Ch. 12 Sec. 1 & 2 FDR and His New Deal

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Ch. 12 Sec. 1 & 2 FDR and His New Deal

Americans were ready for a change. In 1932, President Hoover ran for reelection. But he had little chance of winning. Unemployment stood at 25%. Bank failures had wiped out savings. The hungry waited for food at soup kitchens. Americans were ready for a change.

Hoover’s opponent in the election was Democrat Franklin D. Roosevelt. Harvard graduate New York State senator Assistant Secretary of the Navy 1920 Nominee for Vice President Polio survivor Governor of New York Differed in views from Hoover in gov’t involvement 3

How does this compare to our recent election?

Together with his “Brain Trust,” Roosevelt moved quickly to carry out his promise of giving Americans a New Deal. During his first 100 days in office, 15 bills were passed. First New Deal The legislation had three goals: relief, recovery, and reform.

The 3 R’s of the New Deal Relief Recovery Reform Relief for those suffering Programs and services in place to give financial, housing, and food help to those people suffering Create jobs Recovery Recovery of the economy Programs and Laws put in place to help businesses grow and prosper Reform Reform that would help prevent another economic crisis Laws, Acts, and Regulations put in place to fix the problems that caused the Great Depression

Roosevelt began with the bank crisis. FDR declared a four-day bank holiday, closing the banks so they could get their accounts in order. In the first of many fireside chats, FDR explained that his actions were to halt bank failures. When the banks reopened, there were no more runs on the banks. 8

Relief Civilian Conservation Corps (CCC) Put young men to work improving national parks, forests, and wilderness areas Federal Emergency Relief Agency (FERA) Granted funds to state and local agencies to helped the unemployed Civil Works Administration (CWA) Gave people jobs on public-works projects

The Public Works Administration (PWA) created millions of jobs. Relief The Public Works Administration (PWA) created millions of jobs. Workers built bridges, dams, power plants, and government buildings. These projects improved the nation’s infrastructure. 10

Recovery Some programs helped farmers and those in the rural South. The TVA built dams to control floods and generate electricity. How many states were impacted by TVA?

Reform Insured bank deposits Regulated the stock market Federal Deposit Insurance Corporation (FDIC) Insured bank deposits Securities and Exchange Commission (SEC) Regulated the stock market

Though progress had been made toward easing the problems of the Great Depression, Roosevelt knew that much work still needed to be done. In 1935, FDR launched a new campaign to help meet the goals of relief, recovery, and reform. The Second New Deal 13

Relief The Works Progress Administration (WPA) created millions of jobs on public-works projects. Workers built highways and public buildings, dredged rivers and harbors, and promoted soil and water conservation. Artists were hired to enhance public spaces. NO MORE HANDOUTS- Work for Pay Relief 14

15

Relief What impact did this have on the elderly? The Social Security Act created a pension system for retirees. It also provided: unemployment insurance insurance for victims of work-related accidents aid for poverty-stricken mothers and children, the blind, and the disabled What impact did this have on the elderly? 16

Recovery The Rural Electrification Administration helped bring power to isolated rural areas. The government provided price supports for agriculture. 17

Reform Fair Labor Standards Act National Labor Relations Act Set a minimum wage for workers and established the 40 hour work week with overtime pay Enforced Labor Laws

At the same time, the New Deal led to the rise of the welfare state. In a major policy change, the New Deal established the principle that the federal government was responsible for the welfare of all Americans. Poll Everywhere Poll 19

Criticisms of the New Deal As FDR planned a new round of spending, critics charged that New Deal programs, and their high price tags, were wasteful. The government was spending money it did not have. The federal deficit had soared to $4.4 billion. With the New Deal, FDR broke from the tradition of laissez-faire and greatly expanded the role of government. 21