The New Deal FDR: ‘This nation asks for

Action, & Action Now.’

Background Roosevelt was elected

President in 1932. He took over from Hoover in

March 1933. He was determined to end

the depression through government Action.

He promised the American people a New Deal to end the Depression.

Key Quotes: FDR’s Inauguration Speech

Let me assert my firm belief that the only thing we have to

fear is fear itself

This Nation asks for action, and action now. Our greatest primary

task is to put people to work. I shall ask congress for broad executive power to wage was against the

emergency.

FDR’s Inauguration Speech

Causes of the Depression: Fear

Fewer goods are sold.

Demand drops.

In order to stay in business companies cut

wages

People lose their

confidence & start saving their

money

Demand drops even

further.

Companies are forced to cut costs

by laying people off

Even more people Lose their confidence And spend less money

People lose their jobs.

The Spiral Of

Depression

The Causes of People’s Fear

Losing their job Becoming homeless Forced to live on

their savings. Banks going bust.

Why did banks start to go bankrupt in 1929?

Why did the Depression make even more banks go bankrupt?

A run on a bank, New York 1933. Panicky savers are

queuing up to take their money out before it goes bust. Hint

Action to End the Depression

Emergency Banking Act Fireside Chats Beer Act - ended

prohibition. The Alphabet Agencies

How would ending Prohibition help FDR

create jobs?

Emergency Banking Act, 1933

This Act closed all of America’s banks whilst they were inspected by government officials.

Only banks that were properly run and had enough funds were be allowed to reopen after the bank holiday.

Once a bank has been inspected, the government promised to compensate people if that Bank go bust in the future.

Fireside Chats

These Fireside chats aimed to restore peoples’ confidence.

These Fireside Chats were broadcast once a week over the radio.

FDR would explain what he had done that week to help take action to end the Depression. Why do you think these

broadcasts were called ‘The Fireside Chats?’

Fireside Chats

‘I can assure you that it is safer to keep your money in a reopened bank than

under the mattress’

1. Why were people hiding their savings under their mattresses?

2. Which Law did FDR get Congress to pass which stopped banks going bankrupt?

Fireside Chats & Cycle of Prosperity

The Alphabet Agencies

CCC: Civilian Conservation Corps.

AAA: Agricultural Adjustment Administration.

TVA: Tennessee Valley Authority

PWA: Public Works Administration.

WPA: Works Progress Administration

NRA: National Recovery Administration.

Reversing the Spiral of Depression

Government Spending $

Alphabet Agencies

More Jobs

More Spending

Demand for goods increases

More goods have to be produced

More people with Jobs = more pay $

More Spending

Demand for goods increases

More goods have to be produced

More Jobs

More Pay = More Taxes

Cycle of

Prosperity!

Democrats called this Process

‘Pump Priming’

Reversing the Spiral of Depression

Summary

In order to get a a grade ‘C’ upwards in exams, you must learn and use the key words & facts.

These concepts will be awarded as key ‘knowledge.’

Spiral of Depression Cycle of Prosperity Fireside Chats Emergency Banking Act Alphabet Agencies Pump priming AAA, CCC, TVA, NRA,

WPA & PWA

Key Words

Exam Question 1

Use you own knowledge to say whether the source fully explains why the New Deal was introduced.

‘Let me first of all state my firm belief is that the only thing we have to fear is fear itself. This nation asks for action, and action now. Our greatest task is to put the people to work… It can be achieved in part by the government itself creating jobs’

Mark Scheme Level Grade Description

1 E Simple undeveloped answer.

2 D Uses or combines information from the sources.

3 C/B Uses sources & own relevant knowledge / concepts.

4 A/A* Balanced answer covering both parts of the question

Level 3

Unemployment caused by depression

‘Fear’ = loss of confidence which results in a drop in demand.

‘Action’ because Hoover did nothing to end the Spiral of Depression.’

No mention of Hoovervilles, Breadlines or problems of the farmers.

No mention of Banking Crisis caused by fear & panic.

For Against

Level 4 = an answer which includes one from each column.

Exam Question 2

This cartoon shows one of FDR’s methods of trying to deal with the Depression. How useful is this source to explain what action FDR took to end the Depression?

Question 2: Level 3

Fireside Chats’ introduced to tackle ‘Fear’ which was resulting in a loss of confidence led to people not spending money & ‘Spiral of Depression.’

‘Banking Crisis,’ FDR used Fireside chats to restore public confidence in the reopened banks.

No mention of the Alphabet Agencies: CCC, AAA, TVA, NRA, PWA & WPA.

Pump Priming to reverse the spiral of depression

No mention of Beer Act which ended prohibition to create jobs and raise taxes to pay for New Deal.

For Against

Level 4 = an answer which includes one from each column.