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FDR AND THE NEW DEAL 1933-1941. President Franklin Delano Roosevelt. Democrat - Elected President in 1933 Very “Hands On” President – tries lots of new things Very popular with the people – breath of fresh air Gave people hope. FDR. Striken with polio at age 39 – lost use of legs
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President Franklin Delano Roosevelt • Democrat - Elected President in 1933 • Very “Hands On” President – tries lots of new things • Very popular with the people – breath of fresh air • Gave people hope
FDR • Striken with polio at age 39 – lost use of legs • Disease kept out of the public eye • Famous for “Fireside Chats” – weekly radio talks to people • Declared a 3 day “Bank Holiday” March 6, 1933– all banks close & strong ones would reopen
FDR & Eleanor • Had 5 children • Discovered FDR affair with Eleanor’s secretary Lucy Mercer • Marriage salvaged by deal brokered by FDR’s mother
The New Deal 1933-1934 • Franklin Roosevelt’s plan to end the depression. • FDR & Congress pass legislation to provide: • Relief-Civilian Conservation Reform • Recovery-Public Works Administration • Reform-Tennessee Valley Authority • John Maynard Keynes- Economist • Government Spending: Job creation=more money in circulation=buy more goods=less unemployment=price rise.
The New Deal • FDR’s plan (RRR) to ease the suffering of the depression by putting people to work • AKA FDR’s “Alphabet Soup” • Work on USA internal improvements – building roads, bridges, dams, parks • Federal Government becomes largest employer in USA • FDR & Congress pass 15 total new measures in 100 days
First New Deal – 1933-1934 • National Recovery Act(NRA) - 1933 • Gave President new powers to set prices and wages • Tried to Promote fair competition • USSC Declared Unconstitutional in 1935 – had to revise program
Agricultural Adjustment Act – (AAA) Paid Farmers to NOT grow crops • Goal was to raise farm prices • Lowering supply, increasing demand, raise prices • Criticized for hurting Southern farmers • USSC Declared Unconstitutional 1936 • Second AAA was created
Civilian Conservation Corps – (CCC) Work relief program for young, unemployed, city men • Work on rural conservation & improvement projects –build national parks, plant trees, combat soil erosion • AKA FDR’s “Tree Army” • Earned $1.00 a day • Camps ran by US Army
SECOND NEW DEAL: 1935-1940 NEW WORK PROGRAMS • Works Progress Administration (WPA) • Employed 8,500,000 • Earned between $15 and $90 a month • Manual Labor Building Projects
WPA Highlights • Paved 651,000 miles of road • Built 78,000 bridges • Built 800 Airports & runways • Built 8,000 parks
TENNESSEE VALLEY AUTHORITY – (TVA) Working in 7 state region along Tennessee River – Very poor, impoverished area • Create Electrical power, replenish farmland, and control floods • Built dams and waterways along TN river • Agency still exists today – largest electrical power company in USA
SECOND NEW DEAL – ACTS • Congressional elections give Democrats majority in both House and Senate • Securities and Exchange Commission (SEC) – Protect against unfair / illegal investing in stock market • Fight insider trading
Social Security Administration (SSN)– • Provide $ for retirement years (pension) • Provide enough money for the aging to survive. • Death benefits to dependent children • Unemployment insurance
Federal Deposit Insurance Corporation • (FDIC) • Bank insurance – Gov’t insures peoples savings • Up to $100,000 today
New Deal a Success??? • Did not solve Great Depression • Did the best that it could for the time • Birth of the “Welfare State” • Criticized as being Socialist • WWII really pulls USA out of Great Depression • Industrial Factory work creates jobs, demand, and jolts the economy