FDR and the “New Deal”

FDR THE MAN

• 32nd President of the United States

• A new hope

• Offered the people of America a “New Deal”

• Set up a “brain trust” (people to help him-college professors & economist)

FDR faced two immediate crises

• The 1st crisis was attacking fear

• The 2nd crisis was fixing the banks

1st crisis was attacking fear:

1.  FDR attacked fear from the get go: “ The only thing we have to fear, is fear itself” (Inaugural Address)

2. Fireside chats: Talked to the people directly (“ My friends”). People felt as if FDR was talking to them personally. (Radio addresses)

2nd crisis was fixing the banks:• 1. Banks had speculated with people’s deposits and

lost that money during the stock market crash.

•  2.  Run on banks- over 5000 banks forced to close between 1929-33.

• 3. FDR orders all banks closed for 4 days only financially sound banks were allowed to reopen.

“New Deal”: Three Goals of Alphabet Soup Programs

1.     Relief (immediate and direct help…survival is the goal)

2. Recovery (help with creating jobs…employment is the goal)

3. Reform (help permanently…prevention is the goal)

Alphabet Soup Programs

Agricultural Adjustment Act

• AAA• 1933• Protected farmers from price drops by providing crop

subsidies to reduce production, educational programs to teach methods of preventing soil erosion.

• Relief & Reform• Not always popular with the people but it did help

control food prices.

Civilian Conservation Corps

• CCC• 1933• Environmental program put 2.5 million unmarried men

to work maintaining and restoring forests, beaches, and parks. Workers earned only $1 a day but received free board and job training. Took surplus workers out of the cities.

• Recovery• The CCC taught the men and women of America how

to live independently, thus, increasing their self-esteem.

Federal Emergency Relief Act

• FERA

• 1933

• Distributed millions of dollars of direct aide to unemployed workers.

• Relief

• Helped out many depleted relief programs. Still used today.

Federal Deposit Insurance Corporation

• FDIC• 1933• Banks were closed for a Bank Holiday. Only

financially sound banks were allowed to reopen. The government insured bank deposits up to $5000

• Reform• Reinstalled people's confidence in banks. This

program is still around today

National Recovery Act

• NRA

• 1933

• Created to enforce codes of fair competition, wages, prices and to permit collective bargaining.

• Reform

• Helper both management & workers.

Fair Labors Standard Act

• FLSA• 1938• Banned child labor, created a minimum

wage, and lowered the work week to 40 hours.

• Reform• Organized to help workers by giving them

labor rights

Public Works Administration

• PWA• 1933• Provided 4 billion dollars to be spent on public

works. Paid people to build roads, bridges, dams and parks. This expanded Hoover's plan

• Recovery• Win Win for both government & workers. People

got jobs and work got done for gov.

Securities & Exchange Commission

• SEC• 1934• Required full disclosure of information on

stocks being sold. Regulated the stock market & also regulated the purchase of stock on margin.

• Reform• Not pleasing for businesses.

Social Security Act• SSA• 1935• This act established a system that provided old-age

pensions for workers, survivors benefits for victims of industrial accidents, unemployment insurance, and aid for dependant mothers and children, the blind and physically disabled

• Reform & Relief • Although the original SSA did not cover farm and

domestic workers, it did help millions of Americans feel more secure.

Tennessee Valley Authority

• TVA• 1933• The TVA helped farmers and created jobs in one

of America’s least modernized areas. • Reform & Recovery • Reactivating a hydroelectric power plant provided

cheap electric power, flood control, and recreational opportunities to the entire Tennessee River valley.

Works Progress Administration

• WPA• 1935• This agency provided work for 8 million

Americans. Constructed or repaired schools, hospitals, airfields, etc. It also employed artist, writers and actors.

• Recovery• Decreased unemployment. Was responsible for

helping people enjoy the arts during the depression