Standard Addressed: 11.6 Students analyze the different

explanations for the Great Depression and how the New Deal fundamentally changed the

role of the federal government.

• Learning Objectives: Section 5 - The Impact of the New Deal

• 1. Summarize opinions about the effectiveness of the New Deal.

•2. Describe the legacies of the New Deal.

THE NEW DEAL

AMERICA GETS BACK TO WORK

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Section 5

The Impact of the New DealThe New Deal affects American society not only in the 1930s but also in the decades that follow.

New Deal Reforms Endure

The New Deal Ends• By 1937, economic

improvement convinces many Depression is ending

• Congress wants to cut back programs; by 1939, New Deal over

The Impact of the New Deal5SECTION

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Continued . . .

WWII ends the Great Depression

New Deal Reforms Endure

The Impact of the New Deal5SECTION

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Supporters and Critics of the New Deal• Conservatives think FDR made federal government too

large- stifled free enterprise, individual initiative

• Liberals: didn’t do enough to socialize economy, end inequalities

• Supporters: did help country recover from economic difficulties

Continued . . .

THE IMPACT OF THE NEW DEAL

• Conservatives felt FDR made government too large and too powerful

• Liberals countered that FDR socialized the economy because Americans needed help • Over time, opinions about

the merits of the New Deal and FDR have ranged from harsh criticism to high praise – usually along partisan lines

Chapter 15 Section 5MAIN IDEA QUESTIONS

• A – Why did the industrial production drop and unemployment go up again in 1938?

– Because, in response to pressure from Congress, FDR cut back on New Deal programs

Expanding Government’s Role in the Economy• FDR expands power of federal government,

president• Federal Deposit Insurance Corporation (FDIC)

regulates banking• Securities and Exchange Commission (SEC)

regulates investment• New Deal does not end Depression; does reduce

suffering, give hope• Federal government goes deeply into debt to

create jobs, give aid• Massive spending on equipment, supplies for

WW II end Depression

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continued New Deal Reforms Endure

Continued . . .

Protecting Workers’ Rights• New Deal laws set standards, ban child labor,

permit unions- establish policies followed today

• National Labor Relations Board (NLRB) still mediates labor disputes

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continued New Deal Reforms Endure

Labor

• Wagner Act

• Fair Labor Standards Act

• National Relations Board

• Laws & Agencies • Lasting Effects

• Standard for equal wages and hours

• Ban on Child labor• Rights to organize and

bargain collectively • Government mediation of

labor disputes

Guided Reading:

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Social and Environmental Effects

The Rural Scene• Commodity Credit Corporation makes loans to farmers

- based on amount of farmer’s surplus, parity price• Parity price—price intended to keep farmers’ income

steady• Agricultural price supports set precedent of federal aid

to farmers

Continued . . .

Agriculture and rural life

• Agricultural adjustment acts

• Soil Conservation Services

• Laws & Agencies • Lasting Effects

• Aid to farmers • Farm price supports• Taught contour plowing • Terracing• Crop rotation

Guided Reading:

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continued New Deal Reforms Endure

Banking and Finance• SEC still monitors stock market, enforces laws

on stock, bond sales• FDIC still protects individual investors in case of

bank failure

LEGACIES OF THE NEW DEAL

• Deficit spending has became a normal feature of government

• FDIC – banking insurance critical to sound economy

• Securities Exchange Commission -still monitors stock market, enforces laws on stock, bond sales

Banking and finance

• Securities and Exchange Commission

• Glass-Steagall Banking Act

• Federal Deposit Insurance Corporation

• Laws & Agencies • Lasting Effects

• Monitoring of the stock market

• Federal enforcement of laws regarding the sale of stocks and bonds

• Insurance on bank accounts

Guided Reading:

Social Security• Federal government takes responsibility for citizens’

welfare • Provides for aged, disabled, needy

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Social and Environmental Effects

Continued . . .

Social Security is a key legacy of the New Deal in that the Feds have assumed a greater responsibility for the social welfare of citizens since 1935

Chapter 15 Section 5MAIN IDEA QUESTIONS

• B – Why was the establishment of the Social Security system such an important part of the New Deal?

– The govt began accepting responsibility for providing assistance to needy members of society.

Social Welfare

• Social Security Act

• Laws & Agencies • Lasting Effects

• Federal government acceptance of some responsibility for the social welfare of its citizens

• Old-age insurance programs• Unemployment compensation • Programs to aid families with

dependent children and the disabled

Guided Reading:

The Environment• CCC plants trees, builds hiking trails, fire lookout

towers• Soil Conservation Service teaches methods to

preserve soil• Taylor Grazing Act reduces grazing on public lands• Tennessee Valley Authority (TVA) creates

electricity, prevents floods• Government adds national parks, wildlife refuges,

wilderness areas• Government-sponsored strip-mining, coal burning

cause pollution

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continued Social and Environmental Effects

Chapter 15 Section 5MAIN IDEA QUESTIONS

• C – How did New Deal programs benefit and harm the environment?

– BENEFITED: with new trees, hiking trails, fire lookouts, soil conservation, flood control, national parks, wildlife refugees, and wilderness areas.

– HARMED: with water, air, land pollution.

Environment

• Civilian Conservation Corps

• Soil Conservation Services

• Taylor grazing Act• Tennessee Valley

Authority

• Laws & Agencies • Lasting Effects

• Programs protecting the nation’s natural resources, including farmland

• Prevention of floods and dust storms

• More national parks and wildlife refugees;

• pollution

Guided Reading: