First New Deal

Cards (5)

  • FERA: Federal Emergency Relief Act

    $500 million for states to spend on relief
    • took a long time to set up
    Second New Deal: Harry Hopkins (Head of FERA) recognised Americans were freezing to death because of terrible conditions unemployment had left them in, so set up the CWA (Civil Works Administration)
    • $400 million spent on Civil Works projects, for example building new schools
    This saved 4.2 million people who were suffering badly from unemployment.
  • HORA: Home Owners Refining Act
    Extended mortgage payments - 20 years rather than 5
    Reduced monthly payments
    • This made it easier for 1 million people to keep their homes.
  • PWA: Public Works Administration
    Given $3.3 billion of federal money to spend on big construction project - create jobs for workers
    • However many who were unemployed were in desperate positions and could not wait for these construction projects to be set up (needed immediate relief)
    • FERA recognised that if little had begun by winter, Americans may freeze to death.
  • CCC (in terms of unemployment rather than agriculture): Civilian Conservation Corporation
    Took unemployed men into the countryside and gave them tough outdoor jobs for $30 dollars a month.
    They took part in trail building, reservoir digging, etc.
    • Like with the PWA, these big construction projects took a while to get started
    • Applied only to 17-23 year olds
    (Only 500,000 men taking part by 1935)
    However this was a popular and successful project, money earned by the men was sent back home to their families so that they could benefit from the scheme too.
  • TVA: Tennessee Valley Authority
    Federal planning agency for the south.
    3 Main Ideals:
    1. Provide work
    2. Generate and extend electricity
    3. Control flooding