
Great Depression?
So, time for Unit 7 Test! (Ch 21-23)