Inauguration of FDR, March 4, 1933 In his inauguration speech, FDR stated that, “the only thing we have to fear is fear itself.” Inauguration of FDR, March 4, 1933

FDR gathered information from many economic experts, known as the Brain Trust, on how to fight the depression.

FDR’s Brain Trust -Harry Hopkins - Social Worker and the architect of much of the New Deal. -Henry Morgenthau -Louis Lowe -Cordell Hull -Frances Perkins - Sec. of Labor and first female in the cabinet. -Sam Rosenman -Raymond Moley -Rexford Tugwell

Step 1: Saving the Banks Bank run, New York City, 1931

Roosevelt declared a “bank holiday,” closing every bank in the nation for eight days.

Congress then passed the Emergency Banking Relief Act, which only allowed banks to open if they had enough funds to pay their depositors. FDR signing the Emergency Banking Relief Act into law.

The New Deal FDR developed many new bills that created programs to help end the Great Depression. These programs were known as the New Deal.

II. plans for economic Recovery I. Relief for the unemployed The New Deal had thrrree major goals: III. Reforms to prevent another depression

Relief for the unemployed WPA-Works Progress Administration Infrastructure, roads, parks, airports, schools, etc. CCC-Civilian Conservation Corps Young, unmarried men put to work Free board, medical care, $30/month

Economic Recovery AAA Agricultural Adjustment Administration TVA Gov’t subsidies to farmers who cut production of certain crops. TVA Tennessee Valley Authority Helped farmers and created jobs Provided cheap hydro-electric power to the Tennessee River Valley Power = need for appliances!!!

Reforms to prevent another Depression Social Security Act, 1935 Financial Security with regular payments to those who cannot support themselves Old-Age pensions, benefits Unemployment Insurance Aid for the disabled FDIC-Federal Deposit Insurance Corporation 1934: Insures money in your saving acct up to $2,500… Today: $250,000!!!

Fireside Chats FDR gave 30 radio speeches to the nation, which became known as fireside chats. FDR’s first fireside chat on the bank crisis. (March 12, 1933)

FDR’s first fireside chat reassured people that banks were safe to use again.

Criticism of the New Deal Americans wanted a balanced budget Spend an appropriate amount of $$$ Concerned about the rising national debt FDR practiced Deficit Financing Expenses higher than revenue (income) Debt: 1933 – $21,000,000,000 ($21 Billion) 1940 – $43,000,000,000 ($43 Billion) 2014 – $18,000,000,000,000 ($18 Trillion)

Why was this result predictable? Think – Pair - Share Why was this result predictable?

Criticism of the New Deal Republicans especially opposed the New Deal Too much government intervention Reform had gone too far Felt New Deal programs infringed upon individual freedoms “Unconstitutional Un-American”

Effects of the New Deal Infrastructure Bridges, dams, buildings, tunnels Bigger Government – AAA, CCC, WPA, PWA, RFC, FDIC, TVA, SSA… PUT PEOPLE BACK TO WORK Gave them HOPE!!

QUESTION TIME!!!! What did Roosevelt mean when he offered Americans a “New Deal”? Why was the election of 1932 a significant turning point for American politics? If you could create ONE government program, what would it be? Why?