THE NEW DEAL FIGHTS THE DEPRESSION
MAIN IDEA AND OBJECTIVES
Main Idea - After becoming president, Franklin
Delano Roosevelt used government programs
to combat the Depression
 After this section, we should be able to:

 Summarize
the initial steps Roosevelt took to
reform banking and finance
 Describe New Deal work programs
FRANKLIN DELANO ROOSEVELT


Republicans knew that
President Hoover wasn’t
going to win re-election –
too many people blamed
him for problems
Democrats nominated
Franklin Delano Roosevelt



Can-do attitude
Air of friendliness and
confidence
Roosevelt won election of
1932 easily
ROOSEVELT TAKES OVER
During the waiting period between his election
and inauguration, FDR collected a group of
advisers known as his “Brain Trust” to
formulate policies for his presidency
 Roosevelt proposed a new set of policies to
alleviate the problems of the Depression

 programs
would be known as the New Deal
THE FIRST 100 DAYS
In his first 100 days as president, FDR helped
Congress pass 15 major pieces of his plan
 By 1933, many Americans had lost faith in the
banking system – FDR wanted to restore that
 Emergency Banking Relief Act authorized
Treasury Department to inspect banks and let
them re-open if they were sound

FIRESIDE CHATS


FDR started giving fireside
chats radio addresses, to
help restore people’s
confidence
FDR spoke in clear, simple
language to explain the
problems with the banks



Banks didn’t hold all the money
in cash
People should not lose
confidence in the banks
because of this
Over the next few weeks,
people began to return their
money to the banks
OTHER BANKING AND FINANCE CHANGES

Glass-Steagall Act established the Federal
Deposit Insurance Corporation (FDIC)
 government
would insure accounts of up to $5,000
Securities and Exchange Commission (SEC)
regulate stock market
 FDR also persuaded Congress to allow the sale
of some alcoholic beverages

 Goal
was to raise money through taxes
HELPING AMERICANS - RURAL ASSISTANCE
Agricultural Adjustment Act paid farmers to
grow less produce and lower the supply
 Farmers plowed under acres of crops or
destroyed other produce
 Many people angered by the destruction of
food when many Americans were starving
 However, it helped raise farm prices and put
more money in farmers’ pockets

PROVIDING WORK


Civilian Conservation
Corps put young men to
work building roads,
parks, planting trees, etc.
Public Works
Administration (created as
part of the National
Industrial Recovery Act)
gave states money to
create jobs in
construction of schools
and other community
buildings
FOOD, SHELTER, AND CLOTHING
The Home Owners Loan Corporation provided
government loans to homeowners who faced
foreclosure
 Federal Housing Administration still helps
people get loans for home mortgages and
repairs today
 Federal Emergency Relief Administration
provided direct relief to the needy

THE SECOND NEW DEAL

By 1935, the first New Deal programs had
improved the economy, but not as much as
FDR had hoped
 Unemployment
still high
 Production still lagged behind 1920 levels
First New Deal had been very popular
 Election of 1936 was a landslide victory for
FDR

ROOSEVELT EXTENDS RELIEF

Works Progress
Administration set out to
create jobs for youths,
professionals, and other
workers




Used $11 billion to create jobs
for more than 8 million workers
Built 850 airports, constructed
or repaired 651,000 miles of
roads and streets, and put up
more than 125,000 public
buildings
Many women worked in sewing
groups to create clothes for the
needy
Helped restore dignity for a lot
of people – they worked, they
got paid
ROOSEVELT EXTENDS RELIEF (PART II)


National Youth
Administration created
to provide education,
jobs, counseling, and
recreation for young
people
Provided aid to high
school, college, and
graduate students

In exchange, students
worked at part time jobs
at their schools
IMPROVING LABOR AND OTHER REFORMS

National Labor Relations Act or Wagner Act –
reestablished the right for unions to engage in
collective bargaining with employers
 They
could discuss new contracts with their
employers together
 Employers couldn’t threaten workers, fire union
members, or interfere with unions
LABOR (CONTINUED)

Fair Labor Standards Act (1938)
 Set
maximum work hours at 44 per week,
decreasing to 40 after two years
 Set minimum wage at 25 cents per hour, increasing
to 40 by 1945
 Set rules for employment of people under 16 and
banned hazardous work for anyone under 18
SOCIAL SECURITY ACT

Social Security Act (1935) created the social
security system
 Old-age
insurance for retirees 65 years and older
and their spouses
 Unemployment compensation system
 Aid to families with dependent children and the
disabled

Provided substantial benefits to many
Americans