Chapter 10 Section 1 The First New Deal"Pages: 499-507"

Big Ideas"n  1932- America wants and needs change"n FDR- Practical and willing to try anything

to help American People"n  100 days- a fury of alphabet soup"n The 3 Rs:"

n  Relief!n  Recovery!n  Reform!

The Election of 1932 n Candidates

n  Republican – Herbert Hoover (incumbent) n  Democrat – Franklin Delano Roosevelt (FDR)

•  Rich Snobby New York Family •  4th Cousin to TR •  Wife=Eleanor (Roosevelt/Roosevelt)!!!! (Affair) •  Assistant Sec of Navy under Wilson •  Loses as Vice President in 1920……..then life changes •  Victim of Polio (nervous system disease) in 1921 and

paralyzed •  Elected Gov of NY in 1928 •  Wins 472-59 Electoral College"

Herbert Hoover v  Indirect Relief only"

v  Small Government= Laissez Faire"

v  Do what had always been done. Inside the Box!

Franklin Roosevelt v  Direct Relief"

v  Large Government Involvement and Spending"

v  Think Outside the Box and not afraid to fail = Trying Mattered!"

"

The Election of 1932 Opposites

FDR"

Young FDR and Eleanor"

The New Deal 1932- Nominating speech: “A new deal for the

American people!” actually shows up at Chicago Convention to give speech.

n Lame Duck (Nov 1932-March 1933) n  Bank runs= $$ issues and PANIC n  Inauguration in March 1933

•  Hoover and FDR- Not so friendly

n  “Nothing to Fear but Fear Itself” speech •  One of most famous inaugurals of all time •  America on pins and needles….what will he say?"

Nothing to Fear but Fear……."

• FDR and Hoover at FDR’s inaugural

• Hoover resented FDR and seethed the entire quiet trip from the White House to the Capital

The 100 Days and the New Deal n  First “100 Days” of Presidency- 15 major acts sent

to Congress n  Fireside Chats- Radio broadcast (60 million listen) n  Action over Inaction- Practical Politician n  “Brain Trust”- Advisors from all sides

n  Believe in Government Intervention and less free business n  President as Quarterback:

•  Call the play •  OR

•  Call an Audible

"

• President Roosevelt began the “fireside chats” on a weekly basis as a way to reassure the American

people. • His comforting voice, calming words, confidence in the country and the American people helped restore

faith of the American people in democracy.

chats"

Reassure INFORM

Package the Info In an easy way to

understand

Fireside Chats"

alphabet"

Part of FDR’s New Deal……Agencies created by the US

Govt. to bring about the 3 R’s……Relief, Recovery,

and Reform.

The 3 R’s:"n Relief:!n  Providing direct and immediate

aid or help to the situation. Giving food, money. In the present moment= NOW!

"

Recovery ""n Recovery: !n Rebuilding the economy. Getting

employment and financial matters back to normal status. !

Reform ""n Reform: !n Changing the way that

Government and economic institutions work so that a depression can’t happen again…….!

Finance Problems and Solutions n  Finance Problems:

n  Credit Crunch n  Bank Runs n  Bank Failures n  Stock Market Failure

n Solutions?"n  Develop Trust in Banks"n  Reform Stock Market"n  Insure Deposits"

Finance Programs"n  Banks (REFORM):

n  Emergency Banking Relief Act= Creates a week long bank holiday!

•  Gov oversight of banks; reopen w/ stability •  GLASS STEAGALL ACT- Banks No more double

dipping. n  Federal Deposit Insurance Corporation (FDIC)

•  Gov insurance for bank deposits ($2500)!n  Securities and Exchange Commission (SEC)

•  1933- Companies selling stock provide info to investors, no insider trading

Agriculture n  Problems-

n  Overproduction and Low Prices n  Solutions-

n  How to fix? Less Production! •  Reduce supply, price goes up…..

n  Farms (RELIEF): n  Agricultural Adjustment Administration (AAA)

•  Pays farmers not to grow certain crops or livestock (1 billion) •  Effective- by 1936 prices and farm income raise 50%

"

Industry: n Problem:

n  Unemployment. n  Lack of $$ in economy

Solutions: n FDR- Not just given/Should earn it. n Put people to work: Public Works n  Government employs/pays people if private

industry can’t

More Public Works: n First big Program:

n Civilian Conservation Corps (CCC)

• Young men 18-25 chance to work outdoor projects, $30/month

CCC"

More Public Works: n  Public Works and Relief

n PWA- Public Works Administration 1/3 of unemployed=construction • Highways/dams/sew systems/schools/water

works • Grand Coulee/Bonneville Dams • Central Valley Project (CVP)- Shasta Dam • Tennessee Valley Authority (TVA)- (Pg 508)

Grand Coulee"

Shasta Dam- 1938"

More Public Works: n  Public Works and Relief

n Civil Works Administration (CWA)

n 4 million employed and 1 billion spent in 5 months. • Shut down (dependency)

Homeowner and Farm Debt ""n Problem:"

n  Foreclosures caused no spending!n Solutions: "

n  Gov takes over loan programs!n  Government takes over and helps Debt (RELIEF):

n  HOLC- Gov refinanced home loans n  Farm Credit Administration (FCA)- same for farmers

•  Lowers debt and increases spending