1. Hey! So you need a little extra help with understanding the New Deal? No problem.

2. Before you can understand the New Deal, you have to understand the Great Depression and to understand the Great Depression, you have to understand a little bit about the U.S. economy before this time period.

3. The United States emerged from WWI as a world power. Even so, Americans rejected a major role in world affairs. /

4. Instead the nation turned inward, seeking prosperity and a “return to normalcy.” We don’t need a war to jumpstart the economy! President Warren Harding

5. While the economy flourished in the 1920s (without a war), the 1920s were anything but “normal.” What is that?

6. Why an economic BOOM you ask? Well, companies successfully switched from producing military goods to consumer goods. Things like: 1)Refrigerator s 2)Radios 3)Cars

7. As more goods came to the stores, price dropped. People also were making more money and therefore, had more to spend. To encourage spending businesses offered installment buying or buying on credit. BUY NOW! PAY LATER! BUY NOW! PAY LATER!

8. The government helped boost the economy. To encourage the buying of products “made in America,” the government placed a tax or protective tariff on goods made outside the U.S..

9. In addition to buying things like radios and cars, Americans also bought stocks. Don’t ask me to explain stocks, it’s confusing to even me. I’m just being “honest”

10. I do know however, that many people were borrowing money to buy stocks. To make matters worse, many of the stocks people were buying were in companies that were not doing so hot. I wouldn’t do that if I were you!

11. Nevertheless, people kept buying stocks. Then, in 1929, the stock market CRASHED! I told you so! But I put all my money into stocks!!

12. The CRASH + companies producing more goods than people could afford (overproduction) + banking crisis (banks were not getting paid back for the loans they gave out) = GREAT DEPRESSION! That doesn’t look good!

13. I wasn’t around, but the between 1929 and 1933, things were not pretty! Unemployment, growing poverty, and people using newspapers as blankets to escape the cold. And when people turned to their President, he turned his back. I’m of course not referring to myself, but rather the infamous Herbert Hoover.

14. Perhaps America had been dealt a bad deal. Luckily, the next President (this guy I like) offered the United States a NEW DEAL! The man’s got my vote!

15. What is the so-called “New Deal?” Well, it was a set of government programs created to improve the economy. Jefferson would be rolling in his grave (he was all about that no government, “laissez-faire” approach to the economy). Folks, you will get of this depression and you will with the help of YOUR government!

16. What did FDR say the government will do? Good question! Well, the New Deal had three goals and programs were created to meet this goals: 1)Relief for the jobless 2)Recovery 3)Reforms to prevent future depressions

17. How did they provide RELIEF? 1)FERA (Federal Emergency Relief Fund)provided $ to states for relief agencies. 2) CCC (Civilian Conservation Corps) employed jobless adults. OH THANK YOU! THANK YOU! THANK YOU! THANK YOU!

18. How did they provide RECOVERY? 1)NRA (National Recovery Administration) hoped to keep prices stable 2)PWA (Public Works Administration) $ used to build large projects and in turn, provide people jobs I didn’t know the PWA built the Lincoln Tunnel! I love that tunnel! I didn’t know the PWA built the Lincoln Tunnel! I love that tunnel!

19. How did they provide REFORM? 1)FDIC (Federal Deposit Insurance Corp) protected bank deposits up to $2,500 2)SSA (Social Security Act) guaranteed retired people a pension. I just got my first Social Security check! Thank you FDR!

20. So was FDR’s New Deal a success or a failure? Another good question! Let’s look at the scorecard: Arguments for the New DealArguments against the New Deal 1)Gave too much power to the federal government 1)Led to a massive increase in the national debt 1)FDR’s programs did not end the Great Depression (would not come until 1941 (WWII)) 1)The New Deal eased many problems 2)Employed millions of jobless people 3)Ended the banking crisis 4)Saved poor families from losing their homes 5)New Deal programs built dams and bridges 6)Restored people’s faith in government. Tough call! What do you think?

21. Thank you for spending time with me! I hope you now better understand the Great Depression and the New Deal. Good luck on the Regents! Study, study, study! And don’t forget to watch my movie!