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									THE NEW DEAL

    1933-1940
    By
    Michael Faubion
The Three R’s
 Relief
      With 25% unemployment and a loss of almost of GDP many
       people needed money immediately to avoid starvation,
       bankruptcy, or the loss of their home. Roosevelt generally did
       not favor handouts which he believed hurt pride and
       encouraged laziness. He supported government work projects
       that would give a paycheck in return for government projects.
 Recovery
      In order to get most people employed by the private sector the
       economy would have to recover and private businesses and
       farms would have to become productive again. Roosevelt
       encouraged businesses ad farmers to work together with the
       government to take advantage of markets.
 Reform
      Roosevelt felt it was important to solve the causes of the crisis
       and wanted to reform the capitalist system to strengthen it. He
       sought legislation that would regulate banking and investments
       to avoid future collapses.
Franklin Roosevelt
FIRST 100 DAYS
   The first 100 days saw unprecedented legal activity as a cooperative
    Congress worked with the president to pass laws including:
        Emergency Banking Relief Act-establish procedures for reopening
         banks
        Economy Act-15% reduction in Federal worker’s salaries, cut some jobs
        Beer-Wine Revenue Act-raised tax ad maximum alcohol levels of drinks
        CCC Reforestation Relief Act-created CCC, employed 2 million
        Federal Emergency Relief Act-supplied ¼ of aid distributed by states
        Agricultural Adjustment Act-created AAA and support for certain
         commodities
        Tennessee Valley Authority-Build dams to control flooding
        Federal Securities Act-required full disclosure to investors
        Home Owners Refinancing Act-allowed 1 million home owners to
         refinance
        Glass-Steagall Act-created FDIC and insured deposits to $5,000
        Farm Credit Act-provided funding for refinancing farm mortgages
        National Industrial Recovery Act-created fair competition codes and
         required employers to allow workers to unionize.
TVA area and CCC camp in
Big Bend
OTHER IMPORTANT 1ST
NEW DEAL LEGISLATION
 Civil Works Administration-employed over 4
    million on 180,000 government projects at a
    cost of $933 million to 1934.
   21st Amendment-Repealed prohibition
   Emergency Relief Appropriations Act-created
    WPA and employed 8.5 million on 1.4 million
    projects at a cost of $11 billion.
   Securities Exchange Act-established SEC and
    prohibited price manipulation.
   National Housing Act-created FHA to insure
    loans for homes
Famous New Deal Project-
Golden Gate Bridge
CRITICS OF THE NEW DEAL
 Conservatives of the Liberty League claimed
  the government was taking too much power
  and laying the groundwork for socialism.
 Louisiana Senator Huey Long accused the
  government of not spending enough and
  proposed a massive redistribution of wealth.
 Francis Townsend proposed giving all those
  over 60 $200 a month as a way to stimulate the
  economy and help the poor.
 The Supreme Court struck down two major
  pieces of legislation: The AAA in Butler v. U.S
  and NIRA in Schechter Poultry v. U.S.
Huey Long and Francis
Townsend
2ND NEW DEAL
 Soil Conservation Act-funded projects to stop
    erosion
   Rural Electrification Administration was created
    to bring electricity to farms.
   Social Security Act established Social Security
   Revenue Act of 1935-raised taxes on
    Americans with incomes over $1 million.
   AAA of 1938-recreated the AAA on firmer
    constitutional grounds.
   Fair Labor Standards Act-created minimum
    wage, ended child labor, and established
    maximum work week.
NEW DEAL RESULTS
 By 1941 unemployment had dropped for its high of 24.9% in
  1933 to 9.9%, still a very high rate and over twice what it
  averaged in most of the 1920s. Stock prices and GDP were
  also still below 1920s levels. The New Deal had helped
  improve the situation but the economy was still poor. In terms
  of recovery the New Deal has a limited record.
 The New Deal did provide relief to millions of Americans
  through its various projects. It tended to ignore minorities,
  partly due to political pressure, so some of those who most
  needed relief did not receive it. Also, at least one program, the
  AAA hurt farm laborers by encouraging landlords to release
  their tenants, taking away their only means of income.
 The New Deal’s greatest strength came in the area of reform. It
  established a number of agencies and guidelines that
  strengthened capitalism and made economic downturns less
  likely in the future.

								
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