Quick Review-

Connection- Ch-9 Great Depression with Ch-10 New Deal

 The Depression has been going on for 4 years things are worse now.
 Unemployment nationally had reached 25% or higher by 1932.
 Remember the John Kenneth Galbraith Quote is true!
 We will see people who lost virtually everything & many others were homeless.
 People were looking for hope, though some struggled with the problems of the depression,
many some how survived.
 The problems are unprecedented so all things that are going to be tried will be an experiment to
fix the depression as nothing this massive has ever happened again.
 FDR will be at least a new approach and the perception of a leader is a key part of the success
of the message & plan.
Ch-10-The New Deal & Life in the Great Depression
*Target Goal-: I will be able to identify the shift of Federal Government taking
responsibility for all Americans, by analyzing the effects of the New Deal.
Economic Stats from 1929-32
National Income fell from 81-billion to 41-billion
85,000 businesses closed
Over 400,000 farms were foreclosed on
Over 6,000 banks closed
100,000 a week lost jobs
Over 16million were unemployed approximately-1/4 at least.
The wages had not risen in accordance with the prices, & people could not or were not spending &
thus no money in circulation. Remember people purchase some products in the 20’s & the business
thought more would be sold. You only had 1 radio, 1 fan, 1 car, not multiple products.
1932 Election
Herbert Hoover- Republican
Franklin Delano Roosevelt-Democrat = referred to as FDR
https://www.youtube.com/watch?v=qK42SUseTwM Stop video at 2:20 in Video)
FDR promises a New Deal to get us out of the depression.
FDR was pragmatic person= practical, results orientated not theoretical based-(thinking an idea must work to
be a good idea, not a good idea that maybe people messed up- IDEA MUST TO WORK TO BE GOOD)
FDR wins the 1932 election but it is not until March-1933 that he is inaugurated.
FDR’s famous Inaugural Speech & Quote-BELOW
“ So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself--nameless,
unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” (Up to
approx. 2:00 in of Speech)
https://www.youtube.com/watch?v=rIKMbma6_dcWhat did FDR mean?
**New Deal to America his plan to get us out of the Depression.
The New deal has the government taking on more responsibility in trying to end the depression. FDR & his
advisors called the “Brain Trust” by the media create the many new programs to help out. (Some were
Columbia Univ. Economic Professors)
** FDR-works well with Congress- 1st 100 Days-honeymoon period-
***Gets many things passed into law in this short period to help the country.
DIRECT RELIEF-FDR-believes in it, help both mentally & actually-$$ even if small.
3-R’s of the New Deal & its Goals
1. Relief- direct relief to stop economic problem, money, for poor.
2. Recovery- to help bring the economy back, “pump priming”- jobs.
( Ex.- Causeway to the Keys, Tri-way bridge NY City)
3. Reform- to help make changes to prevent it from happening again.
Changes to financial systems in the U.S. FDR created a “bank holiday” closing banks to stop the run
on banks.
People were in a panic & wanted their money (Run on Banks) & many banks had done a poor job with
investing & thus lost their money.
No bank insurance back then.
Jobs were a priority & thus the govt. spent money to create jobs & build projects to get people back to
work.
*Remember Hoover felt state & local govt. should help not the federal!
**Now the Federal Govt. was directly involved in helping out!
Key New Deal Programs
*Many New Deal programs nicknamed the New Deal alphabet are set up to help
out.
https://www.pbs.org/video/roosevelts-new-deal-acheivements/

 A variety of Work Programs set up to give people jobs, money, to build things
to help the country.
***Key Long Lasting New Deal Programs still around today.

 *Social Security=OASDI
 *FDIC
 *SEC
 *TVA
 Key terms/concepts- *Direct Relief & *Subsidy)