New Deal Notes Causes: a. Buying on credit b. Ineffective business regulations c.

Failing to monitor banks (they would lend $$ to anyone) d. Surplus of factory goods e. Buying on margin (10% of your money; 90% of the brokers money) f. Farmers in debt (lost their farms) i. Food production almost stops Election of 1932: 1. Hoover (R) had no chance a. He said, We are at the end of our string. There is nothing more we can do b. Roosevelt said the government needed to act quicklywon. 2. First 100 Days a. Called Congress back into session (they were on vacation) b. Bank holiday and closed banks that were corrupt c. Gathered group of advisors called a brain trust to design programs 1. Eliminated child labor* 2. Regulated the stock market 3. Made banks safe for deposit 4. Minimum wage laws* 5. Workers unions* 6. Provided electricity to rural areas 7. Pension plans* 3. Programs a. FDICinsured bank deposits b. Civilian Conservation Corps (CCC)jobs in nations parklands: building roads, trails, campgrounds, etc. c. Public Works Administration (PWA)build public buildings such as tunnels, bridges, libraries, highways, etc. d. Tennessee Valley Authority (TVA)provided electricity along the Tennessee river

e. Social Security Actold-age pensions, unemployment benefits and welfare for qualified families f. Works Progress Administration (WPA)build highways and cleared slums; writers, painters, musicians, actors, were given jobs in communities 4. Eleanor Roosevelt a. First Lady of the World i. FDR couldnt walk due to polio as a child so Eleanor was his legs, eyes and ears ii. Fought for workers, African-Americans, the poor, children, women, handicapped, etc. iii. Press Conference for women writers only 5. Supreme Court a. Begun veto new deal legislation b. FDR adds extra justices to the bench (friendly to him, of course) c. Soon, the jig was publicized and the New Deal lost support i. This is called packing judges Two Schools of Thought: How Much Should the Government Influence Our Lives?

Gov. has a responsiblity to help citizens and it is ok for the gov. to spend $$ on programs, communities (bread lines) and individual people (unemployment checks).

Its a citizens job to help themselves. The government is only responsible for foreign relationships and trade. Money is better spend on things like the military.

a. Great Deal programs are still around (Social Security, unemployment) and other remain but under different names (welfare is not WIC). b. Two opinions still remain: those who want the government to be active in their lives and those who want the government to remain inactive. a. Republicans: generally conservative, individual achievement and a free market with little regulations. Low taxes so people have more to invest. b. Democrats: generally liberals, support all workers, business regulations (local and international). High taxes for programs. *These ideas had been practiced in Europe for almost fifty or so years.