The New Deal

President Herbert Hoover The “Old Deal” What? President Hoover’s reaction to the Great Depression President Herbert Hoover

Children in one of the Bonus Army Camps The “Old Deal” What did he want to do? Let the business cycle take care of things Refused to create government programs until it was too late Children in one of the Bonus Army Camps

The Bonus Army 1932 Who? What? 25,000 WWI veterans Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945

The Bonus Army 1932 What did Hoover do? Called out the troops and dispersed the army

The Election of 1932 What? Roosevelt offers a “New Deal” for America Roosevelt wins with 60% of the vote

Roosevelt’s New Deal What? Programs meant to help the country by getting the government involved in the economy Meant to do 3 things 1. Relief - help people out in the short term 2. Recovery - get the economy back on its feet 3. Reform - keep this from ever happening again

Bank Holiday - First Step Why? Many banks had failed, wiping out families’ savings People lost confidence in the banks Depositors Congregate Outside Closed Bank

Bank Holiday - First Step Closed banks for four days to reorganize How? President explains in a “fireside chat” Your money is safer in a bank than under a mattress. Confidence restored

Next Step - “Alphabet Soup” Hundred Days In the first 100 days of his administration Roosevelt passes tons (about 15) of legislation Alphabet Soup The agencies he creates (like AAA)

Next Step - “Alphabet Soup” AAA - Agricultural Adjustment Administration Government pays farmers not to farm Meant to cause prices to rise and halt overproduction

Next Step - “Alphabet Soup” CCC - Civilian Conservation Corps 18-25 year old guys get jobs and send money home to their families Jobs in the forestry service: planting, fighting forest fires, building reservoirs. CCC workers in Lassen National Forest, California

Next Step - “Alphabet Soup” N(I)RA- National Industrial Recovery Act Suspended antitrust laws and allowed business, labor, and government to cooperate in setting up voluntary rules for each industry. Rules were known as codes of competition. Codes set prices, established minimum wages, and limited factories to two shifts a day so production could be spread to as many firms as possible. Other codes shortened work hours with the goal of creating more jobs.

Next Step - “Alphabet Soup” CWA- Civil Work Administration Hired workers directly for winter work Employed men and women Improved airports, roads, school buildings, playgrounds and parks. Cost was expensive—program spent over 1 billion dollars in just 5 months. Shut down the following spring.

Next Step - “Alphabet Soup” FDIC - Federal Department Insurance Corp. Insurance for the $ you put in banks Protected people’s savings Bank Employee Checks Depositor's Account

Next Step - “Alphabet Soup” SEC - Securities and Exchange Commission Watchdog agency for the stock market New York Stock Exchange

Next Step - “Alphabet Soup” FERA - Federal Emergency Relief Admin. Gave direct relief ($) to those who needed it Beginnings of a welfare program

Next Step - “Alphabet Soup” PWA- Public Works Administration Many unemployed were construction workers. To put them back to work, the PWA began building highways, schools, dams, sewer systems, and government buildings. Social Security Information Poster

Next Step - “Alphabet Soup” Social Security Taxed people working now to give payments to the elderly Social Security Information Poster

Success of the First New Deal Did not restore prosperity But did reflect Roosevelt’s zeal for action and willingness to experiment Banks reopened More people bought homes and farms More people were employed FDR’s actions inspired hoped and restored Americans faith in their nation.

What did this cartoonist think about the Supreme Court? His Greatest Mistake Packing the Supreme Court What did this cartoonist think about the Supreme Court? February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"

Supreme Court Exterior His Greatest Mistake Packing the Supreme Court Results? Public grew angry (FDR taking too much power) FDR passed much less legislation after this Supreme Court Exterior

The New Deal - Pros and Cons Restored optimism and hope to Americans Provided necessary relief to many Cons Did not really fix the depression Left the nation with much debt Left people too dependent on government (?)