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Essential Question : In what ways did President Franklin Roosevelt ’ s “ New Deal ” provide relief, recovery, & reform during the Great Depression? Warm-Up Question : ?. Hoover & the Depression. From 1929 to 1932, President Hoover was criticized for not doing more to end the depression
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Essential Question: • In what ways did President Franklin Roosevelt’s “New Deal” provide relief, recovery, & reform during the Great Depression? • Warm-Up Question: • ?
Hoover & the Depression • From 1929 to 1932, President Hoover was criticized for not doing more to end the depression • Unemployment reached 25% • U.S. banking collapsed • Hoover offered gov’t intervention (job programs) but it was seen as too little, too late • By the election of 1932, Americans wanted hope & strong leadership
The Election of 1932 “The country needs and ... demands bold, persistent experimentation. It is common sense to take a method and try it. If it fails, admit it frankly and try another: But above all, try something.” -- Franklin D. Roosevelt, Campaign Speech, 1932
The presidential campaign of 1932 was not merely a clash of two personalities. President Hoover himself said: "This campaign is more than a contest between two men. It is more than a contest between two parties. It is a contest between two philosophies of government."
Franklin D. Roosevelt’s Appeal 1932 presidential election FDR was perceived as a man of action Hoover was viewed as a “do-nothing president.” Results: a landslide for Democrats Mandate government as an agency to help people in NEED
FDR & the New Deal • In 1932, Democrat Franklin Roosevelt (FDR) defeated Hoover
Situation When FDR Entered Office March 1933 country was virtually leaderless banking system had collapsed
"It is my contention that no one should be allowed to write about FDR who did not experience that era. It really is one of those cases of you had to be there. Roosevelt may be a myth...today, but 60 years ago that myth looked more like hope. In his fireside chats, he turned our Philco radios into shrines, and when he said that America could not afford to live with one-third of a nation ill-housed and ill-fed, we thought he would do something about it. And he did" -- Daniel Schorr, "The FDR 'Myth': You Had To Be There," Christian Science Monitor, 25 October 1996
“Let me assert my firm belief thatthe only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” FDR’s inaugural address in 1933 inspired hope
FDR Restored Confidence Promised: vigorous leadership bold action Discipline Cooperation expressed faith in democracy
FDR’s Personal Qualities practical politician practiced art of the possible charismatic person exhibited a warmth and understanding of people knew how to handle press focused attention on Washington provided dynamic leadership in a time of crisis willing to experiment
FDR & the New Deal • FDR initiated his New Deal, a series of laws that were designed to fight the depression by offering: • Relief: gov’t relief checks & jobs to get people back to work • Recovery: tried to end the depression by stimulating industry & farming • “prime the pump” • Reform: long-term solutions to America’s economic problems • GOAL! -- to save Capitalism
The Hundred Days • In his 1st100 days in office, FDR &Congress passed 15 major laws • FDR’s 1st action was to address the bank crisis; By 1933, people had no faith in banks • FDR declared a 4-day bank holiday after which banks were allowed to re-open only after gaining a gov’t endorsement
Banks recovered & Americans slowly regained confidence in banks
FDR’s Fireside Chats • FDR used the radio to sell his New Deal programs to the American people • These “fireside chats” used simple, clear language to explain his New Deal programs & gain public support for these goals Philco Radio 1931
First New Deal (1933-1936) Alphabet Soup Programs landmark legislation to begin direct relief programs to put Americans to work
New Deal: Relief • The greatest success of the New Deal was its ability to offer reliefto unemployed citizens: • The gov’t provided relief checks to 15% of Americans • The gov’t created jobs for Americans
Percentage of American Families Accepting Government Relief in 1933
New Deal: Relief • Civilian Conservation Corps (CCC) was a work program for young men aged 18-25: • The CCC built roads, soil erosion projects, & parks • The CCC employed 3 million young men
New Deal: Reforms • The New Deal created long-term reforms to address weaknesses in the American economy • Securities & Exchange Commission (SEC) was created to regulate the stock market & prevent another stock market crash
New Deal: Reforms • To help restore public confidence in banks, the Federal Deposit Insurance Corporation (FDIC) was created: • The national gov’t insures money in bank accounts (up to $250,000 as of 2008)
New Deal: Reforms • The Tennessee Valley Authority (TVA) created hydroelectric power plants in the South • TVA created dams in 7 states to provide cheap hydroelectric power & create jobs
New Deal: Recovery • New Deal programs tried to stimulate the economy & end the depression • Agricultural Adjustment Act (AAA) tried to help farmers by paying them not to produce • By lowering supply, the gov’t hoped to increase crop prices
Unemployment in America, 1929-1942 The New Deal began in 1933, but by 1935 the Great Depression had not yet come to an end
FDR’s Critics • The failure of the New Deal to end the depression led to frustration & criticism of FDR’s programs: • The most vocal critic was Louisiana Senator Huey Long • Long’s Share the Wealth plan suggested taxing all personal income over $1 million to give each family $2,500 per year ($40,000 in 2011 $s)
Huey Long How many men ever went to a barbecue & would let one man take off the table what's intended for 9/10th of the people to eat? The only way you'll ever be able to feed the balance of the people is to make that man come back & bring back some of that grub that he ain't got no business with! …then we've got to call Mr. Morgan & Mr. Mellon & Mr. Rockefeller back and say: “Come back here, put that stuff back on this table here that you took away from here that you don't need. Leave something else for the American people to consume.” Now, how are you going to feed the balance of the people? What's Morgan & Baruch & Rockefeller & Mellon going to do with all that grub? They can't eat it, they can't wear the clothes, they can't live in the houses. But when they've got everything on God's loving earth that they can eat & they can wear & they can live in, & all that their children can live in & wear & eat, & all of their children's children can use,… Huey Long threatened to run as a 3rd Party candidate but was assassinated in 1935 “The Kingfish”
Court Packing • The Supreme Court declared 2 recovery programs unconstitutional • FDR feared that the Supreme Court would weaken the New Deal • FDR’s solution was to called court-packing: He wanted to increase the number of justices from 9 to 15 • Congress rejected his radical plan
Election (1936) Mandate??? • Results of 1936 election indicate most Americans wanted government to take more responsibility for the welfare of nation
FDR’s Second New Deal • In 1935, FDR launched the Second New Deal • The Works Progress Administration (WPA) was the biggest New Deal program • Created 8.5 million jobs in a variety of professions & cost the gov’t $11 billion
WPA (Works Progress Administration) offered work to artists, musicians, theater people, and writers “I am not willing that the vitality of our people be further sapped by the giving of cash, of market baskets, of a few hours of weekly work cutting grass, raking leaves, or picking up papers in the public parks. We must preserve not only the bodies of the unemployed from destruction but also their self-respect, their self-reliance, and courage and determination.” -- FDR, early 1930s
Kansas Cityfrom Politics, Farming, & the Law Thomas Hart Benton,1936
FDR’s Second New Deal • Social Security was America’s 1st welfare program; It created • Old-age pensions to be funded by employers & workers • Welfare payments for the blind, handicapped, & needy children
FDR’s Second New Deal • The Wagner Act: • Protected workers right to strike & collectively bargain • Outlawed unfair practices used by companies to discourage union membership
Conclusions • FDR’s New Deal created a new role for the U.S. government: • For the 1st time, the gov’t used deficit spending (going into debt) to stimulate the economy • For the 1st time, the gov’t took responsibility for the people & created welfare programs • New Deal successfully offered relief to ease peoples’ suffering, but it did not end the Depression