Daily Check for Understanding  Tuesday: What were two causes and two effects of the Great Depression?

Chapter 10- Franklin D. Roosevelt (FDR) and the New Deal

FDR becomes President  Election of FDR beats Hoover (“do nothing” president)

In his inaugural address, he said “The only thing we have to fear is fear itself….”

FDR becomes President  Election of FDR beats Hoover (“do nothing” president)  Problems:  banking system had collapsed  25% of people unemployed  Solutions (Roosevelt’s First 100 days):  Declared national bank holiday  Closed all banks  Govt. inspected banks  Those that reopened were insured by govt  Experimented and created a large amount of govt. programs to help Americans

Fireside Chats and New Deal  Knew how to handle press  Charismatic- Fireside Chats  FDR was willing to experiment to try to fix the economy:  First New Deal ( )  Primary aim: economic recovery  Objectives: higher prices for agriculture and business  Second New Deal ( )  Primary aim: permanent reform  Objectives: increased purchasing power and social security for public

Purposes of the New Deal  Relief: to provide Americans with immediate assistance to help them with basic necessities of life including: food, direct monetary payments and employment  Recovery: a policy or program w/the primary goal of promoting growth in the American economy  Reform: policy or program designed to ensure that effects of the Great Depression did not happen again

Daily Check for Understanding  Wednesday: How did FDR restore Americans’ confidence in the banking system?

Daily Check for Understanding The WPA was a program that was created to reduce the unemployment rate. One it’s controversial parts, was it put artists and actors to work which many said was unnecessary. One of the most famous photographers, Dorothea Lange and her pictures were a result of the WPA.  Thursday: Do you think the government was right in creating jobs for artists and actors? Should they have only created generic jobs?

Depression Problems and New Deal Solutions Depression ProblemNew Deal Solution High UnemploymentCCC (Civilian Conservation Corps) WPA (Works Progress Administration) Failed Banking SystemFDIC (Federal Deposit Insurance Corp) Failed Stock MarketSEC (Securities Exchange Commission) Tension between workers and employers National Labor Relations Act (Wagner Act) Failed Farming IndustryAAA (Agricultural Adjustment Administration) Failed Manufacturing IndustryNIRA (National Industrial Recovery Act) disabled workers; unemployed; elderly Social Security

Problems with New Deal Programs  National Industrial Recovery Administration (NIRA)  Businesses signed codes of fair competition  Govt. told citizens to only use NRA approved businesses  Deemed unconstitutional by Supreme Court  Agricultural Adjustment Administration (AAA)  Paid farmers who agreed to reduce production  Money came from tax- passed on to consumer  Deemed unconstitutional later

Daily Check for Understanding  Friday: Which New Deal organizations were deemed unconstitutional? What was the problem with them?

Criticisms of the New Deal  The New Deal received criticism from both ends of the political spectrum:  Most Famous Critics- All from the Left Wing of Political Spectrum:  Huey Long  Father Charles Coughlin  Dr. Francis Townsend

Criticisms of Right Wing  Conservative opponents said the New Deal went too far:  It was socialism (killed individualism)  It added to the national debt ($35 billion)  It wasted money and encouraged idleness  It violated the constitution  It increased govt power too much Criticisms of Left Wing  Radicals said New Deal didn’t go far enough.  wanted govt to interfere more dramatically

The Election of 1936  The Election of 1936:  FDR wins  Calms down with creation of new programs after 1937

Recession of 1937  Economy doing better but still high unemployment  Roosevelt cuts spending to WPA  Forces millions out of work  Causes recession  Roosevelt responds using Keynesian economics- spends more $ despite deficit; WPA returns jobs to workers

Daily Check for Understanding  Monday: What was some of the criticism of the New Deal? Be sure to mention both sides.

Significance of the New Deal  Limited successs:  Unemployment remained high  Economic recovery was not complete until after WWII.  The New Deal: Cost: $32 billion est.($500 billion est. today)  Gave many Americans a stronger sense of security and stability.  Created a safety net  Americans now depend on increased power of federal govt.