Chapter 23The New Deal

Section 1Forging a New Deal

Lame Duck Presidency• United States was waiting for the “New

Deal”. Why?– To get the United States out of the Great

Depression• Election of 1932 took place in November

while the Inauguration of FDR took place on March 4th, 1933– Leaves a long period of time where the

current president is leaving office• Hoover becomes a “Lame Duck” President

– Leader whose authority is weakened because he or she is about to leave office

• At the same time, the depression worsened

• Congress prompted to pass the 20th Amendment- Ratified in 1933– Nicknamed “Lame Duck” amendment – changed

the date of the inaugural to January 20th.– Shortened the length of a “Lame Duck” presidency

Restoring the Nation’s Hope

• Second Bonus March in May 1933– Public relations plus for FDR because he provided campsite and offered veterans jobs

with CCC– Sent Eleanor Roosevelt to campsite- “Hoover sent the army, Roosevelt sent his wife”

• Makes multiple statements to renew public confidence and faith– First Inaugural Address, March 4, 1933 – “The only thing we have to fear is fear itself”.– Following Sunday – FDR delivered his first “Fireside chat” over the radio.

“New Deal”• Definition: vast collection of

government run programs to combat problems caused by the Great Depression.

• A bold radical experiment filled with optimism and uncertainty.

• Process for New Deal– Create a program…..try it

out…..if it fails……admit it…..then try another program.

3 R’s of the New Deal

• Relief – (immediate goal) – programs for those who were suffering right now.

• Recovery – (short term goals)– programs to create jobs…. help stimulate the

economy.• Reform – (long term goals)– programs/measures to insure against future

depressions.

The First Hundred Days

• March thru early June – FDR pushed program after program through Congress to (1) provide relief, (2) create jobs, and (3) stimulate economic recovery.

Stabilizing Financial Institutions• FDR’s first step as

President was to restore the public’s confidence in the nation’s banking system.– March 5th – he ordered

all banks to close for the next four days

– He then pushed congress to pass the Emergency Banking Act which authorized government to inspect the financial health of all banks.

• Inspectors found that most banks were healthy and two-thirds re-opened by March 15th.

• After the brief “Bank Holiday” American regained confidence in the banking system

• Federal Deposit Insurance Corporation (FDIC) was established – that insured bank deposits up to $5,000 dollars.– In present, up to $250,000