FDR AND THE NEW DEAL

President Franklin Delano Roosevelt (FDR) Democrat - Elected President in 1933 Very “Hands On” President – tries lots of new things Gave people hope

FDR Striken with polio at age 39 – lost use of legs Disease kept out of the public eye Famous for “Fireside Chats” – weekly radio talks to people Declared a 3 day “Bank Holiday” March 6, 1933– all banks close & strong ones would reopen

FDR’s Leg Braces

FDR’s Lever Car

FDR & Eleanor Had 5 children Discovered FDR affair with Eleanor’s secretary Lucy Mercer Marriage salvaged by deal brokered by FDR’s mother

FDR’s Response to Great Depression 1.“try something” 2.Spend government money “Brain Trust” for advice 3. focus on 3 Rs:  Relief (direct aid, like jobs)  Recovery (supports/ help industries)  Reform (new laws to fix problems)

The New Deal FDR’s plan to ease the depression put people to work AKA FDR’s “Alphabet Soup” Work on USA internal improvements – building roads, bridges, dams, parks Federal Government becomes largest employer in USA FDR & Congress pass 15 total new measures in 100 days

11 Bank Holiday - First Step Many banks had failed, wiping out families’ savings People lost confidence in the banks Banks closed March 6, 1933 FDR asked Congress to pass Emergency Banking Act  only financially sound banks could reopen Depositors Congregate Outside Closed Bank

1 ND1: First New Deal – National Recovery Admin. (NRA) Gave President new powers to set prices and wages, hours Tried to Promote fair competition Declared Unconstitutional in 1935 – had to revise program

1 ND2: Agricultural Adjustment Admin – (AAA) Paid Farmers to NOT grow crops Goal was to raise farm prices Lowering supply, increasing demand, raise prices Criticized for hurting small Southern farmers, sharecroppers Declared unconstitutional 1936 Second AAA was created

1 ND3: Civilian Conservation Corps – (CCC) Work relief program for young, unemployed, city men Work on rural conservation & improvement projects – build national parks, plant trees, combat soil erosion AKA FDR’s “Tree Army” Earned $1.00 a day Camps run by US Army

2 ND4: TENNESSEE VALLEY AUTHORITY – (TVA) Working in 7 state region along Tennessee River – Very poor, impoverished area Create Electrical power, replenish farmland, and control floods Built dams and waterways along TN river Agency still exists today – largest electrical power company in USA

SECOND NEW DEAL: NEW WORK PROGRAMS 2 ND 5: Works Progress Administration (WPA) Employed 8,500,000 Earn $5 a day (men) Women $3 Manual Labor Building Projects

WPA Highlights Paved 651,000 miles of road Built 78,000 bridges Built 800 Airports & runways Built 8,000 parks

WPA advertisement to aid women

ND A1: SECOND NEW DEAL – ACTS Congressional elections give Democrats majority in both House and Senate Securities and Exchange Commission (SEC) – Protect against unfair / illegal investing in stock market Fight insider trading Laws for Margin Buy

ND A2: Social Security Administration (SSA)– Provide $ for retirement years (public pension)  Provide enough money for the aging to survive. Death benefits to dependent children Unemployment insurance

ND A3: Federal Deposit Insurance Corporation (FDIC) Bank insurance – Gov’t insures peoples savings $ insured up to $100,000 today

Supporters of the New Deal: Supporters said FDR… 1. stretched Constitution to fit needs of time 2. offered immediate help to needy 3. fixed problems that led to depression 4. increased optimism

Critics of the New Deal: Critics said FDR… 1.seen as “socialistic” 2.“Unconstitutional” 3.against American self-reliance 4.Called FDR a “dictator” 5. Deficit spending

New Deal RESULTS Was the New Deal a Success??? Did not solve Great Depression Did the best that it could for the time Birth of the “Welfare State” in USA Criticized as being Socialist WWII really pulls USA out of Great Depression Industrial Factory work creates jobs, demand, and jolts the economy

The New Deal Franklin Roosevelt’s plan to end the depression. FDR & Congress pass legislation to provide: Relief-Civilian Conservation Reform Recovery-Public Works Administration Reform-Tennessee Valley Authority John Maynard Keynes- Economist Government Spending: Job creation=more money in circulation=buy more goods=less unemployment=price rise.