The Great Depression Section 2

Was the New Deal helpful? Arguments against it: -didn’t do enough (Share our wealth) -government was too powerful -FDR was a dictator -was unconstitutional -government was spending more than it took in -did not end the Depression

Helpful? (cont’d) Arguments for the New Deal: -FDR guided the nation during the worst days of the Depression -ended the banking crisis -found jobs for millions of people -preserved democracy

The New Deal In the election of 1932, frustrated Americans chose Franklin D. Roosevelt as the next president Promised a “new deal for the American people” and that the nation “asks for action and action now”.

The Hundred Days Refers to the first hundred days Roosevelt was in office Declared a bank holiday, closing every bank in the country for 8 days Emergency Banking Relief Act- only the banks with enough funds could reopen Fireside chats- radio addresses given by Roosevelt to help reassure the American people

The Hundred Days (Cont’d) The bank act was part of a series of new laws passed in the Hundred Days Relief from unemployment, recovery planning, and reforming the country to prevent future economic crisis

Relief Programs CCC-Civilian Conservation Corps; hired unemployed single men to develop parks, build bridges, plant trees etc. for $1 a day. FERA-Federal Emergency Relief Administration; gave federal money to state and local agencies to give to the unemployed

Programs (Cont’d) WPA-Works Progress Administration; put jobless to work building hospitals, schools, and other public facilities Hired artists and writers to paint murals and write plays as well as record history

Promoting Recovery NIRA-National Industrial Recovery Act; tried to end price cutting and worker layoffs NRA-National Recovery (not rifle) Administration; worked to enforce the new programs (blue eagle sticker)

Farmers Overproduction was still a major problem Surplus-when there is more product than there is a demand for AAA-Agricultural Adjustment Act; paid farmers NOT to grow certain crops and get rid of extra crops and livestock

Tennessee Valley Authority Tried to remake the Tennessee River Valley which had been destroyed by floods Farmland was very poor; half the families in the area were on relief Built dams (flood control and electric power), planted new forests and tried to improve the area farmland

Long Term Reforms Speculation- high risk buying and selling of stocks to make a quick profit FDIC-Federal Deposit Insurance Corporation; insured savings accounts in approved banks. If an FDIC bank failed, the government would repay the money to the depositor