1932 Presidential Election People are tired of Herbert Hoover’s administration –Blame him for not responding more to the Depression Democratic nominee was Franklin Delano Roosevelt (“FDR”) –Won 23 million out of 39 million votes

Democratic Sweep Democrats also took the Senate and House –Senate: 2/3 majority –House: 3/4 majority

The Promise of a “New Deal” FDR promised “a new deal for the American people” New Deal policies focused on –Relief for the needy –Economic recovery –Financial reform

The Hundred Days During FDR’s first 100 days in office Congress passed over 15 pieces of major legislation –This legislation expanded the federal government’s role in the national economy Had previously been VERY hands off

FDR began with banking reform –Declared a bank holiday to prevent more withdraws –Authorized the Treasury Department to inspect the country’s banks Those that were sound could reopen Those insolvent remained closed Provided loans to banks to help pay their debts This restored people’s faith in the banking system

Fireside Chats FDR gave regular radio broadcasts about issues of public concern –Spoke in simple, plain English –Made people feel as though he was speaking directly to them –Convinced many Americans to deposit their money back in the banks

Deficit Spending British economist John Maynard Keynes promoted the idea that a government spend its way out of a depression by putting money into the hands of consumers to fuel economic growth even if a government has to go into debt FDR was reluctant to do this, but viewed it as a necessary evil

Attack on the New Deal Liberals –Argued the New Deal did not go far enough to help the poor and reform the nation’s economic system Conservatives –Argued the New Deal gave the government too much control and interfered with a free market economy