The New Deal (1)

Key Aims of the New Deal

• ​Relief: Provide immediate help. Goals: fund state relief for hunger/poverty, create short-term work projects for the unemployed.

• Recovery: Revive the economy. Goals: increase farm income, boost industrial production, end the banking crisis.

• ​Reform: Create long-term systemic change. Goals: establish a social security system, improve regulations for banks and businesses.

​New Deal

A series of programs and policies implemented by FDR in response to the Great Depression, aimed at providing relief, recovery, and reform to promote economic stability and social welfare.

​Brains Trust

A group of academic advisors and experts who helped formulate policies for the New Deal, providing innovative ideas and solutions to address the economic crisis.

Fireside Chats

A series of radio broadcasts made by FDR to communicate directly with the American public, explaining his New Deal policies, aiming for gaining national support and build confidence.

Banking Crisis

• ​Emergency Banking Act: Closed all banks for 4 days for federal checks for further restore confidence

• ​Result: By end of March 1933, $1 million had been redeposited by the public.

• ​Deposit Insurance: A law insured bank deposits up to ​​$2,500.

AAA

Agricultural Adjustment Administration

• Purpose: Raise farm prices by paying farmers subsidies to limit production.

• ​Data: Paid farmers ​$11​ per unused acre. In 1933, killed ​8.5 million​ piglets, raising pig farmers' income by ​10%​.

FCA

Farm Credit Administration

Helped improve mortgage arrangements for ​20%​​ of US farms, helping farmers to stay on their land

NRA

​National Recovery Administration

• ​Purpose: Create industry-wide codes to set production quotas, prices, wages, and ban child labour.

• ​Blue Eagle Symbol: Businesses following codes could display it. By July 1933, ​2.3 million​ businesses participated.

• ​Union Membership: Rose from ​3.1 million (1932)​​ to ​3.9 million (1939)​.

FERA

Federal Emergency Relief Administration

Provided ​​$500 million​ in grants (not loans) to states for relief payments, helping the unemployed.

CCC

​Civilian Conservation Corps

Employed young men (17-23) for ​​$30/month, with most of the money sending home.

Employed ​500,000​ by 1935.

CWA

​Civil Works Administration

A temporary agency with a ​​$400 million budget​, provided work in short-term projects, e.g. refurbishing schools and road building. Helped ​4.2 million​ workers survived in winter 1933-34.

PWA

​Public Works Administration

Given ​​$3.3 billion​ for large construction projects (e.g., Grand River Dam in Oklahoma)

TVA

​Tennessee Valley Authority

• ​Purpose: A federal planning agency to help 7 states through job creation, electricity generation, and flood control.

• ​Example: Norris Dam, completed in 1936.

• at the same time, farmers were to be educated in new farming methods and ways to look after the land

Federal Power and Funding

• ​Economy Act: Reduced government running costs by ​25%​, saving ​~$450 million.

• ​Beer and Wine Revenue Act: Legalized low-alcohol drinks, (under 3.2%) taxing them to fund the New Deal.