fdr and new deal

I. Election of 1932

• Context:

  • Great Depression worsening

  • Public dissatisfaction with Herbert Hoover

• Result:

  • Franklin D. Roosevelt (FDR) (Democrat) wins in landslide

  • Democrats gain control of Congress

• Appeal:

  • Charisma, optimism, communication skills

  • Promised active government response

II. Background of FDR

• Born: 1882, wealthy family (Hyde Park, NY)

• Education: Harvard, Columbia Law

• Career:

  • NY State Senator (1910)

  • Assistant Secretary of the Navy

  • Governor of New York (1928, 1930)

• Personal factor:

  • Polio (1921) → paralysis

  • Strengthened resilience and empathy

• Eleanor Roosevelt:

  • Highly active First Lady

  • Major political and social influence

III. First Inaugural Address (1933)

• Famous quote: “The only thing we have to fear is fear itself”

• Context:

  • 25% unemployment

  • Massive bank failures

  • Industrial collapse

• Goal:

  • Restore confidence

  • Justify strong federal action

IV. The New Deal (Core Concept)

• Massive expansion of federal government role

• Shift from laissez-faire → government intervention

• Organized around Three Rs:

1. Relief

• Immediate aid to suffering Americans

• Examples:

  • Direct assistance programs

  • Job creation

2. Recovery

• Restart economic activity

• Focus on:

  • Industry

  • Agriculture

3. Reform

• Prevent future depressions

• Regulate banks, business, labor

V. Keynesian Economics

• Influenced by John Maynard Keynes

• Core idea:

  • Government should stimulate demand

• Mechanism:

  • Spending → production → jobs → more spending

• Contrasts with:

  • Laissez-faire (minimal government involvement)

VI. First 100 Days (1933)

• Rapid legislative action

• Established foundation of New Deal

• Restored banking stability

• Created major relief and recovery programs

VII. New Deal Programs (Agriculture Focus)

Agricultural Adjustment Act (AAA)

• Paid farmers to reduce production

• Goal:

  • Raise crop prices

• Limitation:

  • Hurt tenant farmers/sharecroppers

Farm Security Administration (FSA)

• Loans for land, equipment

• Aid for migrant farmers

• Provided housing camps

Resettlement Administration (RA)

• Relocated struggling farmers

• Purchased poor-quality land

Other Agricultural Programs

• Soil Conservation Service → combat erosion

• Farm Credit Administration → prevent foreclosures

• Commodity Credit Corporation → loans using crops as collateral

VIII. Dust Bowl (1930s)

• Causes:

  • Drought + poor farming practices

• Effects:

  • Massive dust storms

  • Migration to California (Okies)

• Federal response:

  • Resettlement + agricultural reform programs

IX. Rural Electrification & TVA

Tennessee Valley Authority (TVA) — 1933

• Government-owned corporation

• Goals:

  • Provide cheap electricity

  • Develop poor rural regions

• Impact:

  • Industrial growth

  • Job creation

  • Infrastructure (dams, flood control)

• Broader purpose:

  • Challenge private utility monopolies

X. Social Security Act (1935)

• Established:

  • Old-age pensions

  • Unemployment insurance

• Significance:

  • First major federal welfare program

  • Long-term safety net

XI. Overall Impact of New Deal

• Expanded federal power significantly

• Did not fully end Depression

• Stabilized economy and banking system

• Created lasting programs (Social Security, regulation)

• Shifted expectations:

  • Government responsible for economic security

XII. FDR’s Leadership Style

• Strong communicator (fireside chats)

• Projected optimism and confidence

• Built public trust in government action

• Focused on aiding the “forgotten man”

XIII. Key Terms

• New Deal

• Three Rs (Relief, Recovery, Reform)

• Keynesian economics

• AAA

• TVA

• FSA

• Social Security Act

• Dust Bowl

• Laissez-faire capitalism

Core Thesis (APUSH-Level)

FDR’s New Deal marked a decisive transformation in the role of the federal government, replacing laissez-faire principles with Keynesian intervention to provide relief, stimulate recovery, and implement systemic reforms, thereby redefining the relationship between the state and the American economy.