Roosevelt’s Plan for the Great Depression
Herbert Hoover (1928-32)
Thought that the economy
would fix itself and that the
government should not get
involved (laissez-faire)
 Provided little direct
government to the people
suffering from the
Depression
 People blamed him for the
continuation of the
Depression

Election of 1932
 Hoover
ran against Franklin D. Roosevelt
 Roosevelt promised a “New Deal”; Hoover
promised “a chicken in every pot”
 Roosevelt was elected to fix the
depression
Depression Economy
Unemployment
Less Money
to Spend
Fire
Workers
Companies
have less
Profits
Buy Fewer
Goods
“New Deal” Economy
Add Money to
the Economy
More Money
to Spend
Buy More
Goods
More Jobs
CreatedWorkers
Hired
Companies
Have more
Profit
Goals of the New Deal (3 R’s)
 Relief
for the unemployed
 Recovery for the economy
 Reform of the economic systems
The New Deal at Work
 Roosevelt’s
inaugural address – “we
have nothing to fear but fear itself”
 First Hundred Days (March – June
1933) – special session of Congress
produced significant legislation to help
end the Depression
Step 1 of the New Deal
A
Bank Holiday (March 6, 1933)
 purpose: restore public faith in banks and
stop cycle of bank closings
 government inspected all banks records,
banks reopen and people leave their
money in the bank
Step 2 of the New Deal
 The Alphabet Agencies
 goal: create jobs and
stimulate the economy,
while restoring worker’s
self-esteem
 The Agencies
Mission
Relief
Program
How did it work?
Works Progress
Administration (WPA)
Employed men and women
to do public works, research
and artistic projects
employed young men on
public works projects
provided direct
payment to people
for immediate help
Civilian Conservation
Corps (CCC)
Recovery
Agricultural Adjustment
Administration (AAA)
increased government
regulation of crop production
and payments to farmers
Tennessee Valley
Authority (TVA)
constructed dam and power
projects on the Tennessee
River
insured all savings in banks,
helped restore confidence in
banks
offered safeguards for
workers by providing
unemployment benefits and
retirement
designed to bring
nation out of
depression over
time
Reform
Federal Deposit
Insurance Corporation
corrected unsound (FDIC)
banking and
Social Security Act
investment
practices