FDR and the New Deal

1. FDR and the New Deal “The only thing we have to fear is fear itself.”

3. FDR’s Response to Great Depression • “try something” • Spend government money • 2. “Brain Trust” for advice • 3. focus on 3 Rs: •  relief (direct aid, like jobs) • recovery (supports/ help industries) • reform (new laws to fix problems)

4. Bank Holiday - First Step • Many banks had failed, wiping out families’ savings • People lost confidence in the banks • Banks closed March 6, 1933 • FDR asked Congress to pass Emergency Banking Actonly financially sound banks could reopen Depositors Congregate Outside Closed Bank

5. Next Steps Hundred Days • In the first 100 days of his administration Roosevelt asked Congress to pass tons of legislation Alphabet Soup • The agencies created had acronyms like AAA, CCC, TVA, FERA, FDIC

7. "New Deal" Relief FDR announces his “New Deal”

8. 1. Civilian Conservation Corps. (CCC) • jobs for young men; conserved natural resources

9. Digging Ditches in Montana Illinois CCC advertisement

10. Pillow created to honor the CCC

11. 2. Federal Emergency & Relief Administration (FERA): • direct relief ($, clothes) to people FERA distributes clothing in Tennessee

12. 3. Works Progress Administration (WPA): • gave jobs building public buildings and roads • also hired artists & writers WPA workers creating a flood Control dike in Arkansas

13. WPA advertisement to aid women

14. WPA helped artists, like Diego, create murals and continue his or her craft

16. "New Deal" Recovery

17. 1. Tennessee Valley Authority(TVA): • helped the valley by controlling floods and providing electricity

19. TVA workers working on a dam control building

20. 2. National Recovery Administration (NRA): • set industry codes for production, wages, prices & working conditions

21. 3. Agricultural Adjustment Act (AAA) • farmers paid subsidies to NOT grow crops Texas farmers receive AAA check

22. 4. Public Works Administration (PWA) • Provided jobs and stimulated business activity by contracting with private firms to construct roads, public buildings and other public-works projects

23. "New Deal" Reform

24. 1. Federal Deposit Insurance Corp. (FDIC) • insured savings accounts in gov’t approved banks Logo banks display today for FDIC today

25. 2. Social Security Act (SSA) • pensions for retired workers, unemployment insurance, death benefits FDR signs SSA

26. 3. National Labor Relations Board (NLRB) • Lasting reforms: • Minimum wage-$.25/hour • Maximum hours=40hours per week • Collective bargaining for unions • Regulation of interstate commerce

27. 4. Securities & Exchange Commission (SEC) • Regulate & monitor stock market activity • Investigate fraud & insider trading

28. Supporters of the New Deal: • Supporters said FDR… • 1. stretched Constitution to fit needs of time • 2. offered immediate help to needy • 3. fixed problems that led to depression • 4. increased optimism

29. Critics of the New Deal: • Critics said FDR… • 1. seen as “socialistic” • 2. “Unconstitutional” • 3. against American self-reliance • 4. Called FDR a “dictator” • Deficit spending

34. Government Expenditures • The total cost of the recent bailout now exceeds $4.6 trillion dollars. It has cost more than all of these government expenditures combined. Figures in parentheses have been adjusted for inflation: • Marshall Plan: Cost: $12.7 billion ($115.3 billion) • Louisiana Purchase: Cost: $15 million ($217 billion) • Race to the Moon: Cost: $36.4 billion ($237 billion) • Korean War: Cost: $54 billion ($454 billion) • The New Deal: Cost: $32 billion est.($500 billion est.) • Invasion of Iraq: Cost: $551billion ($597 billion) • Vietnam War: Cost: $111 billion ($698 billion) • NASA: Cost: $416.7 billion ($851.2 billion) • TOTAL: $3.92 trillion