The New Deal

The New Deal Alphabet Agencies WPA By Mr RJ Huggins Key Quotes: FDR’s Inauguration Speech This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask congress for broad executive power to wage was against the emergency. The New Deal: Alphabet Agencies The Alphabet Agencies were set up to help reverse the ‘Spiral of Depression.’ The main aim was to pump money back into the economy by giving the unemployed jobs. Not everyone within the Democratic Party agreed exactly how this should be done. Causes of the Depression Demand drops. Fewer goods are sold. People lose their jobs. In order to stay in business companies cut wages The Spiral Of Depression Demand drops even further. Even more people Lose their confidence And spend less money People lose their confidence & start saving their money Companies are forced to cut costs by laying people off Reversing the Spiral of Depression Alphabet Agencies More Jobs Government Spending $ More Pay = More Taxes More Jobs More goods have to be produced Demand for goods increases More people with Jobs = more pay $ More Spending More Spending Demand for goods increases More goods have to be produced Cycle Democrats called of this Process ‘Pump Priming’ Prosperity! How do you put the USA back to work? V Harry Hopkins Harold Ickes Harry Hopkins Work Relief preserves a man’s morale. It saves his skill. It gives him a chance to do something socially useful Set up two key Alphabet Agencies: CWA & WPA which aimed to help the unskilled unemployed. Criticised for wasting taxpayers money on ‘boondoggles.’ CWA = Civil Works Administration  Built 800,000 km of roads.  Built 40,000 schools  Built 500 airports & rebuilt 500 more.  Built 150,000 public toilets.  Paid people to sweep up leaves in the parks.  Paid unemployed actors to give free shows.  Hired 100 people to scare pigeons away with balloons from public buildings in Washington DC. Boondoggling Harold Ickes ‘My PWA will will give work to the unemployed by creating things of lasting use to the nation.’  Set up the PWA which gave jobs to the skilled unemployed.  Was very careful how he spent taxpayer’s money. PWA = Public Works Administration  Built 70% of USA Schools.  Built 35% of USA Hospitals.  Built for river dams.  Electrified the New York Washington railway.  Built 50 military airports.  Built two aircraft carriers.  Built four cruisers & destroyers for the US Navy.  Built a new sewage system in Chicago. PWA only provided jobs for the skilled unemployed! What about the unskilled unemployed? In response to being accused of ‘boondoggling’, when he gave unemployed librarians jobs cataloguing historical documents, Hopkins replied: ‘Hell, they’ve got to eat just like other people.’ In 1934, the CWA was shut down because it was wasting money What about the unskilled unemployed? • In 1935, after a terrible winter FDR decided to help the unskilled unemployed by setting up WPA with Harry Hopkins in charge. • The PWA continued working until 1939. WPA = Works Progress Administration  Built 11,000 schools.  Employed 12,000 Actors to put on plays  Built 70,000 km of and concerts to cheer roads. people up!  La Guardia airport in  Employed artists and New York. painters to make  Employed paintings for display in photographers to schools and public make a record of the buildings. Depression.  Gave work to 2 million ‘Boondoggles?’ people a year. Recap: Reversing the Spiral of Depression Alphabet Agencies More Jobs Government Spending $ More Pay = More Taxes More Jobs More goods have to be produced Demand for goods increases More people with Jobs = more pay $ More Spending More Spending Demand for goods increases More goods have to be produced Cycle Democrats called of this Process ‘Pump Priming’ Prosperity! Summary Key Words • In order to get a a grade ‘C’ upwards in exams, you must learn and use the key words & facts. • These concepts will be awarded as key ‘knowledge.’  Spiral of Depression  Pump Priming  Unskilled & Skilled workers  ‘Boondoggling’  CWA, WPA & PWA  Alphabet Agencies Exam Question 1 • How useful is this source for explaining how the New Deal put America back to work? Mark Scheme Level Grade 1 2 3 4 E D C/B A/A* Description Simple undeveloped answer. Uses or combines information from the sources. Uses sources & own relevant knowledge / concepts. Balanced answer covering both parts of the question Level 3 For  PWA = Public Works Administration.  ‘Alphabet Agency’ designed to reverse the ‘Spiral of Depression’ and kick start demand  Jobs created for skilled construction workers: E.g. Builders & Plumbers deducted from poster Against  No mention of WPA which was set up to create jobs for the unskilled workers such as actors & photographers.  Photograph taken by a WPA photographer. Level 4 = an answer which includes one from each column. Exam Question 2 • How successful was the New deal at putting USA back to work? Use the source and your knowledge to explain your answer. Mark Scheme Level Grade 1 2 3 4 E D C/B A/A* Description Simple undeveloped answer. Uses or combines information from the sources. Uses sources & own relevant knowledge / concepts. Balanced answer covering both parts of the question Level 3 For  FDR = Roosevelt taking ‘Action’ to end the Depression.  FDR is Pouring tax payers money to reverse the ‘Spiral of Depression.’ = ‘Pump Priming.’ Against  New Deal wasting money 16 billion spent on ‘boondoggles’ jobs created by alphabet agencies such as CWA & WPA.  E.G. Scaring pigeons with balloons Level 4 = an answer which includes one from each column.