Republican President
Herbert Hoover
Democrat Governor of NY
Franklin D. Roosevelt
Outcome:
• Americans are ready for a change by 1932
• Hoover blamed for doing nothing
• FDR wins (23 million to 16 million votes)
- In acceptance speech FDR promises “a new
deal for the American people”
Born 1882 in Hyde Park, NY
- 5th cousin of Theodore Roosevelt
Married in 1905 to
Eleanor Roosevelt
Attended Harvard &
Columbia Law School
1910 elected to New
York state Senate
1913 appointed Assistant
1920 Democratic Nominee
Secretary to Navy by Wilson for Vice President w/Cox
1921 stricken w/Polio
(paralyzed from waist down)
1928 elected Governor
of New York
Prior to FDR’s inauguration as president:
• Handpicks advisors (professors, lawyers,
journalists) nicknamed his Brain Trust
• Develops the New Deal  FDR’s
program to ease the problems of the
Great Depression
Three Goals of New Deal:
1. Relief (immediate help for the needy)
2. Recovery (temporary programs to restart economy)
3. Reform (programs to prevent another depression)
Hundred Days: period of intense activity by FDR’s
administration once taking office
Outcome:
• Congress passes 15 pieces of New Deal legislation
• Expanded the governments role in the economy
Fireside Chats:
• Informal radio talks from FDR to the American
people
• Discusses issues of concern and explained New
Deal programs
Outcome:
• American public felt like FDR was talking directly to
them and their needs were going to be met
Step 1 Reform: Banking and Financial Reforms
• Closes all banks (Bank Holiday) (March 5, 1933 1 day
after taking office)
• Emergency Banking Relief Act 
– Treasury Dept. inspects banks
– Banks that were sound can open & those that can’t pay
debts remain closed
– Banks which need help can receive loans from govt.
Outcome:
• Revived American’s confidence in banks
• Glass-Steagall Act 
– Established the Federal Deposit Insurance Corp. (FDIC)
– Provided federal insurance for individual bank accounts
up to $5,000
Roosevelt signing the Glass-Steagall Act in 1933
FDIC logo (1933)
Outcome:
• Reassured customers that their money was safe
Federal Securities Act
– Required corporations to
provide complete
information about their
stocks
– Corporations were made
liable for any
misrepresentations
Securities and Exchange
Commission (SEC) 
Roosevelt signing the Glass-Steagall Act in 1933
– Prevent anyone with inside
information from “fixing”
the stock market for their
personal profit
SEC logo (1934)
Outcome:
• Regulated the stock market
• Americans gain some confidence back in the stock market
Step 2 Recovery: Help the American economy w/jobs
• Agricultural Adjustment Act (AAA)
–
–
–
–
Goal = raise crop prices by reducing supply
Govt. would pay farmers NOT to seed every acre
Govt. would pay cotton growers to plow under existing crops
Govt. would pay hog farmers to slaughter a % of their pigs
Outcome:
• Upset many who were hungry to purposely destroy food
• Overall…. prices did rise and farmers made more money
• Tennessee Valley Authority (TVA)
– Goal = develop the badly depressed Tennessee River Valley
– Govt. paid for projects in the region which created jobs
» Repair and Construct Damns
» Provide Flood Control
» Institute Hydroelectric power
Outcome:
• Provided much needed jobs and improved the overall
economy of the region
• Civilian Conservation Corps. (CCC)
– Goal = provide relief through work projects which provide jobs
– Govt. paid men, gave lodging, food, & uniforms (age 18-25) to:
»
»
»
»
Build Roads
Develop new and existing Parks
Plant Trees
Help with soil-erosion and flood-control
Outcome:
• Provided 3 million men with jobs and wages
• Provided new infrastructure within America
• Helped reforest the Great Plains to prevent another Dust Bowl
National Industrial Recovery Act (NIRA)
– Provided money to states to create jobs
– Created the 3 following programs:
1. Public Works
Administration (PWA)
– built large-scale public
works such as dams,
bridges, hospitals, and
schools
– Goal: provide jobs &
stimulate the economy
2. Civil Works
Administration (CWA)
– built bridges and various
public buildings
– Goal: rapidly create
manual labor jobs for
millions of unemployed
workers
Outcome:
• Built 40,000 schools
• Paid 50,000 rural teachers salaries
• Built 500,000 miles of roads
3. National Recovery Administration (NRA)
– Goal = establish codes of fair practice for industries
» Set prices of products
» Established standards for products
Outcome:
• Limited production and established prices
• Led Congress to guarantee workers right to unionize and
bargain collectively
Step 3 Relief: Help Americans at home
Home Owners Loan
Corp. (HOLC)
- Govt. will provide
loans to homeowners
who faced
foreclosure
Federal Housing
Admin. (FHA)
- Govt. backed loans
for mortgages &
home repairs
Federal Emergency Relief Admin. (FERA)
- Govt. funded 500 million for direct state relief of the needy
- Provided food & clothing to unemployed, elderly, and ill
- Provided work relief to those unemployed
Outcomes:
• Assisted the
unemployed with
jobs, food, and
clothing
• Enabled needy
Americans to re-gain
their self-confidence
and self-respect
How to pay for the New Deal?
Deficit Spending:
Spending more money than the
government receives in revenue
Liberal Critics:
Conservative Critics:
• New Deal didn’t go
far enough to help
the poor and
reform the nation’s
economic system
• FDR spent too much
money on direct relief
• FDR used New Deal to
take federal control of
business and the
economy
Other Critics:
• New Deal interfered with a
free-market economy
Charles Coughlin:
Dr. Francis Townsend:
• Catholic priest &
radio host
• Accused FDR of NOT
doing enough to
fight the depression
• Doctor & California
Health Officer
• FDR NOT doing enough to
help poor & elderly
• Suggests a pension plan
for the elderly
Huey Long:
• Senator of Louisiana
• His Solution: Share the Wealth
- suggests higher taxes on rich & redistribute
money to the poor (Robin Hood Theory)
1935: Supreme Court rules the NIRA unconstitutional
1936: Supreme Court rules the AAA unconstitutional
1937: FDR
proposes a
Court Reform
Bill to appoint
6 new justices
Americans & Congress
accuse FDR of violating
the U.S. Constitution
1937: a justice retires &
FDR appoints a liberal
judge who supports the
New Deal
Republican Kansas Gov.
Alfred Landon
Democrat President
Franklin D. Roosevelt
Outcome:
• Overwhelming victory for FDR
• Democrats win in both Houses
• 1st time Blacks vote Democrat
• 1st time Labor backs a candidate
Second New Deal  to address the problems of the
elderly, the poor, and unemployed
Soil Conservation and
Domestic Allotment Act:
– Paid farmers for cutting
out crops which deplete
the soil
– Rewards farmers for
using soil conservation
methods
Second Agricultural
Adjustment Act (1938):
– Brought back most
features of 1st AAA
– Removed the tax to pay
for farm subsides (part
ruled unconstitutional)
Resettlement
Administration:
– Govt. provides loans to
small farmers to buy land
– Replaced by
Farm Security Administration:
– Govt. loaned money to
tenant farmers to buy land
– Govt. established camps for
migrant workers
Works Progress Administration:
– Purpose: to provide the unemployed
with jobs in:
•
•
•
•
•
Teaching
Construction
Garment Making
The Arts
Other
Wagner Act:
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–
–
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Re-established collective bargaining rights
Protected workers right to join unions
Prohibited unfair labor practices
Created National Labor Relations Board (NLRB)
to hear cases about unfair labor practices
Fair Labor Standards Act:
–
–
–
–
Set maximum hours of work a week (40 hrs)
Set up a federal minimum wage (25 cents)
Set rules for employment of those under 16
Banned hazardous work for those under 18
Social Security Act:
– Three Parts:
1. Old-age insurance for retirees 65
and older (plus their spouses)
2. Unemployment compensation
system
3. Aid to families with dependent
children and the disabled
National Youth Administration:
– Purpose: to provide education, jobs,
counseling, and recreation for youth
Rural Electrification
Administration (REA)
– Purpose: Govt. financed and
worked with electrical
companies to bring electricity
to rural areas
Public Utility Holding
Company Act
– Purpose: to regulate public
utilities
– Outlawed ownership of
utilities by multiple holding
companies
Women
– Provided some women with the opportunity
to increase their political influence and to
promote women’s rights
Eleanor Roosevelt
- Transforms role of the First Lady
- Led fight for equality for woman
African Americans
– Eleanor Roosevelt protests against racial
discrimination and urged the President
improve their situation
– Black Cabinet  African American leaders
who advised FDR on racial issues
Mary McLeod Bethune: member of the
Black Cabinet
- Believed the New Deal created a
“new day” for African Americans
- She noted that African Americans
gained unprecedented access to the
White House and positions within
the government under FDR
Native Americans
– New Deal helped the lives of Native Americans
– Indian Reorganization Act: moved away from
assimilation and more towards autonomy
– Ownership of “Reservation Land” to the
Native Americans
– Native American lands would
belong to entire tribe
– Native Americans could attend
school on reservations
– Tribes can elect tribal councils
to govern reservations
New Political Coalition
– New Deal Coalition  brought together
southern whites, northern blue-collar workers,
poor mid-western farmers, and African
Americans
• Prior to FDR, African Americans voted Republican
• Gave power to the Democrats from 30s-mid 90s
Expands Power of the
Government
– Govt. broke from the tradition
of laissez faire
– Govt. was expected to
intervene
Created a Welfare State
– Govt. assumes the responsibility for
providing for the welfare of children
and the poor, elderly, sick, disabled,
and unemployed
• This was new to the U.S., the
American people had never been
given aid by the gov’t before
Changes the Presidency
– President plays greater role in govt.
– Led to an amendment to be added:
• 22nd Amendment  limits the
amount of terms a president can
serve
– Why ?
Environment
– Following in the footsteps of
his cousin FDR set aside 12
million acres of land for new
national parks
Overall The New Deal:
• Provided relief and reform
• Expanded role of the govt.
• Increased power of presidency
• Provided new opportunities for women
• Improved the lives of Native Americans
*Please Note*
- The New Deal DID NOT
end the Great Depression
- WWII DID with its massive
military spending