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Roosevelt and the New Deal, 1933-1941

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Biography

The First New Deal

Franklin Delano Roosevelt, 1882–1945Strong-willed and optimistic, Franklin Delano Roosevelt was the only president elected to office four consecutive times. Born in Hyde Park, New York, to the prestigious Roosevelt family, Franklin led a privileged life. While attending Harvard University, Roosevelt came under the influence of his distant cousin President theodore Roosevelt’s progressive political ideas. He married theodore’s niece, eleanor Roosevelt, in 1905 and embarked on a remarkable political career.

Serving first as a New York state senator, Roosevelt was then appointed assistant secretary of the Navy in 1913. His future seemed bright when, in 1921, he contracted polio, which paralyzed his legs. He continued to fight to regain his health and his political career. With the help of his wife, eleanor, he succeeded and won election as governor of New York in 1928.

In 1932 Roosevelt won his first presidential election and promptly supported the creation of the vast economic recovery program called the New Deal. the program included bank reform, public works projects, and tax-relief efforts. It also expanded the powers of the presidency.

In 1941, at the beginning of his third term as president, the Japanese bombed Pearl Harbor and america entered World War II. Roosevelt did not live to see the end of the war; he died in 1945.

1. What unique election record does Roosevelt hold?

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2. What did Roosevelt hope to achieve with the New Deal?

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Roosevelt and the New Deal, 1933–1941

Analyzing Political Cartoons

The First New Deal BackgroundFrom March 19 through June 16, 1933, Congress passed into law 15 major government programs proposed by President Roosevelt in an effort to jump-start the U.S. economy during the nation’s worst economic downturn. Some legislators were appalled at the cost. Others were skeptical that the programs would work. Nevertheless, Congress had to act, so it went along with Roosevelt’s plan.

Whether the First New Deal had a significantly positive effect on the economy is an unresolved question. Historians do agree, however, that it raised the spirits of working men and women, offering hope that the economic crisis would eventually ease.

Directions: Study the two political cartoons below about the New Deal. Then answer the questions that follow.

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Roosevelt and the New Deal, 1933–1941

Analyzing Political Cartoons Cont.

©The Granger Collection, New York

Critical Thinking

1. In the first cartoon, what does the writing on the pieces of the collapsing pier tell you about the cartoonist’s opinion of the First New Deal?

2. What do the life preservers that Uncle Sam is grasping at represent?

3. What will happen to Uncle Sam if the life preservers don’t work?

4. In the second cartoon, what do the three figures represent?

5. What do the bottles on the table symbolize?

6. What is ironic about Roosevelt’s words to the Congress?

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Roosevelt and the New Deal, 1933–1941

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Chattanooga

Knoxville

Oak Ridge

Asheville

BowlingGreen Bristol

PaducahCairo

Memphis

CorinthHuntsville

Nashville

KentuckyDam

NorrisDam

Douglas Dam

Cherokee Dam

Watts BarDam

ChickamaugaDam

GuntersvilleDam

WheelerDam

WilsonDam

Cumberland

Green R.

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Bear Cr.

LittleTennessee R.

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Missouri

Alabama

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WestVirginia

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Albers Equal-Area projection

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Area servedby TVAMajor damPower plant

The TVA

Geography and History Activity

The Tennessee Valley Authority

The Depression in the Tennessee ValleyThe Tennessee Valley was hit harder by the Great Depression than most other areas of the United States. Residents suffered from high unemployment, low income, malnutrition, and disease. Farmers were already facing difficult conditions brought on by erosion and soil depletion, and when farm prices dropped in the 1930s, Tennessee Valley farmers were made even worse off than they had been before. Prior to the Great Depression, the Tennessee Valley was one of the least-developed regions of the United States. Even as the U.S. economy boomed in the 1920s, the population of the Tennessee Valley experienced a standard of living much lower than in other areas of the country.

The TVA Changes the Tennessee ValleyThe purpose of the Tennessee Valley Authority (TVA) was not only to alleviate the Great Depression in this hard-hit area but also to modernize the region. One of the main ways the TVA intended to develop the Valley was through rural electrification. Electricity was generated through the construction of dams across many of the region’s abundant and powerful rivers. TVA construction projects brought jobs and money to the region, and TVA-generated electricity improved the lives of the valley’s inhabitants. Electric lights and modern home appliances made life easier, and electric-powered machinery helped make farms more productive. Electricity also drew more industries and jobs into the region. Because dam building was such an integral part of the TVA’s activities, the TVA significantly impacted the geography of the region. The development of dams created numerous lakes that provided irrigation, recreation, and drinking water. They also displaced more than 15,000 families.

Caption: This map shows the area served by the TVA in 1940, including the locations of dam and power plant projects.

United States History and Geography: Modern Times

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Roosevelt and the New Deal, 1933–1941

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Geography and History Activity Cont.

Understanding Concepts

1. How did rural electrification improve conditions for farmers in the Tennessee Valley?

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2. What do you think were some of the negative consequences of the TVA’s activities?

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3. What do you think the Tennessee Valley would be like today if the TVA had never been created?

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Applying Concepts

4. Consider the geography where you live. In what ways has that geography affected the availability of energy and other basic needs, such as electricity and clean water?

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5. What would the community in which you live be like if it did not have reliable sources of energy?

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Directions: Answer the questions below in the space provided.

United States History and Geography: Modern Times

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Roosevelt and the New Deal, 1933–1941

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Economics of History Activity

The First New Deal

The Great Depression began in late 1929, but under President Herbert Hoover, the federal government took little or no action to alleviate the worsening economic condition of the nation. Franklin Roosevelt ran for president in 1932 with a promise of a “New Deal” for Americans and vigorous experimentation to address the economic crisis. As soon as he was inaugurated, President Roosevelt began sending bills to Congress in an effort to jump-start federal efforts to fight the Great Depression. The First New Deal resulted in significant new regulation of the financial industries, as well as the creation of federal programs to aid Americans, reduce unemployment, and get the economy growing again.

The main thrust of the First New Deal was to reform the nation’s financial sector. The Banking Act, usually referred to as the Glass-Steagall Act, was intended to protect depositors and restore public confidence in the banking system. Under the Glass-Steagall Act, commercial banks were separated from investment banks, so the kind of banks that Americans used for their savings and mortgages were no longer allowed to risk depositors’ money by speculating on the stock market. This act also created the Federal Deposit Insurance Corporation (FDIC), which provided government-sponsored insurance for bank deposits up to a certain amount. The Securities Act of 1933 and the Securities Exchange Act of 1934 regulated the stock market in an attempt to prevent the kind of runaway speculation that had led to the crash of October 1929. These laws put in place new rules requiring truthful financial disclosure and putting in place protections against fraud.

Economics Terms to Know

commercial banks banks that handle everyday transactions, such as taking deposits, paying interest, cashing checks, and lending money for mortgages

investment banks banks that use money to speculate on the stock market to make money for investors

MAR1933

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March 9, 1933The Emergency Banking Relief Act is passed

May 12, 1933 The Agricultural Adjustment Act is passed, creating the Agricultural Adjustment Administration

May 27, 1933The Securities Act is passed

June 13, 1933The Home Owners' Loan Corporation is created

June 16, 1933The Banking Act (Glass-Steagall Act) is passed

June 6, 1934The Securities Exchange Act is passed, creating the Securities and Exchange Commission.

Major Legislation During the First New DealMarch 1933 to July 1934

United States History and Geography: Modern Times

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Roosevelt and the New Deal, 1933–1941

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Economics of History Activity Cont.

The First New Deal also attempted to help regular Americans, particularly homeowners and farmers. Congress created the Home Owners’ Loan Corporation (HOLC) to buy the mortgages of many homeowners and restructure them with longer terms of repayment and lower interest rates. The Agricultural Adjustment Act was passed to help American farmers. This act was based on the idea that prices for farm goods were low because farmers grew too much food. Under Roosevelt’s program, the government would pay some farmers not to raise certain livestock and not to grow certain crops.

Applying Economics to History

1. The laws passed as part of the First New Deal attempted to improve the economy in what specific areas?

2. Why do you think the creation of a Federal Deposit Insurance Corporation was needed in response to the Great Depression?

3. How were restrictions on the production of certain crops supposed to help the economy as a whole?

4. Why do you think the actions of the Agricultural Adjustment Administration might have been controversial?

United States History and Geography: Modern Times

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