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 DealFranklin 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