The New Deal :The New Deal Alphabet Agencies WPA


Election of 1932 :Election of 1932 End Prohibition A New Deal for the American people Hoover carries 6 states Experimenting to End the Depression Asked Congress for Broad Powers (Wartime Powers)


Key Quotes: FDR’s Inauguration Speech :Key Quotes: FDR’s Inauguration Speech This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask congress for broad executive power to wage war against the emergency.


Causes of the Depression :Causes of the Depression Fewer goods are sold. Demand drops. In order to stay in business companies cut wages People lose their confidence & start saving their money Demand drops even further. Companies are forced to cut costs by laying people off The Spiral Of Depression


Reversing the Spiral of Depression :Reversing the Spiral of Depression Cycle of Prosperity! Democrats called this Process ‘Pump Priming’


The New Deal: Alphabet Agencies :The New Deal: Alphabet Agencies The Alphabet Agencies were set up to help reverse the ‘Spiral of Depression.’ The main aim was to pump money back into the economy by giving the unemployed jobs. Not everyone within the Democratic Party agreed exactly how this should be done.


The First New DealThe First Hundred Days :The First New DealThe First Hundred Days Emergency Session of Congress Focus on Relief Emergency Banking Relief Act Bank Holiday FDIC Civilian Conservation Corps


The Brain Trust :The Brain Trust Harold Ickes – Sec. of the Interior Frances Perkins – Labor Henry Wallace –Agri Harry Hopkins Eleanor Roosevelt


How do you put the USA back to work? :How do you put the USA back to work? V


Harry Hopkins :Harry Hopkins Work Relief preserves a man’s morale. It saves his skill. It gives him a chance to do something socially useful Set up two key Alphabet Agencies: CWA & WPA which aimed to help the unskilled unemployed. Criticised for wasting taxpayers money on ‘boondoggles.’


CWA = Civil Works Administration :CWA = Civil Works Administration Built 800,000 km of roads. Built 40,000 schools Built 500 airports & rebuilt 500 more. Built 150,000 public toilets. Paid people to sweep up leaves in the parks. Paid unemployed actors to give free shows. Hired 100 people to scare pigeons away with balloons from public buildings in Washington DC.


Harold Ickes :Harold Ickes Set up the PWA which gave jobs to the skilled unemployed. Was very careful how he spent taxpayer’s money. ‘My PWA will will give work to the unemployed by creating things of lasting use to the nation.’


PWA = Public Works Administration :PWA = Public Works Administration Built 70% of USA Schools. Built 35% of USA Hospitals. Built for river dams. Electrified the New York Washington railway. Built 50 military airports. Built two aircraft carriers. Built four cruisers & destroyers for the US Navy. Built a new sewage system in Chicago. PWA only provided jobs for the skilled unemployed!


What about the unskilled unemployed? :What about the unskilled unemployed? In response to being accused of ‘boondoggling’, when he gave unemployed librarians jobs cataloguing historical documents, Hopkins replied: ‘They’ve got to eat just like other people.’ In 1934, the CWA was shut down because it was wasting money


What about the unskilled unemployed? :What about the unskilled unemployed? In 1935, after a terrible winter FDR decided to help the unskilled unemployed by setting up WPA with Harry Hopkins in charge. The PWA continued working until 1939.


WPA = Works Progress Administration :WPA = Works Progress Administration Built 11,000 schools. Built 70,000 km of roads. La Guardia airport in New York. Employed photographers to make a record of the Depression. Employed 12,000 Actors to put on plays and concerts to cheer people up! Employed artists and painters to make paintings for display in schools and public buildings. Gave work to 2 million people a year. ‘Boondoggles?’


Agriculture :Agriculture AAA Farmers paid for what they didn't plant Demand will stay the same, supply will drop, sooo prices may rise Unconstitutional - The "Dust Bowl" - devastating drought between 1932-35


Industry :Industry NRA Industry panels set production limits and prices Big business dominates – Smaller businesses outraged 1935 – Unconstitutional


TVA :TVA Tennessee Valley Authority – 1933 Numerous Dams – New Deal at its best Dam construction – New Jobs Brings electricity to the South


Optimism and Opposition :Optimism and Opposition Country's mood becomes optimistic. The poor thought Roosevelt a savior. Businessmen – New Deal Too Radical The Left – Not Radical enough.


The Opposition :The Opposition Two people pose a problem:- 1. Huey P. Long (the Kingfish): * Shrewdest and most ruthless public official ever. * Took on banks and big business, etc in Louisiana * "Share the Wealth" - seize all large family fortunes and distribute among the less fortunate


Dr. Francis E. Townsend :Dr. Francis E. Townsend 1934, the Townsend Plan: every citizen over 60 would receive $200 a month if they retire and spend all the money that same month - Hopes it would increase spending - Problem: where would the money come from to pay them?


The Results :The Results The 1st New Deal - Relief & Recovery  Traditional Progressive ideas - a little reconstruction can fix anything Not a battle between Big Business and the poor, but a joined force The Second New Deal – Recovery & Reform We must change the basic structure


2nd New Deal :2nd New Deal Responds to critics and discontent by moving toward social reform and social justice. WPA – 3 million workers Built bridges, schools, hospitals, roads, libraries.


Social Security Act (1935) :Social Security Act (1935) - 65 retirement age - Funded by taxes extracted from employees and employers - At the time not a problem At the time there were more people working than over 65.


The Revenue Act (1935) :The Revenue Act (1935) - Placed a tax on higher incomes as well as an additional surtax on $50,000/year or more - This was done to generate revenue - People of great wealth were under attack for Depression


The Wagner Act (1935) :The Wagner Act (1935) (AKA) National Labor Relations Act - A turning point in Labor Movement - recognized labor unions - Business could not employ unfair labor practices - National Labor Relations Board -settled disputes between management and unions Large increase in union membership


Court Packing :Court Packing Conservative court overturns NRA 1937 – Judicial Reorganization Bill A new Federal judge for every one over 70 yrs. – 6 new SCJ’s Loses support of Congress, people Charles Evan Hughes changes A Conservative judge dies


Third New Deal :Third New Deal AAA - 1935 Farm aid for the rich –America is Still overproducing! Wagner-Steagall Act. Housing for the poor Minimum Wage Loans to Homeowners


The Age of Leisure :The Age of Leisure Radio TV of the 30’s Movies Gone with The Wind, It happened one Night …too many to mention Literature William Faulkner John Steinbeck Margaret Mitchell Monopoly the most popular game in America


New Deal Conclusion :New Deal Conclusion The Great Impact - the shame of losing a business, job, home


Recap: Reversing the Spiral of Depression :Recap: Reversing the Spiral of Depression Cycle of Prosperity! Democrats called this Process ‘Pump Priming’