The New Deal

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The New Deal

• FDR This nation asks for Action, Action Now.

2
Background

• Roosevelt was elected President in 1932.
• He took over from Hoover in March 1933.
• He was determined to end the depression through
  government Action.
• He promised the American people a New Deal to end
  the Depression.

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Key Quotes FDRs Inauguration Speech
Let me assert my firm belief that the only thing
we have to fear is fear itself
This Nation asks for action, and action now. Our
greatest primary task is to put people to work.
I shall ask congress for broad executive power to
wage was against the emergency.
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FDRs Inauguration Speech
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Causes of the Depression Fear
Fewer goods are sold.
Demand drops.
The Spiral Of Depression
In order to stay in business companies cut wages
Companies are forced to cut costs by laying
people off
People lose their confidence start saving
their money
Demand drops even further.
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The Causes of Peoples Fear

• Losing their job
• Becoming homeless
• Forced to live on their savings.
• Banks going bust.

Why did banks start to go bankrupt in 1929?
Why did the Depression make even more banks go
bankrupt?
A run on a bank, New York 1933. Panicky savers
are queuing up to take their money out before it
goes bust.
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Action to End the Depression

• Emergency Banking Act
• Fireside Chats
• Beer Act - ended prohibition.
• The Alphabet Agencies

How would ending Prohibition help FDR create jobs?
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Emergency Banking Act, 1933

• This Act closed all of Americas banks whilst
  they were inspected by government officials.
• Only banks that were properly run and had enough
  funds were be allowed to reopen after the bank
  holiday.
• Once a bank has been inspected, the government
  promised to compensate people if that Bank go
  bust in the future.

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Fireside Chats

• These Fireside chats aimed to restore peoples
  confidence.
• These Fireside Chats were broadcast once a week
  over the radio.
• FDR would explain what he had done that week to
  help take action to end the Depression.

Why do you think these broadcasts were called
The Fireside Chats?
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Fireside Chats
I can assure you that it is safer to keep your
money in a reopened bank than under the mattress

• Why were people hiding their savings under their
  mattresses?
• Which Law did FDR get Congress to pass which
  stopped banks going bankrupt?

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Fireside Chats Cycle of Prosperity
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The Alphabet Agencies

• CCC Civilian Conservation Corps.
• AAA Agricultural Adjustment Administration.
• TVA Tennessee Valley Authority

• PWA Public Works Administration.
• WPA Works Progress Administration
• NRA National Recovery Administration.

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Reversing the Spiral of Depression
Cycle of Prosperity!
Democrats called this Process Pump Priming
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Reversing the Spiral of Depression
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Summary
Key Words

• In order to get a a grade C upwards in exams,
  you must learn and use the key words facts.
• These concepts will be awarded as key knowledge.

• Spiral of Depression
• Cycle of Prosperity
• Fireside Chats
• Emergency Banking Act
• Alphabet Agencies
• Pump priming
• AAA, CCC, TVA, NRA, WPA PWA

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Exam Question 1
Let me first of all state my firm belief is that
the only thing we have to fear is fear itself.
This nation asks for action, and action now.
Our greatest task is to put the people to work
It can be achieved in part by the government
itself creating jobs

• Use you own knowledge to say whether the source
  fully explains why the New Deal was introduced.

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Mark Scheme
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Level 3
For
Against

• Unemployment caused by depression
• Fear loss of confidence which results in a
  drop in demand.
• Action because Hoover did nothing to end the
  Spiral of Depression.

• No mention of Hoovervilles, Breadlines or
  problems of the farmers.
• No mention of Banking Crisis caused by fear
  panic.

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Exam Question 2

• This cartoon shows one of FDRs methods of trying
  to deal with the Depression. How useful is this
  source to explain what action FDR took to end the
  Depression?

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Question 2 Level 3
For
Against

• No mention of the Alphabet Agencies CCC, AAA,
  TVA, NRA, PWA WPA.
• Pump Priming to reverse the spiral of depression
• No mention of Beer Act which ended prohibition to
  create jobs and raise taxes to pay for New Deal.

• Fireside Chats introduced to tackle Fear
  which was resulting in a loss of confidence led
  to people not spending money Spiral of
  Depression.
• Banking Crisis, FDR used Fireside chats to
  restore public confidence in the reopened banks.