1. FDR: ‘This nation asks for Action, & Action Now.’
The New Deal
FDR: ‘This nation asks for Action, & Action Now.’

2. Causes of the Great Depression
Agricultural overproduction
Industrial overproduction
Unequal distribution of wealth
Over-extension of credit
International economic situation

3. How Herbert Hoover Dealt with the Crisis
He played the game of confidence economics and just kept saying: “Prosperity is right around the corner.”

4. Voluntary Measures
Hoover eventually established two privately-funded organizations:
The National Credit Association provided $1/2 billion to businesses for emergency loans, but it was too under-funded to do much good.
The Organization for Unemployment Relief was a clearing house for relief agencies. However, state and local governments were already in too much debt to benefit from it.

5. Limited Government Intervention
In the end, Hoover resorted to government intervention:
The Reconstruction Finance Corp gave $1-1/2 billion in federal loans to banks, insurance companies, and industry to prevent bankruptcies, but it was too little, too late.
The Home Loan Bank Act provided federal loans to homeowners to prevent foreclosures, but got bogged down in red tape.

6. Reasons for Ineffectiveness
Hoover thought business should be self-regulating.
He had a mania for a balanced budget.
He lacked political finesse.

7. Franklin D. Roosevelt’s Appeal
In 1932 presidential election, FDR was perceived as a man of action.
Hoover was viewed as a “do-nothing president.”
Norman Thomas, the Socialist candidate, was viewed as a radical.
Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.

9. Situation When FDR Entered Office
In March 1933, the country was virtually leaderless and the banking system had collapsed.

10. FDR Restored Confidence
In his inaugural address, he said “The only thing we have to fear is fear itself….”
He promised vigorous leadership and bold action, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.

11. FDR’s Personal Qualities
He was a practical politician who practiced the art of the possible.
He was a charismatic person who exhibited a warmth and understanding of people.
He knew how to handle press by focusing attention on Washington.
He provided dynamic leadership in a time of crisis.
He was willing to experiment

12. Key Quotes: FDR’s Inauguration Speech
Let me assert my firm belief that the only thing we have to fear is fear itself
This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask congress for broad executive power to wage was against the emergency.

13. Causes of the Depression: Fear
People lose
their jobs.
Demand
drops.
Fewer goods
are sold.
The Spiral Of
Depression
Even more people
Lose their confidence
And spend less money
In order to
stay in business
companies cut
wages
Good place to point out that the spiral of depression is the opposite to the cycle of prosperity. Even discuss in relation to Henry Ford and the impact on the other industries that produced his standardised goods.
Companies are
forced to cut costs
by laying people off
People lose their
confidence &
start saving their
money
Demand
drops even
further.

14. The Causes of People’s Fear
Losing their job
Becoming homeless
Forced to live on their savings.
Banks going bust.
Hint
Why did banks start to go bankrupt in 1929?
Buying in the margin
Hire Purchase
Why did the Depression make even more banks go bankrupt?
A run on a bank, New York Panicky savers are queuing up to take their money out before it goes bust.

15. Action to End the Depression
Emergency Banking Act
Fireside Chats
Beer Act - ended prohibition.
The Alphabet Agencies
How would ending
Prohibition help FDR
create jobs?

16. Emergency Banking Act, 1933
This Act closed all of America’s banks whilst they were inspected by government officials.
Only banks that were properly run and had enough funds were be allowed to reopen after the bank holiday.
Once a bank has been inspected, the government promised to compensate people if that Bank go bust in the future.

17. broadcasts were called
Fireside Chats
These Fireside chats aimed to restore peoples’ confidence.
These Fireside Chats were broadcast once a week over the radio.
FDR would explain what he had done that week to help take action to end the Depression.
Why do you think these
broadcasts were called
‘The Fireside Chats?’

18. Fireside Chats
‘I can assure you that it is safer to keep your money in a reopened bank than under the mattress’
Why were people hiding their savings under their mattresses?
Which Law did FDR get Congress to pass which stopped banks going bankrupt?

19. Fireside Chats & Cycle of Prosperity

20. The Alphabet Agencies CCC: Civilian Conservation Corps.
AAA: Agricultural Adjustment Administration.
TVA: Tennessee Valley Authority
PWA: Public Works Administration.
WPA: Works Progress Administration
NRA: National Recovery Administration.
Separate PowerPoint's will be made on each of these agencies. The aim of this PowerPoint is to cover the theory behind the New Deal

21. Reversing the Spiral of Depression
Government
Spending $
More Pay = More Taxes
Alphabet Agencies
More Jobs
Cycle of
Prosperity!
Democrats called
this Process
‘Pump Priming’
More Jobs
More goods have to be produced
More Spending
Demand for goods increases
Why not print this presentation out using the print handout command and select 3 slides per page. The students can then make notes as they go along!
Demand for goods increases
More Spending
More goods have to be produced
More people with
Jobs = more pay $

22. Reversing the Spiral of Depression

23. Summary
Key Words
In order to get a a grade ‘C’ upwards in exams, you must learn and use the key words & facts.
These concepts will be awarded as key ‘knowledge.’
Spiral of Depression
Cycle of Prosperity
Fireside Chats
Emergency Banking Act
Alphabet Agencies
Pump priming
AAA, CCC, TVA, NRA, WPA & PWA

24. Exam Question 1
‘Let me first of all state my firm belief is that the only thing we have to fear is fear itself. This nation asks for action, and action now. Our greatest task is to put the people to work… It can be achieved in part by the government itself creating jobs’
Use you own knowledge to say whether the source fully explains why the New Deal was introduced.

25. Mark Scheme Level Grade Description 1 E Simple undeveloped answer. 2 D
Uses or combines information from the sources. 3
C/B
Uses sources & own relevant knowledge / concepts. 4
A/A*
Balanced answer covering both parts of the question

26. Level 4 = an answer which includes one from each column.
For
Against
Unemployment caused by depression
‘Fear’ = loss of confidence which results in a drop in demand.
‘Action’ because Hoover did nothing to end the Spiral of Depression.’
No mention of Hoovervilles, Breadlines or problems of the farmers.
No mention of Banking Crisis caused by fear & panic.
Level 4 = an answer which includes one from each column.

27. Exam Question 2
This cartoon shows one of FDR’s methods of trying to deal with the Depression. How useful is this source to explain what action FDR took to end the Depression?

28. Level 4 = an answer which includes one from each column.
Question 2: Level 3
For
Against
No mention of the Alphabet Agencies: CCC, AAA, TVA, NRA, PWA & WPA.
Pump Priming to reverse the spiral of depression
No mention of Beer Act which ended prohibition to create jobs and raise taxes to pay for New Deal.
Fireside Chats’ introduced to tackle ‘Fear’ which was resulting in a loss of confidence led to people not spending money & ‘Spiral of Depression.’
‘Banking Crisis,’ FDR used Fireside chats to restore public confidence in the reopened banks.
Level 4 = an answer which includes one from each column.