Roosevelt and the New Deal

The First New Deal

The Hundred Days Begins

The First New Deal began by Roosevelt had no philosophy behind it. FDR and his advisors disagreed on specifics, but in general, favored intervention in the economy. He and his advisors thought of ideas they thought would help the economy and in turn the people, --and they tried them like experiments. Some worked, some didn’t.

Roosevelt’s administration did not trust big businesses. They thought that large trusts should be broken up in order to allow for healthy competition to set wages, prices, and production levels. This philosophy became known as “New Freedom”.

Others in FDR’s administration who supported “New Nationalism” wanted government to work with businesses.

Fixing the Banks and the Stock Market

Between March 5th, 1933, and June 16th, 1933, FDR passed 15 major legislative acts. This time period became known as the Hundred Days.

The Emergency Banking Relief Act gave Treasury Department licenses to banks that were financially sound, therefore restoring people’s confidence in keeping their money in banks. This was the first thing FDR felt he should do as president.

Fixing the Banks and the Stock Market

Congress created an independent agency: The Securities and Exchange Commission (SEC) to regulate the stock market and control fraud.

Fixing the Banks and the Stock Market

The Glass-Steagall Act: separated commercial banking from investment banking. ◦(Banks were no longer permitted to risk

depositors money by using it to speculate on the stock market).

Fixing the Banks and the Stock Market

Federal Deposit Insurance Corporation (FDIC): provided government insurance for bank deposits up to a certain amount to protect people against loss

Managing Farms and Industry

The Agricultural Adjustment Administration gave money to farmers if they did not raise too much food and livestock. This caused the price of food to go up so that farmers could make more money selling the food they did produce.

Managing Farms and Industry

The National Industry Recovery Act (later deemed unconstitutional) set codes or rules that were established jointly between the government and private companies. These codes set fair competition and included minimum wages, limited factories to two shifts a day, shortened worker’s hours, fixed prices, and gave workers the right to form unions.

Managing Farms and Industry

The National Recovery Administration Business owners who signed code agreements received signs displaying the NRA’s symbol—a blue angel—and the slogan “We do our part”. Consumers were encouraged to buy only from companies displaying the blue angel.

Providing Debt Relief

The Home Owners Loan Corporation (HOLC) took over the loans of home owners (who were still employed)from the banks and gave the buyer a longer time to pay the loan.

The Farm Credit Administration (FCA) did the same thing for farmers as the HOLC did for home buyers.

Spending and Relief Programs

Civil Works Administration(CWA)Hired workers directly, including thousands

of women, to build or improve airports, roads, and playgrounds

Spending and Relief Programs

Federal Emergency Relief Administration (FERA)

Led by Harry Hopkins, one of Roosevelt’s most influential people in his administration

Spending and Relief Programs

Public Works Administration (PWA)Awarded contracts to construction

companies to build highways, dams, schools, and other facilities

Providing Debt Relief

The Civilian Conservation Corps (CCC)Offered unemployed young men work

planting trees, fighting forest fires, and building reservoirs

Spending and Relief Programs

The civilian conservation Corps (CCC), Federal Emergency Relief Administration (FERA), Public Works Administration (PWA), and the Civil Works Administration(CWA), provided work relief to the unemployed, although none of them had any significant relief to unemployment.

Essay Question

Describe Franklin Roosevelt’s personality and approach to the nation’s problems.

Essay Question

Describe Franklin Roosevelt’s personality and approach to the nation’s problems.◦ America saw in Roosevelt an energy and optimism that gave

them hope despite the tough economic times. His serenity and confidence amazed many people, and his “fireside chats” helped reassure them. Also, many people believed that his struggle with polio had given him a better understanding of their hardships. Roosevelt’s confidence that he could make things better contrasted sharply with Hoover’s apparent failure to do anything effective. In his campaign for president, Roosevelt revealed the approach he would take as president “Above all, try something.” He implemented his campaign promise with a flurry of bills to Congress during the first “Hundred Days.” Unlike the public impression of Hoover, Roosevelt was “doing something.”