The New Deal

Mr. MizakModern American History

The Problem

• The country is in the heart of the worst economic disaster in U.S. history.

• 1932- U.S. elects FDR in hopes of a change– Campaigned on the

platform of “do something”

– This “something” became the New Deal

Roosevelt’s New Deal

• What?– Programs meant to help

the country by getting the government involved in the economy

• ?

Meant to do 3 thingss

1. Relief - help people out in the short term

2. Recovery - get the economy back on its feet

3. Reform - keep this from ever happening again

First Step- Bank Holiday

• People lost confidence in the banks

• Closed banks for four days to reorganize

• President explains in a “fireside chat”

End Result• Confidence restored

Next Step - “Alphabet Soup”• First Hundred Days

– In the first 100 days of his administration Roosevelt passed more legislation than any other president

• Alphabet Soup– Agencies that are created

under FDR are given acronyms

– Ex. CCC (Civilian Conservation Corps)

– SEC (Securities and Exchange Commission)

CCC - Civilian Conservation Corps

• 18-25 year old guys get jobs and send money home to their families

• CCC workers in Lassen National Forest, California

AAA - Agricultural Adjustment Administration

• Government pays farmers not to farm and produce more goods

• Meant to cause prices to rise and halt overproduction

FDIC - Federal Department Insurance Corp

• Insurance for the $ you put in banks

• Protected people’s savings

• Another step to protect American confidence

• Still around today – Protected up to

$250,000

FERA - Federal Emergency Relief Admin.

• Gave direct relief ($) to those who needed it

• Beginnings of a welfare program

• Redistribution of wealth to poor and struggling families

Social Security

• Taxed people working to give payments to the elderly

• Pension fund for retired people over 65

• Myth of poor being lazy exposed

• 13 weeks of unemployment insurance

• Funds also for disabled and single parent families

The New Deal - Pros and Cons

• Pros– Restored optimism and hope to Americans– Provided necessary relief to many

• Cons– Did not really fix the depression– Left the nation with much debt – Left people too dependent on government (?)