The New Deal FDR: ‘This nation asks for Action, & Action Now.’ By Mr RJ Huggins

Background  Roosevelt was elected President in  He took over from Hoover in March  He was determined to end the depression through government Action.  He promised the American people a New Deal to end the Depression.

Key Quotes: FDR’s Inauguration Speech Let me assert my firm belief that the only thing we have to fear is fear itself This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask congress for broad executive power to wage was against the emergency.

Causes of the Depression: Fear Fewer goods are sold. Demand drops. In order to stay in business companies cut wages People lose their confidence & start saving their money Demand drops even further. Companies are forced to cut costs by laying people off Even more people Lose their confidence And spend less money People lose their jobs. The Spiral Of Depression

The Causes of People’s Fear  Losing their job  Becoming homeless  Forced to live on their savings.  Banks going bust. Why did banks start to go bankrupt in 1929? Why did the Depression make even more banks go bankrupt? A run on a bank, New York Panicky savers are queuing up to take their money out before it goes bust. Hint

Action to End the Depression  Emergency Banking Act  Fireside Chats  Beer Act - ended prohibition.  The Alphabet Agencies How would ending Prohibition help FDR create jobs?

Emergency Banking Act, 1933  This Act closed all of America’s banks whilst they were inspected by government officials.  Only banks that were properly run and had enough funds were be allowed to reopen after the bank holiday.  Once a bank has been inspected, the government promised to compensate people if that Bank go bust in the future.

Fireside Chats  These Fireside chats aimed to restore peoples’ confidence.  These Fireside Chats were broadcast once a week over the radio.  FDR would explain what he had done that week to help take action to end the Depression. Why do you think these broadcasts were called ‘The Fireside Chats?’

Fireside Chats ‘ I can assure you that it is safer to keep your money in a reopened bank than under the mattress’ 1.Why were people hiding their savings under their mattresses? 2.Which Law did FDR get Congress to pass which stopped banks going bankrupt?

The Alphabet Agencies  CCC: Civilian Conservation Corps.  AAA: Agricultural Adjustment Administration.  TVA: Tennessee Valley Authority  PWA: Public Works Administration.  WPA: Works Progress Administration  NRA: National Recovery Administration.

Reversing the Spiral of Depression Government Spending $ Alphabet Agencies More Jobs More Spending Demand for goods increases More goods have to be produced More people with Jobs = more pay $ More Spending Demand for goods increases More goods have to be produced More Jobs More Pay = More Taxes Cycle of Prosperity! Democrats called this Process ‘Pump Priming’

Summary  In order to get a a grade ‘C’ upwards in exams, you must learn and use the key words & facts.  These concepts will be awarded as key ‘knowledge.’  Spiral of Depression  Cycle of Prosperity  Fireside Chats  Emergency Banking Act  Alphabet Agencies  Pump priming  AAA, CCC, TVA, NRA, WPA & PWA Key Words

Exam Question 1  Use you own knowledge to say whether the source fully explains why the New Deal was introduced. ‘Let me first of all state my firm belief is that the only thing we have to fear is fear itself. This nation asks for action, and action now. Our greatest task is to put the people to work… It can be achieved in part by the government itself creating jobs’

Mark Scheme LevelGradeDescription 1ESimple undeveloped answer. 2DUses or combines information from the sources. 3C/BUses sources & own relevant knowledge / concepts. 4A/A*Balanced answer covering both parts of the question

Exam Question 2  This cartoon shows one of FDR’s methods of trying to deal with the Depression. How useful is this source to explain what action FDR took to end the Depression?

Level 3  Unemployment caused by depression  ‘Fear’ = loss of confidence which results in a drop in demand.  ‘Action’ because Hoover did nothing to end the Spiral of Depression.’  No mention of Hoovervilles, Breadlines or problems of the farmers.  No mention of Banking Crisis caused by fear & panic. ForAgainst Level 4 = an answer which includes one from each column.

Question 2: Level 3  Fireside Chats’ introduced to tackle ‘Fear’ which was resulting in a loss of confidence led to people not spending money & ‘Spiral of Depression.’  ‘Banking Crisis,’ FDR used Fireside chats to restore public confidence in the reopened banks.  No mention of the Alphabet Agencies: CCC, AAA, TVA, NRA, PWA & WPA.  Pump Priming to reverse the spiral of depression  No mention of Beer Act which ended prohibition to create jobs and raise taxes to pay for New Deal. ForAgainst Level 4 = an answer which includes one from each column.