1. The New Deal
1933 to 1938

2. The Election of 1932 Republicans re-nominate Hoover
Democrat platform brief and vague
“Wet” and “govt. responsibility for human welfare”
Democrats nominate Franklin Roosevelt (FDR)
Captured nomination from Al Smith
He promised “Bold Action”
A “New Deal”
Going into the election of 1932, the Republicans were saddled with the image of being responsible for the Depression
The Democrats seemed a shoe-in for the presidential race. They ran Franklin D. Roosevelt on a brief and purposefully vague platform. The only two issues cited were a commitment to repeal Prohibition and a principle of “continuous responsibility of government for human welfare”
The Republicans re-nominated Hoover.
He promised a public referendum on Prohibition and defended his policies for economic recovery.
He dismissed FDR as a demagogue(appealing to emotions and prejudice of populace)
FDR promised bold action and stressed a “New Deal” for the “forgotten man” without clearly indicating specific measures of his program.
He accused the Repubs. of favoring the special interests and emphasized that the Democratic party believed it to be the responsibility of govt. to promote the well being of the great masses.

3. Hoover vs. FDR
Hoover continued to claim that prosperity was just around the bend
FDR had no carefully formulated plan
But New Deal sounded like a plan of action
Promised balanced budget
Condemned Hoover’s lack of action
Pragmatic, confident, & charismatic

4. FDR wins in a landslide Wins 42 out of 48 states
Electoral vote 472 to 59
Gets over 22 million popular votes (57% of vote)
Public registers resentment toward Hoover at polls

5. Lame Duck Period Between Nov. 1932 & March 1933 Depression gets worse
Hoover frustrated - FDR waits
20th Amendment (1933) changes inaugural date from March to January
But goes into effect after ’33 inauguration

6. March 4,1933 FDR’s 1st Inaugural
“The only thing we have to fear is fear itself…”
Re-assures the American people & they respond
1/2 million approving letters sent
The New Deal begins
March 4,1933 FDR’s 1st Inaugural
“This great nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself - nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”
Americans responded to FDR’s call for calm with an outpouring of support. The White House received a half million letters of approval.
The New Deal began with little forward thought. FDR had no detailed agenda but he was willing to try anything that might work. Through all of this, he was very much the politician, ever mindful of the winds of public opinion. He put his full weight behind those plans which he was confident could be sold to Congress and the people.
FDR’s cabinet was diverse politically, including some Republicans.

7. The Cabinet & the “Brain Trust”
Cabinet includes some Republicans
Frances Perkins Sec. Of Labor 1st women
The “Brain Trust” experts paid $1 per year
Interior Sec. Harold Ickes was a progressive Republican from Chicago who helped organize liberal Republicans for FDR in 1932.
Secretary of Agriculture Henry Wallace was a former Republican turned Democrat.
Secretary of the Treasury Henry Morgenthau, Jr. was a friend & neighbor of FDR and was a close political ally. He was generally a fiscal conservative, but agreed that the depression called for different methods.
FDR’s Secretary of Labor, Frances Perkins, was the first woman cabinet member. She had previously worked with FDR in NY as his Industrial Commissioner.
On matters of economic and social reform, FDR often consulted a group of unofficial advisors known by the press as the Brain Trust. Among the group were Columbia University professors Raymond Moley and Rexford Tugwell and lawyer Adolph A. Berle. Tugwell and Berle were progressives at heart. Moley was more conservative.
FDR sought a range of opinions and the New Deal reflected many ideological and political crosscurrents.

8. The First 100 days The Bank Holiday to restore confidence.
Congress: Give the President whatever he wants.
Goals: The 3 R’s of the New Deal
Relief, Recovery, & Reform

9. Relief: Recovery: Reform:
Short-term goal: Immediate action taken to halt the economy’s deterioration.
Recovery:
"Pump - Priming" Temporary programs to restart the flow of consumer demand.
Reform:
Permanent programs to avoid another depression and insure citizens against economic disasters.

10. Keynesian Pump Priming
John Maynard Keynes
British Economist
Deficit spending in time of depression is good policy
Expanded employment fosters purchasing & recovery
FDR reluctantly adopts idea but undermines the positive effect through taxation

11. Initial impact of the New Deal
Highly popular
Due to real achievements and FDR’s political skill
The economy saw some improvement
New Deal drew fire from Left & Right
Left complained that the New Deal did little to help the poor
Right complained that it was anti-capitalist