history

Federal Unemployment Insurance

• Employers with more than eight employees paid a tax to the federal government.

• Funds provided unemployment pay for up to 16 weeks at half the normal rate.

Federal Support for Disadvantaged Groups

• Funded by federal matching grants.

• Provided financial assistance for:

• Very poor elderly individuals.

• Families with dependent children.

• Disabled groups, including blind individuals.

National Industrial Recovery Act of 1933

• Offered some protection to labor unions.

• Declared invalid by the Supreme Court in 1935.

• Led to the proposal of the National Labor Relations Bill by Senator Robert Wagner.

Wagner Act (National Labor Relations Act)

• Strengthened labor unions by:

• Legally entitling workers to join a union.

• Allowing unions to operate closed shops.

• Banning unfair practices such as company unions and wrongful termination of union members.

• Federal Protection for Unions

• Established the National Labor Relations Board (NLRB) to:

  • Supervise union negotiations.

  • Defend workers who were fired.

  • Assist unions in gaining recognition from employers.

Banking Act of 1935

• Introduced reforms in the organization and control of banks.

• Created a Board of Governors for the Federal Reserve System, chosen by the president.

• Assigned various financial powers to the Board, reducing the power of large banks.

• Strengthened the central banking system amid opposition from bankers.

• By 1936, no national bank closures occurred, and minimal payouts for deposit insurance were necessary.

• Modernized the US banking system and reduced the likelihood of a repeat of the 1929 crisis.

Rural Electrification

• In 1930, only 10% of farms had electricity, with some areas having only 1%.

• Due to the USA’s size, many remote farms were not profitable for private electricity suppliers to serve.

• Lack of electricity hindered access to consumer appliances and modern production methods.

Tennessee Valley Authority (TVA)

• The first New Deal measure addressing rural electrification.

• Built dams to generate electricity and provided loans to cooperatives for power lines.

• Established the Electric Home and Farm Authority (EHFA) to facilitate farmers' purchasing of electrical appliances.

• Encouraged appliance companies to produce affordable models for TVA areas.

• By 1941, 35% of farms had electricity, and by 1945, this increased to 40%.

• Supported local cooperatives with loans for laying electric wires.

• The EHFA arranged 100,000 contracts for electrical goods by 1938.

Challenges to Rural Electrification

• Utility companies attempted to impede progress due to profit concerns, building 'spite lines' that linked affluent areas instead of poorer farms.

• Despite these challenges, the REA continued to deliver electricity to rural areas.