The New Deal FDRs New Deal 1933 Bank

* The New Deal

*FDR’s New Deal *1933 Bank Holiday *To stop people from making a run on the banks, stabilize the banks, and ensure that ones that are open can do business. *Purpose of “New Deal” * To put people to work and end the Depression * Direct relief for the needy * Economic recovery * Financial reform – new rules for banks and investment firms * New government departments to monitor economy

*New Organizations & Programs * WPA * Works Project Administration – projects to put people to work. Addressed the immediate needs of the unemployed. * CCC * Civilian Conservation Corps – men 18 -25 performed unskilled labor on natural resource conservation projects on public lands in every state and territory. Most popular ND program. Planted trees, built state parks, developed forest fire fighting methods, roads, buildings, etc. 2. 5 million men worked in it over 9 years. * The FDIC * Federal Deposit Insurance Corporation. It stabilized the banking system by guaranteeing peoples’ deposits – now up to $250, 000 * SSA * Social Security Administration - Addressed the immediate needs of the poor and elderly.

*FDR vs. Hoover *FDR provided direct relief to people – food & money for the poor, job creation, help foreclosure prevention, etc. * He believed it was ok to use deficit spending (debt) to make it happen *Hoover believed in indirect relief: *Private charities should provide direct relief (food, jobs, homes, etc. ) *He worked with businesses and banking to get the economy going again, and to encourage them to hire people, *He believed these efforts would lead to jobs and a better situation for people. *He did not believe the government should go into debt (deficit spending) to bring the country out of the depression. It should happen more naturally, according to natural economic forces.

*FDR’s New Deal Legacy Program *Social Security Administration * unemployment compensation * Pension & health insurance (when you retire-around 65 -70 years old * aid to families with children * disability insurance *FDR & the Supreme Court * He tried to “pack the court” with liberal judges who would support his programs by finding them constitutional when challenged. It’s unethical & he lost support for attempting it * Know that FDR’s response to the GD significantly expanded the role and size of the government. He was first president to use “deficit spending” (gov’t spent more money than it had, and had to borrow) to stimulate the economy