chapter23lerner

The New Deal



The New Deal was a proposal by FDR to help America get back on its feet after the stock market crash in 1929. He had 3 R's to make his plan successful: Relief, Recovery, and Reform. Relief was to help people get back to where they were before the crash financially. The Recovery part helped get back all the jobs lost to those who were unemployed. And the Reform side of the deal was fixing whatever was lost like banks and the stock market. At the time, America had no money to spend. So FDR needed to get money back into the pockets of millions of Americans so he borrowed money. He doubled our national debt, but in the process, created gov't jobs like building roads and sewers. Now that Americans had money to spend, we could put that money back into the economy and ultimately the stock market. Because so many banks closed, FDR had a 6 week plan that if the banks paid back their investors 100% of their savings in the bank, he would allow that bank to stay open and give money to them because they were good for paying back debts. Restoring faiths in banks was a huge step that had to be overcome in order to restore America to the once great and powerful nation of the world. In the process, FDR created gov't organizations like the SSA or the FDIC which are still around today.

Sources: McDougal, Holt. The Americans 2012. 1 of 1 ed. EPub: n.p., 2012. Print.

Wiki. "Franklin D. Roosevelt." Wikipedia. N.p., 24 Jan. 2016. Web. 27 Jan. 2016.

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