THE NEW DEAL & ITS LEGACY Relief, Reform, & Recovery HOOVERS RESPONSE Did not believe the government should give aid to the needy Worried aid would undermine self-reliance and encourage people to become reliant on the government Believed his job to generate optimism and restore public confidence Hoovervilles: Homeless Americans built cities out
of cardboard boxes Asked healthy banks to loan money to failing ones Reluctantly created the Reconstruction Finance Corporation (RFC)- issued government loans to banks, railroads, and big business RFC loaned money to states to help with needy- financed public works projects HOOVERS RESPONSE HOOVERS RESPONSE Trickle-Down Theory: Government gives money
to business they hire more employees more people earn money The problem with the trickle down solution the poor could not wait for money to trickle down. Hoover battled the Bonus Army Hoover called in troops to push the Bonus Army out of DC - used tear gas and tanks Americans mad at the use of tanks to push out disabled veterans
ELECTION OF 1932 Republican Herbert Hoover Democrat Franklin Roosevelt 2-term governor of New York Distant cousin of Theodore Roosevelt Roosevelt won an overwhelming victory Immediately set to work formulating a set of policies for his administration Came to be known as the New Deal
Focused on 3 general goals: Relief, Recovery, & Reform Expanded the role of the federal government THE FIRST ONE HUNDRED DAYS Emergency Banking Act - Reformed banking system giving the federal government more power to supervise banks March 5 Bank holiday Sound banks would reopen
Insolvent banks would remain closed March 12 1 st Fireside Chat THE FIRST ONE HUNDRED DAYS Banking Act of 1933 Created the FDIC ensured every account up to $5,000 Limited freedom of banks to invest in stocks and bonds Securities Exchange Commission (SEC)
Required companies to publish important facts about their business THE FIRST ONE HUNDRED DAYS National Industrial Recovery Act (NIRA) Established the National Recovery Administration (NRA) Set minimum wages, maximum working hours, & minimum prices at which goods could be sold Created the Public Works
Administration (PWA) oversaw large-scale construction projects THE FIRST ONE HUNDRED DAYS Agricultural Adjustment Administration (AAA) Helped farmers by reducing crop production & raising prices Tennessee Valley Authority (TVA)
Developed construction jobs in the Tennessee Valley THE FIRST ONE HUNDRED DAYS Civilian Conservation Corp (CCC) Gave young men jobs planting trees & working on other conservation projects Federal Emergency Relief Act (FERA)
Sent funds to states to distribute to the needy FDR VS. THE SUPREME COURT By the end of his first term, FDR faced opposition from the Supreme Court In 1935, the Court ruled that the National Industrial Recovery Act (NIRA) was unconstitutional The following year, they struck down the
Agriculture Adjustment Act (AAA) FDR VS. THE SUPREME COURT After winning reelection, FDR was ready to take on the Supreme Court He proposed a plan to add a new justice for every justice over 70 years old Labeled by critics as court-packing
THE SECOND NEW DEAL Wagner Act Protected the rights of workers who joined unions & went on strike Fair Labor Standards Act Regulated conditions in the workplace Set a minimum wage- .25 Set maximum hours- 44 Ended oppressive child labor Social Security Act
Provided a pension for retired workers & their spouses & helped people with disabilities THE SECOND NEW DEAL Rural Electrification Administration (REA) Established hundreds of publicly owned electric cooperatives, built generating plants, & strung power lines Works Progress Administration (WPA)
Set out to create as many jobs as possible as quickly as possible In its 1 st year, the WPA put 3 million Americans to work CRITICS OF THE NEW DEAL Conservative Critics Believed that New Deal had gone too far in expanding the role of government Compared the New Deal to socialism
Father Charles Coughlin Al Landon Robert Taft CRITICS OF THE NEW DEAL Radical Critics Believed the New Deal should give greater aid to the needy Huey Long (LA) Every Man a King Wanted to take money from rich & give every family a grant of $5,000, a
guaranteed job, & an income of $2,500 a year Frank Townshend Proposed a guaranteed income plan for senior citizens Led to the creation of the Social Security Act THE LEGACY OF THE NEW DEAL Established the concept that Americans have the right to economic security, including: A job Adequate wages
A decent home Medical care Good education Expanded the role of government Increased deficit spending FDR borrowed money to pay for his New Deal programs
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