FDR AND THE NEW DEAL 1932 NEW YORK DEMOCRATS CHOSE FRANKLIN DELANOR ROOSEVELT TO RUN FOR PRESIDENT.

Chapter 25, Section 2

A Powerful Partnership

RooseveltCame from a wealthy, well connected familyMarried his cousin Eleanor RooseveltServed as Assistant Secretary of the navy1921 struck with polio, leaving his legs

paralyzed○ Taught him patience and courage○ Able to walk with heavy leg braces and

crutches

Pledging a New Deal

FDR charmingly promised to help the jobless, poor farmers and the elderly.Defeated Hoover by a landslide

Call to action

American welcomed any change, since Hoover’s approach had failed

Expert Advisers

Turned to a number of college professors who were experts on economic issues, nicknamed the Brain Trust

The Hundred Days

Urged his staff to take a method and try it, if it fails admit it and try another

Restoring faith in Banks

Many banks had closedDepositors had withdrawn savingsPeople hid their money under the

mattress or buried it in the backyard

Restoring faith in Banks

2nd day in office FDR declared a “bank holiday” closing every bank in the country for eight days

Restoring faith in Banks

Asked Congress to pass the Emergency Banking Relief Act:

Emergency Banking Relief Act: only banks with enough money to meet depositors demand could reopen. Others had to stay closed

FDR spoke to Americans by radio explain it was safer to keep money in a reopened bank then under their mattress.

Fireside Chats

FDR gave 30 radio speeches while in officeHe spoke from a chair near a fireplace

in the White HouseFamilies gathered around their radios

to listen Felt FDR understood them

A flood of legislation

Hundred Days: Between March 9 and June 1933 Congress passed 15 major new laws

A flood of legislation

New Deal: FDR’s plan for economic recovery

3 main goals Relief for the unemployed Plans for recovery Reforms to prevent another depression

Relief for the Unemployed

13 million Americans were out of work

Relief for the Unemployed CCC: Civilian Conservation Corps

Hired unemployed single men between 18 and 25

Payed $1 per dayPlanted trees, built bridges, flood

control projects, developed new parksConserved natural resources and

gave jobs to young people

Relief for the Unemployed FERA: Federal Emergency Relief

AdministrationGave federal money to state and local

agencies to distribute to the unemployed

Relief for the Unemployed WPA: Works Progress Administration

Put jobless to work building hospitals, schools, parks, playgrounds, and airports

Hired artists, actors, writers, and composers○ Painted murals on public buildings,

wrote about American life

Programs to Promote Recovery

Called for programs that greatly increased the government role in the economy

Programs to Promote Recovery

Codes for industryDrew up plans to control production,

stabilize prices, and keep workers on the job

NIRA: National Industrial Recovery ActEach industry must write codes for

production, wages, prices, and working conditions

NRA: National Recovery AdministrationTo enforce NIRA codes

Programs to Promote Recovery

PWA: Public Works Administration Set up by the NIRA Promoted recovery by hiring workers for

thousands of projects

Programs to Promote Recovery

Programs for farmersOverproduction remained the main

problemSurplus kept prices and farmers

incomes low

Programs to Promote Recovery

AAA: Agricultural Adjustment ActGovernment paid farmers not to grow

certain crops and to plow surplus under the soil and dispose of surplus to cows and pigs

Americans were outraged

Programs to Promote Recovery

Electricity for rural AmericansREA: Rural Electrification Act

○ Loaned money to extend electric lines to rural areas

Reforms for the Long Term

Prevent another depression1. Laws regulating the stock market2. Reforming the banking system

Reforms for the Long Term FDIC: Federal Deposit Insurance

CompanyInsured saving accounts in the banks

approved by the governmentIf an FDIC bank failed the government

would make sure depositors received their money

A Bold Experiment

Tennessee Valley Authority: TVARemake the Tennessee River Valley40 damns in 7 states to control

flooding○ Damns also produced electric power ○ Planted forests to conserve soil○ Developed fertilizers○ Set up schools and health centers