1. The Great Depression
And the New Deal

2. Problems of the Great Depression
Unemployment
1 in 4 were unemployed
Homelessness (Hoovervilles)
Collapse of the financial system
Banks closed
Depositors lost money

3. Problems of the Great Depression
Political Unrest
Labor unions grew more militant
Increase in suicides
Farm foreclosures and migration
Severe drought – Dust Bowl
Many headed west

4. Franklin Delano Roosevelt
The Election of 1932
Herbert Hoover
Franklin Delano Roosevelt
Believed the country’s economic crisis would resolve itself with minimal government intervention
Believed the government should play a more active role in solving problems
“I’ll put a chicken in every pot!”
Promised “A New Deal” for Americans

5. Winning Candidate? Franklin Delano Roosevelt
Inaugural Address: “We have nothing to fear but fear itself…”

6. The First Hundred Days
Unprecedented volume of new legislation in the first hundred days of FDR’s administration
Increased Americans’ faith in the government
FDR declared a “Banking Holiday”
Had “fireside chats” to increase morale

7. Impact of the New Deal CHANGED THE ROLE OF GOVERNMENT
Government became a more active participant in solving problems
FDR was both criticized and praised for his active role.
Introduced Social Security safeguards for workers

8. Many new agencies of government: the three R’s
RELIEF
Provided direct payment to people for immediate help
Example: WPA (Works Progress Administration
RECOVERY
Designed to bring the nation out of depression over time
Example: AAA (Agricultural Adjustment Administration)
REFORM
Corrected unsound banking and investment practices
Example: FDIC (Federal Deposit Insurance Corporation)

9. Thousands of new jobs for Americans
Led to SOME economic improvement
Jobs
Workers have more money to spend
Businesses increase profit as a result of higher demand
Businesses require more employees to increase supply
Businesses hire new employees