Roosevelt and the New Deal

The First 100 Days

Roosevelt said..

This great nation will endure as it has endured, will revive and will prosper.

So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself - nameless, unreasoning, unjustified terror, which paralyses needed efforts to convert retreat into advance…

Our greatest primary task is to put people to work, it can be accomplished in part by direct recruiting by the government itself, treating the task as we would treat the emergency of a war, but, at the same time, through this employment, accomplishing greatly needed projects to stimulate the use of our natural resources….

(from Roosevelt’s inaugural speech 4th March 1933)

Roosevelt asked Congress for special new powers to deal with the crisis

National Industrial Recovery Act The Emergency Banking Act

Federal Emergency Relief Administration

Cutting Government spending The end of Prohibition Roosevelt’s policies The Agricultural Adjustment Act Home Owners’ Loan Corporation The Civilian Conservation Corps The Civil Works Administration

Cutting Government spending

• •

The Economy Act 15th March 1933 Reduced Government spending

by: – cutting the pay of all Government employees and members of the armed forces by 15% – Existing Government Departments had their budgets cut by up to 25%

The ending of Prohibition

•

The Beer Act

was passed on 20th March 1933 • This made the sale and manufacture of beer legal again • This generated extra tax revenue for the Government • It reduced a major source of income for organised crime.

Some people thought that this was immoral

The Agricultural Adjustment Act (AAA)

•

The Act reduced and controlled farm production which caused food prices to rise

.

• The AAA paid farmers to produce less and bought up their existing surpluses which was then distributed to the unemployed.

• • Between 1932 ~ 1939 farmers’ incomes more than doubled.

Some people saw this as unacceptable interference in the free market.

The Civilian Conservation Corps (CCC)

•

Set up to provide work for unemployed men in the 18-25 range

• They worked on conservation projects.

• They lived in large camps whilst why worked and received $30 per month, of which they had to send home $25 • Over 9 years, 2 million men passed through the scheme.

Some people criticised this for being like the Hitler Youth or exploiting the unemployed.

Civil Works Administration (CWA) • This organisation provided public works for the unemployed such as building new dams • It was a short term measure with minimum pay.

• It found work for 4 million people

Some people felt the jobs were useless ~ called ‘boondoggles’

Federal Emergency Relief Administration (FERA) • It had two functions: – Provide emergency cash relief for the poor – Support poor relief schemes set up in other States ~ it provided $500 million in total to the various States

Some people were critical that the money was given not loaned

Home Owners’ Loan Corporation (HOLC) • Provided loans at loan interest rates to those people about to lose their homes because they could not keep up their mortgage payments

National Industrial Recovery Act (NIRA) • The target of the NIRA was to provide jobs and to stimulate the economy

It had two parts to it The Public Works Administration The National recovery Administration

The Public Works Administration • Took over from the CWA

The National Recovery Administration • Encouraged companies to provide good conditions for their works, and accept trade unions whilst making reasonable profits • The NRA Codes fixed fair prices and minimum wages • The companies who joined received a Blue Eagle ‘kite mark’ or approval from the Government.

• By September 1933 over 5,000 industries employing 22 million workers had signed up.

Criticisms of the NRA

• Many employers would not accept trade unions and wouldn’t sign the Code of Conduct • Many workers felt that the Codes did not give them enough and went on strike • Many people suggested that some industries used the NRA to push up prices.