The New Deal. 2 The “Old Deal” What? President Hoover’s reaction to the Great Depression President…

The New Deal

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The “Old Deal”What?

•President Hoover’s reaction to the Great Depression

President Herbert Hoover

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The “Old Deal”What did he want to do?

•Refused to create government programs until it was too late

•Let the business cycle take care of things

Children in one of the Bonus Army Camps

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The Bonus Army 1932

•25,000 WWI veteransWho?

•Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945

What?

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The Bonus Army 1932

•Called out the troops and dispersed the army What did Hoover do?

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The Election of 1932

•Roosevelt offers a “New Deal” for America•Roosevelt wins with 60% of the vote

What?

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The Election of 1932

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Thinking slide:

Was Hoover a bad president or was he in the wrong place at the

wrong time?

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Roosevelt’s New DealWhat?

•Programs meant to help the country by getting the government involved in the economy

1. Relief - help people out in the short term2. Recovery - get the economy back on its feet3. Reform - keep this from ever happening again

Meant to do 3 things

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Bank Holiday - First StepWhy? •Many banks

had failed, wiping out families’ savings •People lost confidence in the banks•Fireside chats insured Americans that FDR was on the job; they liked hearing the president’s voice and reassurance

Depositors Congregate Outside Closed Bank

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Executive Order 6102What?•Required all Americans to turn over any gold they owned over to the Department of the Treasury. •Exceptions included particular industries that used gold, like dentists who filled teeth with gold fillings, and allowed individuals to keep up to $100 worth of gold coins.

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Executive Order 6102Why and How?•The “national emergency” was a result of greedy people running to “hoard” gold from the banks.•All banks would have to turn over depositors’ gold to the government.

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Executive Order 6102Why and How?

•If any person was found hoarding gold or refused to turn their gold over to the government, they would serve 10 years in prison and pay a fine up to $10,000 ($170,000 in 2009).

•American banking system was at risk and the gold reserves would run dry if Americans lost faith in the dollar; FDR needed to make it impossible for people to “bank run” the treasury. (But then what is the gold standard for?)

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Next Step - “Alphabet Soup”

•In the first 100 days of his administration Roosevelt passes tons of legislation

Hundred Days

•The agencies he creates (like AAA, CCC, TVA, FDIC)

Alphabet Soup

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Next Step - “Alphabet Soup”

•Insurance for the $ you put in banks

FDIC - Federal Depositors Insurance Corp.

•Protected people’s savings

Bank Employee Checks Depositor's Account

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Next Step - “Alphabet Soup”

•Pensions for the retired funded by taxes

SSA – Social Security Act

Bank Employee Checks Depositor's Account

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His Greatest MistakePacking the Supreme Court What?

Why?

•Increase the # of Supreme Court justices from 9 to 15

•Kept declaring his programs unconstitutional (including NRA, AAA, SEC, etc.)

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His Greatest MistakePacking the Supreme Court Results? •Public grew

angry (FDR taking too much power)

•FDR passed much less legislation after this

Supreme Court Exterior

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A Political Partnership

Franklin RooseveltAppealing blend of

cheerfulness, optimism, and confidence

An effective communicator (ex. fireside chats)

A reform-minded DemocratBelieved the government

could solve economic and social problems

Eleanor Roosevelt“Eyes and ears” of her

husbandDirected efforts to solve

several major social issues (ex. lynching of African Americans)

Wrote her own newspaper column

Had the trust and affection of many Americans

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The New Deal - Pros and ConsPros

•Restored optimism and hope to Americans

Cons•Did not really fix the depression

•Left the nation with much debt

•Provided necessary relief to many

•Left people too dependent on government (?)

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Questions: Why was FDR's administration labeled the "New Deal?"  What were its three goals?

What sort of relationship did President Roosevelt develop with the press and the public?

What role did the radio play in Depression-era America?

What role did Mrs. Roosevelt play in her husband's administration?

Why did FDR engage in a series of "Fireside Chats" with the American people?