1. The New Deal

2. President Herbert Hoover
The “Old Deal”
What?
President Hoover’s reaction to the Great Depression
President Herbert Hoover

3. Children in one of the Bonus Army Camps
The “Old Deal”
What did he want to do?
Let the business cycle take care of things
Refused to create government programs until it was too late
Children in one of the Bonus Army Camps

4. The Bonus Army 1932 Who? What? 25,000 WWI veterans
Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945

5. The Bonus Army 1932 What did Hoover do?
Called out the troops and dispersed the army

6. The Election of 1932 What? Roosevelt offers a “New Deal” for America
Roosevelt wins with 60% of the vote

7. Roosevelt’s New Deal What?
Programs meant to help the country by getting the government involved in the economy
Meant to do 3 things
1. Relief - help people out in the short term
2. Recovery - get the economy back on its feet
3. Reform - keep this from ever happening again

8. Bank Holiday - First Step
Why?
Many banks had failed, wiping out families’ savings
People lost confidence in the banks
Depositors Congregate Outside Closed Bank

9. Bank Holiday - First Step
Closed banks for four days to reorganize
How?
President explains in a “fireside chat”
Your money is safer in a bank than under a mattress.
Confidence restored

10. Next Step - “Alphabet Soup”
Hundred Days
In the first 100 days of his administration Roosevelt passes tons (about 15) of legislation
Alphabet Soup
The agencies he creates (like AAA)

11. Next Step - “Alphabet Soup”
AAA - Agricultural Adjustment Administration
Government pays farmers not to farm
Meant to cause prices to rise and halt overproduction

12. Next Step - “Alphabet Soup”
CCC - Civilian Conservation Corps
18-25 year old guys get jobs and send money home to their families
Jobs in the forestry service: planting, fighting forest fires, building reservoirs.
CCC workers in Lassen National Forest, California

13. Next Step - “Alphabet Soup”
N(I)RA- National Industrial Recovery Act
Suspended antitrust laws and allowed business, labor, and government to cooperate in setting up voluntary rules for each industry.
Rules were known as codes of competition.
Codes set prices, established minimum wages, and limited factories to two shifts a day so production could be spread to as many firms as possible.
Other codes shortened work hours with the goal of creating more jobs.

14. Next Step - “Alphabet Soup”
CWA- Civil Work Administration
Hired workers directly for winter work
Employed men and women
Improved airports, roads, school buildings, playgrounds and parks.
Cost was expensive—program spent over 1 billion dollars in just 5 months.
Shut down the following spring.

15. Next Step - “Alphabet Soup”
FDIC - Federal Department Insurance Corp.
Insurance for the $ you put in banks
Protected people’s savings
Bank Employee Checks Depositor's Account

16. Next Step - “Alphabet Soup”
SEC - Securities and Exchange Commission
Watchdog agency for the stock market
New York Stock Exchange

17. Next Step - “Alphabet Soup”
FERA - Federal Emergency Relief Admin.
Gave direct relief ($) to those who needed it
Beginnings of a welfare program

18. Next Step - “Alphabet Soup”
PWA- Public Works Administration
Many unemployed were construction workers.
To put them back to work, the PWA began building highways, schools, dams, sewer systems, and government buildings.
Social Security Information Poster

19. Next Step - “Alphabet Soup”
Social Security
Taxed people working now to give payments to the elderly
Social Security Information Poster

20. Success of the First New Deal
Did not restore prosperity
But did reflect Roosevelt’s zeal for action and willingness to experiment
Banks reopened
More people bought homes and farms
More people were employed
FDR’s actions inspired hoped and restored Americans faith in their nation.

21. What did this cartoonist think about the Supreme Court?
His Greatest Mistake
Packing the Supreme Court
What did this cartoonist think about the Supreme Court?
February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"

22. Supreme Court Exterior
His Greatest Mistake
Packing the Supreme Court
Results?
Public grew angry (FDR taking too much power)
FDR passed much less legislation after this
Supreme Court Exterior

23. The New Deal - Pros and Cons
Restored optimism and hope to Americans
Provided necessary relief to many
Cons
Did not really fix the depression
Left the nation with much debt
Left people too dependent on government (?)