2nd new deal alphabet agencies

• works progress administration (WPA) -

  • provided work for the unemployed - it spent $11 billion to employ 8 million Americans in short term work, providing them income (helping families during the winter) and experience as part of the 2nd new deal
  • it also invested in a variety of new projects - the WPA supplied workers for manual construction projects (roads, Schools, hospitals) and organised training programs for the young. it also helped the arts industry (writers) and gave women sewing and teaching programs
• the national labour relations act/the Wagner act-

  workers were entitled to join a union - this act banned unions which were funded by companies and firing members because they were apart of the union. union membership rose to 9 million by 1940 and allowed factory workers and craftspeople to campaign for better pay/working hours
• the national labour relations act/the Wagner act -

  protection was given to unions and workers - the national labour relations board (NLRB) supervised union negotiations. they defended workers who were fired because of their unions, hiring 226 lawyers In order to decrease unemployment and help families
• social security act -

  • created a federal pension system - employees paid 1% of the total tax income into a pension scheme (later rose to 3%) alongside money paid into it from a tax on employers. this was paid back in retirement which increased the incentive to work.
  • it created unemployment insurance and grants to help the unemployed - employers for over 8 people were taxed which provided unemployment pay to feed families. matching grants were given by the federal government to the money provided by the state government for dependent children, which helped over 7000 people
• welfare for farmers -

  • the farm security administration (FSA) helped farmers struggling for money - the FSA helped rural people buy land for farming rather than working as tenants on wealthy farms, it gave $1 billion in loans by 1941 to buy land to resettle families
  • roosevelt helped to increase prices - the AAA continued to limit production of crops by taxing farmers who grew more products than they were allowed too. the government could control the amount each farm was able to produce so prices rose and farmers made a profit, this helped after the dust bowl
• banking act -

  • it created a board with financial powers - a board or governors of the federal reserve system (1935), chosen by the president. they had financial power (e.g. setting interest rates) so powerful banks had less power
  • it strengthened the banking system - by increasing central powers, banks became more stable and none were closed in 1935. interest could be closely monitored and controlled by the government so another crash was unlikely.
• rural electrification -

  • farmers could modernise their farms with loans - electrical appliances (cookers, fridges) were installed in the houses of farmers and other rural communities with loans from the electric home and farm authority (EHFA).
  • the number of farms with electricity increased - as farms were rural, it wasn't profitable for utility companies to supply electricity (only 10% of farms had it in 1930) the rural electrification administration (REA) gave loans to give farms electricity so that, by 1945, 40% of farms had it
• Roosevelts aims from the new deal -

  recovery - farm income rose, banks reopened, unemployment fell by 3 million.

  relief - WPA, social security act, 35% of people received governmental relief - it varied from state to state and some still needed more money and houses to live in.

  reform - social security act, unions, rural electrification, financial regulation - still a large gap between rich & poor, wages for men & women and black & white people