7.10: The New Deal

Question 1

GOALS

Answer 1

• Transform US into limited welfare state where gov responsible for citizens’ economic and social welfare
• Unemployment RELIEF, business RECOVERY, economic institution REFORM
• Input on policies from “Brain Trust”
• Bulk of action in first 100 days
• Fireside chats

Question 2

RELIEF

Answer 2

• Works programs
• Public Works Administration = work on federal infrastructure
• Tennessee Valley Authority = running electric power plants and controlling flooding and erosion
• Civilian Conservation Corps = men 18-24 on soil conservation and forestry projects

Question 3

RECOVERY

Answer 3

• FDR believed cutthroat competition keeping wages, consumption and economy low
• National Industrial Recovery Act
• Set of codes agreed on by labor and corporations
• Fair competition, price regulation, better working conditions and minimum wage

Question 4

REFORM

Answer 4

• Glass-Steagall Act
• Increased banking regulation
• Limited ways banks could invest people’s money
• Federal Deposit Insurance Corporation
• Guaranteed bank deposits w/ federal money
• Securities and Exchange Commission
• Regulated stock market
• Stopped buying on margin and insider trading

Question 5

2ND PHASE

Answer 5

• Social Security Act [1935]
• Provided safety net for workers 60+
• Allegations of socialism

Question 6

COURT PACKING SCHEME

Answer 6

• FDR’s response to backlash
• Judicial Reorganization Bill whereby addition of one justice for each Supreme Court Justice 70.5+
• Wanted to appoint New Deal sympathetic judges
• Both Parties in Congress opposed bill
• Claimed abuse of Constitutional checks and balances

Question 7

BACKLASH

Answer 7

• Liberals believed New Deal did too much for business at expense of poor
• Called for more action
• Father Coughlin used radio to call for nationalization of bank
• Huey Long [Louisiana Senator] started “Share Our Wealth”
• Right believed extreme federal overreach
• Took New Deal to Supreme Court and narrowed its scope
• NRA and AAA declared unconstitutional
• American Liberty League [Repubs and Cons Democrats]

Question 8

IMPACT

Answer 8

• Political realignment
• Blacks, working class and ethnics joined Democrats
• New Deal Coalition = most diverse cabinet = first female cabinet secretary [Frances Perkins]
• 1937-1938: New Deal Recession: gov spending slowed
• Discrimination within agencies
• Segregation in CCC
• Disproportionate hire of men
• SEC still investigates fraud
• Repatriation of Mexicans in effort to decrease unemployment rate by decreasing number of workers