Successes and failures of
Roosevelt's "New Deal" programs
When President Roosevelt took office in 1933, he feverishly created
program after program to give relief, create jobs, and stimulate economic
recovery for the U.S. These programs were called "alphabet soup" as well
as the "New Deal."
PROGRAM: DESCRIPTION: OUTCOME:
On March 6, 1933 he shut
down all of the banks in These measures
the nation and forced reestablished American
Congress to pass the faith in banks. Americans
Emergency Banking Act were no longer scared that
Emergency Banking
which gave the government they would lose all of their
Act/Federal
the opportunity to savings in a bank failure.
Deposit Insurance
inspect the health of all Government inspectors found
Corporation
banks. The Federal that most banks were
(FDIC)
Deposit Insurance healthy, and two-thirds were
Corporation (FDIC) was allowed to open soon after.
formed by Congress to After reopening, deposits
insure deposits up to had exceeded withdrawals.
$5000.
Led by Harry Hopkins, a
former social worker,
this agency sent funds to
depleting local relief
Federal Emergency agencies. Within two
Revitalized many
Relief hours, $5 million were
deteriorating relief
Administration given out. Mr. Hopkins
programs.
(FERA) believed that men should
be put to work and not be
given charity. His
program also funded
public work programs.
Civil Works This public work program The CWA provided a
Administration gave the unemployed jobs psychological and physical
(CWA) building or repairing boost to its 4 million
roads, parks, airports, workers.
etc.
This environmental
program put 2.5 million
unmarried men to work
maintaining and
The CCC taught the men and
restoring forests,
Civilian women of America how to live
beaches, and parks.
Conservation independently, thus,
Workers earned only $1 a
Corps (CCC) increasing their self
day but received free
esteem.
board and job training.
From 1934 to 1937, this
program funded similar
programs for 8,500 women.
This act ended the sale of
Indian tribal lands and restored The outcome was obviously
Reorganization ownership of unallocated positive for the Native
Act of 1934 lands to Native American Americans.
groups.
The decline in the
industrial prices in The codes stopped the
1930s caused business tailspin of prices for a
failures and short time, but soon, when
unemployment. The NIRA higher wages went into
was formed in order to effect, prices rose too.
National boost the declining Thus, consumers stopped
Industrial prices, helping buying. The continuous cycle
Recovery Act businesses and workers. of overproduction and
(NIRA) of June The NIRA also allowed underconsumption put
1933 trade associations in businesses back into a
many industries to write slump. Some businesses felt
codes regulating wages, that the codes were too
working conditions, complicated and the NRA was
production, and prices. too rigid. Declared
It also set a minimum unconstitutional later on.
wage.
The PWA launched projects
Public Works such as the Grand Coulee One of the best parts of the
Association (PWA) Dam on the Columbia NIRA.
River.
Federal This act required full
Not pleasing for businesses.
Securities Act of disclosure of
May 1993/ information on stocks
Securities and being sold. The SEC
Exchange regulated the stock
Commission (SEC) market. Congress also
gave the Federal Reserve
Board the power to
regulate the purchase of
stock on margin.
In order to help people
keep their houses, the
HOLC refinanced Farmers killed off certain
Home Owners Loan mortgages of animals and crops as they
Corporation middle-income home were told to by the AAA. Many
(HOLC) / owners. The AAA tried to could not believe that the
Agriculture raise farm prices. It federal government was
Adjustment used proceeds from a new condoning such an action
Administration tax to pay farmers not to when many Americans were
(AAA) raise specific crops and starving. Declared
animals. Lower unconstitutional later on.
production would, in
turn, increase prices.
Reactivating a
hydroelectric power plant
The TVA helped farmers
Tennessee Valley provided cheap electric
and created jobs in one of
Authority (TVA) power, flood control, and
America s least
(May 1993) recreational opportunities
modernized areas.
to the entire Tennessee
River valley.
This agency provided work
for 8 million Americans.
Works Progress
The WPA constructed or
Administration Decreased unemployment.
repaired schools,
(WPA) 1935-1943
hospitals, airfields,
etc.
The FSA loaned more than
Farm Security
$1 billion to farmers and
Administration
set up camps for migrant
(FSA)
workers.
It legalized practices
National Labor
allowed only unevenly in
Relations Act
the past, such as closed
(Wagner Act)
shops in which only union
members can work and
collective bargain. The
act also set up the
National Labor Relations
Board (NLRB) to enforce
its provisions
This law was a long awaited
Fair Labor
This banned child labor triumph for the
Standards Act of
and set a minimum wage. progressive-era social
1938
reformers.
This act established a
system that provided
old-age pensions for
workers, survivors Although the original SSA
benefits for victims of did not cover farm and
Social Security
industrial accidents, domestic workers, it did
Act
unemployment insurance, help millions of Americans
and aid for defendant feel more secure.
mothers and children, the
blind and physically
disabled.