President Hoover and President Roosevelt

“The fundamental business of America is on a sound and even footing!” Herbert Hoover 1929

“The only thing we have to fear is fear itself!”

Franklin Delano Roosevelt March 1933

FDR – Mini Biography Franklin Delano Roosevelt was elected by a huge majority in

1932, winning all but six states. The wealthy Democratic governor from New York was a charismatic speaker, able to rally the public to his cause. His political abilities allowed him to be elected for four terms, an unprecedented event. When struck by polio at the beginning of his political career, Roosevelt refused to give up. The press corps worked with him to present the image of a president sound in both mind and body, allowing him to minimize his paralysis, to the extent that most of the public was not aware of it at the time. Roosevelt's far-reaching New Deal programs addressed poverty, unemployment and the floundering economy. Through his reforms, Roosevelt created a new kind of presidency, more powerful and more intimate than that of his predecessors.

I. FDR – Franklin Delano Roosevelt

• A. Personality

• 1. Even though he was wealthy he was able to identify with the average American.

• 2. 20 years experience in politics as Governor of New York and other posts.

• 3. His enthusiasm and confidence gave the nation a needed psychological boost.

The Beginnings of the Mass Media Presidency – FDR’s Fireside Chats

Weekly radio updates for the American people on the state of things.

B. His advisors – “The Brain’s Trust”

1. FDR attempts to surround himself with the best and the brightest.2. Many were academics from Ivy League Universities.3. FDR appoints the first female cabinet member – Frances Perkins Secretary of Labor.

C. The First Lady – Eleanor Roosevelt

1. She toured the nation and became FDR’s “eyes and ears” and a very important political advisor.

New Deal Programs:

TVA, AAA, CCC, SEC, FDIC, FHA, WPA, PWA, FERA, FCA……..

With so many alphabetic agencies created by Roosevelt’s New Deal even the President became known as just FDR!

Many Solutions to the Depression were possible!

II. The New Deal – A. America’s response to the dire

economic situation.• 1. Group of government

programs started under FDR’s administration intended to help the nation out of its economic decline.

• 2. Referred to as Alphabet Soup because of all of the abbreviated programs.

• 3. In FDR’s 1st 100 days he passed 15 major acts to resolve the economic crisis.

II. The New Deal continued…

• B. Three main ideas - the 3R’s

• 1. Relief – Direct Aid.

• 2. Recovery – to help stimulate the economy and get people back to work.

• 3. Reform – to prevent another economic disaster

C. Categorizing the Programs

Banking andFinance

Farming and Rural Development Housing/Poverty Jobs/Unemployment

II. New Deal continued…• D. Establishes the concept

of big government• 1. Government steps in

when business fails to provide.

• 2. Government deficit spends in order to help the economy recover – Economist John Maynard Keynes.

• 3. Critics contend that it makes us too reliant on the government.

Deficits vs. Surpluses

What is the difference between a deficit and a debt?A deficit is for one year – A debt is the accumulation of ALL deficits.

The Federal Budget!

Total Revenues (Taxes)

– Total Costs (Expenditures)

+ Budget Surplus

0 Balanced Budget

- Budget Deficit

2000 Surplus:

$280 Billion

Sum of all yearly deficits and surpluses is the National Debt of: 5.6 Trillion Dollars$19,900 per citizen

The Federal Budget!

Total Revenues (Taxes) – Total Costs (Expenditures)

+ Budget Surplus0 Balanced Budget- Budget Deficit

2009 Deficit:$1.4 trillionA new record!

Sum of all yearly deficits and surpluses is the National Debt of: 12.3Trillion Dollars!$39,460 per citizen

The Federal Budget!

Total Revenues (Taxes) – Total Costs (Expenditures)

+ Budget Surplus0 Balanced Budget- Budget Deficit

2011 Deficit:$1.3 Trillion

Sum of all yearly deficits and surpluses is the National Debt of: 15.2Trillion Dollars$48,398 per citizen

What we will owe?!?

Deficit spending is intended to be a short term fix to economic problems. Manageable debt is not a problem. When that debt becomes unmanageable then we have a problem!

E. Results

• Helped get people back to work but it will not be until the massive spending of WWII occurs until the depression totally ends.

• Created a safety net and a sense of security.

Government Jobs Programs

CCC

WPA

PWA

These workers of the Civilian Conservation Corps (CCC) blast through solid rock to place a telephone-line conduit in Glacier National Park in northwestern Montana. Set up in 1933 as a part of the New Deal program of United States President Franklin D. Roosevelt, the CCC provided training and jobs for unemployed young men during the Great Depression of the 1930s.

The Civilian Conservation Corps or CCC

A women’s CCC camp

Will social security bearound for you!

Current estimates is that itWill be in the red by 2042? When will you Retire?

How does Social SecurityWork?