The New Deal

A Promise

to America1932-1938

The 1932 Election

As the U.S. suffered through the worst

economic depression it had ever faced, the nation was asked to elect (or re-elect) its

President.

President Herbert Hoover and his dog,

King Tut

The 1932 Presidential Election

Incumbent Republican President Herbert

Hoover faced Franklin D. Roosevelt

(the Democratic nominee)

1932 America: In the midst of the Great Depression

• 25-33% unemployment

• 25% of the banks had failed

• 25% of American farming families had lost their farms

FDR’s Promise

“I pledge you, I pledge myself to a new deal for the American people.”

He promised a balanced budget and

government aid for the unemployed.

FDR Wins!

• FDR defeated Hoover.– Close popular vote, but FDR overwhelmingly

won the electoral college 471 to 59.– Hoover only carried 6 states.

• The black vote, which had traditionally been Republican (Lincoln’s party), switched to Democratic in this election which played an important role for FDR.

Election Results

FDR’s Inaugural Address

“Let me assert my firm belief that the only thing we have

to fear is fear itself.”

The “Brain Trust”

FDR selected experts from his

“inner circle” rather than the

typical politicians and businessmen

to make up his cabinet.

FDR’s Plan of Action

Relief, Recovery, and Reform—the New Deal!

First Hundred Days

FDR’s goals were relief and immediate recovery—not

government hand-outs, but rather

helping people get back on their feet.

Rebuilding Americans sense of self-worth…

First 100 Days and Fireside Chats

• FDR supported “progressive” ideas such as unemployment insurance, old-age insurance, minimum wage regulation, conservation and development of natural resources, etc.

• He used the radio as a means to communicate with the American people—”Fireside Chats” (made Americans feel as if the President was speaking to them one-on-one).

The Banking Crisis

• By 1933, 10,951 banks had failed• Those still open, were operating on a limited

basis.• FDR declared a national “banking holiday”

which closed all the banks.• After 10 days, only banks that passed

government inspection could reopen.– Aimed to restore public confidence in the banks.

Relief and Unemployment Programs

• FDR created dozens of government agencies and programs aimed at providing relief for unemployed Americans.

• Wanted to provide jobs NOT hand-outs!• 2 million men went on the government’s

payroll building schools, roads, hospitals, libraries, post offices, dams, etc., etc.

Civilian Conservation Crops (CCC)

• Provided jobs for 2.75 million young men

• Reforestation, firefighting, flood control, swamp drainage, and further development of national parks

• Lived in govt. camps (like summer camp)

Public Works Administration (PWA)

• Gave $4 billion to state and local govts. to provide jobs on public project.

• Projects such as building school and dams, refurbishing public buildings, planning sewages systems, improving highways, and generally modernizing the nation.

Works Progress Administration (WPA)

• Employed nearly 9 million people on public projects such as buildings, bridges, roads, airports, schools, and hospitals.

• Total cost: $11.4 billion• Employed 40% of the nation’s

workers

WPA: Federal Arts Project

Agencies of the WPA also found part-time jobs for high-school and college students as well as

for actors, musicians, and writers.

Agricultural Adjustment Administration (AAA)

• American farmers were suffering terribly from the effects of the Great Depression.– No one could afford food = surpluses– Couldn’t pay loans, so banks forclosed on their land

and equipment.• AAA stepped in and paid farmers to reduce

production and paid to destroy surplus (critiziced because at this time people were starving!)

The Dust Bowl

• Another problem facing American farmers was that in 1933 a drought struck the mid-western states (talk about bad timing!).

• Millions of tons of top soil were blown away (as far as Boston).

• Farmers were forced to flee their homes—migrate to other parts of the U.S (problem: there were no jobs in those places for the people already living there!).

In 5 years, 350,000 “Okies” and “Arkies” migrated to Southern California….

The New Deal and the Dust Bowl

• New Deal artists were hired to document the Dust Bowl and plight of the farmers.

• Dorothea Lange was a photographer who captured the despair of the time.

“Migrant Mother”

Tennessee Valley Authority (TVA)

Built 20 dams in the Tennessee Valley to supply region with electricity and control

flooding.

Federal Housing Administration (FHA)

Supplied small loans to home

owners to improve their

houses or construct new

ones.

Social Security Act • Provided federal-state

unemployment insurance

• Provided old-age pensions for retired workers

• Funded assistance for dependent mother & children

• Helped the disabled

Effects of the New Deal

• Unemployment dropped (still was at 20.1%)

• Farm income doubled• Wages increased• The economy did improve in some ways, but

didn’t recover (won’t be until WWII).• Changed the role of the federal government in

the eyes of Americans FOREVER! Americans expect the government to fix their problems.

Support of the New Deal• Relieved the worst of the Great Depression

crisis.• Promoted the idea that the federal govt. was

morally bound to prevent mass hunger and starvation by “managing” the economy.

• America’s economic system was kept from collapse.

• A fairer distribution of national income• Citizens were able to retain their self-respect.

Support for FDR & the New Deal

FDR provided reform without a bloody revolution or the election of a scary dictator.

(like was happening in Europe)

Criticism of the New Deal

• Failed to cure the Great Depression• The Federal Government mushroomed:

hundreds of thousands of employees and agencies.

• State power faded into the background.• The national debt doubled (Deficit Spending)• America was becoming the “hand-out” state

(undermining the old values of initiative and thrift)

Criticism of the New Deal continued

• Businesses accused the New Deal of pampering the laborers and farmers

• Still millions were unemployed.

• And, the New Deal did not cure the Great Depression, WWI did!