Franklin Delano Roosevelt and the New Deal

Industries were not making profits, demand for cars, housing, railroads, textiles decreased

Farmers were losing big money; crop prices fell 50%

People were living on credit, meaning they signed up with businesses to buy now and pay later which made them accumulate lots of debt

There was a rising gap between rich and poor

Speculation: people bought a lot of stocks and bonds hoping to make money and ignored the risk

Buying on margin: people bought the stocks and bonds “on margin”, meaning they paid a small percentage of the actual price and borrowed the rest

Black Tuesday: People started to get nervous about the market and started to pull out the money they invested and frantically tried to sell their stocks (which made them almost worthless)

Hoover believed that people should succeed based on their own individual work and effort

Hoover did little at first, simply asked employers to not lay people off or cut wages

Started to build the Boulder Dam to add jobs with federal funds

The Reconstruction Finance Corporation was set up to give emergency funds (from the government) to banks, businesses, insurance companies

Hoover never really addressed the poor, he thought that the relief would “trickle down” from the big companies and businesses

FDR takes office in 1932 He immediately began reforms in the first

“Hundred Days”: he reopened banks, established the FDIC to insure bank accounts, initiated the Federal Securities Act to make companies give buyers complete stock information

Began “fireside chats” over the radio to make Americans feel safe- “The only thing we have to fear is fear itself.”

AAA- Agricultural Adjustment Act raised crop prices to help farmers

CCC- Civilian Conservation Corps gave young men construction jobs

FERA- Federal Emergency Relief Administration gave fund directly to the poor

PWA- Public Works Administration gave money to states to create jobs

NIRA- National Industrial Recovery Act set prices and tried to regulate competition between businesses

TVA- Tennessee Valley Authority set up jobs renovating and constructing dams

Father Coughlin- wanted to nationalize banks and a guaranteed yearly income for every U.S. citizen

Huey Long- wanted to “Share Our Wealth”, and make “Every Man a King”.

Francis Townsend- wanted to create a program to give a monthly allotment to the elderly

FDR targeted farmers and workers during the “Second Hundred Days”

For farmers: they could get loans, get land, took pictures of devastated farmers

For workers: the WPA (Works Progress Administration) set up government funded jobs all over the country

National Recovery Administration protected workers, ensured 40-hour work week and a ban on child labor

Wagner Act: supported workers in unionization and collective bargaining with employers, it also made it illegal for employers to threaten or fire unionized workers

National Labor Relations Board was set up to hear workers’ complaints and evaluate unfair working conditions

The Fair Labor Standards Act set a minimum wage and maximum work hours

FDR set up a system of social security to protect people from future depressions

Social Security Act of 1935 set up: Old Age Insurance for those 65 and up Unemployment compensation Aid to families with dependent children