The 1932 Elections and the New Deal

1. The 1932 Elections and the New Deal PEOPLE WANT CHANGE!

2. Who is this?

3. Background info: FDR • Only child, wealthy parents, grew up in New York • Mom taught him that the privileged had an obligation to serve the public • Graduated from Harvard, obtained law degree from Columbia • Prior to election as President, FDR was governor of New York

4. 1932 Presidential Election • Roosevelt easily defeated Hoover • Started planning his New Deal • Created a group of advisers - “Brain Trust” • New Deal had three goals • Relief to the poor • Recovery from Depression • Reform - restructuring of the economy to prevent future depressions

5. Immediately! • FDR declares a bank holiday and closed all banks • Passed the Emergency Banking Relief Act • Allowed Treasury Dept. to inspect country’s banks • “Sound” banks could reopen at once, those that weren’t remained close • Gave the public confidence in banks

6. First 100 Days • FDR persuades Congress to pass 15 major pieces of legislation • Included: • Emergency Banking Relief Act • Several jobs programs to relieve unemployment • Help for agriculture and industry

7. Fireside Chats • Informal radio talks = Americans feel like President is talking directly to them • He explained banking system – if too many people demanded their money, banks would fail • Over the next weeks, Americans returned their savings to banks

8. Regulating Banking and Finance • Glass-Steagall Act (1933) • Created the Federal Deposit Insurance Corporation (FDIC) – up to $5,000 • Banks act cautiously with ppl’s $ • Securities and Exchange Commission • Regulated the stock market • Goal: no “rigging” the stock market for own profit

9. On pages 491-492Alphabet Soup • For each, please tell me what the letters stand for, the purpose of the group and why it’s importance. • AAA • TVA • CCC • NIRA/NRA • HOLC • FERA