Chapter 23 – Section 2 Roosevelt and the New Deal The Great Depression Chapter 23 – Section 2 Roosevelt and the New Deal

Franklin D. Roosevelt Franklin D. Roosevelt was a wealthy New Yorker and a distant relative to Theodore Roosevelt. To the American public he became known as FDR. He was nominated by Democrats in 1932 FDR was elected president and took office in 1933. Throughout his presidency FDR addressed the American public through the use of Fireside Chats, or radio talks. FDR also suffered from polio, which crippled his legs. He was careful not to allow the American public to see his disability.

FDR

Roosevelt’s New Deal The New Deal was a political program that was put forth by the Roosevelt administration. It had three main goals, the Three Rs: Relief for the jobless. Economic Recovery. Reforms to prevent further depressions.

New Deal Measures and Programs Roosevelt started creating government agencies and programs to alleviate the depression. FDR’s first action was to declare a national bank holiday in which all banks would be closed. They would be later reopened and people would be encouraged to deposit their savings. This was coupled with the Emergency Banking Relief Act which would allow the government to regulate banks to prevent disasters.

Agencies Continued The following agencies would become known as the Roosevelt Alphabet Soup Federal Emergency Relief Act (FERA) – This act provided funding to States to reopen relief agencies. Civilian Conservation Corp (CCC) – Provided jobs for the unemployed to work in national forests, Parks and wilderness areas. Works Progress Administration (WPA) – Provided jobs repairing government buildings, producing artwork and other improvement projects.

Alphabet Soup (cont.) National Recovery Administration (NRA) – - aimed to keep prices stable while boosting employment and buying power Public Works Administration (PWA) – - provided jobs by granting money to build large public works projects

Tennessee Valley Authority (TVA) – A series of dams built in the Tennessee area that provided cheap and affordable electricity to rural areas. Truths-in-Securities Act – Required corporations and businesses to inform the public fully about their stocks. Federal Deposit Insurance Corporation (FDIC) – Designed to protect bank deposits, insured up to 2,500 dollars. Federal Power Commission (FPC) – Established fairness and safety standards for industries.

Obstacles to the New Deal In the election of 1936 Roosevelt was re-elected, showing the many Americans favored the New Deal. However, the Supreme Court declared the NRA and other measures unconstitutional. In order to combat this FDR proposed a court packing plan. When FDR tried to add justices who would support his programs, his plan to pack the court was defeated by Congress. The public was not willing to allow FDR to alter the 9 seat tradition.

Court Packing

Critics of the New Deal There were several critics of the New Deal Conservatives Argued that the New Deal went too far in regulating business and restricted individual freedom. The following critics believed FDR did not go far enough Huey Long – A Democratic Senator that proposed taxing the wealthy and redistributing the wealth amongst the needy. Francis Townsend – Proposed a program that would eventually lead to the creation of Social Security Charles Coughlin – A Catholic priest that distrusted FDR’s banking policies and called for direct government control of all US banks.

Famous Quote FDR’s most famous quotes was spoken during his first inaugural speech. “the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance”