The New Deal

Background

1929-Stock Market Crash

Unemployment skyrocketing

Bank failures, businesses close

Rising poverty

Hoover’s actions ineffective

Hoover’s Response

Cut taxes, lower interest rates, create public works projects

Localism

Volunteerism

Trickle down economics (RFC)

Franklin Delano Roosevelt

Political up-and-comer from New York

From a rich family

Elite education

Assistant Sec. of Navy

Sound familiar?

New Deal

“The country needs… and demands bold, persistent experimentation. It is common sense to take a method and to try it. If it fails, admit it frankly and try another. But above all, try something!”

During campaign he was vague on what this “New Deal” would mean

Differing philosophies

Hoover: ◦State and local agencies key to recovery◦ business cycle and role of business to lead the

US out of Depression

FDR:◦Federal government must take bold action◦Diverse Cabinet:“The Brain Trust”◦Calming influence on the people

First Hundred Days

Relief, Recovery, and Reform

Big Problems need Big Solutions

“Fireside chats”

Bank holiday

FDIC: (Federal Deposit Insurance Corp.)SEC: (Securities and Exchange Commission)

More Help

AAA (Agricultural Adjustment Act)

TVA (Tennessee Valley Authority)

CCC (Civilian Conservation Corp)

FERA (Federal Emergency Relief Act)

NIRA/NRA (National Industrial Recovery Act/ National Recovery Administration)

PWA (Public Works Admin)

Hollywood Bowl

Lincoln Tunnel

Hoover Dam

“Machinery”Paul Kelpe

You Can’t Please Everyone

Republicans/Conservatives◦Gov’t too powerful◦Destroy free enterprise◦Limited individual freedom

American Liberty League◦Business leaders, Republicans, & Democrats

Liberals say not enough!◦Father Charles Coughlin, Francis Townsend, and

Huey Long (Share Our Wealth Program)

2nd New DealWPA (Works Progress Administration)

SSA (Social Security Admin.)◦ Unemployment insurance◦ Pension for elderly◦ Workman’s compensation◦ Aid for poverty stricken mothers and children, the blind, and

disabled

All of these keep money in circulation and purchasing power up!

More help to farmers and transforming the West through water and power projects

FDR and the Supreme Court

Many big projects ruled unconstitutional◦NIRA/NRA, AAA

FDR tried to “pack” the court ◦Age limits◦More justices◦Tried to push his agendas through◦FDR very popular but couldn’t supersede the

law

Effects of the New Deal

Eleanor Roosevelt◦“The First Lady of Main Street”◦Promoted rights of women, minorities, & kids

Frances Perkins◦Sec. of Labor◦1st female Cabinet member

Black Cabinet

Indian New Deal

New Deal Coalition

Massive change in voting patterns

FDR had widespread support◦He was elected 4 times!

Huge gains for Democrats

Brought country together, ease some of the social and ethnic divides

The Long Term Effects

Larger Government (for good or evil)◦Many programs still in use today…and popular

Gov’t in the economy

Welfare state (not quite European, though)

◦“a country where no one is left out.”

Restoring the Environment

A more powerful President