Hoover's Unpopularity and FDR's New Deal

1. DO NOW!!! Why were the American people unhappy with Herbert Hoover? What are some things that people need during the depression that they are not getting from Hoover?

2. FDR and the New Deal Chapter 22, Section 1

3. Franklin Delano Roosevelt • In office 1933-1945 (Great Depression-WWII) • Elected president 4 times • Contracted polio at age 39, making him a paraplegic • One of the most popular and influential presidents in US History

5. Hoover’s opponent in the election was Democrat Franklin D. Roosevelt. • Harvard graduate • New York State senator • Assistant Secretary of the Navy • 1920 Nominee for Vice President • Polio survivor • Governor of New York

6. The two candidates offered very different approaches to the problems of the Great Depression. Hoover Roosevelt State and local governments and private agencies should provide relief. Leadership should come from the federal government. Roosevelt won in a landslide.

7. His “Brain Trust” consisted of professionals and academics. His wife Eleanor Roosevelt helped him throughout his presidency. She traveled widely and acted as the president’s “eyes and ears.” To help him plan, FDR sought the advice of a diverse group of men and women.

8. The New Deal • Series of programs and policies FDR instituted between 1933 and 1939

9. The New Deal • Relief—humanitarian aid to the needy (short term) (band aid) • Recovery—rebuilding the economy—getting people jobs (long term) (stitches) • Reform—changing the way the government and economy operate to prevent another depression (financial responsibility, more government intervention in the economy) (distant future) (surgery)

10. With the person sitting next to you: • Create a T chart comparing Hoover to FDR. Include at least 3 points for each president.

11. FDR’s Presidency • Offers optimism and hope to the American people—they had faith in him—they had lost faith in Hoover • “Brain Trust”—advisory group formed by Roosevelt to solve problems • Come up with 15 relief/recovery measures (New Deal) • 100 days—special session where congress approved all 15 measures

12. Bank HolidayMarch 6-13 1933 • Closes banks for a few days to stop people from making massive withdrawals • What would this do to Americans while banks were closed? • Only banks deemed financial stable by the government were allowed to reopen • how can this restore confidence in the banking system? • “fireside chats” FDR assures Americans bank holiday will protect their money • FDIC (Federal Deposit Insurance Corporation)—insures bank deposits

13. Direct Relief • Aid 13 million unemployed workers—this is what Hoover avoided • FERA (Federal Emergency Relief Administration) • 500 million in direct relief to state and local agencies • Most Americans wanted jobs rather than handouts • Civil Work Administration created (CWA) • Civilian Conservation Corps (CCC)

14. Despite the critics, the New Deal was popular with most Americans. In his inaugural address, Roosevelt told Americans, “the only thing we have to fear is fear itself.” FDR succeeded in reducing people’s fear, but the depression was far from over.

15. Recovery • Relief was short term, recovery is the long term goal • Why isn’t relief a good long term goal? • “priming the pump” • Pouring money into the economy (loans, government spending)

16. John Manyard Keynes • Keynesian Economics • Argues the government must spend money to recover from a depression—(Roosevelt/many modern economists believe in this)

17. Keynesian Economics Continued… • Government programs to stimulate industrial/business activity (wages, hours, jobs) • National Industrial Recovery Act (NIRA) (NRA) 1933 • "the most important and far-reaching ever enacted by the American Congress“-FDR • Public Works Administration (PWA)