Study Notes on the New Deal and FDR's Presidency(situation 9 part 1)

Significance of Recovery from the Depression
- Recovery marked a monumental shift in American politics and society.
- Led to widespread changes in perspectives and policies regarding government intervention in economics.

Franklin Delano Roosevelt's Victory
- In the 1932 election, Roosevelt, representing the Democratic Party, won against Herbert Hoover.
- Electoral Results: Roosevelt received 472 electoral votes to Hoover's 42, representing a landslide victory.
- Popular Vote: Roosevelt garnered 57% of the popular vote, compared to Hoover's 39%.
- Highlighted public demand for change and new ideas.
Background of FDR
- Although he aimed to assist the poor and lower middle class, Roosevelt came from an upper-class background in New York.
- He was distantly related to Theodore Roosevelt; Eleanor Roosevelt, FDR's wife, was his fifth cousin.

Government’s Responsibility
- FDR believed in governmental intervention for economic aid, contrasting Hoover's more hands-off approach.
- Reflects a shift from the traditional American ethos of individualism and self-reliance.
The Three R's of the New Deal
- The New Deal focused on three key principles: relief, recovery, and reform.
- Aimed to revitalize the economy during a challenging time in U.S. history (the worst since the Civil War).

Bank Closure and Reform
- Roosevelt enacted a bank holiday in March 1933, closing all banks temporarily to stabilize the banking system.
- The Banking Reform Act was passed, resulting in the establishment of the Federal Deposit Insurance Corporation (FDIC).
- FDIC's Role: Protecting bank deposits up to $5,000 (later increased to $250,000 in 2017), instilling consumer confidence.
Impact of Public Confidence on the Economy
- Economic stability is heavily reliant on public confidence.Demonstrates how perceptions can influence economic behavior - if people believe in economic recovery, they are more likely to invest.
Psychological Aspects of Economy
- Discussion on how economic performance is influenced by collective beliefs and sentiments among the public, making it a psychological construct.

Gold Ownership Takeover
- Roosevelt mandated that all private gold holdings be sold to the government.
- Individuals were compensated above the market rate to encourage compliance.
- The U.S. moved off the gold standard, which allowed for more flexibility in managing inflation and monetary policy.
Securities and Exchange Commission (SEC)
- Established in 1934 to protect the public from industry fraud and deception in financial markets.
- Aimed to create regulations that prevent manipulation by major investors on Wall Street.

Definition of Insider Trading
- Insider trading refers to selling or buying stock based on non-public information about a company's future performance.
- Example: An employee learns of unfavorable financial results and sells their stock before the public knowledge, which is illegal.
Political Dimensions
- The discussion highlighted that while insider trading is illegal for private citizens, Congress members often exploit gaps in the law to trade stock based on prior knowledge of government actions.
- Suggestion for reform to eliminate such practices, proposing that all congress members be subjected to the same rules as the general public.

Civilian Conservation Corps (CCC)
- Designed to address unemployment, especially among young men, who represented a significant demographic of joblessness during the Depression.
- Engaged young men in hard labor, promoting physical activity and responsibility.
- Earnings were often sent home to support families and stimulate local economies.
Criticism of the CCC
- Critics argued that it resembled an army and might promote militaristic ideals; however, benefits included infrastructure for public lands and parks.
Works Progress Administration (WPA)
- An expansive work relief organization focused on funding arts, public works, and building significant structures (e.g., Grand Coulee Dam).
- Aimed at enriching American culture and infrastructure through various projects.

Eleanor Roosevelt's Influence
- Eleanor represented a shift in the role of the First Lady, becoming an active participant in social change and women's issues.
- Appointed the first woman to a cabinet position, Francis Perkins, as Secretary of Labor, marking significant progress for women in governance.
Social Science Achievements
- Recognition of women in academia and significant contributions to fields like anthropology and literature, exemplified by Margaret Mead and Pearl S. Buck (first woman to win the Nobel Prize for literature).

Strengthening of Labor Unions
- Legislative measures in the New Deal solidified workers' rights and improved working conditions.
- Empowered unions to negotiate better terms for workers.
- Contrast to the 1920s, where unions faced significant pushback from conservative leadership.

Government Support for Farmers
- The New Deal included programs aimed at stabilizing agricultural production and addressing environmental issues, notably the Dust Bowl.
- Farmers were incentivized to reduce crop production to manage supply and mitigate falling prices.
Impact on Modern Perception
- Discussion around economic strategies and government policies illustrated a recurring theme in American economic history: how the actions and beliefs of the populace fuel economic performance.
Concluding Remarks
- The era marked an evolving relationship between the government and the people, with increasing expectations from individuals regarding governmental support and intervention in times of crisis.