Roosevelt and the New Deal

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Roosevelt and the New Deal

• America 1932 to 1936

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Background

• 1929 Wall Street Crash
• High unemployment, homelessness, businesses going
  bust, loss of savings
• President Hoover (Republican) rugged
  individualism and prosperity is just round the
  corner
• Tried to solve the depression but only half
  heartedly people blamed Hoover and the
  Republicans for it.

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1932 Presidential election
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1932 Presidential Election

• Hoover a dead man walking blamed
• Democrats nominated Franklin D Roosevelt
• FDR promised a New Deal encouraging banks to
  lend and public works projects
• Won 42 out of 48 states biggest victory ever

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The New Deal

• November 1932 to March 1933 nothing done due to
  the political system
• FDR realised that the government had to take
  control of the financial system
• Idea was to stop the cycle of depression and
  allow the US economy to bounce back

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The Hundred Days

• FDR asked for emergency powers usually asked
  for at times of war
• Set up Alphabet agencies in order help the
  economy
• Fireside chats explained what he was doing to
  the people and gave people confidence in him
• The only thing we have to fear is fear itself

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The Banking Crisis

• People had no confidence in the banks
• March 1933 introduced an Emergency Banking Act
  all banks closed for 4 days, all banks inspected
  and only those who were well run were allowed to
  reopen
• Reopened banks allowed access to government loans
• The subject of his first fireside chat

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Agriculture the AAA

• Agriculture Adjustment Agency (AAA) was set up in
  May 1933 to help farmers
• Encouraged farmers to produce less food and make
  more profits
• Good helped existing farmers to stay in
  business
• Bad did not help farm workers who had lost
  their jobs or farmers who had lost their farms.
  Price of food went up.

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Unemployment

• FERA Federal Emergency Relief Administration.
  500m given to give instant relief to the
  unemployed
• CWA Civil Works Administration. Provided short
  term work for people during the winter of 1933
  34. 4m jobs created but these were lost when the
  winter ended and the CWA was closed down.

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• PWA Public Works Administration. Took over from
  the CWA in order to create long term jobs.
  Building schools, hospitals etc. Gave jobs to
  skilled people and helped to improve the quality
  of life in the USA
• WPA Works Progress Administration. Set up in
  1935 to help people missed out by the PWA.
• Agencies provided millions of jobs people had
  wages again and were able to pay off mortgages.
  Helped the economy

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Other Alphabet Agencies

• CCC Civilian Conservation Corps. Gave temporary
  work to 18 to 25 year olds. Cheap labour but
  created unemployment and helped the environment
• NRA National Recovery Administration. Helped
  businesses and workers as long as they protected
  their workers. Businesses that joined the scheme
  could display a Blue eagle
• 1933 2 000 000 businesses had joined the NRA

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Other New Deal projects

• HOLC Home Owners Loan Corporation. Helped
  people who were struggling with their mortgages
• 1935 Social Security Act set up state pensions
  and unemployment benefits
• 1935 National Labour Relations Act allowed
  workers to join Trade Unions and said that they
  could not be sacked for doing so

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Tennessee Valley Authority
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The TVA

• Most famous alphabet agency
• Tennessee river ran through several states
  flooded in winter but dried up in summer
• States could not agree on action
• FDR set up TVA to sort out the problem by
  building dams, planting trees to improve the soil
  etc attract tourists