The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover.

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Presentation transcript:

The New Deal

The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

The “Old Deal” 3 What did he want to do? Refused to create government programs until it was too late Let the business cycle take care of things

The Bonus Army ,000 WWI veterans Who? Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945 What?

The Bonus Army Called out the troops and dispersed the army What did Hoover do?

The Election of Roosevelt offers a “New Deal” for America Roosevelt wins with 60% of the vote What?

Roosevelt’s New Deal 7 What? Programs meant to help the country by getting the government involved in the economy 1. Relief - help people out in the short term 2. Recovery - get the economy back on its feet 3. Reform - keep this from everyhappening again Meant to do 3 things

Bank Holiday - First Step 8 Why? Many banks had failed, wiping out families’ savings People lost confidence in the banks Depositors Congregate Outside Closed Bank

Next Step - “Alphabet Soup” 9 In the first 100 days of his administration Roosevelt passes tons of legislation. (First New Deal) Hundred Days The agencies he creates (like AAA, CCC, TVA, FERA, FDIC) Alphabet Soup

Next Step - “Alphabet Soup” 10 Insurance for the $ you put in banks FDIC - Federal Depositors Insurance Corp. Protected people’s savings Bank Employee Checks Depositor's Account

AGRUCULTURAL ADJUSTMENT ACT (AAA) - passed in 1933 to aid farmers. AAA had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce) The bad side: 1) food production down when millions were starving 2) Black sharecroppers were hurt

His Greatest Mistake 12 Packing the Supreme Court What? Why? Increase the # of Supreme Court justices from 9 to 15 Kept declaring his programs unconstitutional (including NRA, AAA, SEC, etc.)

The New Deal - Pros and Cons 13 Pros Restored optimism and hope to Americans Cons Did not really fix the depression Left the nation with much debt Provided necessary relief to many Left people too dependent on government (?)