Roosevelt’s Plan for the Great Depression The New Deal

Herbert Hoover (1928-32) Thought that the economy would fix itself and that the government should not get involved (laissez-faire) Provided little direct government to the people suffering from the Depression People blamed him for the continuation of the Depression

Election of 1932 Hoover ran against Franklin D. Roosevelt Roosevelt promised a “New Deal”; Hoover promised “a chicken in every pot” Roosevelt was elected to fix the depression

Companies have less Profits Depression Economy Unemployment Less Money to Spend Buy Fewer Goods Companies have less Profits Fire Workers

“New Deal” Economy More Money to Spend Buy More Goods Add Money to the Economy More Money to Spend Buy More Goods Companies Have more Profit More Jobs Created-Workers Hired

Goals of the New Deal (3 R’s) Relief for the unemployed Recovery for the economy Reform of the economic systems

The New Deal at Work Roosevelt’s inaugural address – “we have nothing to fear but fear itself” First Hundred Days (March – June 1933) – special session of Congress produced significant legislation to help end the Depression

Step 1 of the New Deal A Bank Holiday (March 6, 1933) purpose: restore public faith in banks and stop cycle of bank closings government inspected all banks records, banks reopen and people leave their money in the bank

Step 2 of the New Deal The Alphabet Agencies goal: create jobs and stimulate the economy, while restoring worker’s self-esteem The Agencies

Relief Recovery Reform Mission Program How did it work? Relief provided direct payment to people for immediate help Works Progress Administration (WPA) Employed men and women to do public works, research and artistic projects Civilian Conservation Corps (CCC) employed young men on public works projects Recovery designed to bring nation out of depression over time Agricultural Adjustment Administration (AAA) increased government regulation of crop production and payments to farmers Tennessee Valley Authority (TVA) constructed dam and power projects on the Tennessee River Reform corrected unsound banking and investment practices Federal Deposit Insurance Corporation (FDIC) insured all savings in banks, helped restore confidence in banks Social Security Act offered safeguards for workers by providing unemployment benefits and retirement