Opening Assignment It is 1933, the height of the Great Depression. Thousands of banks and businesses have failed, and a quarter of the adult population is out of work. Now a new president takes office, promising to bring relief to the ailing economy. How would you begin to revive the economy if you were the new President in 1933? Brainstorm one idea that can help a single aspect of the economy or relieve the hardships Americans faced.

Essential Learning Goal: ◦ The hardship and suffering of the Great Depression led to an expansion of the federal government during the New Deal as Americans sought relief from their economic problems. Learning Targets: ◦ I can recognize the President’s role in creating the New Deal. ◦ I can explain the importance of regulating Banking and Finance as ways to stabilize the US economy. ◦ I can organize New Deal policies into the three general categories; relief for the needy, economic recovery, and financial reform.

President Franklin Delano Roosevelt Roosevelt was elected in November 1932 but did not take office until March While inaugurations now take place in January, from the time of George Washington until 1934 the new president had to wait 4 months to take office. Today they only wait two months and are inaugurated in January.

President Franklin Delano Roosevelt

The New Deal The New Deal is the name of President Roosevelt’s plan for ending the Great Depression and helping Americans recover. The plan can be broken down into three basic parts; ◦ Relief for the Needy ◦ Economic Recovery ◦ Financial Reform

The Bank Holiday On March 5, the day after taking office, Roosevelt persuaded Congress to pass the Emergency Banking Relief Act, which authorized the Treasury Department to inspect the country’s banks. Those banks found to be sound reopened the following week. Those banks found to be insolvent and unable to pay their debts stayed closed. Those banks that could be saved received loans and then reopened.

Roosevelt’s First Fireside Chat The President used the power of radio to reach the American people and asked them not to rush out to banks and withdraw their savings. This made people feel that the President was speaking directly to them and addressing their concerns. He explained in simple, clear language how the banks invested the money people entrusted to them and that they should trust that the money would be there then they needed it.

The Bank Holiday How do you think Americans reacted to the bank holiday? How do you think Americans felt about Roosevelt’s fireside chat?

The Bank Holiday How do you think Americans reacted to the bank holiday? ◦ They believed that the bank holiday ensured that the banks which reopened were well managed and a safe place to put their savings. How do you think Americans felt about Roosevelt’s fireside chat? ◦ They felt like the President was looking out for them and that the chat was to the point and explained the President’s plan of action.

The Federal Deposit Insurance Corporation 1933 The FDIC was established by the Glass- Steagall Act of The FDIC provided federal insurance for individual bank accounts of up to $5,000. This insurance helped to reassure millions of bank customers that their money was safe. Additionally, banks had to be more cautious with depositors’ money.

The Federal Securities Act 1933 & SEC 1934 The President and Congress passed the Federal Securities Act to regulate the Stock Market and help create faith in the market in the wake of the 1929 crash. The next year 1934 they also created the Securities and Exchange Commission to further regulate the Stock Market and prevent people and companies from rigging the market for their own profit.

Daily Review On a half sheet of paper answer the following questions. 1. How did President Roosevelt help rebuild trust in the US banking system? 1. How did the New Deal attempt to protect Americans from future financial crises? 1. What are the three categorizes we use to organize New Deal policies?

HOMEWORK Chapter 15 Section 1 Read pages 488 – 494 Complete Main Idea Questions A – E Complete the Skillbuilder #1 – 2 on page 493 Define the Terms & Names for this section into your notebook.