The Great Depression and the New Deal

Election of 1932

• FDR elected by a landslide; not because of his policies, but because everyone wanted to vote against Hoover,
• FDR was not known for politics until his presidency.
• ==New Deal brings more reform to the government more than ever.==
• First term makes FDR one of the most popular presidents of all time.
• Nobody knows that FDR is in a wheelchair, so during the party after his inauguration, he stays at the White House and says he’s working on the Bank Holiday.

Bank Holiday

• Banks use money to invest, while keeping some for general transactions.
• When everybody tries to withdraw after The Great Depression begins, the banks run out of money that they can give out.
• @@FDR made Bank Holidays, meaning all banks are closed for a certain period of time.@@
• Healthy banks reopen, unsure banks take time to reopen, and dead banks close down.
• ==Glass Steagall Act reopens banks and makes the FDIC.==

Fireside Chats

• Spreads New Deal policies throughout the world
• Somewhat formal, but not really - formal information was treated informally

Hoover’s Lame Duck Period

• Wants to get started on New Deal policies during his Lame Duck period
• FDR says no; a) doesn’t want Hoover to get any credit, b) if it fails his reputation will be ruined before his presidency begins, c) doesn’t think the depression is his problem yet.
• FDR isn’t a very honest person, but his efforts definitely helped make the Great Depression easier, although not truely improving anything.

New Deal Policies

Social Security

• Initiative made by FDR
• Gives monetary compensation to retirees(only if they’re 65, and a certain number of years are worked) and disadvantaged people
• Controversial because eligibility was dependent on the state you live in; This would result in things like the exlusion of minorities
• Paycheck cuts in favor of those retiring
• August 14th, 1935
• Is part of reform and recovery

SEC (Securities and Exchange Commission)

• FDR (president, part of it because it’s a part of the New Deal), and Joe Kennedy (First chairman)
• ==Regulates the stock market, provides protection for investors; Commission is made by the Securities and Exchange Act==
• June 6th, 1934
• Stock Market had a lot of problems at this time, such as trading being done secretly, companies having monopolies on insider info; the SEC stops this, and is important
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