Unit Question of the Day Who was FDR and what was the New Deal?

Quick Fire Who was Franklin Delano Roosevelt (FDR)? A) Describe his background B) Describe his presidency

What was the New Deal? New Deal: It was FDR’s plan to recover from the Great Depression. It proposed the “Three R’s:” 1. Relief - Immediate action taken to halt the economy’s decline. 2. Recovery - "Pump - Priming" Temporary programs to restart the economy again.  3. Reform - Permanent programs to avoid another depression and insure citizens against economic disasters.

Alphabet Soup

Relief Immediate action taken to halt the economies deterioration.

Relief Bank runs! People lose their life savings as banks go out of business! FDR declares a Bank Holiday (all banks shut down while reforms are put in place) Declared so that the panic would be stopped.

Relief Emergency Banking Act Closed the bankrupt banks and only reopened the solvent ones (ones that could pay debts).

Relief Federal Emergency Relief Act (FERA) Gave immediate help to banks that needed it in the form of cash payments This stopped bank runs and bank closings.

Relief Civil Works Administration (CWA) Provided temporary jobs repairing roads and bridges.

Recovery Temporary programs to restart the flow of consumer demand. "Pump – Priming:” Invest some government money now to get the economy benefit in the longterm.

Recovery Home Owners Loan Corp. Gave loans to home owners so they could pay their mortgages. This prevented people from going homeless and prevented banks from going under.

Recovery Tennessee Valley Authority (TVA) Agency created to build dams in the Tennessee river valley. These dams provided more stable irrigation and cheap hydroelectric power. Also created many jobs.

Reform Permanent programs to avoid another depression and insure citizens against economic disasters.

Reform Securities & Exchange Commission (SEC) Permanent Agency set up to monitor stock market activity and ensure that no fraud or insider trading was taking place.

Reform Federal Deposit Insurance Corporation (FDIC) Permanent Agency designed to insure depositors money in savings banks. If bank goes under, your money is safe up to a certain amount

Reform Social Security Administration Permanent agency designed to ensure that the older segment of society always would have enough money to survive. The key here is that they would then also be able to spend throughout their lives.

Recovery National Labor Relations Act and National Labor Relations Board (NLRA/NLRB) This acted created the NLRB (National Labor Relations Board) which helped unions and made sure that fair business practices where upheld.