1. Roosevelt’s Plan for the Great Depression
The New Deal

2. Herbert Hoover ( )
Thought that the economy would fix itself and that the government should not get involved (laissez-faire)
Provided little direct government to the people suffering from the Depression
People blamed him for the continuation of the Depression

3. Election of 1932 Hoover ran against Franklin D. Roosevelt
Roosevelt promised a “New Deal”; Hoover promised “a chicken in every pot”
Roosevelt was elected to fix the depression

4. Companies have less Profits
Depression Economy
Unemployment
Less Money to Spend
Buy Fewer Goods
Companies have less Profits
Fire Workers

5. “New Deal” Economy More Money to Spend Buy More Goods
Add Money to the Economy
More Money to Spend
Buy More Goods
Companies Have more Profit
More Jobs Created-Workers Hired

6. Goals of the New Deal (3 R’s)
Relief for the unemployed
Recovery for the economy
Reform of the economic systems

7. The New Deal at Work
Roosevelt’s inaugural address – “we have nothing to fear but fear itself”
First Hundred Days (March – June 1933) – special session of Congress produced significant legislation to help end the Depression

8. Step 1 of the New Deal A Bank Holiday (March 6, 1933)
purpose: restore public faith in banks and stop cycle of bank closings
government inspected all banks records, banks reopen and people leave their money in the bank

9. Step 2 of the New Deal The Alphabet Agencies goal: create jobs and
stimulate the economy,
while restoring worker’s
self-esteem
The Agencies

10. Relief Recovery Reform
Mission
Program
How did it work?
Relief
provided direct payment to people for immediate help
Works Progress Administration (WPA)
Employed men and women to do public works, research and artistic projects
Civilian Conservation Corps (CCC)
employed young men on public works projects
Recovery
designed to bring nation out of depression over time
Agricultural Adjustment Administration (AAA)
increased government regulation of crop production and payments to farmers
Tennessee Valley Authority (TVA)
constructed dam and power projects on the Tennessee River
Reform
corrected unsound banking and investment practices
Federal Deposit Insurance Corporation (FDIC)
insured all savings in banks, helped restore confidence in banks
Social Security Act
offered safeguards for workers by providing unemployment benefits and retirement