Recovery - The New Deal

New Deal

• Change no1: People didn’t trust banks so FDR introduced the Emergency Banking Act which closed banks for a 4 day holiday, they were all inspected and some lent money from the government - installed trust

• Change no2: Government needed money to help the unemployed so FDR introduced the Economy Act which cut the pay of everyone working for the government and armed forces by 15% saved $1billion

• Change no3: Popular - Beer Act made it legal to sell alcohol again

Alphabet Agencies (New Deal)

FCA - lent money to farmers who couldn’t keep up loan payments

AAA - paid farmers to produce less and destroy food they had already produced, food prices rose and farmer income increase (bad that food was destroyed when there were millions going hungry)

HOLC - gave loans to people who couldn’t pay their mortgages

CCC - unemployed 16-25yr olds were employed to plant trees, dig canals, clear footpath etc.

CWA - provided temporary work for 4 million men

FERA - $500 million given to states to help homeless, starving people. Money was spent on soup kitchens, blankets, clothes and nursery schools

TVC - provided work building dams and electric power stations near the Tennesse River (one of the poorest areas)

Opposition to the New Deal

• The rich - FDR made rich people pay more tax which people didn’t like

• Business People - most didn’t like the way the New Deal interfered with businesses and gave more rights to workers

• Supreme Court - declared a number of the NRA codes illegal

• Radicals - Huey Long, Francis Townsend, Charles Coughlin

How effective was the New Deal?

Did create lots of jobs but didn’t solve unemployment competely

Some thought the government were interfering too much

Social Security Act - anyone out of work could get help from the government rather than charity

No New Deal programmes aimed at women

FDR - one of the 1st president to help Native Americans

New Deal started to be cut in 1936

Popular culture in 1930s

• Jazz was just as popular as it was in the 1920s

• Gramophone sales increased

• Comic books became popular

• FDR was keen for artists, musicians and actors to continue work so he set up the WPA which provided work for unemployed artists