2. Inauguration of FDR, March 4, 1933
In his inauguration speech, FDR stated that, “the only thing we have to fear is fear itself.”
Inauguration of FDR, March 4, 1933

3. FDR gathered information from many economic experts, known as the Brain Trust, on how to fight the depression.

4. FDR’s Brain Trust
-Harry Hopkins - Social Worker and the architect of much of the New Deal.
-Henry Morgenthau
-Louis Lowe
-Cordell Hull
-Frances Perkins - Sec. of Labor and first female in the cabinet.
-Sam Rosenman
-Raymond Moley
-Rexford Tugwell

5. Step 1: Saving the Banks
Bank run, New York City, 1931

6. Roosevelt declared a “bank holiday,” closing every bank in the nation for eight days.

7. Congress then passed the Emergency Banking Relief Act, which only allowed banks to open if they had enough funds to pay their depositors.
FDR signing the Emergency Banking Relief Act into law.

8. The New Deal
FDR developed many new bills that created programs to help end the Great Depression.
These programs were known as the New Deal.

9. II. plans for economic Recovery I. Relief for the unemployed
The New Deal had thrrree major goals:
III. Reforms to prevent another depression

10. Relief for the unemployed
WPA-Works Progress Administration
Infrastructure, roads, parks, airports, schools, etc.
CCC-Civilian Conservation Corps
Young, unmarried men put to work
Free board, medical care, $30/month

12. Economic Recovery AAA Agricultural Adjustment Administration TVA
Gov’t subsidies to farmers who cut production of certain crops.
TVA
Tennessee Valley Authority
Helped farmers and created jobs
Provided cheap hydro-electric power to the Tennessee River Valley
Power = need for appliances!!!

13. Reforms to prevent another Depression
Social Security Act, 1935
Financial Security with regular payments to those who cannot support themselves
Old-Age pensions, benefits
Unemployment Insurance
Aid for the disabled
FDIC-Federal Deposit Insurance Corporation
1934: Insures money in your saving acct up to $2,500… Today: $250,000!!!

15. Fireside Chats
FDR gave 30 radio speeches to the nation, which became known as fireside chats.
FDR’s first fireside chat on the bank crisis. (March 12, 1933)

16. FDR’s first fireside chat reassured people that banks were safe to use again.

17. Criticism of the New Deal
Americans wanted a balanced budget
Spend an appropriate amount of $$$
Concerned about the rising national debt
FDR practiced Deficit Financing
Expenses higher than revenue (income)
Debt:
1933 – $21,000,000,000 ($21 Billion)
1940 – $43,000,000,000 ($43 Billion)
2014 – $18,000,000,000,000 ($18 Trillion)

18. Why was this result predictable?
Think – Pair - Share
Why was this result predictable?

19. Criticism of the New Deal
Republicans especially opposed the New Deal
Too much government intervention
Reform had gone too far
Felt New Deal programs infringed upon individual freedoms
“Unconstitutional
Un-American”

20. Effects of the New Deal Infrastructure
Bridges, dams, buildings, tunnels
Bigger Government – AAA, CCC, WPA, PWA, RFC, FDIC, TVA, SSA…
PUT PEOPLE BACK TO WORK
Gave them HOPE!!

21. QUESTION TIME!!!!
What did Roosevelt mean when he offered Americans a “New Deal”?
Why was the election of 1932 a significant turning point for American politics?
If you could create ONE government program, what would it be? Why?