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Section 2
FDR in Charge -FDR gave people hope -“We have nothing to fear but fear itself” -But had no fixed plan to end Depression -Took first steps -Bank holiday -Closed all banks; only let ones in good shape reopen -Fireside chats -Explained his actions to Americans
Hundred Days -FDR pledged “New Deal” for Americans -Became name of his programs to end Depression -3 major goals -Relief (for hungry and jobless) -Recovery (for agriculture and industry) -Reform (to improve the economy) -FERA, PWA, AAA, TVA, CCC, FDIC, NRA
Responses to New Deal -Some thought New Deal went too far -Huge govt spending, new bureaucracy -Moving towards socialism -Some thought New Deal didn’t go far enough -Huey Long (Sen—LA) called for redistribution of wealth -Fr. Charles Coughlin blamed Jews -Francis Townshend proposed pension of $200/month to all those over 60
The Second New Deal-Democrats won seats in Congress in 1934 election -Mandate to go on with new programs -“Second New Deal” -Works Progress Administration (April 1935) (WPA) -5b. budget -Public works projects (airports, buildings, roads) -Employed total of 14m. people (2m. at any given time) -Social Security Act (1935) -Unemployment insurance -Pensions for those over 65 -Pension for the disabled -Rural Electrification Administration (REA) -Extended power lines to rural areas (farms) -Revenue Act of 1935 (Wealth Tax Act) -Sharply increased taxes on the wealthy -Businesses had to pay extra tax if profits were 10%+
Roosevelt v. Supreme Court-S.C. had overturned several of FDR’s programs -FDR angryàCalled them “Nine old men” -FDR asks Congress for permission to appoint 1 new justice for every justice that was 70+ -Wanted to “pack” Supreme Court with supporters -Not very popular -Upset balance of power
New Deal Slows Down -FDR began to cut back on public-works programs in 1936 -Thought businesses could now hire workers -Unemployment rose, factories closed -“Roosevelt Recession” -FDR increased gov’t spending -Political problemsàElection of 1938 -Rep. gain 7 seats in Senate, 80 in House -FDR did not propose any programs in 1939 -End of New Deal era |