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

2. 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

3. 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

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

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

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

7. 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

8. 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) --

11. 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

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

13. 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

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

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

16. 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.

18. 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.

19. The Economic Recovery Stumbles

20. 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