FDR The New Deal The Old Deal Pres

FDR & The New Deal

The “Old Deal” • Pres. Hoover’s philosophy on handling the Great Depression • ““Rugged Individualism”- people should succeed on their own efforts • Let econ. cycle take care of things • No direct relief 2 President Herbert Hoover

Cont. • Refused to create gov. programs until it was too late Children in one of the Bonus Army Camps 3 • Boulder Dam (Hoover Dam) • RFC- financing for bank loans to big biz. to stimulate econ. (Trickle Down Theory)

The Election of 1932 • Franklin Delano Roosevelt (D) offers a “New Deal” for U. S. • FDR wins w/60% of the vote • Possessed a “can do” attitude & projected friendliness & confidence 4

Roosevelt’s Way: No Delay • Brain Trust = group of experts (bankers, economists, professors, lawyers) to suggest new ideas for dealing w/G. D. - Even before he takes over as prez. “We have nothing to fear, but fear itself” 5 • Result from Brain Trust = The New Deal = programs meant to fight G. D. by getting gov. INVOLVED in econ. & society

FDR’s New Deal • Had 3 Primary Goals: 1. Relief - help people out in the short term; until econ. recovered 2. Recovery – stimulate production & restore econ. activity 3. Reform – correct defects & injustices in econ. ; keep this from ever happening again 6

FDR’s First Action • Emergency Banking Relief Act (EBRA) – Mar. 5, 1933 • “Bank Holiday” = 4 -day bank closure to ensure stability before reopening Depositors Congregate Outside Closed Bank 7 • Peeps had lost confidence in banks; this would help to restore it!

Confidence Restored! • N. D. program = Federal Deposit Insurance Corp. (FDIC) = fed. gov. insures deposits up to $5, 000 (now $250, 000); more confidence • restored for banks! • Set tone of ACTION for his presidency 8

N. D. Legislation • 1 st Hundred Days of presidency = FDR got Congress to pass 15 N. D. legislations; started in March 9 – June 16, 1933 • So many N. D. programs, peeps refer to them by acronyms; even start calling the prez. by His initials; time period became known as “alphabet soup” 9

cont. • Econ. improved in 1 st 2 yrs w/FDR & N. D. BUT unemployment remained high • N. D. had widespread popularity though; benefitted peeps in some way • 21 st Amendment passed (end of 1933) – prohibition repealed - raised gov. revenue by taxing alcohol 10

“ I do think that FDR is the biggest-hearted man we ever had in the White House. . . It’s the first time in my recollection that a President ever got up and said, ‘I’m interested in and aim to do somethin’ for the workin’ man. ’ Just knowin’ that for once. . . [there] was a man to stand up and speak for him, a man that could make what he felt so plain nobody could doubt he meant it, has made a lot of us feel a lot better even when [there] wasn’t much to eat in our homes. ” - George Dobbin, 67 year-old cotton mill worker

FDR Connects w/Americans • Fireside Chats = Informal radio addresses by FDR re. welfare of country • • • Explains N. D. programs in simple terms Like prez. was talking directly to them & understood their hardships Helped restore faith in gov. & prez. * Informal addresses still used today on Internet & radio 12

Threats to N. D. • Critics believed N. D. interfered w/free-market capitalist econ. - gov. too involved w/too much control • Supreme Court declared some N. D. programs were unconstitutional (ex: AAA, NRA, SEC) - Exe. Branch. overstepping power by creating legislation • FDR responded by trying to increase # of S. C. Justices from 9 to 15 (a. k. a. “Court Packing”) - BIG mistake; Many Americans believed Exec. Branch violated separation of powers & getting TOO powerful

2 nd New Deal (a. k. a. the 2 nd 100 Days) • Need to build upon existing N. D. programs • Urged on by First Lady Eleanor to give MORE extensive relief to farmers & workers • Begins 1935 • FDR easily wins re-election in 1936 - Supported by various minority groups; ed by the working class & unions 14

N. D. Impact • FDR agreed to policy of deficit spending = spending more $ than gov. receives in revenue - “a necessary evil to be used only @ a time of econ. crisis” - $2. 9 bil. in debt by 1934 • Restored hope & optimism to Americans • Help reduced suffering – didn’t end G. D. • Lasting effect = BIG gov. that are overly involved in Am. lives re. social welfare & econ.

Summarize & Highlight • Summarize what you have learned about Franklin Delano Roosevelt (FDR) & his actions toward combating the Great Depression. • Don’t forget to highlight slide titles & key terms & actions!! 16