The New Deal

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The New Deal

• Franklin D. Roosevelt
• The First New Deal

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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

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The New Deal Banking
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The Bank Holiday

• Temporary closure of all banks
• March 6-12, 1933
• Designed to stop the massive withdrawals from
  banks

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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

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2. FDIC

• Federal Deposit Insurance Corp.
• Created by Congress to insure bank deposits
• Insured deposits up to 5000

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FDIC Today

• Increased its amount of protection for depositors
  to 250,000

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3. Home Owners Loan Corporation (HOLC)

• Created to assist homeowners who couldnt pay
  their mortgage
• Granting low-interest, long-term loans

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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

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The New Deal Poverty Relief
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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)

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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

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The New Deal Economic Recovery
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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

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SEC Today

• Continues to regulate companies selling stocks
  bonds

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8. National Industrial Recovery Act (NIRA)

• Stimulate industrial business activity and to
  reduce unemployment
• Goal stabilize prices, raise wages, limit hours,
  and create jobs

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9. Public Works Administration (PWA)

• NIRA agency created to make jobs
• Built roads, public buildings, and other public
  projects

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10. National Recovery Administration (NRA)

• stabilize prices, raise wages, reduce work
  hours
• Encouraged companies to create codes of fair
  competition
• Eventually ruled unconstitutional

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The New Deal Farmers
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11. Agricultural Adjustment Admin. (AAA)

• Paid farmers to reduce the output of crops
• Output reduction led to higher prices
• Farmers income increased
• Critics argued it came at the expense of consumers

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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

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The New Deal

• Franklin D. Roosevelt
• The Second New Deal

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The Second New Deal

• 1934 Congressional Elections
• Democrats gain more seats
• With support Roosevelt initiates more New Deal
  programs

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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

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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

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2.

• Contained Three Major Provisions

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Unemployment Insurance

• Provided to workers who lost their jobs
• Funds came from a payroll tax on employers

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Pensions

• Provided to retired workers over the age of 65
• Funds came from
• Payroll tax on employers
• Tax on employees wages

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Disability

• A shared federal-state program
• Provided payments to people with disabilities,
  the elderly, and wives children of deceased
  male workers

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Result Social Security

• Has been expanded to cover 95 of American workers

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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

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Result REA

• Modernized the isolated parts of the region
• Finally diversified the Souths economy

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4. Revenue Act of 1935

• Developed to prevent an unjust concentration of
  wealth economic power
• Sharply raised taxes on the nations richest
  citizens