the new deal
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The New Deal. Franklin D. Roosevelt & The First New Deal. The New Deal. A relief and recovery program instituted by FDR to confront the emergency of the depression = Numerous programs and legislation to achieve recovery. The New Deal & Banking. The Bank Holiday. - PowerPoint PPT PresentationTRANSCRIPT
The New Deal
Franklin D. Roosevelt &
The First New Deal
The New Deal• A relief and recovery program
instituted by FDR to confront the emergency of the depression
• = Numerous programs and legislation to achieve recovery
The New Deal & Banking
The Bank Holiday
• Temporary closure of all banks–March 6-12, 1933
• Designed to stop the massive withdrawals from banks
1. Emergency Banking Act
• Authorized the fed. government to examine all banks
• Only banks that were financially sound could reopen
• Goal: restore public confidence in the banking system
2. FDIC• Federal Deposit Insurance Corp.
• Created by Congress to insure bank deposits–Insured deposits up to $5000
FDIC Today
• Increased its amount of protection for depositors to $250,000
3. Home Owners Loan Corporation (HOLC)
• Created to assist homeowners who couldn’t pay their mortgage
• Granting low-interest, long-term loans
4. Farm Credit Administration(FCA)
• Provided low-interest, long-term loans to farmers
• Allowed farmers to keep their farms, buy them back, or purchase equipment & supplies
The New Deal & Poverty Relief
5. Federal Emergency Relief Admin. (FERA)
• Distributed money for relief to state & local governments
• Over ½ of money was distributed to families in need
• Other ½ went to work-relief projects (raking leaves, litter)
6. Civilian Conservation Corps (CCC)
• Provided jobs for unemployed young men 18 – 25
• Planted trees, cleared brush, created park trails, and developed campgrounds in national parks
The New Deal & Economic Recovery
7. Securities & Exchange Commission (SEC)
• Created to protect investors from stock fraud
• Regulated companies that sold stocks & bonds
• Goal: restore faith in the stock market
SEC Today
• Continues to regulate companies selling stocks & bonds
8. National Industrial Recovery Act (NIRA)
• Stimulate industrial & business activity and to reduce unemployment
• Goal: stabilize prices, raise wages, limit hours, and create jobs
9. Public Works Administration (PWA)
• NIRA agency created to make jobs
• Built roads, public buildings, and other public projects
10. National Recovery Administration (NRA)
• stabilize prices, raise wages, & reduce work hours
• Encouraged companies to create codes of fair competition
• Eventually ruled unconstitutional
The New Deal & Farmers
11. Agricultural Adjustment Admin. (AAA)
• Paid farmers to reduce the output of crops
• Output reduction led to higher prices
• Farmer’s income increased• Critics argued it came at the
expense of consumers
12. Tennessee Valley Authority
• Largest of New Deal Programs
• Aided a rural seven-state region that was economically distressed
• Built new dams, flood control stations, and recreational facilities
The New DealFranklin D. Roosevelt &
The Second New Deal
The Second New Deal
• 1934 Congressional Elections:
–Democrats gain more seats
• With support Roosevelt initiates more New Deal programs
1. The Works Progress Administration (WPA)
• Designed to help Americans find work
• Budget: over $5 billion for job creation programs
• Employed 8.5 million people over the next 8 years
WPA: Types of Work• Blue-Collar Workers:
–Built public buildings & roads • White-collar Workers:
–Research & teaching jobs• Artists:
–Given work through the government & encouraged to develop pride in American Culture
2.
Contained Three Major Provisions:
Unemployment Insurance
• Provided to workers who lost their jobs
• Funds came from a payroll tax on employers
Pensions• Provided to retired workers
over the age of 65
• Funds came from: –Payroll tax on employers
–Tax on employees’ wages
Disability
• A shared federal-state program
• Provided payments to people with disabilities, the elderly, and wives & children of deceased male workers
Result: Social Security
• Has been expanded to cover 95% of American workers
3. Rural Electrification Administration (REA)
• Designed to aid Americans• Provided electricity to isolated
rural areas of the country• Also allowed regulation of gas
& electricity to keep prices low
Result: REA
• Modernized the isolated parts of the region
• Finally diversified the South’s economy
4. Revenue Act of 1935
• Developed to prevent an unjust concentration of wealth & economic power
• Sharply raised taxes on the nation’s richest citizens