The New Deal
* A. Franklin D. Roosevelt (FDR) and His Philosophy
* Elected in 1932 on a promise of a "New Deal."
* Believed in active government intervention to solve economic problems.
* "Relief, Recovery, and Reform" were the goals.
* Fireside Chats (radio addresses) to communicate with the public.
* B. The First New Deal (1933-1934)
* Focused on immediate relief and recovery.
* Key Agencies:
* Federal Emergency Relief Administration (FERA): Provided direct relief to the needy.
* Civilian Conservation Corps (CCC): Employed young men in environmental projects.
* Agricultural Adjustment Act (AAA): Sought to raise crop prices by paying farmers to reduce production.
* National Recovery Administration (NRA): Promoted industrial recovery through codes of fair competition (later declared unconstitutional).
* Public Works Administration (PWA): Funded large-scale public works projects.
* Federal Deposit Insurance Corporation (FDIC): Insured bank deposits to restore confidence in the banking system.
* C. The Second New Deal (1935-1938)
* Focused on long-term reform and security.
* Key Agencies and Legislation:
* Works Progress Administration (WPA): Employed millions in various projects (construction, arts, etc.).
* Social Security Act (SSA): Provided pensions for the elderly, unemployment insurance, and aid to families with dependent children and the disabled.
* National Labor Relations Act (Wagner Act): Protected workers' rights to organize and bargain collectively.
* Rural Electrification Administration (REA): Brought electricity to rural areas.
* D. Legacy and Evaluation of the New Deal
* Successes:
* Provided relief to millions.
* Reduced unemployment (though it remained high throughout the 1930s).
* Improved infrastructure.
* Created a social safety net.
* Restored faith in democracy.
* Criticisms:
* Did not end the Great Depression (World War II did).
* Some programs were inefficient or discriminatory.
* Increased the size and power of the federal government.
* Long-Term Impact:
* Changed the role of government in the economy and society.
* Established the welfare state.
* Influenced later social and economic policies.
Key Terms
* Stock Market Speculation
* Buying on Margin
* Black Tuesday
* Hoovervilles
* Breadline
* Dust Bowl
* New Deal
* Fireside Chats
* Relief, Recovery, Reform
* Alphabet Agencies (referring to the acronyms of the New Deal agencies)
* Social Security
* Welfare State