Transcript The New Deal - Aberdeen School District / Overview

The New Deal
Franklin D. Roosevelt &
The First New Deal
The New Deal
• A relief and recovery program
instituted by FDR to confront the
emergency of the depression
• = Numerous programs and
legislation to achieve recovery
The New Deal &
Banking
The Bank Holiday
• Temporary closure of all banks
–March 6-12, 1933
• Designed to stop the massive
withdrawals from banks
1. Emergency Banking Act
• Authorized the fed. government to
examine all banks
• Only banks that were financially sound
could reopen
• Goal: restore public confidence in the
banking system
2. FDIC
• Federal Deposit Insurance Corp.
• Created by Congress to insure
bank deposits
–Insured deposits up to $5000
FDIC Today
• Increased its amount of protection
for depositors to $250,000
3. Home Owners Loan
Corporation (HOLC)
• Created to assist homeowners
who couldn’t pay their mortgage
• Granting low-interest, long-term
loans
4. Farm Credit Administration
(FCA)
• Provided low-interest, long-term
loans to farmers
• Allowed farmers to keep their
farms, buy them back, or
purchase equipment & supplies
The New Deal & Poverty Relief
5. Federal Emergency Relief
Admin. (FERA)
• Distributed money for relief to state &
local governments
• Over ½ of money was distributed to
families in need
• Other ½ went to work-relief projects
(raking leaves, litter)
6. Civilian Conservation Corps
(CCC)
• Provided jobs for unemployed
young men 18 – 25
• Planted trees, cleared brush,
created park trails, and
developed campgrounds in
national parks
The New Deal &
Economic Recovery
7. Securities & Exchange
Commission (SEC)
• Created to protect investors from
stock fraud
• Regulated companies that sold
stocks & bonds
• Goal: restore faith in the stock
market
SEC Today
• Continues to regulate companies
selling stocks & bonds
8. National Industrial
Recovery Act (NIRA)
• Stimulate industrial & business
activity and to reduce
unemployment
• Goal: stabilize prices, raise
wages, limit hours, and create
jobs
9. Public Works
Administration (PWA)
• NIRA agency created to
make jobs
• Built roads, public buildings,
and other public projects
10. National Recovery
Administration (NRA)
• stabilize prices, raise wages, &
reduce work hours
• Encouraged companies to create
codes of fair competition
• Eventually ruled unconstitutional
The New Deal & Farmers
11. Agricultural Adjustment
Admin. (AAA)
• Paid farmers to reduce the output
of crops
• Output reduction led to higher
prices
• Farmer’s income increased
• Critics argued it came at the
expense of consumers
12. Tennessee Valley
Authority
• Largest of New Deal Programs
• Aided a rural seven-state region
that was economically distressed
• Built new dams, flood control
stations, and recreational facilities
The New Deal
Franklin D. Roosevelt &
The Second New Deal
The Second New Deal
• 1934 Congressional Elections:
–Democrats gain more seats
• With support Roosevelt initiates
more New Deal programs
1. The Works Progress
Administration (WPA)
• Designed to help Americans find
work
• Budget: over $5 billion for job
creation programs
• Employed 8.5 million people over
the next 8 years
WPA: Types of Work
• Blue-Collar Workers:
–Built public buildings & roads
• White-collar Workers:
–Research & teaching jobs
• Artists:
–Given work through the government &
encouraged to develop pride in
American Culture
2.
Contained Three Major
Provisions:
Unemployment Insurance
• Provided to workers who
lost their jobs
• Funds came from a payroll
tax on employers
Pensions
• Provided to retired workers
over the age of 65
• Funds came from:
–Payroll tax on employers
–Tax on employees’ wages
Disability
• A shared federal-state program
• Provided payments to people
with disabilities, the elderly, and
wives & children of deceased
male workers
Result: Social Security
• Has been expanded to
cover 95% of American
workers
3. Rural Electrification
Administration (REA)
• Designed to aid Americans
• Provided electricity to isolated
rural areas of the country
• Also allowed regulation of gas
& electricity to keep prices low
Result: REA
• Modernized the isolated
parts of the region
• Finally diversified the
South’s economy
4. Revenue Act of 1935
• Developed to prevent an
unjust concentration of
wealth & economic power
• Sharply raised taxes on the
nation’s richest citizens