The 1932 Election
FDR promised a New Deal.
Pledged the Three Rs:
- Relief
- Recovery
- Reform
Between election and inauguration:
Period of time between November 1932 and March 1933 where FDR had been elected but
hadn’t acted as President yet.
Over the winter of 1932, the economy took a turn for the worse - FDR was criticised for not
working with Hoover to better the economy.
Keynesian economics emerges - the idea of government spending and nationalisation in
order to create wages, jobs, and therefore tax.
FDR’s First Hundred Days:
June 1933 - 15 new laws had been passed.
Aim was to rescue the economy.
Emergency Banking Act 1933 - closed banks for 4 days.
Federal Reserve Power to issue currency and supervise reopening of banks.
‘Fireside chats’ - gave people the confidence to use banks again.
Relief:
Millions of people in the USA who needed help.
1933 Federal Emergency Relief Act - established the Federal Emergency Relief
Administration (FERA). The Act said each state should set up a FERA office and organise
relief programmes.
- Was given $500 million to be divided equally among states to help provide for the
unemployed.
- Half the money was to be granted to the states for outright relief - the government
would pay each state $1 for every $3 it spent on relief.
- The FERA was to raise money through borrowing, taxe increases, or any other
means.
- FDR chose Harry Hopkins to run the programme.
- The effectiveness of the FERA was limited as many states wanted a balanced
budget and disliked the expenditure.
- Those requiring treatment were often not treated well and had to wait.
- The funds were limited.
- 1935 - it was paying about $25 per month to an average family on relief, while
$100 per month was the minimum wage needed.
- It set a precedent of the federal government giving direct funds for relief.
1933 Civilian Conservation Corps - aimed to improve unemployment among young
people.
- Unemployed young men between the ages of 17 and 24 (later 28) were recruited by
the Department of Labour to work in the CCC.
- The CCC was organised along military lines but its tasks were set out by the
Department of Labour.
- Initially set up for 2 years, but in 1935 extended to another seven years.
FDR promised a New Deal.
Pledged the Three Rs:
- Relief
- Recovery
- Reform
Between election and inauguration:
Period of time between November 1932 and March 1933 where FDR had been elected but
hadn’t acted as President yet.
Over the winter of 1932, the economy took a turn for the worse - FDR was criticised for not
working with Hoover to better the economy.
Keynesian economics emerges - the idea of government spending and nationalisation in
order to create wages, jobs, and therefore tax.
FDR’s First Hundred Days:
June 1933 - 15 new laws had been passed.
Aim was to rescue the economy.
Emergency Banking Act 1933 - closed banks for 4 days.
Federal Reserve Power to issue currency and supervise reopening of banks.
‘Fireside chats’ - gave people the confidence to use banks again.
Relief:
Millions of people in the USA who needed help.
1933 Federal Emergency Relief Act - established the Federal Emergency Relief
Administration (FERA). The Act said each state should set up a FERA office and organise
relief programmes.
- Was given $500 million to be divided equally among states to help provide for the
unemployed.
- Half the money was to be granted to the states for outright relief - the government
would pay each state $1 for every $3 it spent on relief.
- The FERA was to raise money through borrowing, taxe increases, or any other
means.
- FDR chose Harry Hopkins to run the programme.
- The effectiveness of the FERA was limited as many states wanted a balanced
budget and disliked the expenditure.
- Those requiring treatment were often not treated well and had to wait.
- The funds were limited.
- 1935 - it was paying about $25 per month to an average family on relief, while
$100 per month was the minimum wage needed.
- It set a precedent of the federal government giving direct funds for relief.
1933 Civilian Conservation Corps - aimed to improve unemployment among young
people.
- Unemployed young men between the ages of 17 and 24 (later 28) were recruited by
the Department of Labour to work in the CCC.
- The CCC was organised along military lines but its tasks were set out by the
Department of Labour.
- Initially set up for 2 years, but in 1935 extended to another seven years.
