the new deal us history mr. mclaughlin. 2 the “old deal” what? president hoover’s reaction to...
TRANSCRIPT
The New Deal
US HistoryMr. McLaughlin
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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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Thinking slide:
Was Hoover a bad president or was he in the wrong place at the
wrong time?
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What?•Programs meant to help the country by getting the government involved in the economy
1. Relief - help people out in the short term
2. Recovery (Jobs)- get the economy back on its feet
3. Reform (Regulation) – establishing government oversight of industries, banks, stock market, etc.
Meant to do 3 things
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Bank Holiday - First Step
Why?
•Many banks failed, wiping out families’ savings. 5500 closed = 9 million accounts lost•People lost confidence in the banks (Runs on the bank)
Depositors Congregate Outside Closed Bank
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Bank Holiday - First Step
How?
•Closed banks for four days to reorganize
•President explains in a “fireside chat”
•Confidence restored
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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)
Alphabet Soup
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Next Step - “Alphabet Soup”
•18-25 year old guys get jobs and send money home to their families
CCC - Civilian Conservation Corps
CCC workers in Lassen National Forest, California
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Next Step - “Alphabet Soup”
•Government pays farmers not to farm all their land
AAA - Agricultural Adjustment Administration
•Meant to cause prices to rise and halt overproduction
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Next Step - “Alphabet Soup”
•Government builds and runs hydroelectric power plants
TVA - Tennessee Valley Authority
•Provides cheap power, flood control (reducing disease), new schools & playgrounds, and jobs to the poor region of the Southeast
Construction at Norris Dam, which was being built by the TVA on the Clinch River in Northeastern Tennessee
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Next Step - “Alphabet Soup”
•Insurance protected people’s savings in banks up to $5000
FDIC - Federal Department Insurance Corp.
•Increased confidence as deposits soon were higher than withdrawals
Bank Employee Checks Depositor's Account
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Next Step - “Alphabet Soup”
•Watchdog agency for the stock market
•Made “insider trading” illegal
•Joseph Kennedy first SEC Commissioner
SEC - Securities and Exchange Commission
New York Stock Exchange
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Next Step - “Alphabet Soup”
•Gave direct relief ($) to those who needed it
FERA - Federal Emergency Relief Admin.
•Beginnings of a welfare program
•Run by Harry Hopkins
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Next Step - “Alphabet Soup”
•Taxed people working now to provide payments to the elderly
Social Security
Social Security Information Poster
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Thinking Slide:
Which program was most controversial and why?
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His Greatest Mistake
Packing the Supreme Court
What?
Why?
•Increase # of Supreme Court justices from 9 to 15 (each over 70)declared many programs unconstitutional (including NRA, AAA, SEC, etc.)
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His Greatest Mistake
Packing the Supreme Court
February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"
What did this cartoonist think about the Supreme Court?
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His Greatest Mistake
Packing 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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The New Deal - Pros and Cons
Pros•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 (?)