US in depth study - New Deal

2025 Spring Term

Which agencies focused on reform?

Securities and Exchange Commission (SEC) and Tennessee Valley Authority (TVA)

What was the SEC?

Founded in 1934 - Regulated the stock market to prevent fraud and another crash like in 1929. Restored public confidence in Wall Street.

What was the TVA (1933)?

Built 33 dams in the Tennessee Valley to control flooding and soil erosion, generate hydroelectric power, and create thousands of jobs in one of the USA’s poorest regions.

Criticisms of the TVA?

Critics said it gave the federal government too much control over state matters and local development.

Which agencies focused on relief?

Federal Emergency Relief Administration (FERA), Civilian Conservation Corps (CCC), Public Works Administration (PWA), Works Progress administration (WPA), Home Owner’s Loan Corporation (HOLC)

What was FERA (1933)?

Federal Emergency Relief Administration gave $3 billion in direct aid to states to create emergency jobs and support the unemployed.

How many jobs did FERA create?

Around 20 million temporary and part-time jobs.

Criticism of FERA?

Encouraged dependency on the government; some states misused funds; it was eventually replaced by WPA.

What was the CCC (1933)?

Civilian Conservation Corps gave 6-month work contracts to unemployed men (18–25). Over 3 million men planted trees (3.5 billion), built parks, and reduced crime.

Failures of the CCC?

Excluded women; racially segregated camps.

What was the PWA (1933)?

Public Works Administration spent $6 billion on over 34,000 long-term infrastructure projects—like schools, roads, and hospitals.

Criticism of the PWA?

Slow to provide jobs; didn’t significantly reduce unemployment and required large amounts of public money

What was the HOLC (1933)?

Home Owners’ Loan Corporation gave low-interest loans to over 1 million homeowners, preventing foreclosures and stabilizing the housing market.

Failures of HOLC?

Didn’t help renters or farmers; often discriminated against Black and minority families through "redlining."

Which agencies focused on recovery?

National Recovery Administration (NRA), Agricultural Adjustment Administration (AAA), Tennessee Valley Authority (TVA)

What was the NRA (1933)?

National Recovery Administration set fair wages, limited working hours, and banned child labour. Encouraged cooperation between government, industry, and workers.

Failures of the NRA?

Hard to enforce; favoured big businesses; declared unconstitutional in 1935 (Schechter case).

What was the AAA (1933)?

Agricultural Adjustment Administration reduced farm production to raise crop prices and stabilize farmers' income.

Failures of the AAA?

Tenant farmers and sharecroppers lost jobs; food was destroyed while people starved; declared unconstitutional in 1936.

How did the Second New Deal differ from the first?

Focused more on long-term reform and economic security rather than emergency relief. Gave more support to workers and the unemployed.

Two key features of the Second New Deal:

• Wagner Act (1935): Legalised trade unions, forced employers to negotiate wages, and made it illegal to sack workers for union membership.

  • Social Security Act (1935): Created pensions for the elderly and unemployment insurance funded by employers and workers.

Why did Republicans oppose the New Deal?

Too much government intervention; expanded federal power beyond the Constitution; feared it leaned toward socialism and stifled business.

How did the Supreme Court oppose the New Deal?

Declared several New Deal agencies unconstitutional, including the NRA and AAA. Accused FDR of overstepping federal authority.

What was the Schechter case (1935)?

In 1935 Schechter Poultry Corp. was accused of violating NRA rules by selling diseased chickens. Supreme Court ruled NRA unconstitutional, saying it gave too much federal control over commerce and that it was not their job

Consequences of the Schechter case:

Roosevelt tried to appoint 6 (9-15) new judges to the Supreme Court (“court-packing plan”) more sympathetic to the New Deal but was forced to back down as the American public thought it was an attack on its system. Still, the Court became more supportive of his programs afterward.

What was United States v. Butler (1936)?

Supreme Court struck down the AAA, ruling it violated federal taxing powers. FDR had to redesign the policy.

Huey Long (Louisiana Senator)

Senator of Louisiana criticised the New Deal as not going far enough. Proposed “Share Our Wealth” scheme to cap incomes and redistribute money ($3 million personal fortune), national minimum wage, old age pensions, cheap food for the poor, and free education. Killed in 1935 from a ricocheting bullet from his bodyguard who shot a man who tried to assassinate him.

Francis Townsend

Proposed giving $200 per month to everyone over 60. Thought FDR wasn't helping the elderly enough. Led to influence on Social Security.

Father Charles Coughlin

Catholic priest who ran a popular radio show. Set up the National Union for Social Justice. Criticised FDR for not reforming banking enough.