Neri - FDR and the New Deal

Do Nothing to fix great depression (Reasoning)

Economy Naturally grows and shrinks, and will naturally fix itself

Do Nothing to fix great depression (Downside)

Does it really work if things are bad

Supply side economics; Reaganomics (Meaning+Reasoning)

Government cuts taxes; This will encourage consumers to spend more and businesses to expand (or form)

Supply side economics; Reaganomics (Downside)

You either have to cut government programs or the government has to run a deficit; Does it benifit the rich more then the poor? (trickle-down effect?)

Keynesian economics (Meaning+Reasoning)

Government increases spending; This will create jobs and pump money into the economy

Keynesian economics (Downside)

You either have to raise taxes or the government has to run a deficit; Does this give the governent too muhc power?

What economic plan did FDR use?

Keynesian economics

Franklin D. Roosevelt

Argued for a more Interventionist and Direct relief programs; Promised a new deal for the american people

The New Deal

Derives from FDR's ignauguration speech;

based on experimentation (No plan);

Fireside chats (listening to FDR inauguration speech on the radio)

First New Deal

Expanded Role of Federal Gov;

Notion that the government is responsible for the welfare of citizens

Should gov get involved > How should the gov get involved

Three R's

Relief for the struggling unemployed - Short term job creation, $ directly to people

Recovery of the economy through - Fedral spending on businesses + loans and job creation

Reform by laws and creation of new - Social Welfare Programs

First Hundred Days

Adressed Banking Crisis, Unemployment, Indurial performance through agencies

Emergency Banking Act

Closed banks for 4 day; Inspected who was corrupt and who needed reform

Afterward people - money, faith into bank

Glass Steagall Act

Sepparated commercial and investment banking, restricted how banks could invest a customer's deposits

FDIC (Fedral Deposit Insurance Corporation)

Deposit insurance; nont lose funds to a failure; Insured banks up to 2500 (250k now)

AAA (Agricultural Adjustment Act)

Restricted agriculture production > price increase

Effective reasurgence

CCC (Civilian Conservation Corps)

Employed young single jobless men

Enviormental works (parks / plant trees)

PWA (Public Works Administration)

Built Schools, Dams, Bridges, and Hospitals

Multiple jobs made availible

SEC (Securities and Exchange Commission)

Brought important fedral funds and regulations to the stock market

misrepresenting info; price manipulation; stealing

Second New Deal (4 legislations)

Focused on increasing worker protections and building long-lasting financial security for Americans (Important)

WPA (1/4 legislations)

• Employed millions of Americans in public works projects and infrastructure 🡪 schools, parks, roads etc.

• Golden Gate Bridge

The Wagner Labor Relations Act (2/4 legislations)

Guarenteed workers the right to form Unions and Bargain collectivly

The Social Security Act (3/4 legislations)

Required workers and employers to contribute through Payroll tax to Social Security Fund

SS fund > Retirees and Long term Disabled

The Fair Labor Standards Act (4/4 legislations)

Mandated a 40 hour work week, Overtime Pay, restricted Child Labor and National Minimum wage

Critics of the New Deal (Conservatives)

Opposed high tax rate

Critics of the New Deal (Liberals)

Felt gov policies towards business to favorable

Critics of the New Deal (Socialist)

Called for Nationalization of Business and wanted to end 'Big Business'

Court Packing Scheme

Supreme Court starts striking New Deal programs down

Roosevelt attempts to increase size of Supreme Court from 9>15 but it was rejected by Congress

What fixed the Great Depression?

WW2

What was the cause of the depression (one thing)?

Buying on Margin