APUSH New Deal.notebook
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April 04, 2014
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Obj SWBAT Explain how FDR's New Deal changed the role of government in American society.
DO NOW "This great nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance."
FDR, First Inaugural Address, March 4, 1933
1. How does FDR see the America of the future?2. What does FDR see as America's biggest problem? Why?3. How does FDR suggest Americans should deal with the Great Depression?
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Franklin Delano Roosevelt
The New Deal Promised:
RELIEF from the immediate hardships of the Depression
REFORM to prevent future depressions
Achievement of longterm economic RECOVERY
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Keynesian Ecomonics
• Government needs to stimulate the economy• PumpPriming (jump starting)• Deficit spending
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How did FDR’s Response to the Depression Differ from Herbert Hoover’s?
Herbert Hoover
• Created limited public works programs
• Relied on charities to provide help for poor, elderly, sick
• Business would recover on its own (business cycle)
Franklin D. Roosevelt
• Created MASSIVE public works programs
• Provided direct government aid to poor, elderly, sick
• Increased government regulation of business, assistance to business & farmers
• Greatly increased government involvement in the economy, people’s lives
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Brain TrustA group of expert advisors who helped FDR plan
new programs
Hundred DaysFDR's first 3 months in office when a flood of new
legislation was passed
Bank Holiday / Emergency Banking Relief ActOn his second day in office, FDR closed every bank in the country. Only those banks with enough funds
to meet depositors' demands could reopen
Fireside ChatsRadio speeches given by FDR while in office
APUSH New Deal.notebook
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April 04, 2014
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FDR & The New DealLack of Confidence in Banks
• Banks failed due to poor investments and panic by the public
Low Farm Prices
• Farmers overproduced crops
Massive Unemployment
• Factory closings, poor economy caused 25% unemployment rate
Bank holiday
• closing of the banks to stop the panic
• FDIC (insured deposits)
AAA
• Paid farmers NOT to grow products
PWA, CCC, WPA, FERA
• Government public works projects created jobs & paychecks
Depression Era Problem New Deal Solution
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FDR & The New DealPoverty in the Tennessee River Valley
• Valley was hit hardest, massive poverty
Mortgage Foreclosures
• Farms & homes were foreclosed on
Health Care Problems• Little medical insurance
• Poor & elderly received little health care
TVA
• Built dams to create electric power
• Set up schools & health care facilities
HOLC
• Loaned money at low interest to help people make mortgage payments
SSA• Social Security gave pensions to elderly, TVA set up healthcare systems, many hospitals were built
Depression Era Problem New Deal Solution
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FDR & The New DealLack of Confidence in the Stock Market
• After the crash of 1929, people feared investing in the stock market
• Business lost the capital needed to expand
• Without economic expansion, the economy continued to suffer
• Unemployment remained high 25%
• SEC • Security & Exchange Commission
• Supervised the stock market
• Eliminated dishonest practices
• Limited “margin” buying
Depression Era Problem New Deal Solution
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Wagner Act(National Labor Relations Act)
• Protected American workers from unfair management practices such as firing a worker if he or she joined a union.
• It guaranteed collective bargaining the process in which a union representing a group of workers negotiates with management for a contract.
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April 04, 2014
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Conclusion: How did FDR’s New Deal change the role of government in American Society?
• Instead of waiting for business to recover, the US Government created jobs & directly put people to work
• Instead of relying on charities, the US Government provided direct relief (money, food, clothes) to the needy and the sick
• Government created many new programs that had a direct involvement in citizen’s lives. The size and scope of government increased and was forever changed.
• The government increased regulations over business and finance (banking & the stock market).
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