New Deal

• Alphabet Agencies

  Farm Credit Administration (FCA) lent money to farmers who couldn't keep up with loan payments

  100 million dollars loaned out in 18 months
• Alphabet Agencies

  Agricultural Adjustment Agency (AAA) paid farmers to produce less and destroy some of their food to increase prices and stop overproduction

  1933 - 1939 farmers' income doubled

  Faced heavy criticism as food was being destroyed at a time were millions were going hungry

  Supreme Court banned AAA as they thought that it was illegal
• Emergency Banking Act

  Closed all banks for 4 days

  Every bank was inspected and banks with enough cash could re-open

  Government lent money to the banks

  People put their money back into the banks when they opened and well-run banks could lend money to well-run businesses

  Created more jobs as businesses expanded
• Economy Act

  Cut the pay of everyone working for the government and armed forces by 15 percent

  Saved nearly 1 billion dollars for the government
• Beer Act

  Repealed prohibition and put gangsters out of business

  Government could now raise more money by taxing alcohol

  Also introduced a feel-good factor as people were not criminalised for wanting a drink
• Alphabet Agencies

  Public Works Administration (PWA) attracted skilled workers to build hospitals, dams, aircraft carriers and airports

  Created 4 million long-term jobs

  Helped the US to recover by improving its infrastructure

  This act was not useful to unskilled workers
• Alphabet Agencies

  Works progress Administration (WPA) created millions of jobs for the unemployed and helped improve living standards

  Hired people to build and created more jobs in construction
• Civil Works Administration (CWA) created 4 million short term jobs for unskilled workers before the winter of 1933

  Only lasted one winter and the 4 million workers became employed again

  People built schools, airports, roads and 150000 toilets
• Federal Emergency Relief Agency (FERA) - gave 500 million dollars to states to help the homeless and starving people

  Money was spent on soup kitchens, blankets, clothes and nursery schools

  Created more jobs for over 20 million people

  From 1933 to 1935 FERA distributed over 3.1 billion dollars
• Home Owners Loan Corporation (HOLC) - gave loans to people who were struggling to pay their mortgages at lower interest rates

  Helped 300000 homeowners in the first year

  As a result 800000 people repaid their HOLC loans

  HOLC was not available to farms or houses worth over 20000
• Tennessee Valley Authority (TVA) produced work for building dams and electric power stations along Tennessee River which was one of the poorest areas in America

  Built 16 hydroelectric dams by 1944

  By 1930 93 percent of farmers had an electric supply

  TVA prevented soil erosion and flooding which improved farming
• National Recovery Administration (NRA) - established fair prices, working conditions and a minimum wage

  Banned child labour and sweatshops

  States that workers should have the right to join trade unions

  By 1933 over 2 million employers worked with the NRA

  22 million workers benefitted from the scheme

  Many employers didn't join the scheme which led to strike

  Supreme court declared some of the NRA codes illegal
• Civilian Conversation Corps (CCC) provided temporary work to single, unemployed men aged 18-25

  Gave the men jobs such as cleaning land, planting trees and making reservoirs

  1938 - over 2 million men had served in the CCC

  Each member received free food shelter and clothing

  Men learnt skills that could be transferred to other jobs
• Opposition to the New Deal

  The rich helped pay for the New Deal as FDR made them pay more tax. The rich thought that the Alphabet Agencies were a waste of time

  Many business owners didn't like the way the new deal interfered with business and gave more rights to workers. They felt that it restricted their freedom to run their businesses as they wanted and thought it could hurt profits.
• Opposition to the New Deal

  Supreme Court posed a significant challenge to the New Deal

  Stated that certain aspects of the programme were unconstitutional

  Argued that measures such as the NRA and AAA exceeded federal government's authority

  Didn't believe that the president should get involved
• Opposition to the New Deal

  Republicans believed the government should be following laissez fair and rugged individualism approaches

  Believed the New deal cost too much money

  Believed jobs created by the New Deal were pointless

  Roosevelt had too much power and was becoming a dictator

  People should not depend on the government
• Radical Opposition

  Huey Long believed that the New Deal did not help enough people

  Proposed a Share Our Wealth campaign which suggested that anyone over 6 - 8 million dollars would have to give their money to the government so it can be shared between poorer families
• Radical Opposition

  Francis Townsend - Didn't believe the government was doing enough

  Created the Old Age Revolving Pension Plan which campaigned the government to give 200 dollars a month to everyone over 60

  Believed that retiring at 60 would free up millions of jobs for younger people
• How effective was the New Deal

  Did not solve unemployment and there was always 1 in 10 people unemployed

  Opponents of the New Deal stated that the New Deal disrupted the natural cycle of supply and demand

  Some people argued that it made the government too powerful

  Roosevelt controlled many aspects of business

  Business owners believed that the New Deal undermined individual freedom and free-market principles
• Successes of the New Deal

  Improved banking regulation

  Built trust in the government

  Created a national welfare system
• New Deal and Poverty

  Successes of the New Deal with Poverty - Alphabet Agencies created jobs (NRA, CCC)

  US government gave millions of dollars in support of those facing poverty homelessness and hunger

  TVA created work and improved the standard of living in poor parts of the USA

  1935 - Social Security Act set up a national system of pensions for elderly, widows and disabled people and unemployed

  Meant that anyone out of work could receive help from the government rather than relying on charity
• New Deal and Poverty

  Failure of the New Deal with Poverty - America remained a place where millions still lived with poverty
• New Deal and Workers

  Successes of the New Deal with Workers - Alphabet Agencies created millions of new jobs for workers whether they were skilled or unskilled

  Wagner Act gave worker the right to join trade unions and stopping employers from punishing those who did so

  Failures with Workers - New Deal benefitted skilled workers more than unskilled workers

  Some employers did not respect the New Deal and blocked workers from joining trade unions
• New Deal and Women

  Success - Many found work withing the Alphabet Agencies or were helped by the SSA

  Failures - Agencies like the CCC only specifically helped younger men and only 10000 women were employed by CCC out of the 3.5 million involved

  WPA only gave women unskilled jobs

  NRA purposefully set wages lower for for women than for men
• New Deal and Farmers

  Success - AAA helped rise crop prices and reduce overproduction

  FCA loaned money to farmers to save them from eviction

  TVA helped productivity in the Tennessee Valley which helped the area recover from the Dust Bowl

  Failures - There was still severe poverty in much of rural America and poor farmland in places like Texas and Colorado meant that many farmers still had to look for work
• New Deal and African - Americans

  Success - New Deal gave jobs to 200000 African Americans in the CCC

  More African-Americans began to support Democrats

  Failures - Many African-Americans continued to work in low-paying jobs

  NRA paid African American workers less than white workers

  CCC had segregated camps

  FDR refused to end discrimination in fear of losing support from the South
• New Deal and Native Americans

  Success - FDR increased the amount of land they owned

  Government loans were provided for them to buy land , set up businesses and buy farming equipment

  Indian Reservation Act 1934 gave Native Americans the right to manage their own affairs such as setting up their own law courts

  Failures - Many native americans still lived in poverty and suffered from discrimination