7. The New Deal
• The New Deal was not based on a clear strategy
shaped by a single philosophy. He was not an
intellectual—he was just a practical politician.
FDR was willing to try a variety of approaches to
see what worked.
• Acted like a quarterback- some old progressive
ideas as well
• But the New Deal did change the role of
government. It made the government responsible
for managing the economy.
• This was the beginning of Big Government
8. First Hundred Days
• He pushed through Congress
legislation( unprecedented
support) in his first hundred days
that would try and solve the
depression--setting a precedent
for all other presidents to follow.
9. Fire-side Chats
• Within the first week of being in office he called
for a Bank Holiday—closed all banks. Emergency
Banking Relief Act-- ordered the National
Treasury Department print millions of dollars to
be sent to the banks. He spoke to the American
people via the radio and assured them that it was
now safe to put their money back into the banks.
When the banks opened the day after the
speech, deposits far out weighed withdrawals.
The banking crisis was over.
10.
11. The New Deal can be classified into 3
categories:
• Relief—short term action to help people right
immediately
• Recovery—measures designed to restore the
economy
• Reform—measures aimed at remedying or
fixing defects
• The result was a number of “alphabetical
agencies” designed to stimulate the economy.
12. Relief
• Works Progress Administration (WPA)—paid
men to build highways, public building, parks,
bridges and airports. Also, artist, musicians
and actors were hired.
• Tennessee Valley Authority (TVA)—built dams
in the Tennessee Valley to control flooding and
provide electric power-radical program-drew
criticism
15. Recovery
• National Recovery Act (NRA) –asked
businesses to set prices, production limits and
wages—very complex-needed “self-sacrifice”
16. • Agricultural Adjustment Act (AAA)-passed to
help farmers, raised prices, the government
bought surplus crops—taxed processors of
farm products
17. Reform
• Federal Deposit Insurance Corporation (FDIC)-
insured bank deposits—restored confidence-
Glass Steagall Banking Act
• Off the Gold Standard
18. • Securities and Exchange Commission (SEC)-
created to oversee the stock market and
prevent another collapse
19. • Social Security Act—provided workers
unemployment insurance, old age pensions,
and death benefits. It was the most important
act of the New Deal.
20. A Day for Every Demagogue
• FDR got criticism from the
Right/Conservatives— “doing too much—a
social welfare state” and from the
Left/Liberals- “not doing enough”
21. Father Charles Coughlin
• supported FDR’s "New Deal“, but within two
years, Coughlin's steadfast support turned to
dedicated disdain--Eventually, he became
known as simply "anti-government”, "anti-
American“ and anti-semitic.
22. Dr. Francis E. Townsend
• Proposed giving $200 per month to older
citizen with the understanding that it had to
be spent within 30 days—believed it would
stimulate the ecomony.
23. Huey “Kingfish” Long
• Politician from Louisiana-preached
his “Share the Wealth” program- his way of
solving the issue of poverty and
homelessness, by redistributing the nation’s
wealth from the wealthiest to all those
underneath them--$5000 for every
family
26. John Maynard Keynes
• Keynesian—an economic theory that calls for
“planned deficit spending.”
• Vast government spending in times of
recession-then when economy recovers, the
government should reduce spending.