“The only thing we have to fear is fear itself.”

FDR’s Response to Great

Depression1. “try something”2. Spend government money 2. “Brain Trust” for advice 3. focus on 3 Rs:

relief (direct aid, like jobs) recovery (supports/ help industries) reform (new laws to fix problems)

4

Bank Holiday - First Step•Many banks had failed, wiping out families’ savings

•People lost confidence in the banks

•Banks closed March 6, 1933

•FDR asked Congress to pass Emergency Banking Actonly financially sound banks could reopen

Depositors Congregate Outside Closed Bank

5

Next Steps

• In the first 100 days of his administration Roosevelt asked Congress to pass tons of legislation

Hundred Days

•The agencies created had acronyms like AAA, CCC, TVA, FERA, FDIC

Alphabet Soup

FDR announces his “New Deal”

1. Civilian Conservation Corps. (CCC)

• jobs for young men; conserved natural resources

Digging Ditches in MontanaIllinois CCC advertisement

Pillow created to honor the CCC

2. Federal Emergency & Relief Administration

(FERA): • direct relief ($, clothes) to people

FERA distributes clothingin Tennessee

3. Works Progress Administration (WPA):

• gave jobs building public buildings and roads• also hired artists & writers

WPA workers creating a floodControl dike in Arkansas

WPA advertisement to aid women

WPA helped artists,like Diego, create murals and continuehis or her craft

1. Tennessee Valley Authority (TVA):

• helped the valley by controlling floods and providing electricity

TVA workers working on a dam control building

2. National Recovery Administration (NRA):

• set industry codes for production, wages, prices & working conditions

3. Agricultural Adjustment Act (AAA)

• farmers paid subsidies to NOT grow crops

Texas farmersreceive AAAcheck

4. Public Works Administration (PWA)

•Provided jobs and stimulated business activity by contracting with private firms to construct roads, public buildings and other public-works projects

1. Federal Deposit Insurance Corp. (FDIC)

• insured savings accounts in gov’t approved banks

Logo banks display today for FDIC today

2. Social Security Act (SSA) • pensions for retired workers, unemployment insurance, death benefits

FDR signs SSA

3. National Labor Relations Board (NLRB)

• Lasting reforms:– Minimum wage-$.25/hour– Maximum hours=40hours per week– Collective bargaining for unions– Regulation of interstate commerce

4. Securities & Exchange Commission (SEC)

• Regulate & monitor stock market activity

• Investigate fraud & insider trading

Supporters of the New Deal:

Supporters said FDR…1. stretched Constitution to fit needs of time2. offered immediate help to needy3. fixed problems that led to depression4. increased optimism

Critics of the New Deal:

Critics said FDR…1. seen as “socialistic”2. “Unconstitutional” 3. against American self-reliance 4. Called FDR a “dictator”5. Deficit spending

Government Expenditures• The total cost of the recent bailout now exceeds $4.6 trillion

dollars. It has cost more than all of these government expenditures combined. Figures in parentheses have been adjusted for inflation:

• Marshall Plan: Cost: $12.7 billion ($115.3 billion)

• Louisiana Purchase: Cost: $15 million ($217 billion)

• Race to the Moon: Cost: $36.4 billion ($237 billion)

• Korean War: Cost: $54 billion ($454 billion)

• The New Deal: Cost: $32 billion est.($500 billion est.)

• Invasion of Iraq: Cost: $551billion ($597 billion)

• Vietnam War: Cost: $111 billion ($698 billion)

• NASA: Cost: $416.7 billion ($851.2 billion)

• TOTAL: $3.92 trillion