Election of 1932 and the New Deal

Hoover’s Actions (prior to election) Voluntary controls of businesses Voluntary controls of businesses Firms quietly cutting workers’ pay Firms quietly cutting workers’ pay Started to create Government jobs Started to create Government jobs Public still believed government was helping bankers and not ordinary people Public still believed government was helping bankers and not ordinary people He believed direct federal relief would destroy people’s self-respect He believed direct federal relief would destroy people’s self-respect

John Maynard Keynes British economist who said massive government could help a collapsing economy and encourage more private spending

Franklin Delano Roosevelt Democrat Democrat Governor of New York Governor of New York “Happy days are here again!” “Happy days are here again!” Promoted “New Deal” Promoted “New Deal” Was ready to experiment with government roles in economy Was ready to experiment with government roles in economy

1932 Presidential Election Federal Government Intervention vs. No Government Intervention

Roosevelt’s Landslide Victory FDR won by 7 million votes FDR won by 7 million votes Voters with most influence: Voters with most influence: –Urban workers –Coal miners –Immigrants of Catholic & Jewish descent Having to overcome fear in own life (polio) drove him to speak with conviction Having to overcome fear in own life (polio) drove him to speak with conviction

The Election of 1932 Democrats owed their overwhelming victory in 1932 to the popular identification of the depression with the Hoover administration.

FDR’s New Deal Program of relief, recovery and reform Program of relief, recovery and reform Not really sure how this would work Not really sure how this would work Five main areas of concerns Five main areas of concerns

Main Concerns 1.Restore Confidence in Banks 1.Bank holiday 2.Establish FDIC 2.Provide Relief and Create Jobs 1.Federal Emergency Relief Admin. (FERA) 2.Civil Works Admin. (CWA) 3.Civilian Conservation Corps. (CCC)

Main Concerns 3. Helping Businesses a.National Industrial Recovery Act (NIRA) b.National Recovery Admin. (NRA) 4. Saving Homes and Farms a.Home Owner’s Loan Corp. (HOLC) Helped make mortgages more manageable Helped make mortgages more manageable Give farmers incentives Give farmers incentives

The Dust Bowl, 1935–40 This map shows the extent of the Dust Bowl in the Southern Great Plains. Federal programs designed to improve soil conservation, water management, and farming practices could not prevent a mass exodus of hundreds of thousands out of the Great Plains.

Main Concerns 5. Retirement and Disability a.Social Security System Payments to help people who cannot help themselves Payments to help people who cannot help themselves b.Pensions c.Unemployment insurance d.Aid for disabled