Roosevelt and the New Deal

Objectives Learn how Franklin Roosevelt won the 1932 presidential election. Find out how the New Deal tried to promote economic recovery. Understand what new laws regulated America’s economic system. Identify the obstacles and criticisms faced by the New Deal.

Terms and People Franklin D. Roosevelt – American President who created the New Deal fireside chat – informal radio broadcast delivered by President Roosevelt to the American people Huey Long – Democratic senator from Louisiana Francis Townsend – doctor whose idea for a system of payments to retirees helped pave the way for the Social Security system

Terms and People (continued) pension – retirement payments Charles Coughlin – Catholic priest who called on the government to take over the banks

How did President Roosevelt respond to the Great Depression? President Hoover’s actions did little to end the poverty and homelessness that gripped the country. In 1932, Americans had the opportunity to elect a new leader, and they took it.

Roosevelt inspired confidence and hope in voters. President Hoover’s opponent in the election was Democrat Franklin D. Roosevelt. Candidate for Vice President in 1920 Polio survivor Governor of New York Roosevelt inspired confidence and hope in voters. He won the election by a landslide.

Roosevelt and his advisors had three goals: To make well-informed decisions, Roosevelt conferred with the “brain trust,” a group of advisors that included college professors. Roosevelt and his advisors had three goals: foster economic recovery provide relief for the jobless prevent future depressions

On the day after Roosevelt took office, he began to address the banking crisis. Bank Holiday Closed the banks for four days Helped halt the wave of bank failures Emergency Banking Relief Act Provided more careful regulation of the banks

During the bank holiday, FDR delivered the first of many fireside chats. The fireside chats were meant to restore the public’s trust in banks. When the banks reopened, many customers returned, ready to redeposit their money.

Roosevelt took further steps to address the economic causes of the depression. He created the National Recovery Administration (NRA) to keep prices stable and boost employment and buying power. Encouraged industries to: Pay a minimum wage End child labor Keep wages and prices from falling too low The NRA failed to improve the economy.

Next, Roosevelt turned to job relief, creating programs to put people back to work. Organization Location Projects Civilian Conservation Corps national parks, forests, and wilderness areas Hired workers to plant trees, build reservoirs, and construct parks Works Progress Administration urban areas Hired workers to repair buildings, pave roads, and build bridges Hired artists and writers to enhance public projects Public Works Administration tunnels, highways, and dams Hired workers to plan and build large public-works projects

Workers at the WPA and PWA completed projects that benefited communities across the country.

The Tennessee Valley Authority (TVA) built dams along the Tennessee River to control flooding, provide electricity, and increase jobs. The TVA succeeded in many of its goals. However, it failed to bring prosperity to the region.

Finally, Roosevelt took steps to reform business practices to prevent future depressions. Truth-in-Securities Act Required full disclosure of stock information Federal Deposit Insurance Corporation (FDIC) Guaranteed individual bank deposits Other agencies set new fairness and safety standards for key industries.

In just his first one hundred days in office, FDR had created the framework of the New Deal. The economy still struggled, yet FDR remained popular. He easily won reelection in 1936.

Not all Americans, however, were happy with the New Deal. Conservatives thought the New Deal placed too many restrictions on businesses and individuals. The Supreme Court declared several New Deal measures to be unconstitutional. FDR responded with a proposal to name six new justices to the Court. Roosevelt’s “court-packing” plan was rejected by Congress.

Liberals thought the New Deal did not do enough to help the poor. Huey Long wanted to tax the rich and give their wealth to the poor. Charles Coughlin urged the government to take over the banks. Francis Townsend argued for a system of government pensions for retirees. Such critics attracted attention, yet they were unable to damage Roosevelt’s continued popularity.