The New Deal
The “Old Deal”• 2
What?
•President Hoover’s reaction to the Great Depression
President Herbert Hoover
The “Old Deal”• 3
What did he want to do?
• Refused to create government programs until it was too late
• Let the business cycle take care of things
The Bonus Army 1932• 4
•25,000 WWI veterans
Who?
•Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945
What?
The Bonus Army 1932• 5
•Called out the troops and dispersed the army
What did Hoover do?
The Election of 1932• 6
• Roosevelt offers a “New Deal” for America• Roosevelt wins with 60% of the vote
What?
Roosevelt’s New Deal• 7
What?
• Programs meant to help the country by getting the government involved in the economy
1. Relief - help people out in the short term
2. Recovery - get the economy back on its feet
3. Reform - keep this from everyhappening again
Meant to do 3 things
Bank Holiday - First Step• 8
Why? • Many banks had failed, wiping out families’ savings
• People lost confidence in the banks
Depositors Congregate Outside Closed Bank
Next Step - “Alphabet Soup”• 9
•In the first 100 days of his administration Roosevelt passes tons of legislation. (First New Deal)
Hundred Days
• The agencies he creates (like AAA, CCC, TVA, FERA, FDIC)
Alphabet Soup
Next Step - “Alphabet Soup”• 1
0
•Insurance for the $ you put in banks
FDIC - Federal Depositors Insurance Corp.
• Protected people’s savings
Bank Employee Checks Depositor's Account
AGRUCULTURAL ADJUSTMENT ACT (AAA) - passed in 1933 to aid farmers.
AAA had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce)
The bad side: 1) food production down when
millions were starving2) Black sharecroppers were hurt
His Greatest Mistake• 1
2Packing the Supreme Court
What?
Why?
• Increase the # of Supreme Court justices from 9 to 15
•Kept declaring his programs unconstitutional (including NRA, AAA, SEC, etc.)
The New Deal - Pros and Cons• 1
3Pros• Restored optimism and hope to Americans
Cons• Did not really fix the depression
• Left the nation with much debt
• Provided necessary relief to many
• Left people too dependent on government (?)