Launching the New Deal

First Hundred Days (March – June 1933)

First New Deal – 1933 – 1935

I. The Three “R’s” – Recovery, Relief, Reform

II. Three Interrelated Objectives

A. Relief to the destitute; one out of every four Americans were unemployed

B. Foster economic recovery of farms and business, thereby creating jobs and reducing the need for relief

C. Reform the government and economy to avoid future “economic slumps.”

III. The New Dealers

A. “Brain Trust” – advisors during his tenure as governor of NY

B. Eleanor Roosevelt – wife

1. Women’s Division

2. Unofficial ambassador – eyes and ears of the New Deal

C. Approach:

1. Pragmatism – Action, Experiment, Improvise

IV. Four Guiding Ideas

A. Capitalist Solutions to Economic Crisis

B. Assumption: Greatest Flaw – Under consumption

C. Counterbalance

D. Moderate the imbalance of wealth created by American capitalism

V. Recovery – Farmers

A. Agricultural Adjustment Act

B. Commodity Credit Corporation

C. Farm Credit Act (FCA)

1. Long term credit on mortgaged farm property

2. Avoided foreclosures of land of debt ridden farmers

D. Consequences

1. Increased farm income 50% by 1936

2. Distribution

3. Migration of Oakies to California – hundreds of thousands

VI. Relief - Federal Emergency Relief Administration (FERA) – 1933

A. Concept - $500 million to feed the hungry and create jobs

B. Direct Relief -Four to five million households with $20 - $30 a month

C. Indirect Relief – Civil Works Administration – Public Works

D. Indirect Relief – Civilian Conservation Corps (CCC)

E. Impact: Job Creation (government jobs) Replaced the stigma of welfare (direct relief) with the dignity of jobs.

VII. Reform – Financial Institutions

A. Bank Reform

1. Emergency Banking Act

2. Glass Steagall Banking Action – established the Federal Deposit Insurance
Corporation (FDIC) – federal government backed up funds

B. Wall Street – Securities and Exchange Commission (SEC)