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The New Deal

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The New Deal

The “Old Deal”• 2

What?

•President Hoover’s reaction to the Great Depression

President Herbert Hoover

The “Old Deal”• 3

What did he want to do?

• Refused to create government programs until it was too late

• Let the business cycle take care of things

Page 4: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

The Bonus Army 1932• 4

•25,000 WWI veterans

Who?

•Marched to Washington D.C. to get a $ bonus they were supposed to get in 1945

What?

The Bonus Army 1932• 5

•Called out the troops and dispersed the army

What did Hoover do?

Page 6: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

The Election of 1932• 6

• Roosevelt offers a “New Deal” for America• Roosevelt wins with 60% of the vote

What?

Roosevelt’s New Deal• 7

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 - get the economy back on its feet

3. Reform - keep this from everyhappening again

Meant to do 3 things

Page 8: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

Bank Holiday - First Step• 8

Why? • Many banks had failed, wiping out families’ savings

• People lost confidence in the banks

Depositors Congregate Outside Closed Bank

Page 9: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

Next Step - “Alphabet Soup”• 9

•In the first 100 days of his administration Roosevelt passes tons of legislation. (First New Deal)

Hundred Days

• The agencies he creates (like AAA, CCC, TVA, FERA, FDIC)

Alphabet Soup

Page 10: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

Next Step - “Alphabet Soup”• 1

•Insurance for the $ you put in banks

FDIC - Federal Depositors Insurance Corp.

• Protected people’s savings

Bank Employee Checks Depositor's Account

Page 11: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

AGRUCULTURAL ADJUSTMENT ACT (AAA) - passed in 1933 to aid farmers.

AAA had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce)

The bad side: 1) food production down when

millions were starving2) Black sharecroppers were hurt

Page 12: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

His Greatest Mistake• 1

2Packing the Supreme Court

What?

Why?

• Increase the # of Supreme Court justices from 9 to 15

•Kept declaring his programs unconstitutional (including NRA, AAA, SEC, etc.)

Page 13: The New Deal. The “Old Deal” 2 What? President Hoover’s reaction to the Great Depression President Herbert Hoover

The New Deal - Pros and Cons• 1

3Pros• 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 (?)

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