Responses to the
Great Depression
& New Deal
Hoover vs. Roosevelt
Hoover Presidency
1929-1933
FDR’s Presidency
1933-1945
Hoover Presidency 1929-1933
FDR’s Presidency
1933-1945
Hoover’s Response Hoover believed charity & government
programs would just make people dependent
He believed that government shouldn’t intervene to help businesses either
Instead, he predicted that things would get better
When FDR came into office…
¼ of the nation’s workforce was unemployed
¼ million families had defaulted on their mortgages
1.2 million Americans were homeless
FDR elected in 1932 Promised to help people
The New Deal
FDR Enacted The New Deal FDR demanded "broad executive power to wage
a war against the emergency, as great as the power that would be given me if we were in fact invaded by a foreign foe."
FDR’s Fireside Chats
FDR began weekly radio addresses called “fireside chats”
In these addresses he tried to reassure and unite the nation
The First 100 Days
In FDR’s first 100 days in office, he pushed 15 major bills through Congress
Reshaped every aspect of the economy – from banking and industry to agriculture and social welfare
He called his approach “The New Deal”
The New Deal
Goals of the New Deal Relief – Stop the pain Recovery – Fix the problems Reform – Make sure it never
happens again
Fixing Banks Declared a bank holiday
Glass-Stegall Banking Act of 1933 Created the FDIC to insure banks Guaranteed all bank deposits under
$5,000
Providing Relief Federal Emergency Relief Administration
(FERA) Sent funds to local relief agencies $500 million for those organizations Created public works programs
Regulating the Market
Federal Securities Act Required companies to provide info
about their finances if they sold their stock
Securities and Exchange Commission (SEC) Regulated the stock market
Jobs Programs
Public Works Administration (PWA) In 6 years, spent $6 billion Built dams, ports, Chicago’s sewer system
Civilian Conservation Corps (CCC) Men between 18-25 were hired to restore the
nation’s parks and forests
Civil Works Administration (CWA) Put 2.6 million men to work in its first month FDR got rid of it a year later
Public Works Tennessee Valley Authority (TVA)
Helped farmers Created jobs in underdeveloped rural areas Provided electricity and flood control Often seen as the key precursor to the Civil
Rights Movement
WPA
Works Progress Administration (WPA)
Parks/bridges/schools/etc
Jobs for 3 million at its peak
Rural Electrification Rural Electrification
Administration (REA) By the 1930s, 90% of people in
urban areas had electricity, while only 10% in rural areas did
REA provided electricity – eventually 98% of U.S. farms had it
Social Security
Aimed to help America’s poor – the elderly, dependent children, the handicapped
Provided monthly stipends
Legacy:
Still America’s largest and most important safety net
Most Americans depend on Social Security to retire
Helping Homeowners & Farmers
Home Owners Loan Corporation (HOLC) Refinanced mortgages
Agricultural Adjustment Administration (AAA) Gave farm subsidies
Helping Labor Wagner Act
Legalized union practices Collective bargaining Closed shops – some
workplaces only open to union members
Ultimately…
What finally ended the Great Depression was WWII, which provided millions of jobs and boosted the economy
1940-America selling arms
1941-America enters WWII
Monday…
You will examine whether the New Deal was a success or failure
This is something historians still debate today
Draw this chart in your notes
RELIEF RECOVERY REFORM
Challenges
Most historians believe that the New Deal helped
It did stabilize the economy, which was in free fall
But WWII was what formally ended the Great Depression
Politicians and historians still debate…
Was the New Deal a success or a failure?
New Deal: Success or Failure?Document Success
(Reason & Evidence)Failure(Reason & Evidence)