New Deal

• First New Deal


  1933-1935
• Pieces if legislation passed in Congress


  15 pieces (Eg. NIRA)
• EBA


  Emergency Banking Act, forcing banks to close down. 5000 allowed to reopen
• SEC


  Securities and Exchange Commission, setting rules and regulations to prevent speculation
• 3Rs


  Relief, Recovery, Reform
• FERA


  Federal Emergency Relief Administration. $500 million on soup kitchens, blankets and employment schemes
• CCC


  Civilian Conservation Corps.

  6 month employment plans, carried out environmental work.

  2.5 million helped

  Only 200,000 were African American, 8,000 were women
• AAA


  Agricultural Adjustment Administration. Tries to solve long term problems in agriculture
• PWA (NIRA)


  Public Works Administration. Built infrastructure, created millions of jobs
• NRA (NIRA)


  National Recovery Administration. Improve working conditions, sensible levels of production, stimulate economy. Over 2 million employers join
• TVA


  Tennessee Valley Authority. Build damns, irrigated the dust bowls, provided electricity to impoverished areas

  300,000 jobs provided
• Second New Deal


  1935-1938
• Social Security Act


  Unemployemtn insurance, pensions
• Wagner Act


  Gave importance to trade unions. 7 million workers in Trade Unions by 1940
• Trade union of car manufacturers

  UAW - United Auto Workers
• Resettlement Administration


  Moves 500,000 farmers to better land
• WPA


  Works Progress Administration. Created long term jobs like office workers, artists ad photographers
• Supreme Court opposition


  Dominated by republicans, deemed the New Deal as unconstitutional and undermining of local governments
• Huey Long opposition


  Higher taxes, better services

  Max wealth: $3 million, max income: $1 million

  Pensions for everyone over 60
• Business opposition

  New Deal competed with private companies.

  Trade Unions bad for business
• Unemployment during the New Deal

  More AAs (35%) and women unemployed

  20% in 1935, 17% in 1939

  10% after WW2 starts
• Government debt


  $40 billion in 1939
• Recession of 1937-38


  New Deal budget cut

  GDP drops 10%, unemployment at 20%

  2 million lose their jobs
• Legal Opposition to the new deal


  - Supreme Court believed it was UNCONSTITUTIONAL (1935)

  - FDR had 'too much power' over govt
• Radical opposition against new deal

  - many Americans still poor

  HUEY LONG: higher taxes, better services, pensions over 60y

  FRANCIS TOWNSEND: better pension