The “Old Deal”
FDR & The New Deal
• Pres. Hoover’s
philosophy on handling
the Great Depression
•““Rugged
Individualism”- people
should succeed on
their own efforts
• Let econ. cycle take care
of things
• No direct relief
President Herbert Hoover
2
The Election of 1932
Cont.
• Franklin Delano Roosevelt (D)
offers a “New Deal” for U.S.
• Refused to create
gov. programs until it
was too late
•
Boulder Dam
(Hoover Dam)
•
RFC- financing for
bank loans to big
biz. to stimulate
econ. (Trickle Down
Theory)
• FDR wins w/60% of the vote
•Possessed a “can do” attitude & projected
friendliness & confidence
Children in one of the Bonus Army Camps
3
4
Roosevelt’s Way: No Delay
FDR’s New Deal
• Had 3 Primary Goals:
• Brain Trust = group of experts
(bankers, economists, professors,
lawyers) to suggest new ideas for
dealing w/G.D.
1. Relief - help people out
in the short term; until
econ. recovered
- Even before he takes over as prez.
“We have nothing to
fear, but fear itself”
5
2. Recovery – stimulate production &
restore econ. activity
• Result from Brain Trust = The
New Deal = programs meant to
fight G.D. by getting gov.
INVOLVED in econ. & society
3. Reform – correct defects & injustices in
econ.; keep this from ever happening again
6
•1
Confidence Restored!
FDR’s First Action
• Emergency Banking
Relief Act (EBRA) – Mar.
5, 1933
• N.D. program = Federal Deposit
Insurance Corp. (FDIC) = fed. gov.
insures deposits up to $5,000 (now
$250,000); more
confidence
•
restored for banks!
•“Bank Holiday” = 4-day
bank closure to ensure
stability before reopening
Depositors Congregate Outside Closed Bank
• Set tone of ACTION for his
presidency
• Peeps had lost
confidence in banks; this
would help to restore it!
7
8
cont.
N.D. Legislation
• 1st Hundred Days of presidency = FDR got
Congress to pass 15 N.D. legislations; started in
March 9 – June 16, 1933
• So many N.D. programs, peeps
refer to them by acronyms; even
start calling the prez. by His
initials; time period became known
as “alphabet soup”
9
•
Econ. improved in 1st 2 yrs w/FDR & N.D. BUT
unemployment remained high
•
N.D. had widespread popularity though;
benefitted peeps in some way
•
21st Amendment passed
(end of 1933) – prohibition
repealed
- raised gov. revenue by
taxing alcohol
10
“ I do think that FDR is the biggest-hearted man
we ever had in the White House . . . It’s the first
time in my recollection that a President ever got
up and said, ‘I’m interested in and aim to do
somethin’ for the workin’ man.’ Just knowin’
that for once . . . [there] was a man to stand up
and speak for him, a man that could make what
he felt so plain nobody could doubt he meant it,
has made a lot of us feel a lot better even when
[there] wasn’t much to eat in our homes.”
FDR Connects w/Americans
• Fireside Chats = Informal radio addresses by
FDR re. welfare of country
•
•
•
Explains N. D. programs in simple terms
Like prez. was talking directly to them &
understood their hardships
Helped restore faith in gov. & prez.
* Informal addresses still
used today on Internet &
radio
- George Dobbin,
67 year-old cotton mill worker
12
•2
Threats to N.D.
2nd New Deal (a.k.a. the 2nd 100 Days)
•
•
Need to build upon existing N.D. programs
•
Urged on by First Lady Eleanor to give MORE
extensive relief to farmers & workers
•
Begins 1935
•
FDR easily wins re-election in
1936
Critics believed N.D.
interfered w/free-market
capitalist econ.
- gov. too involved w/too much control
•
Supreme Court declared some N.D. programs
were unconstitutional (ex: AAA, NRA, SEC)
- Exe. Branch. overstepping power by creating
legislation
•
- Supported by various
minority groups; ed by
the working class & unions
FDR responded by trying to increase # of S.C.
Justices from 9 to 15 (a.k.a. “Court Packing”)
-
BIG mistake; Many Americans believed Exec. Branch
violated separation of powers & getting TOO powerful
14
N.D. Impact
Summarize & Highlight
•
FDR agreed to policy of deficit spending =
spending more $ than gov. receives in
revenue
- “a necessary evil to be used only @ a
time of econ. crisis”
- $2.9 bil. in debt by 1934
• Summarize what you have learned about
Franklin Delano Roosevelt (FDR) & his
actions toward combating the Great
Depression.
•
Restored hope & optimism to Americans
• Don’t forget to highlight slide titles & key
terms & actions!! 
•
Help reduced suffering – didn’t end G.D.
•
Lasting effect = BIG BIG gov. that are overly
involved in Am. lives re. social welfare &
econ.
16
•3