Unit 6: The Great Depression: The New Deal Reforms

Reforms for Banks and the Stock Market• Glass-Steagall Act of 1933 – established the Federal Deposit

Insurance Corporation (FDIC) this would insure your money up to $5000. Today it will insure your money up to $100,000.

• Federal Securities Act – required corporations to provide information on all stock.

• Public Works Administration (PWA) was created as part of the National Industrial Recovery Act (NIRA) – Provided money to states for construction of schools, and other community buildings.

• Civil Works Administration (CWA) – Built more than 40,000 schools and paid the salaries of over 50,000 teachers. It also built more than half a million miles of road.

Reforms that help in the futureSocial Security Act (1935) – The government will step in when there is an economic crisis or people are suffering.

1. Retirement savings for people aged 65 or older.2. unemployment compensation system3. aid to families with dependent children and the disabled4. Upon the death of a participant their designated family

members would receive benefits. These family members are class beneficiaries.

• Issues with Social Security today: After World War II there was a population serge in the United States called “The Baby Boom.” Currently, these individuals are ready for retirement and upon death their beneficiaries will qualify for benefits. This put a huge strain on the social security funds.

Reforms for AgricultureAgricultural Adjustment Act (AAA) – Wanted to raise prices of crops by lowering production. The government paid farmers to leave a certain amount of every acre of land unseeded.

1. The Government paid $200 million to cotton growers to plow under 10 million acres

2. paid hog and cattle farmers to slaughter their livestock

• Soil Conservation and Domestic Allotment Act – Paid farmers for cutting production of soil depleting crops and rewarded farmers for practicing good soil conservation methods.

Reforms for workers which helped build our infrastructure

• Fair Labor Standards Act – Set maximum hours at 44 per week, decreasing to 40 after 2 years. It also set a minimum wage at 25 cents and hour and increasing to 40 cents and hour by 1945. It also set rules for workers under 16 and banned hazardous work for those under 18.

• Works Progress Administration (WPA) – Set out to create as many jobs as possible and as quick as possible. This program gave people a sense of hope and purpose.1. 850 airports2. 651,000 miles of roads and streets3. 125,000 public buildings4. women sewing in groups made 300 million garments for the needy

• The WPA also made special efforts to help women, minorities, and young people and the urging of Eleanor Roosevelt.

• Tennessee Valley Authority (TVA) – Renovated 5 existing dams and constructed 20 new ones for flood control, creating thousands of jobs, and provided flood control, hydroelectric power, and other benefits to an impoverished region.

• Civilian Conservation Corps (CCC) – Put young men to work1. building parks2. planting trees – planted more than 200 million trees (prevent

another dust bowl)3. roads4. soil erosion5. flood-control

Post-Notes Warm Up1. Protected consumer savings

and still does today.2. Provides retirement

income.3. Created to control floods,

provide employment, and provide cheap electrical power.

4. Hired young men to build roads and plant trees.

5. Helped farmers with their crop production and soil conservation.

A. Social Security Act

B. Tennessee Valley Authority

C. Agriculture Adjustment Act

D. Civilian Conservation Corps

E. Federal Deposit Insurance Corporation (FDIC)