FDR and the New Deal Study Guide

Economic Context of the Hoover Era (1929–1932): - Between $1929$ and $1932$ , President Herbert Hoover faced severe criticism for his inability to end the Great Depression. - During this period, tens of thousands of American businesses failed. - The national unemployment rate surged to $25\%$ . - The American banking system suffered a total collapse.
Hoover's Management Strategy: - Initially, Hoover relied on the philosophy of "rugged individualism," emphasizing personal self-reliance over government intervention. - Eventually, he offered relief checks and initiated job programs, but these actions were widely perceived by the public as "too little, too late."
The Election of 1932: - In the $1932$ election, Hoover sought re-election, but the American electorate sought hope and strong leadership. - Democratic candidate Franklin Delano Roosevelt (FDR) defeated Hoover to win the presidency.

FDR's Inaugural Address: - When Roosevelt took the oath of office, unemployment was at an all-time high. - He used his address to inspire hope, famously stating: "The only thing we have to fear is fear itself." - Full Verbatim Quote: "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."
The First 100 Days: - In his first $100$ days in office, FDR worked with Congress to pass a comprehensive platform of legislation aimed at attacking the depression. - This series of legislation was collectively known as the "New Deal."

The Bank Crisis of 1933: - By $1933$ , a total of $25,000$ banks had failed in the United States, leading to a complete financial collapse. - FDR’s first executive action was to address this crisis by declaring a four-day "bank holiday."
The Bank Holiday Strategy: - During this period, all banks were closed and inspected by federal regulators. - The goal was to determine which banks were financially healthy. - Only those banks deemed "healthy" by inspectors were permitted to reopen following the holiday. - Result: After the holiday, very few U.S. banks failed, and Americans gradually regained confidence in the banking system.
Fireside Chats: - FDR utilized the power of the radio to hold weekly addresses known as "fireside chats." - These chats used simple, clear language to explain New Deal programs and the steps the government was taking to fix the economy. - This communication gave the public confidence that the government was actively fighting the Great Depression.

Relief: - Focused on immediate assistance to citizens. - Included relief checks and job programs designed to lower unemployment. - During the New Deal, the government provided relief checks to $15\%$ of Americans.
Recovery: - Focused on temporary programs to stimulate agriculture, industry, and the general economy to end the depression.
Reform: - Focused on permanent programs to correct systemic problems in the economy and prevent future depressions.

Relief and Job Programs: - Civilian Conservation Corps (CCC): Focused on environmental conservation and providing jobs for young men. - Public Works Administration (PWA): Directed toward infrastructure projects. - Works Progress Administration (WPA): A large-scale agency that employed millions for various public works projects.
Reform and Regulatory Programs: - Securities and Exchange Commission (SEC): Established to monitor and reform the stock market. - Federal Deposit Insurance Corporation (FDIC): Created to protect individual deposits in banks. - Social Security Act: Designed to provide a safety net for the elderly, the unemployed, and the disabled. - National Labor Relations Board (NLRB) / Wagner Act: Protected workers' rights to unionize. - Fair Labor Standards Act (FLPC): Established labor standards for workers. - National Recovery Administration (NRA): Stimulated industrial recovery (symbolized by the blue eagle and the motto "We Do Our Part").

The Economic Shift (1937): - By $1937$ , FDR faced significant criticism that the New Deal was too expensive and had failed to eliminate unemployment or end the depression. - President Roosevelt attempted to back off government-funded job programs. - Consequence: Unemployment quickly rose once funding was reduced, proving the New Deal had not yet fully stimulated a self-sustaining economy.
The Court-Packing Bill: - FDR was concerned that the Supreme Court would declare New Deal programs unconstitutional, thereby weakening his efforts. - He threatened to "pack the Supreme Court" by proposing to increase the number of justices from $9$ to $15$ . - This proposal was widely known as the "Court-Packing Bill."

Successes: - Provided immediate relief to millions through agencies like the CCC, PWA, and WPA. - Successfully initiated reforms in the stock market (SEC) and banking (FDIC). - Established lasting social welfare through Social Security. - Strengthened labor through the Wagner Act and FLPC.
Failures: - The New Deal did not lead to a complete recovery of the American economy. - By $1938$ , approximately $10,000,000$ people remained unemployed. - Wealth in the United States remained unevenly divided despite the programs.
Causes and Effects of the Great Depression: - Causes: Stock-based economy with superficial prosperity; unequal distribution of income; industrial and agricultural problems; increasing consumer debt; stock market speculation and crash. - Immediate Effects: Massive unemployment; rise of shantytowns; bank failures and school closures; world economic suffering; forced active government involvement by Hoover late in his term. - Continuing Effects (Legacy): Permanent reform of banking and finance; an active government role in managing the economy; established labor standards; the persistence of the Social Security system; ongoing environmental conservation efforts.

Quiz Questions:

What event led to President Herbert Hoover facing severe criticism during his term?
What was the unemployment rate during the peak of the Great Depression under Hoover?
How did Hoover initially approach the economic crisis?
Who won the 1932 presidential election against Hoover?
What was FDR's famous quote during his inaugural address?
What legislation did FDR implement in his first 100 days?
What major action did FDR take in response to the banking crisis in 1933?
What were the three components of the New Deal philosophy known as the "Three Rs"?
Can you name one relief program initiated during the New Deal?
What challenge did FDR face concerning the Supreme Court and how did he respond?