New Deal

The Great Depression Overview

A series of deregulation and poor economic policies led to financial instability in various sectors.
The growing wealth gap, where the rich became richer while the poor struggled, contributed significantly to the economic imbalance.
Actions of Republican presidents in the 1920s, characterized by tax cuts for the wealthy and minimal regulation of businesses, culminated in an economic disaster, exacerbating the crisis.

FDR was related to Theodore Roosevelt; he married his fifth cousin Eleanor, forming a politically influential partnership.
He contracted polio in his twenties, which affected his mobility and made public appearances challenging.
FDR made a conscious choice to limit media portrayals of his disability, opting to focus on his policies and communication style instead.

Inaugurated on March 4, 1933; the inauguration date was changed to January for future presidents to address urgent issues more promptly.
Economic Condition upon Inauguration:
- Unemployment was at an alarming 25%, disproportionately higher in minority communities, which faced systemic discrimination in the job market.
- Over 9,000 banks had shut down, leading to widespread financial despair and loss of savings.

Goals of the New Deal:
- Provided immediate relief for the unemployed and poor.
- Aimed for recovery of the economy through various programs and policies.
- Sought to reform the financial system to prevent future crises and protect citizens.

Emergency Banking Relief Act: Instituted a closure of banks for inspection to stabilize the banking system.
Introduction of the FDIC (Federal Deposit Insurance Corporation): Established to insure depositors' money, restoring faith in the American banking system.
Fireside Chats: Weekly radio addresses by FDR aimed to reassure and connect with Americans, explaining policies in relatable terms.
Creation of Various Agencies: These included:
- Public Works Administration (PWA): Funded large-scale public works projects to create jobs.
- Civilian Conservation Corps (CCC): Provided jobs related to conservation and infrastructure.
- Tennessee Valley Authority (TVA): Aimed at providing electricity and economic development in the Tennessee Valley.
- Agricultural Adjustment Administration (AAA): Sought to raise crop prices by controlling supply.
- National Recovery Administration (NRA): Encouraged fair competition and set minimum wages.

Introduced significant reforms like unemployment insurance and the Social Security Act to aid the elderly and disabled.
Expanded the Works Progress Administration (WPA) to encompass diverse job creation including public arts projects.

FDR significantly expanded the role of federal government in economic affairs, reshaping public perception of government responsibility.
Implemented trial-and-error strategies emphasizing the need for adaptability: "Take a method and try it. If it fails, admit it frankly and try another."
Shifted focus from a laissez-faire approach to one of government intervention and support for vulnerable populations.

FDR was a master communicator, effectively utilizing mass media, notably radio, to engage with the public.
Used personalized communication strategies to build trust and rally support for his policies, further enhanced by Eleanor Roosevelt's active public role.

Designed to provide financial support to individuals in old age, enhancing social welfare.
Initially excluded certain groups, disproportionately affecting black and Mexican Americans due to systemic racism.

Wagner Act: Strengthened labor rights to organize and collectively bargain; replaced the NRA due to its earlier limitations.
Creation of the National Labor Relations Board (NLRB) aimed to protect employees' rights and promote fair labor practices.

The Roosevelt Recession: A downturn resulting from cutbacks on government spending in 1937, leading to increased unemployment rates and economic instability.
Faced criticism for attempts at court packing, trying to manipulate the Supreme Court to support New Deal policies, leading to political backlash.

The New Deal did not directly end the Great Depression; that transition occurred with increased involvement in World War II.
Established a lasting liberal consensus, fostering bipartisan support for active government roles in tackling economic crises.
Significantly shifted attitudes towards the federal government’s responsibility in society, leading to the modern social safety net we recognize today.