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CHAPTER 15: THE NEW DEAL MAIN IDEA: PRESIDENT FRANKLIN D. ROOSEVELTS NEW DEAL PROGRAMS LEAVES A LASTING MARK ON AMERICAN GOVERNMENT. ESSENTIAL QUESTION: ______________________________________________________________________________________? GOVERNMENT REACTION TO GREAT DEPRESSION DEFINITION (WHO, WHAT, WHERE, WHY?) HOW THIS IMPACTED UNITED STATES

SECTION 1: A NEW DEAL FIGHTS THE DEPRESSION


MAIN IDEA: AFTER BECOMING PRESIDENT, FRANKLIN DELANO ROOSEVELT USES GOVERNMENT PROGRAMS TO COMBAT THE DEPRESSION. WHY IT MATTERS NOW: AMERICANS STILL BENEFIT FROM PROGRAMS BEGUN IN THE NEW DEAL 1. AMERICANS GET A NEW DEAL ELECTING FRANKLIN DELANO ROOSEVELT DEMOCRATS NOMINATE NY GOVERNOR FRANKLIN DELANO ROOSEVELT 1. REFORM-MINDED; PROJECTS FRIENDLINESS, CONFIDENCE DEMOCRATS OVERWHELMINGLY WIN PRESIDENCY, SENATE, HOUSE WAITING FOR ROOSEVELT TO TAKE OVER WITH BRAIN TRUST, FDR FORMULATES POLICIES TO ALLEVIATE PROBLEMS NEW DEALRELIEF FOR NEEDY, ECONOMIC RECOVERY, FINANCIAL REFORM THE HUNDRED DAYS FDR LAUNCHES HUNDRED DAYS; PASSES OVER 15 MAJOR NEW DEAL LAWS EMERGENCY BANKING RELIEF ACT PERMITS TREASURY DEPT. TO INSPECT BANKS 1. DECIDES WHICH ARE INSOLVENT, SOUND, OR NEED LOANS 2. PUBLIC CONFIDENCE IN BANKS REVIVED AN IMPORTANT FIRESIDE CHAT FDR GIVES FIRESIDE CHATSRADIO TALKS EXPLAINING NEW DEAL MEASURES FIRST CHAT DISCUSSES NEED FOR PUBLIC SUPPORT OF GOVERNMENT, BANKS REGULATING BANKING AND FINANCE GLASS-STEAGALL ACT ESTABLISHES FEDERAL DEPOSIT INSURANCE CORPORATION 1. INSURES INDIVIDUAL BANK ACCOUNTS, REGULATES BANKING PRACTICES FEDERAL SECURITIES ACTCOMPANIES MUST GIVE ALL INFORMATION ON STOCKS SECURITIES AND EXCHANGE COMMISSION CREATED TO REGULATE STOCK MARKET FDR GETS LAW ALLOWING PRODUCTION OF SOME ALCOHOLIC BEVERAGES 21ST AMENDMENT REPEALS PROHIBITION BY END OF 1933 2. HELPING THE AMERICAN PEOPLE RURAL ASSISTANCE AGRICULTURAL ADJUSTMENT ACT (AAA) RAISES FOOD PRICES, LOWERS SUPPLY TENNESSEE VALLEY AUTHORITY CREATES JOBS RENOVATING, BUILDING DAMS PROVIDING WORK PROJECTS CIVILIAN CONSERVATION CORPSPUBLIC WORKS JOBS FOR YOUNG MEN PUBLIC WORKS ADMINISTRATIONMONEY TO STATES TO CREATE JOBS CIVIL WORKS ADMINISTRATION BUILDS RURAL SCHOOLS, PAYS TEACHERS PROMOTING FAIR PRACTICES NIRA ESTABLISHES CODES OF FAIR PRACTICE FOR INDUSTRIES

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1. CREATES NATIONAL RECOVERY ADMINISTRATION (NRA) NRA SETS STANDARDS, PRICES, LIMITS PRODUCTION FOOD, CLOTHING, AND SHELTER HOME OWNERS LOAN CORPORATION GIVES LOANS TO PREVENT FORECLOSURES FEDERAL HOUSING ADMINISTRATION GIVES LOANS FOR MORTGAGES, REPAIRS FEDERAL EMERGENCY RELIEF ADMINISTRATIONDIRECT RELIEF TO NEEDY THE NEW DEAL COMES UNDER ATTACK OPPOSITION TO THE NEW DEAL DEFICIT SPENDINGSPENDING MORE MONEY THAN GOVERNMENT TAKES IN 1. FUNDS NEW DEAL LIBERALS: NEW DEAL DOES NOT DO ENOUGH TO HELP POOR, FIX ECONOMY CONSERVATIVES: NEW DEAL USED TO CONTROL BUSINESS, SOCIALIZE ECONOMY THE SUPREME COURT REACTS SUPREME COURT STRIKES DOWN NIRA, AAA AS UNCONSTITUTIONAL FDR PROPOSES COURT-PACKING BILL; CONGRESS, PRESS PROTEST STARTING IN 1937, JUSTICES RETIRE; FDR APPOINTS SEVEN NEW ONES THREE FIERY CRITICS SOME CONSERVATIVE OPPONENTS FORM AMERICAN LIBERTY LEAGUE THINK MEASURES VIOLATE RESPECT FOR PERSONAL RIGHTS, PROPERTY FATHER CHARLES COUGHLIN WITHDRAWS INITIAL SUPPORT OF NEW DEAL 1. WANTS GUARANTEED INCOME, BANKS NATIONALIZED DR. FRANCIS TOWNSEND DEVISES PENSION PLAN FOR ELDERLY PRESIDENTIAL HOPEFUL, SENATOR HUEY LONG HAS POPULAR SOCIAL PROGRAM

SECTION 2: THE SECOND NEW DEAL TAKES HOLD


MAIN IDEA: THE SECOND NEW DEAL INCLUDES NEW PROGRAMS TO EXTEND FEDERAL AID AND STIMULATE THE NATIONS ECONOMY. WHY IT MATTERS NOW: SECOND NEW DEAL PROGRAMS CONTINUE TO ASSIST HOMEBUYERS, FARMERS, WORKERS, AND THE ELDERLY TODAY. 1. THE SECOND HUNDRED DAYS a. FURTHERING THE NEW DEAL i. BY 1935, ECONOMIC RECOVERY NOT AS GREAT AS FDR HAD EXPECTED ii. FDR LAUNCHES SECOND PHASE: MORE RELIEF FOR FARMERS, WORKERS iii. FIRST LADY ELEANOR ROOSEVELT, A SOCIAL REFORMER, PRODS PRESIDENT b. REELECTING FDR i. 1936, DEMOCRATS WIN PRESIDENCY, LARGE MAJORITIES IN BOTH HOUSES ii. FIRST TIME MOST AFRICAN AMERICANS VOTE DEMOCRATIC iii. FIRST TIME LABOR UNIONS SUPPORT PRESIDENTIAL CANDIDATE 2. HELPING FARMERS a. FOCUSING ON FARMS i. 1936 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT REPLACES AAA 1. REWARDS FARMERS FOR PRACTICING SOIL CONSERVATION ii. NEW AGRICULTURAL ADJUSTMENT ACT AVOIDS UNCONSTITUTIONAL PROVISION iii. RESETTLEMENT ADMINISTRATION GIVES LOANS TO SMALL FARMERS TO BUY LAND iv. FARM SECURITY ADMINISTRATIONLOANS TO TENANT FARMERS TO BUY LAND v. FSA HIRES PHOTOGRAPHERS TO SHOOT RURAL TOWNS, FARMS, FARMERS 3. ROOSEVELT EXTENDS RELIEF a. PROGRAMS FOR URBAN WORKERS i. *WORKS PROGRESS ADMINISTRATION (WPA) ADDRESSED THE IMMEDIATE NEEDS OF THE UNEMPLOYED 1. WPA WORKERS BUILD AIRPORTS, ROADS, PUBLIC BUILDINGS 2. WOMEN WORKERS SEW CLOTHES FOR THE NEEDY 3. WPA EMPLOYS PROFESSIONAL WRITERS, ARTISTS, PERFORMERS ii. NATIONAL YOUTH ADMINISTRATION (NYA)EDUCATION, JOBS, COUNSELING 1. GIVES AID TO STUDENTS IN EXCHANGE FOR PART-TIME WORK 4. IMPROVING LABOR AND OTHER REFORMS a. IMPROVING LABOR CONDITIONS i. NATIONAL LABOR RELATIONS ACT, OR WAGNER ACT, REPLACES NIRA: 1. PROTECTS RIGHT TO JOIN UNIONS, COLLECTIVE BARGAINING 2. PROHIBITS UNFAIR LABOR PRACTICES ii. NATIONAL LABOR RELATIONS BOARD HEARS TESTIMONY ABOUT LABOR PRACTICES iii. HOLDS ELECTIONS TO DETERMINE IF WORKERS WANT UNIONS iv. FAIR LABOR STANDARDS ACT SETS MAXIMUM HOURS, MINIMUM WAGE b. *THE SOCIAL SECURITY ACT i. 1935, SOCIAL SECURITY ACT CREATES SOCIAL SECURITY SYSTEM THAT ADDRESSED THE NEEDS OF THE POOR/ELDERLY

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PROVIDES:

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1. INSURANCE FOR RETIREES 65 OR OLDER 2. UNEMPLOYMENT COMPENSATION 3. AID TO DISABLED, FAMILIES WITH CHILDREN EXPANDING AND REGULATING UTILITIES i. RURAL ELECTRIFICATION ADMINISTRATION BRINGS ELECTRICITY TO FARMS ii. PUBLIC UTILITY HOLDING COMPANY ACT AIMS TO STOP FINANCIAL CORRUPTION

SECTION 5: THE IMPACT OF THE NEW DEAL


MAIN IDEA: THE NEW DEAL AFFECTS AMERICAN SOCIETY NOT ONLY IN THE 1930S BUT ALSO IN THE DECADES THAT FOLLOW. WHY IT MATTERS NOW: AMERICANS STILL DEBATE OVER HOW LARGE A ROLE GOVERNMENT SHOULD PLAY IN AMERICAN LIFE 1. NEW DEAL REFORMS ENDURE a. THE NEW DEAL ENDS i. BY 1937, ECONOMIC IMPROVEMENT CONVINCES MANY DEPRESSION IS ENDING ii. CONGRESS WANTS TO CUT BACK PROGRAMS; BY 1939, NEW DEAL OVER b. SUPPORTERS AND CRITICS OF THE NEW DEAL i. CONSERVATIVES THINK FDR MADE FEDERAL GOVERNMENT TOO LARGE 1. STIFLED FREE ENTERPRISE, INDIVIDUAL INITIATIVE ii. LIBERALS: DIDNT DO ENOUGH TO SOCIALIZE ECONOMY, END INEQUALITIES iii. SUPPORTERS: DID HELP COUNTRY RECOVER FROM ECONOMIC DIFFICULTIES c. EXPANDING GOVERNMENTS ROLE IN THE ECONOMY i. FDR EXPANDS POWER OF FEDERAL GOVERNMENT, PRESIDENT ii. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) REGULATES BANKING 1. NEW DEAL PROGRAMS MOST SUCCESSFUL AT STABILIZING THE BANKING SYSTEM iii. SECURITIES AND EXCHANGE COMMISSION (SEC) REGULATES INVESTMENT iv. NEW DEAL DOES NOT END DEPRESSION; DOES REDUCE SUFFERING, GIVE HOPE v. FEDERAL GOVERNMENT GOES DEEPLY INTO DEBT TO CREATE JOBS, GIVE AID vi. MASSIVE SPENDING ON EQUIPMENT, SUPPLIES FOR WW II END DEPRESSION d. PROTECTING WORKERS RIGHTS i. NEW DEAL LAWS SET STANDARDS, BAN CHILD LABOR, PERMIT UNIONS 1. ESTABLISH POLICIES FOLLOWED TODAY ii. NATIONAL LABOR RELATIONS BOARD (NLRB) STILL MEDIATES LABOR DISPUTES e. BANKING AND FINANCE i. SEC STILL MONITORS STOCK MARKET, ENFORCES LAWS ON STOCK, BOND SALES ii. FDIC STILL PROTECTS INDIVIDUAL INVESTORS IN CASE OF BANK FAILURE 2. SOCIAL AND ENVIRONMENTAL EFFECTS a. SOCIAL SECURITY i. FEDERAL GOVERNMENT TAKES RESPONSIBILITY FOR CITIZENS WELFARE ii. PROVIDES FOR AGED, DISABLED, NEEDY b. THE RURAL SCENE i. COMMODITY CREDIT CORPORATION MAKES LOANS TO FARMERS 1. -BASED ON AMOUNT OF FARMERS SURPLUS, PARITY PRICE ii. PARITY PRICEPRICE INTENDED TO KEEP FARMERS INCOME STEADY iii. AGRICULTURAL PRICE SUPPORTS SET PRECEDENT OF FEDERAL AID TO FARMERS c. THE ENVIRONMENT i. CCC PLANTS TREES, BUILDS HIKING TRAILS, FIRE LOOKOUT TOWERS ii. SOIL CONSERVATION SERVICE TEACHES METHODS TO PRESERVE SOIL iii. TAYLOR GRAZING ACT REDUCES GRAZING ON PUBLIC LANDS iv. TENNESSEE VALLEY AUTHORITY (TVA) CREATES ELECTRICITY, PREVENTS FLOODS v. GOVERNMENT ADDS NATIONAL PARKS, WILDLIFE REFUGES, WILDERNESS AREAS vi. GOVERNMENT-SPONSORED STRIPMINING, COAL BURNING CAUSE POLLUTION