Franklin D. Roosevelt
and the New Deal
“ I pledge to the
American people a NEW
DEAL….”
“ We have nothing to
fear but fear itself.”
The New Deal:
1933-1939
Herbert Hoover and Franklin D. Roosevelt, 1932
Hoover , Republican
Roosevelt, Democrat
WHAT WAS THE NEW DEAL???
Phase I: The First Hundred Days
 THE HUNDRED DAYS: Between March 9 and
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June 16 of 1933 FDR signed 15 historic bills for…
1. Relief for the unemployed
2. Reform of business practices
3. Recovery of the economy during the Great
Depression.
These programs came to be known as the “NEW
DEAL”.
Many historians believe this to be one of the most
creative periods in American political history and
we still feel its impact today.
From the Great Depression to the New
Deal: 1929-1930s
 Cause: Great Depression=A severe economic
crisis followed the rapid economic expansion and
buying on credit that occurred in the 1920s. The
economy collapsed and many Americans lost their
jobs and homes, banks failed, and the depression
spread around the globe.
 Effect: New Deal=a set of programs put into place
by the federal government to address the economic
problems.
The Debate: What Caused the Great
Depression?
 Economists still disagree and argue about the causes
of the Great Depression.
 John Maynard Keynes believed that the
government failed to act to stop the economic crisis
by regulating the money supply.
 Keynes recommended in hard times, the
government should spend more money to keep
people employed, EVEN IF THAT MEANT GOING
INTO DEBT. This is a controversial economic theory
also known as DEFICIT SPENDING.
FDR Takes Action—First Days in Office
 1. Two days after taking office, FDR declared a
“Banks Holiday and passed the Emergency
Banking Act.
 2. Uses the radio to communicate with the American
people and gain their support …fireside chats
 3. Economy Act—assured Americans the
government was going to balance the budget
 4. Legalized the manufacture and sale of beer
Prohibition Ends
Fireside Chats
New Deal Programs= “ALPHABET SOUP”
 1. AAA= Agricultural Adjustment Act, 1933
Provided subsidies to farmers to lower
production and help raise commodity prices
 2. NRA=National Recovery Administration, 1933
Established codes to regulate wages and prices,
encourage consumer spending and promote fair
competition (Symbol was the blue eagle)
 3. TVA=Tennessee Valley Authority, 1933
Government funded a dam project to electricity and
put people to work
What actions were taken to REFORM
THE BANKING and FINANCIAL
SYSTEMS?
 1. Roosevelt went off the gold standard
 2. Passed Banking Regulations
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FDIC=Federal Deposit Insurance
to insure deposits in banks
SEC=Securities and Exchange Commission
to police the stock market
Quiz Jan 30
 1. Which president proposed an economic domestic
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policy called the “New Deal”?
2. How did Franklin Roosevelt communicate with
the American people?
3. Which group of Americans was the AAA designed
to help?
4. List the primary goals of the New Deal (three
“Rs”)
5. Which government agency provided insurance for
bank deposits?
Which New Deal Programs created
Jobs for Americans?
 1. WPA=Works Progress Administration
 2. CCC=Civilian Conservation Corps
 Both of these programs were designed to give
Americans jobs ---not direct relief.
WPA workers at a zoo
WPA artist at work
ER at a WPA nursery
CCC workers at Rocky Mountain National Park,
1933
CCC workers building a road, 1933
CCC camps, tents were replaced by barracks
What was the Immediate Impact of the
New Deal? (2 slides)
 1. Rescued the banking system and set up
system of deposit insurance (FDIC)
 2. Regulated stock exchanges
 3. Saved the failing railroad system
 4. Went off the gold standard which raised
farm prices
 5. Refinanced farm mortgages and rescued
farmers.
Immediate Impact of the New Deal continued…
 6. Sent $500 million to the states for direct
relief
 7. Saved a fifth of all homeowners from
foreclosure
 8. Put millions of men and women to work
on public works projects ……roads, dams,
bridges, parks, schools, …..
 9. Raised the moral of the American people
The Second New Deal
IN 1935 FRANKLIN ROOSEVELT
INTRODUCED NEW PROGRAMS
TO HELP UNIONS, THE
ELDERLY, AND THE
UNEMPLOYED.
Why were some Americans critical of
the New Deal?
FDR had begun to spend more money than the
government took in. Deficit spending occurs
when the government has to borrow money to pay
for programs.
2. Some believed the federal government
expanding its power at the expense of the
states’ rights.
3. Others believed the New Deal placed too many
limits and regulations on businesses.
4. American Liberty League—opposed the New
Deal
1.
Who were the Critics of the New Deal?
1. Conservative Republicans
 2. Huey Long “Share the Wealth”
 3. Supreme Court
Huey Long, governor of Louisiana suggested
Americans should “Share Our Wealth”
http://www.history.com/videos/the-new-deal
What programs were put into place
during the “Second New Deal”?
 1. Highest peacetime progressive tax rate (high
taxes!)
 2. ***Wagner Act--Gave more power to labor and
unions grew—there were 5,000 strikes in 1937
 3. ***Social Security Act—created an
unemployment system, disability insurance, old age
pension, and child welfare benefits.
 ***The Social Security Act established the
principle that the federal government should be
responsible for those, who through no fault
of their own, were unable to work.
4. WPA=Works Progress Administration –to
end unemployment and create jobs
5. REA=Rural Electrification Administration –
brought electricity to isolated rural areas
6.Banking Act –to strengthen the Federal Reserve
Putting America to Work
Rockefeller Center Under Construction
Men on A Girder, 1932, New York
Men Asleep on Girder
Election of 1936—FDR wins by landslide
 FDR won by greatest
margin in American history
 Political loyalties of the
American people had
shifted to the Democratic
Party
 The Democrats will
control government for
30 years
 People will look to the
government to solve
problems
How did the New Deal Give More
Power to Labor? (workers)
 National Labor Relations Act (1935) –which is
also called the Wagner Act—guaranteed workers
the right to organize unions without interference
from employers
 Many people joined unions during this time and
during the next two decades
Why did FDR attack on the Supreme
Court?
 In 1935, the US Supreme Court ruled that some of
the New Deal programs were unconstitutional.
 FDR tries to add justices to the Supreme Court to
raise the number from 9 to 15 in order to gain
support for his New Deal Programs.
 There is a huge backlash against FDR by both
Democrat and Republicans
 FDR fails and the “Court Packing” scheme
damages him politically
Eleanor Roosevelt with Marian Anderson
What was role of Women in the New
Deal?
 Frances Perkins
was the first female
cabinet member.
She served as
Secretary of Labor,
but had very
traditional ideas
about the role of
women in society.
Lorena Hickok travels across the nation
Eleanor Roosevelt
Federal Art Project: New Deal Art
***What ended the Great Depression?
 1. Many believe THE NEW DEAL DID NOT END
THE GREAT DEPRESSION but it did help stabilize
the economy and kept the crisis from getting worse.
 2. WWII ended the economic crisis—war
production and rearmament
Employment statistics from 1920-1940
What is the Legacy of the New
Deal?
ACCOMPLISHMENTS
AND FAILURES
***What impact does the New Deal have on our
lives today? (T)
 1. Set up agencies to regulate the stock market and
the banking system (FDIC, SEC, …)
2. Set up the welfare state through relief
programs, especially Social Security.
3. Gave the government a set of tools for regulating
the economy in the future
4. Created a much larger and more powerful
federal government
5. Americans expect government action to solve
problems
Debate: Should the Government Spend
Money During an Economic Crisis?
 Economist John Maynard Keynes suggested that
during a severe economic depression the federal
government should INCREASE spending even if they
have to borrow money to do so. (Keynesian
Economics)
Deficit Spending: When the government spends more
money than it collects from taxes. Many believe this is
necessary to create jobs and jump start the economy
during a severe economic depression. Others disagree.
Summary: New Deal
 1. The New Deal was a period of remarkable
changes in government. Government would be
expected to manage the economy and step in to
correct problems in the future.
 2. *****FDR served longer than any other
president in US history and his
administration put together a series of
programs that permanently altered the
relationship between the federal
government and the American people.
Are We Headed into Another Great
Depression?
2013
 7-8% unemployment
 Taking action
 Federal Reserve lowers
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interest rates
Years of government
experience in regulating
the economy
Global leaders working
together
FDIC
Government safety nets
1930s
 25% unemployment
 Slow to react
 Federal Reserve raises
interest rates
 Government had almost
no experience in
regulating the economy
 No federal welfare
agencies
American Recovery and Reinvestment
Act, 2009
 $800 Billion:
Education,
infrastructure,
healthcare, energy…
Practice Question: SATP
The election of Franklin D. Roosevelt to the
Presidency in 1932 reflected the desire of many
Americans to
1. return to a policy of laissez faire
2. abandon capitalism in favor of socialism
3. continue the domestic policies of the Hoover
administration
4. have government take an active role in solving
economic problems
1-29-2013 Quiz Great Depression
1.In what decade were Americans hardest hit by the
Great Depression?
2.True or False? The Great Depression was the most
severe and longest lasting economic crisis in U.S. history.
3. Name the environmental disaster that impacted the
Great Plains during the Great Depression.
4. Name the event: Thousands of WWI veterans marched
on Washington, DC demanding pay owed to them for
service in the military.
5. True or False? Thousands of Americans migrated from
place to place during the Great Depression seeking
employment and shelter.