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Administration-employed over 4 million on 180,000 government projects at a cost of $933 million to 1934. 21st Amendment-Repealed prohibition Emergency Relief Appropriations Act-created WPA and employed 8.5 million on 1.4 million projects at a cost of $11 billion.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.
Pages to are hidden for
"Faubion Bankruptcy - PowerPoint"Please download to view full document