1. The New Deal 1933 to 1938

2. President Hoover’s Plan Initially called for voluntary action –and raised protective tariff duties Moratorium on the War debt - 1931 Turned toward balancing budget By 1932 - expanded public works and credit to businesses Reconstruction Finance Corp Federal Home Loan Banks

4. The Election of 1932 Demo platform brief and vague –“Wet” and “govt. responsibility for human welfare” Republicans re-nominate Hoover Democrats nominate Franklin Roosevelt (FDR) He promised “Bold Action” A “New Deal”

5. 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 Pragmatic, confident, & charismatic

6. 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

7. 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

8. 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

9. The Cabinet & the “Brain Trust” Cabinet includes some Republicans Frances Perkins Sec. Of Labor 1st women The “Brain Trust” experts paid $1 per year

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

11. Relief Measures FERA (1933) Federal Emergency Relief Administration CCC (1933) Civilian Conservation Corp. WPA (1935) Works Progress Adm.

12. Recovery Measures Farm Credit Adm. (FCA) 1933 Agricultural Adjustment Adm. (AAA) 1933 Reconstruction Finance Corp (RFC) 1932

13. More… Home Owner’s Loan Corp. (HOLC) 1933 National Industrial Recovery Act (NIRA) 1933 –Created NRA & PWA National Recovery Adm. (NRA) Public Works Adm. (PWA)

14. Reform Measures: Federal Deposit Insurance Corp. (FDIC) 1933 The Tennessee Valley Authority (TVA) 1933 Security Exchange Commission (SEC) 1934 Social Security Act 1935

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

16. 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