FDRs Depression

The New Deal and the first 100 DaysFDRs DepressionElection of 1932Herbert Hoover (R)

Franklin D. Roosevelt (D)

Democrats win the White House, the Senate, and the House of RepresentativesA strong rebuke of Hoover and the Republicans in the wake of the crash and depression16 million votes23 million votesRoosevelt takes officeBefore he is inaugurated he gathers the best minds in the economic world to begin to put together a plan for recoveryBrain Trust forms the policies of the New DealFirst 100 Days has a flurry of bills giving the government more power over the economy.New Deal came from a campaign speech where he said that America deserves a new deal. This follows in the vein of Teddy Roosevelts Square Deal.3Banks We gotta fix the banks!March 5 declares a bank holiday to prevent any more withdrawls and institute a cooling off period for consumers

The government would inspect the finances of the banks in order to restore confidence

Role of the fireside chats

FDIC (Federal Deposit Insurance Corporation) is developed to protect peoples depositsBecause people rushed on the banks and pulled out their money as the stock market crashed and the economy crumbled the banks were crippled because they had no money in reserves. People were stuffing money into mattresses, burying it in the yard, in the walls, etc because they feared losing their money as banks failed.

The government was charged with stepping in and inspecting the books. Insolvent banks were closed, struggling banks could get government loans to stabilize, and healthy banks could reopen.

On the eve of the bank openings FDR gave a sit down with the american people. Rather than TV it was radio and he encouraged Americans to listen as the banks were set to open so he could begin to restore confidence in the banks.

To protect the investments and to restore confidence the FDIC was created to insure investments and prevent bank runs.4FDR and the New Deal VideoPlay The New Deal from the video series 20th Century: a moving visual History

Alphabet Soup ProgramsSEC Securities and Exchange CommissionRegulate the stock market to prevent the speculation that caused the crisisAAA Agricultural Adjustment ActSubsidies to destroy crops, milk, foodWhy?How do you think the poor, hungry, and struggling felt about this policy?CCC Civilian Conservation CorpsYoung men were put to work on projects across the country and were paid $30 / month, but $25 was sent to directly home to the familiesNIRA National Industrial Recovery ActMoney to the states to help create jobs in their areaA product of the CCCA

The monument to the CCC workers is at the top of the amphitheater at Red Rocks many of the trails and parklands in CO were put together by the CCC.7Why did people oppose this?Deficit Spending

Definition:

Liberal Reaction

Supreme Court

Court packingDeficit Spending: government spending more money than they take in with taxes and revenue. Each year of deficit spending puts the government in more debt. Why would a government need to do this? How might this help a situation like the Great Depression?

Liberal reaction: Many liberals felt that the government wasnt doing enough to help the poorest of the country. They were hungry and homeless and the government wasnt doing enough in terms of direct relief for those people

Supreme Court: Key parts of FDRs plan were struck down as unconstitutional by the court and FDR was a bit mad about that in retaliation he challenged Congress to allow him to expand the court and appoint the justices he wanted so as to have the support of the Supreme Court in this case. Ultimately he was not allowed to expand the court but he did get to nominate 7 justices while in office assuring that his programs would hold up to court scrutiny.8Connect this to today!What are the similarities to the economic crisis we are still dealing with today? How does the government react in the Great Depression compared to todays crisis?