New Deal

Hoover & the Depression■From 1929 to 1932, President

Hoover was criticized for not doing more to end the depression–Unemployment reached 25%–U.S. banking collapsed–Hoover offered gov’t intervention

(relief check, job programs) but it was seen as too little, too late

■By the election of 1932, Americans wanted hope & strong leadership

Unemployment in America, 1929-1942

FDR & the New Deal■In 1932, Democrat Franklin Roosevelt

(FDR) defeated Hoover

“Let me assert my firm belief thatthe only thing we have to fear is fear itself;the only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert

retreat into advance.”

FDR’s inaugural address in 1933 inspired hope

FDR & the New Deal■FDR initiated his New Deal, a

series of laws that were designed to fight the depression by offering:–Relief: gov’t relief checks & jobs

to get people back to work–Recovery: tried to end the

depression by stimulating industry & farming

–Reform: long-term solutions to America’s economic problems

The Hundred Days ■In his 1st 100 days in office, FDR

& Congress passed 15 major laws

–FDR’s 1st action was to address the bank crisis; By 1933, people had no faith in banks

–FDR declared a 4-day bank holiday after which banks were allowed to re-open only after gaining a gov’t endorsement

Banks recovered & Americans slowly regained confidence

in banks

FDR’s Fireside Chats■FDR used the radio to sell his New

Deal programs to the American people

–These “fireside chats” used simple , clear language to explain his New Deal programs & gain publicsupport for these goals

Listen to the first few minutes of FDR’s 1st fireside chat in March 1933 in which

he explains his bank holiday

New Deal: Relief ■The greatest success

of the New Deal was its ability to offer relief to unemployed citizens:

–The gov’t provided relief checks to 15% of Americans

–The gov’t created jobs for Americans

Percentage of American Families Accepting Government Relief in 1933

New Deal: Relief

■Civilian Conservation Corps (CCC) was a work program for young men aged 18-25:

–The CCC built roads, soil erosion projects, & parks

–The CCC employed 3 million young men

CCC workers paved roads, planted trees, built bridges

New Deal: Reforms■The New Deal created

long-term reforms to address weaknesses in the American economy

■Securities & Exchange Commission (SEC) was created to regulate the stock market & prevent another stock market crash

New Deal: Reforms ■To help restore public

confidence in banks, the Federal Deposit Insurance Corporation (FDIC) was created:

–The national gov’t insures money in bank accounts (up to $250,000 as of 2006)

New Deal: Reforms■The Tennessee Valley

Authority (TVA) created hydroelectric power plants in the South

–TVA created dams in 7 states to provide cheap hydroelectric power & create jobs

New Deal: Recovery ■New Deal programs tried

to stimulate the economy & end the depression–Agricultural Adjustment

Act (AAA) tried to help farmers by paying them not to produce

–By lowering supply, the gov’t hoped to increase crop prices

Unemployment in America, 1929-1942

The New Deal began in 1933, but by 1935 the Great Depression had not yet come to an end

FDR’s Critics ■The failure of the New Deal to end

the depression led to frustration & criticism of FDR’s programs:

–The most vocal critic was Louisiana Senator Huey Long

–Long’s Share the WealthShare the Wealth plan suggested taxing all personal income over $1 million to give each family $2,500 per year

Huey Long How many men ever went to a barbecue &

would let one man take off the table

what's intended for 9/10th of the people to eat? The only way you'll ever be able to feed the balance of

the people is to make that man come back & bring back some of that grub that he ain't got no business with!

Now, how are you going to feed the

balance of the people? What's

Morgan & Baruch & Rockefeller & Mellon going to do with all

that grub? They can't eat it, they can't wear the clothes, they can't

live in the houses.

But when they've got everything on God's

loving earth that they can eat & they can

wear & they can live in, & all that their

children can live in & wear & eat, & all of

their children's children can use,…

“The Kingfish”

…then we've got to call Mr. Morgan & Mr.

Mellon & Mr. Rockefeller back and

say: “Come back here, put that stuff back on

this table here that you took away from here that you don't

need. Leave something else for

the American people to consume.”

Huey Long threatened to run as a 3rd Party candidate but was assassinated in 1935

Court Packing■The Supreme Court declared 2

recovery programs unconstitutional

–FDR feared that the Supreme Court would weaken the New Deal

–FDR’s solution was called court-packing: He wanted to increase the number of justices from 9 to 15

–Congress rejected his radical plan

FDR’s Second New Deal ■In 1935, FDR launched

the Second New Deal –The Works Progress

Administration (WPA) was the biggest New Deal program

–Created 10 million jobs in a variety of professions & cost the gov’t $10 billion

WPA Public Work Project

WPA Initiatives

WPA Arts Project

WPA Music Projects

WPA Theater Projects

FDR’s Second New Deal ■Social Security was

America’s 1st welfare program; It created–Old-age pensions to

be funded by employers & workers

–Welfare payments for the blind, handicapped, & needy children

FDR’s Second New Deal

■The Wagner Act:–Protected workers

right to strike & collectively bargain

–Outlawed unfair practices used by companies to discourage union membership

Conclusions■FDR’s New Deal created a new

role for the U.S. government:–For the 1st time, the gov’t used

deficit spending (going into debt) to stimulate the economy

–For the 1st time, the gov’t took responsibility for the people & created welfare programs

–New Deal successfully offered relief to ease peoples’ suffering, but it did not end the Depression

Assignment

■ Create a picture/political cartoon■ Must represent the New Deal Era of

the Great Depression in some way (Roosevelt vs Hoover; Reform, Recovery, Relief programs; critics of New Deal etc…)

■ Must have color

■ 1-2 sentence explanation of what your picture represents

■ Will be graded on EFFORT not skill