Chapter 21: New Deal

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Franklin D. Roosevelt

• Ran for president in 1932

• Democrats nominated Franklin Delano Roosevelt

• He wins the election

• FDR promised a “New deal for the American People

• He passed the Glass-Steagall Act

Adolf Hitler

Frances Perkins

• Frances Perkins became America’s first female cabinet member (labor)

Harry Hopkins

• Federal Emergency relief Administration was directed by Harry Hopkins

Harold Ickes

• He directed Public Works Administration

New Deal

• Purposes of the New Deal

• Relief:

• Provide jobs for the unemployed and to protect farmers from foreclosure

• Recovery:

• Get the economy back into high gear, “priming the pump”

• Reform:

• Regulate banks, to abolish child labor, and to conserver farm lands

• Overall objective:

• Go save capitalism

Glass-Steagall Act

• Separated commercial and investment banking

• Franklin D. Roosevelt passed

• Glass-Steagall Act; which established the Federal Deposit Insurance Corporation

Federal Deposit Insurance Corpation

• Created to insure bank deposits up to $5,000.00

• insured account holders up to $5,000 and set strict standards for banks to follow

Emergency Banking Act

• March 6,1933

• Use of the “fireside chat” to explain the bank holiday to the American public

• Initial success

National Recovery Administration

• June 16,1933

• The National Recovery Administration (NRA), created to work with groups of business leaders to establish industry codes that set standards for output, prices, and working conditions

Civilian Conservation Corps

• 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

• CCC_ Civilian conservation corps put young men to work

• By 1942 three million men worked for the CCC

Public Works Administration

• One section of the National Industrial Recovery Act created the Public Works Administration (PWA), with an appropriation of $3.3 billion. Directed by Secretary of the Interior Harold Ickes, it built roads, schools, hospitals, and other public facilities.

• June 1933

• Hired private contractors for large infrastructure projects (June 12,1933)

• Run by secretary of the Interior Harold Ickes

• Spent $3.3 billion on projects like Triborough Bridge

• Used private contractors who hired union members and did not discriminate

• Public Works Administration was part of the NIRA (National Industrial Recovery Act)

• PWA Provided money to state to construct school and community buildings

Tennessee Valley Authority

• Cheap electricity used as yardstick to measure private companies’ rates

• Government bought nitrate for military use

• Caused vat pollution

• Rural electrification administration

• Created in 1935 to bring electricity to rural areas

• Focused on direct relief to hard hit area-created ambitious dam project

Agricultural Adjustment Act

• May 12,1933

• New Deal legislation that established the Agricultural Adjustment Administration (AAA) to improve agricultural prices by limiting market sup- plies; declared unconstitutional in United States v. Butler (1936)

• Sought to increase prices for agricultural commodities because, a decline in the supply of farm products available on the market would lead to higher process, administration officials created programs to limit production

• Run by George Peek

• Set crop quotas and prices bade on 19019-1914

• Worked through state and local officials, so befits went to middle and upper class

• Declared unconstitutional by supreme court in U.S. v. Butler of 1936

• Purpose: the recovery of agriculture

• Paid farmers who agreed to reduce production of basic crops such as cotton, wheat tobacco, hogs, and corn

• Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer

Home Owners Loan Corporation

• Created to refinance home mortgages

• Loaned money with low interest rates to home owners who could not make payments

21st Amendment

• Repealed the prohibition of the manufacture, sale, and transportation of alcoholic beverage, effectively nullifying the eighteenth amendment

Congress of Industrial Organizations

• Umbrella organization of semiskilled industrial unions, formed in 1935 as the committee for industrial Organization and renamed in 1938

Huey Long

• Wrote Every Man a King

• Crated shear our wealth clubs

• Called for seizing incomes above $1 million and redistributing to all families

• He planned to run for president in 1936

• Senator of La

• Huey long was a Senator from Louisiana who was a constant critic of FDR

• Long was setting up a run for president

• A lone gunman assassinated Long at the height of his popularity in 1935

Works Progress Administration

• Part of the Second New Deal, it provided jobs for millions of the unemployed on construction and arts projects

• Helping urban workers was critical to the success of the Second Hundred Days

• The WPA set out to create as many jobs as possible as quickly as possible

• Between 1935-1942, the WPA spent $11 billion to give jobs to 8 million workers

Wagner Act

• Recognized the rights employees to negotiate with unions about hours, wages, and other concerns

Social Security Act

• Created the Social Security system with provisions for a retirement pension, unemployment insurance, disability insurance, and public assistance (welfare).

• One of the most important achievements of the New Deal era was the creation of the Social Security System

• The Social security act, passed in 1935, had 3 parts:

• Old-age pension

• Unemployment compensation

• Aid to families with dependent children and disabled (welfare)

20th Amendment

Eleanor Roosevelt

• first lady Eleanor Roosevelt helped women gain higher political positions during the New Deal

• Eleanor was influential in her role as advisor to the president

• Creates model for the active first lady

Indian Reorganization Act

• 1934

• Ending the policy, dating back to the Dawes Act of 1887, of dividing Indian lands into small plots for individual families and selling off the rest

• Recognized Indian’s right to govern their own affairs, expect where specifically limited by national laws

Mary McLeod Bethune

• Headed the division of Negro Affairs of the NYA

Scottsboro Boys

• A case in which nine young black men were arrested for the rape of two white women in Alabama in 1931. Despite the weakness of the evidence against the Scottsboro boys and the fact that one of the two accusers recanted, Alabama authorities three times put them on trial and three times won convictions. Landmark Supreme Court decisions overturned the first two verdicts and established legal principles that greatly expanded the definition of civil liberties that defendants have a constitutional right to effective legal representation, and that states cannot systematically exclude blacks from juries. But the Court allowed the third set of convictions to stand, which led to prison sentences for five of the defendants.