Ch. 12-1 The First New Deal

Roosevelt’s Rise to Power Franklin D. Roosevelt’s education (FDR) - Harvard educated (“C” student), wealthy family

Roosevelt’s Rise to Power Franklin D. Roosevelt’s education (FDR) - met wife Eleanor Roosevelt at Harvard

Rise To Power FDR’s former political position - Democrat V.P. nominee (1920) - N.Y. Gov. (1928); he opened up relief agencies for the unemployed FDR’s medical setback - Developed polio at 39 losing ability to walk; - he used it as motivation

Rise to Power Election of 1932 - FDR (Democrat) defeated Hoover (Rep.) in a landslide promising a “New Deal” to America The New Deal - FDR’s “plan” for ending the depression w/ massive gov’t intervention - consisted of the “3 R’s”: Relief – get people $ now Recovery – reopen businesses Reform – fix the broken system

FDR elected Winter of 1932-33 for banks - FDR elected in Nov. but didn’t take office until March (4 months later) – Hoover was a lame duck – Pres. with little power - During the winter, unemployment rose and bank runs continued - Country was leaderless

FDR elected State governors declare Bank holidays - shut down some banks to prevent runs FDR’s famous inaugural quote - “the only thing we have to fear is fear itself”

The New Deal Begins The “Brain Trust” - FDR’s advisors he gathered to end depression FDR’s ‘agenda’ for attacking the Depression - no set plan - used bold persistent experimentation (like a coach, try something new if the old isn’t working)

The New Deal Begins Hundred Days - First 100 days in office, Congress passed 15 major acts to resolve economic crisis (known as the 1st New Deal)

A Divided Administration FDR asks for different perspectives - to get different viewpoints

Banks and Debt Relief FDR’s very first action as President - fix and restore confidence in the banks Emergency Banking Relief Act - shut down all banks for 4 days to inspect them - only healthy banks could open

Banks and Debt Relief Fireside chats - weekly radio broadcasts for confidence - 30 chats, 1st one on Mar.12th, 1933

Security and Exchange Commission -- SEC Securities Act of 1933 - requires companies to provide truthful investment info to the public SEC – Security and Exchange Commission - gov’t agency that regulates stock market and prevents fraud – still around

Federal Deposit Insurance Corporation -- FDIC Protects bank deposits w/ gov’t insurance up to $5000 (today it is $250,000)

Home Owners Loan Corp.-- HOLC Gov’t agency which bought people’s mortgages and lowered their payments 1 out of 10 homeowners took advantage