Election of 1932 and the New Deal

Hoover’s Actions (prior to election) Voluntary controls of businesses Firms quietly cutting workers’ pay Started to create Government jobs Public still believed government was helping bankers and not ordinary people He believed direct federal relief would destroy people’s self-respect

Franklin Delano Roosevelt Democrat Governor of New York “Happy days are here again!” Promoted “New Deal” Was ready to experiment with government roles in economy

1932 Presidential Election Federal Government Intervention vs. No Government Intervention

Roosevelt’s Landslide Victory FDR won by 7 million votes Voters with most influence: Urban workers Coal miners Immigrants of Catholic & Jewish descent Having to overcome fear in own life (polio) drove him to speak with conviction

John Maynard Keynes British economist who said massive government could help a collapsing economy and encourage more private spending

FDR’s New Deal Program of relief, recovery and reform Not really sure how this would work Five main areas of concerns

Main Concerns Restore Confidence in Banks Bank holiday Establish FDIC Provide Relief and Create Jobs Federal Emergency Relief Admin. (FERA) Civil Works Admin. (CWA) Civilian Conservation Corps. (CCC)

Main Concerns Helping Businesses Saving Homes and Farms National Industrial Recovery Act (NIRA) National Recovery Admin. (NRA) Saving Homes and Farms Home Owner’s Loan Corp. (HOLC) Helped make mortgages more manageable Give farmers incentives

The Dust Bowl, 1935–40 This map shows the extent of the Dust Bowl in the Southern Great Plains. Federal programs designed to improve soil conservation, water management, and farming practices could not prevent a mass exodus of hundreds of thousands out of the Great Plains.

Main Concerns Retirement and Disability Social Security System (S.S. Act - 1935) Payments to help people who cannot help themselves Pensions Unemployment insurance Aid for disabled