Relief, Recovery, Reform FDR and the New Deal Relief, Recovery, Reform

Franklin D. Roosevelt A Democrat Won 1932 election Proposed the New Deal to fight the Depression Contrary to “laissez faire” gov’t., FDR argued that gov’t. HAD to lead the fight Size and scope of gov’t expanded enormously

Roosevelt Takes Charge “Let me assert my firm belief that the only thing we have to fear is fear itself” - Franklin D. Roosevelt Set up “brain trust” group of advisors, including college professors and economists

Roosevelt in Office Bank Holiday – temporary shutdown of all banks. Each bank allowed to open ONLY after it proved it was financially sound

FDR’s “Fireside Chats” Fireside Chats – radio talks that explained policies in a warm, friendly style. FDR effectively “held Americans’ hands” reassuring them

The Hundred Days Congress passed 15 major laws aimed at the 3 R’s of the New Deal…

The Three Rs Relief for the hungry and jobless Recovery for agriculture and industry Reform to change the way the economy worked FDR wanted to prevent a depression from occurring again

New Deal Programs Fed. Gov’t created AND paid for many agencies: For ex: Civilian Conservation Corps (CCC) – Tennessee Valley Authority (TVA) – Works Progress Admin.(WPA) --

Reaction to the New Deal Conservatives were critical… Not the role of gov’t… looks like socialism Makes fed’l gov’t TOO powerful Will destroy individual ambition Too costly

Reaction to the New Deal Father Coughlin: Catholic priest w/very popular radio program (40 million weekly!) Charles Lindbergh Barry Goldwater Ronald Reagan

Reaction to the New Deal Liberals felt that the New Deal did not go far enough… Huey Long (LA Gov.): “Share the Wealth” total redistribution of wealth…no person should earn less than $4,000 nor more than $1,000,000

The Second New Deal Second New Deal – Additional programs created under the last year of FDR’s first term in office

Social Security Act One of the most important programs passed during the Second New Deal

Social Security Act workers (and employers) make payments into a special fund, from which they would draw a pension after they retired This also helped laid off workers, disabled workers and needy families with dependent children.

The New Deal Slows Down Another downturn in 1937 when the amount of goods produced by industry fell and unemployment rose. Americans blamed FDR Critics attacked FDR for using deficit spending or using borrowed money to fund government programs.

The Economic Recovery Stumbles

The Great Depression Ends 1939: War in Europe FDR pledged America would be the “Arsenal of Democracy” Jobs in defense industry 1941: Attack on Pearl Harbor