1. US History Mr. McLaughlin
The New Deal
US History Mr. McLaughlin

2. President Herbert Hoover
The “Old Deal”
What?
President Hoover’s reaction to the Great Depression
President Herbert Hoover

3. Children in one of the Bonus Army Camps
The “Old Deal”
What did he want to do?
Let the business cycle take care of things
Refused to create government programs until it was too late
Children in one of the Bonus Army Camps

4. The Bonus Army 1932 Who? What? 25,000 WWI veterans
Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945

5. The Bonus Army 1932 What did Hoover do?
Called out the troops and dispersed the army

6. The Election of 1932 What? Roosevelt offers a “New Deal” for America
Roosevelt wins with 60% of the vote

7. Thinking slide:
Was Hoover a bad president or was he in the wrong place at the wrong time?

8. What?
Programs meant to help the country by getting the government involved in the economy
Meant to do 3 things
Relief - help people out in the short term
Recovery (Jobs)- get the economy back on its feet
3. Reform (Regulation) – establishing government oversight of industries, banks, stock market, etc.

9. Bank Holiday - First Step
Why?
Many banks failed, wiping out families’ savings closed = 9 million accounts lost
People lost confidence in the banks (Runs on the bank)
Depositors Congregate Outside Closed Bank

10. Bank Holiday - First Step
How?
Closed banks for four days to reorganize
President explains in a “fireside chat”
Confidence restored

11. Next Step - “Alphabet Soup”
Hundred Days
In the first 100 days of his administration Roosevelt passes tons of legislation
Alphabet Soup
The agencies he creates (like AAA)

12. Next Step - “Alphabet Soup”
CCC - Civilian Conservation Corps
18-25 year old guys get jobs and send money home to their families
CCC workers in Lassen National Forest, California

13. Next Step - “Alphabet Soup”
AAA - Agricultural Adjustment Administration
Government pays farmers not to farm all their land
Meant to cause prices to rise and halt overproduction

14. Next Step - “Alphabet Soup”
TVA - Tennessee Valley Authority
Government builds and runs hydroelectric power plants
Provides cheap power, flood control (reducing disease), new schools & playgrounds, and jobs to the poor region of the Southeast
Construction at Norris Dam, which was being built by the TVA on the Clinch River in Northeastern Tennessee

15. Next Step - “Alphabet Soup”
FDIC - Federal Department Insurance Corp.
Insurance protected people’s savings in banks up to $5000
Increased confidence as deposits soon were higher than withdrawals
Bank Employee Checks Depositor's Account

16. Next Step - “Alphabet Soup”
SEC - Securities and Exchange Commission
Watchdog agency for the stock market
Made “insider trading” illegal
Joseph Kennedy first SEC Commissioner
New York Stock Exchange

17. Next Step - “Alphabet Soup”
FERA - Federal Emergency Relief Admin.
Gave direct relief ($) to those who needed it
Beginnings of a welfare program
Run by Harry Hopkins

18. Next Step - “Alphabet Soup”
Social Security
Taxed people working now to provide payments to the elderly
Social Security Information Poster

19. Which program was most controversial and why?
Thinking Slide:
Which program was most controversial and why?

20. His Greatest Mistake
Packing the Supreme Court
What?
Increase # of Supreme Court justices from 9 to 15 (each over 70)
Why?
declared many programs unconstitutional (including NRA, AAA, SEC, etc.)

21. What did this cartoonist think about the Supreme Court?
His Greatest Mistake
Packing the Supreme Court
What did this cartoonist think about the Supreme Court?
February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"

22. Supreme Court Exterior
His Greatest Mistake
Packing the Supreme Court
Results?
Public grew angry (FDR taking too much power)
FDR passed much less legislation after this
Supreme Court Exterior

23. The New Deal - Pros and Cons
Restored optimism and hope to Americans
Provided necessary relief to many
Cons
Did not really fix the depression
Left the nation with much debt
Left people too dependent on government (?)