F.D.R. and the New Deal

Roosevelt’s response to the Great Depression differed from Hoover in two important ways. He gave hope to Americans. He was willing to try new ideas and change the way government worked. Americans felt Hoover didn’t respond to the crisis of the Depression. FDR treated the Depression as a National emergency.

Franklin Roosevelt as President Roosevelt took three immediate steps that boosted public confidence. He declared a “bank holiday” – a temporary shutdown of all banks. He promised that only the banks that were in good shape would be allowed to reopen. The day before banks opened, FDR gave the first of many “fireside chats” – radio talks where he explained his policies in a warm, friendly style.

The New Deal The New Deal came to stand for FDR’s program to fight the Depression. In a session of Congress that lasted from March 9 to mid- June 1933, Roosevelt sent Congress a pile of new bills. Many of them passed with little debate. This session of Congress was called the Hundred Days.

Three R’s The laws passed during the first Hundred Days had three major goals, known as the “three R’s.”

Medical Emergency: Imagine you have severely broken your arm. You’ll need more than a Band-Aid. Get to the hospital QUICK! You are in pain!

Medical Emergency: You need: RELIEF: You’re given a pain reliever to help you deal with the pain! It’s temporary, but helpful. 2. RECOVERY: You will need to be cared for by the doctor and nurses and need help with daily tasks for a while. 3. REFORM: If your bones have trouble healing properly, you will need surgery for a permanent solution. Pain Reliever Hospital Stay Major Surgery

The people of the U.S. were America’s Emergency! The people of the U.S. were in crisis and in need of Relief Recovery Reform

Roosevelt’s Three R’s RELIEF: Immediate Temporary Can’t fix it long-term but helps a little right now. RECOVERY: Longer-term Not permanent, but you get help while you need it most. REFORM: Permanent changes made to solve the problem. Pain Reliever Hospital Stay Major Surgery

Three R’s Relief Recovery Reform for the hungry and jobless immediate but temporary solution (pain reliever) Recovery for agriculture and industry getting people and industries back on their feet (short term care) Reform to change the way the economy worked permanent changes made through laws (major surgery)

CRITICS EMERGE Despite the renewed confidence of many Americans, critics from both political spectrums emerged Liberals (left) felt FDR’s program was NOT doing enough Conservatives (right) felt that government intervention was TOO much and interfered with the free market economy

New Deal Programs: CCC: Civilian Conservation Corps; employed 250,000 men in conservation SSA: Social Security Act; provided money for unemployment and the needy WPA: Works Progress Administration; employed 8.5 million in construction FDIC: Federal Deposit Insurance Corporation; protected money in the bank CWA: Civil Works Administration; employed 4 million in public works TVA: Tennessee Valley Authority; built dams and provided electricity HOLC: Homeowners Loan Corporation; low-interest loans to homeowners SEC: Securities and Exchange Commission; regulated stock market AAA: Agricultural Adjustment Act; crop subsidies to protect farmers

FDR’s Alphabet Soup A big bowl of warm soup is often associated with helping people feel better. The nickname for Roosevelt’s New Deal programs is often called “Alphabet Soup” for the acronyms like AAA, SSA, CCC, and CWA.

Which “R” Is It? As we look at the major programs from Roosevelt’s New Deal, decide if it’s meant to provide: Long-term Recovery Permanent Reform Temporary Relief

Agricultural Adjustment Administration (AAA) Protected farmers from price drops by providing crop subsidies to reduce production. Farmers were paid to NOT grow too much food so that the prices for crops remained stable.

Civilian Conservation Corps (CCC) Allowed 250,000 young men to attend camps to perform reforestation and conservation work.

Civil Works Administration (CWA) Provided public works jobs at $15 a week to four million workers.

Federal Deposit Insurance Corporation (FDIC) Allowed the government to insure bank deposits to prevent bank failures.

Tennessee Valley Authority (tva) Provided jobs building a dam in the Tennessee Valley that would also provide hydroelectric power.

Social Security Administration (SSA) Provided pensions, unemployment insurance, and aid to blind, deaf and disabled people, and dependent children.

Works Projects Administration (WPA) Employed 8.5 million workers in the arts and in construction.

Securities and Exchange Commission (SEC) Regulated the stock market and restricted margin buying. Also tried to eliminate dishonest practice.

Home Owners Loan Corporation (HOLC) Loaned money at a low interest rate to homeowners who could not make their mortgage payments.