The New Deal
 Reading from Franklin D. Roosevelt’s first
inaugural address – March 4, 1933
“The only thing we have to fear is fear
itself”
 Second Bonus March
provided campsites
Eleanor Roosevelt paid them a visit
 When elected he promised a New Deal to the people
roots in WWI and Progressive movement
 Special session of Congress known as
“One Hundred Days”
passed a series of measures to combat
the depression
almost everyone proposed bit of New
Deal legislation was passed by
Congress
attitude “Take a method and try it. If it
fails, try another.”
result – alphabet soup
ideas came from Brain Trust
 New Deal programs were to provide
Relief...Recovery...Reform
relief for the victims of the depression
recovery from the depression
reforms to ensure that another depression would never happen again
economic ideas from John Maynard Keynes – massive gov. spending would
encourage econ. growth
 First day in office declared “Banking
Holiday”
first bold action dealt with the banks
four days banks were closed / suspend
the operation of all banks
printed $$$ not backed by gold to give
to banks
established Federal Deposit Insurance
Corporation (FDIC)
insured deposits up to $5,000
 First night delivered “Fire Side Chat”
aimed at educating the public,
soothing fear, restoring
confidence and optimism
point was to reassure Americans
that they could trust the banks
 Providing Relief
 Federal Emergency Relief Administration (FERA)
sent funds to local relief agencies - $5 million in 2 hours
headed by Harry Hopkins
 Public Works Programs
Government sponsored building of pubic facilities
Any programs that put people back to work – put money in their pockets
examples
Civil Works Administration (CWA)
Civilian Conservation Corps (CCC)
 Providing Recovery
1.
The National Industrial Recovery Act (NRA)
2.
set up the National Recovery Administration (NRA)
sharp decline in industrial prices caused many businesses to go out of
business
point was to increase prices
allowed trade association to draw up codes to regulate wages, working
conditions, prices
3.
Home Owners’ Loan Corporation (HOLC)
refinanced mortgages
4.
Agricultural Adjustment Administration (AAA)
to raise farm prices
paid farmers not to raise certain crops and animals
 Providing Reforms
1.
created Securities and Exchange Commission (SEC)
regulate the stock market
Federal Reserve Board regulated buying stocks on the margin
2.
created Federal Securities Act
full disclosure of information about stock offered for sale
3. Social Security Act
Provided (gave) a pension ($$$) to retired workers and their spouses
Unemployment benefits ($15-$18 per week)
Help to families with children that are disabled
 New Deal Critics
 Fell short of many people’s expectations
1. Women
Put women at a disadvantage
NRA codes permitted lower wages for women
In relief program men and boys received stronger preference
Jobs to went to “heads of families”
2. African Americans
Reinforce racial segregation
Not offered jobs at professional levels
Keep out of skilled jobs
Received lower pay
Programs did not cover farmers which most African Am were at the time
Lynchings increased in the South – bill was abandoned by Congress
3. Political Critics – too much too little
1. Does too much
Many wealthy people
Considered to be socialistic
Did not like the higher taxes
Did not like Social Security – forced them to pay into the system
2. Does too little
Nation’s entire economic system needed to be reformed
Some said government needed to take over farms and factories
Some said country needed a redistribution of income
Fact: The New Deal program did not end unemployment or the Great
Depression in the United States during the 1930, but it did provide
something to/for the people that was needed.
What was that?
What ended the Great Depression?