March 5, 2015 Aim: How successful was the New Deal in addressing

the problems of the Great Depression?

• Do Now: Review: List three of the main causes of the Great Depression.

President Hoover’s Response 1929-1933

• At first, he did nothing.

– Gov’t should stay out of business.

• Established Reconstruction Finance Corporation

– Had the power to make loans to banks

Americans react to Hoover • WWI veterans (Bonus Army) march on

Washington in 1931.

• Set up Hoovervilles (shanty towns.)

• Hoover orders Army to break up protests.

1932 Presidential Election 1 out of 4 unemployed

Franklin Delano Roosevelt (D) wins by a landslide!!!

The New Deal

• FDR’s program to fight the Depression.

• A revolution in American society – completely changed the way the gov’t functions.

• “The First Hundred Days”

– Special Congress session

– Passed every FDR request

Step 1: Banking Holiday: Banks shut down until

the gov’t deemed them “healthy” enough to reopen.

The New Deal

• Repeal of Prohibition : 21st Amendment

– Beer-Wine Revenue Act

• Fireside Chats: FDR radio addresses

New Deal Philosophy

• 3 R’s: Relief, Recovery, Reform

• Brain Trust: FDR’s chief economic advisors (university professors)

Direct Gov’t Intervention in the Economy (Alphabet Soup)

• National Industrial Recovery Act (NIRA) & National Recovery Admin (NRA) – end animosity btw. labor and business.

• Civilian Conservation Corps. (CCC)