U.S.
History
Make sure your “Hoover & the Great Depression”
assignment is turned in.
Prepare for a short quiz over the “Dust Bowl”.
After quiz, start on the “New Deal” lesson.
Clear Targets
Describe F.D.R.’s response to the Great
Depression.
Identify and describe F.D.R.’s New
Deal programs.
Task #2: PPT/Notes
Take notes as needed, but more importantly,
understand the content!
Pres. Franklin D. Roosevelt
and the New Deal
Relief, Recovery, and Reform
How Herbert Hoover Dealt with the
Crisis
He played the game of
confidence economics
and just kept saying:
“Prosperity is right
around the corner.”
“Rugged
individualism”
Limited Government
Intervention
In the end, Hoover resorted to government
intervention:
The Reconstruction Finance Corp gave $1-
1/2 billion in federal loans to banks, insurance
companies, and industry to prevent
bankruptcies, but it was too little, too late.
The Home Loan Bank Act provided federal
loans to homeowners to prevent foreclosures,
but got bogged down in red tape.
Reasons for Hoover’s
Ineffectiveness
Hoover thought
business should be
self-regulating
(leaned toward
laissez faire policy )
He had a mania for
a balanced budget
Franklin D. Roosevelt’s Appeal
In 1932, FDR was
perceived as a man of
action.
Hoover was viewed as a
“do-nothing president.”
Results: a landslide for
Democrats and a mandate
to use government as an
agency for human
welfare.
Election of 1932
Situation When FDR Entered
Office
In March 1933, the
country was virtually
leaderless and the
banking system had
collapsed.
FDR Restores Confidence
In his inaugural address,
he said “The only thing
we have to fear is fear
itself….”
He promised vigorous
leadership and bold
action, called for discipline
and cooperation.
Emphasized the need for
direct government action.
F.D.R - Inauguration
Speech
“This is preeminently the time to speak the truth, the whole
truth, frankly and boldly. Nor need we shrink from honestly
facing conditions in our country today. This great nation will
endure, as it has endured, will revive and will prosper.
So, first of all, let me assert my firm belief that the only thing
we have to fear is fear itself -- nameless, unreasoning,
unjustified terror which paralyzes needed efforts to convert
retreat into advance. In every dark hour of our national life, a
leadership of frankness and of vigor has met with that
understanding and support of the people themselves which is
essential to victory. And I am convinced that you will again
give that support to leadership in these critical days.”
FDR’s Personal Qualities
He was a practical politician who
practiced the art of the possible.
He was a charismatic person
who exhibited a warmth and
understanding of people.
He knew how to handle press by
focusing attention on
Washington D.C.
He provided dynamic leadership
He was willing to experiment
Purposes of the New Deal
Relief: to provide jobs for the
unemployed and to protect
farmers from foreclosure
Recovery: to get the
economy back into high
gear, “priming the pump”
Reform: To regulate banks,
to abolish child labor, and to
conserve farm lands
Overall objective: to save the
American economy
Sources of New Deal Ideas
Brain Trust: specialists and
experts, mostly college
professors, idea men
Roosevelt Cabinet: included
conservatives, liberals,
Democrats, Republicans,
inflationists, anti-inflationists --
often conflicting, compromising,
blending ideas
Review
What was the purpose of F.D.R.’s NEW
DEAL?
Hint: Remember the three “R’s”
U.S .History
Access your notes from yesterday.
1.Who did F.D.R. run against in the election of
1932?
2.What was F.D.R.’s domestic plan for the
Great Depression called?
3.What is deficit spending?
Clear Target
Describe F.D.R’s NEW DEAL programs.
Task #2 PPT/Notes
Take notes on New Deal programs.
First New Deal (1933-1934)
Emphasis: Reform
Political Position: conservative
Primary aim: economic
recovery
Philosophy: economic
nationalism and economic
scarcity
Objectives: higher prices for
agriculture and business
Beneficiaries: big business
and agricultural business
National Industrial
Recovery Act (NIRA)
Purpose: Recovery
Created a partnership
of business, labor,
and government to
attack the depression
with such measures
as price controls, high
wages, and codes of
fair competition
First Agricultural Adjustment
Act (AAA)
Purpose: Recovery
Paid farmers who agreed
to reduce production of
basic crops such as
cotton, wheat, tobacco,
hogs, and corn
Money came from a tax
on processors such as
flour millers and meat
packers who passed the
cost on to the consumer
Federal Emergency Relief Admin
(FERA)
Purpose: Relief
Gave money to states
and municipalities so
they could distribute
money, clothing, and
food to the
unemployed
Civilian Conservation Corps
(CCC)
Purpose: Relief
Gave outdoor
work to
unemployed men
between the ages
of 17 and 29
They received
$30 per month,
but $22 went
back to the family
Works Progress Administration
(WPA)
Purpose: Relief
Gave people jobs
on constructing
public works
projects.
Employed artists,
actors, writers, and
musicians as well.
Tennessee Valley Authority
(TVA)
Purpose:
Relief/Recovery
Built a series of dams,
bringing cheap
electricity to the
Tennessee Valley
region.
Provided many jobs, but
also dislocated entire
towns due to flooding.
(TVA) Cumberland
Homesteads
Purpose: Relief /
Recovery
Near Crossville, TN
the federal gov’t bought
about 10,000 acres of land
and turned it into what was
then known as “subsistence
homestead.” It consisted of
250 homes, a school, a park
area, and a water tower and
headquarters building. (is a
state park today).
Second New Deal (1934-1941)
Emphasis: Reform
Political Position: Liberal
Primary aim: permanent reform
Philosophy: international economic
cooperation and economic
abundance
Objectives: increased purchasing
power and social security for public
Beneficiaries: small farmers and
labor
Social Security Act
Purpose: Reform
Gave money to
states for aid to
dependent children,
established
unemployment
insurance through
payroll deduction, set
up old-age pensions
for retirees.
Securities and Exchange
Commission (SEC)
Purpose: Reform
Oversees brokerage
firms and the NYSE.
It requires companies
to be honest in their
disclosures of
company worth. (still
around today)
National Labor Relations
Act
Purpose: Reform
Put restraints on
employers and set up a
National Labor Relations
Board to protect the
rights of organized labor
to bargain collectively
with employers.
Second Agricultural
Adjustment Act
Purpose: Recovery
for agriculture
Paid farmers for
conservation
practices, but only if
they restricted
production of staple
crops.
U.S. Housing Authority
Purpose: Recovery
and Reform
Used federal funds
to tear down slums
and construct
better housing.
Indian Reorganization Act
Purpose: Reform
Allowed Native Americans
to re-establish their tribal
organizations on Federal
Reservations
Tribes were allowed to
incorporate businesses
and establish credit
Match ‘em Up!
Using the Strips in the envelope, match the
New Deal programs to their descriptions and
put them under the “R” you think it belongs
to.
Decline of New Deal Reform
Reasons for decline of New Deal reform after 1937:
Court-packing plan made Congress irritable.
Recession of 1937-38 weakened confidence in New
Deal measures. Republicans gained strength in both
houses.
Attempted purge of Democratic party failed.
Conservative Democrats were elected to office.
Resentful of attempted party purge, they joined ranks
with Republicans to block New Deal legislation.
Increasing focus on foreign affairs.
The Significance of
the New Deal
Physical Rehabilitation of Country
Attacked soil erosion
Built dams and planted
trees to prevent floods
Reclaimed the grasslands
of the Great Plains
Developed water power
resources
Encouraged regional
reconstruction projects like
the TVA and Columbia
River project
Human Rehabilitation
Established the principle
that government has
responsibility for the health,
welfare, and security, as
well as the protection and
education of its citizens
Embraced social security,
public health, housing
Entered the domain of
agriculture and labor
Revitalization of Politics
Strengthened
executive branch
Reasserted presidential
leadership
Revitalized political
party as a vehicle for
the popular will and as
an instrument for
effective action.
Maintenance of a Democratic
System
The New Deal maintained a
democratic system of government
and society in a world threatened
by totalitarianism.
Increased size and scope of
government to meet needs of
the depression
Provided the leadership that
enabled Congress to put
through the necessary relief,
recovery, and reform
measures.
