New Deal Programs and Legislation

Overview of New Deal Programs and Legislation

Glass-Steagall Act

  • Purpose: The Glass-Steagall Act established regulations to separate commercial banking from investment banking. This was aimed at preventing the excessive risk-taking that contributed to the Great Depression.
  • Key Provisions:
    • Prohibited commercial banks from engaging in the investment business.
    • Created the Federal Deposit Insurance Corporation (FDIC) to insure deposits and promote stability in the banking system.

Federal Deposit Insurance Corporation (FDIC)

  • Purpose: Established in response to the bank failures of the 1930s, the FDIC provides insurance for bank deposits in the United States, which has helped to maintain public confidence in the financial system.
  • Coverage: As of now, the FDIC insures deposits up to $250,000 per depositor, per insured bank.

Tennessee Valley Authority (TVA)

  • Purpose: Created to address a wide range of issues, including economic development, flood control, and electricity generation in the Tennessee Valley, a region severely affected by the Great Depression.
  • Impact: It aimed to modernize the region’s economy and infrastructure, improving the standard of living for residents.

Civilian Conservation Corps (CCC)

  • Purpose: Aimed at providing jobs and vocational training for young men during the Great Depression.
  • Activities: Focused on natural resource conservation, such as planting trees, restoring national parks, and building infrastructure related to conservation.
  • Impact: Helped to mitigate unemployment while also promoting environmental conservation.

Public Works Administration (PWA)

  • Purpose: Aimed at stimulating the economy through public works projects, which included construction of public buildings, bridges, and roads.
  • Significance: Helped to reduce unemployment and improve the nation’s infrastructure during the economically challenging 1930s.

Civil Works Administration (CWA)

  • Purpose: Established to create jobs quickly during the winter of 1933-34, providing federal jobs for the unemployed mostly in public works.
  • Notable Projects: Jobs included those in construction, infrastructure projects, and other community services.

Soil Conservation and Domestic Allotment Act

  • Impact: This act aimed to promote soil conservation and regulate crop production to ensure sustainable farming practices.
  • Features: Provided financial assistance to farmers to adopt soil conservation measures and reduce the acreage of crops.

Social Security Act

  • Coverage: Enacted in 1935, it established a system of old-age benefits for workers, unemployment insurance, and assistance for dependent mothers and children, as well as the physically handicapped.
  • Significance: Marked a milestone in the American social welfare system, providing a safety net for the elderly and disadvantaged.

Notable Figures

Francis Perkins

  • Role: Served as the first female U.S. Cabinet member as Secretary of Labor under President Franklin D. Roosevelt.
  • Contributions: Instrumental in the creation of the Social Security Act and played a key role in labor policies.

Mary McLeod Bethune

  • Role: An educator and civil rights leader, she served as head of the National Youth Administration’s (NYA) Division of Negro Affairs.
  • Impact: Advocated for African American youth, ensuring they received job opportunities and training through New Deal programs.

Indian Reorganization Act of 1934

  • Purpose: Aimed to reverse the Dawes Act policies, restoring some degree of self-governance to Native American tribes and promoting the preservation of their cultural heritage.
  • Key Features: Allowed tribes to establish self-governments, and aimed to enhance control over their land and resources.

New Deal and Worker Rights

  • Focus: The New Deal included significant measures to protect worker rights, including the establishment of minimum wage laws, the right to unionize, and labor standards.
  • Effects: These laws helped to create a more equitable labor environment and bolstered the rights of workers across various industries.