1932 - Franklin Delano Roosevelt elected
in a landslide
 Filled his cabinet with ‘smartest’ people
he could find – called it his “Brain Trust”
 Set standard for President’s with his first
100 Days
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Bank Holiday
› Closed all banks until they could be
‘inspected’
› Only allowed to open once they were
deemed healthy
› American’s slowly began to trust banks
again and began to deposit money
 Banks used deposits to invest in the economy
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FDR sought to address multiple issues related to the
Depression
Utilized deficit spending to stimulate economic
growth
3 R’s
› Relief, Recovery, Reform
› Believed in Rugged Individualism but was willing
to provide ‘hand-outs’ if necessary
Some of his efforts were challenged by
Republicans and the Supreme Court
Created the SEC to oversee the
operation of the Stock Market
 Took country off the Gold Standard
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› Led to more $ in circulation which lowered
value of the dollar. Gave Gov’t spending
power.
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Introduced “Alphabet Soup” agencies
to address individual needs around the
country.
› Ex: CCC, TVA, AAA
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After 1936 election, Roosevelt
floated the idea of increasing
Supreme Court to 15 justices
› Backed off after being
accused of ‘Court-Packing’
› Ultimately got what he
wanted when Justices
retired
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Focused more on Social Welfare and
trying to reinvent original New Deal Acts
that were challenged
› Included Direct relief (handouts)
› Strengthened Unions through collective
bargaining and eliminating blacklists
› Social Security Act (1935)
FDR would be the only President to serve
more than 2 terms
 Depression forced the nation to focus on
domestic issues – encouraged
isolationism during which time fascism
grows in Europe
 Increased “size” of Government

› More involvement in managing economy
› Introduction of Gov’t sponsored social
reform programs
› Use of deficit-spending