FDR's New Deal Program

From 1933-1937

Purposes and Description of New Deal Program

The New Deal Program was a series of domestic programs enacted in the United States between 1933 and 1937. They included both laws passed by congress as well as presidential executive orders during the first term of President Roosevelt. The programs were all in response to the great depression, and focused on what historians called the 3 "R's".

The Three R's

The Three R's stand for

Relief- Immediate action taken to halt the economies deterioration.

Recovery- "Pump-Priming" temporary programs to restart the flow of consumer demand.

Reform-Permanent programs to avoid another depression and insure citizens against economic disasters.

Was the New Deal program effective?

Overall FDR was a very effective President, his skills were unparalleled. As desperate time called for desperate measures FDR responded very boldly with a strong program of experimentation that arguably saved democracy itself. The New Deal created millions of jobs and sponsored public work projects that reached most every country in the nation. Federal protection of bank deposit's ended the dangerous trends of bank runs. Abuse of the stock market was more clearly defined and monitored to prevent collapses in the future. For the first time in history the federal government assumed responsibility for managing the economy. With a FDR's very structured program with a strong base he helped lift the economy up through hard times. With Roosevelt's new deal policies we now have rules that we follow to this day to help stabilize our economy.
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Civilian Work Administration

The CWA was a short-lived U.S. Job creation program that was established as one of the New Deal Policies during the Great Depression to quickly create manual labor careers for millions of unemployed citizens. The jobs were merely temporary for the time span through the hard winter of 1933-34
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About CWA

The CWA created construction jobs, mainly improving or constructing buildings and bridges. It ended on March 31, 1934, after spending $200 Million a month and giving jobs to 4 Million people.
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Accomplishments of CWA

Now although The Civil Works Administration was very short lived, within those short months the CWA's workers laid 12 million feet of sewer pipe and built and improvised 255,000 miles of roads, 40,000 schools, 3,700 playgrounds, and nearly 1,000 airports, and 250,000 outhouses that were much needed in the rural cities of the United States. From November 1933 to March 1934. Grand Forks County, North Dakota put 2,392 unemployed workers on its payroll at a cost of about 250,000. When the CWA began in eastern Connecticut, it could hire only 480 workers out of 1,500 who registered for jobs. Projects that they did included work on city utility systems, public buildings, parks, and roads. Rural areas greatly profited, with most labor being directed to roads and community schools. CWA officials gave presence to veterans with dependents, but considerable political favoritism determined which North Dakotans got jobs.
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Although the CWA did provide much employment, there were many taxpayers who saw leaves being ranked but nothing of permanent value. Roosevelt told his cabinet that this criticism moved him to end the program and replace it with the WPA which resulted in long term value for our society, in addition to the short-term benefits for the unemployed.
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Civilian Conservation Corps

The Civilian Conservation Corps went from 1933-1942.

It was a public work relief program in the United States for the unemployed, unmarried men from relief families as part of the New Deal. This was originally intended for young men spanned from ages 17-28.

The CCC was designed to provide jobs for young men, to relieve families who had difficulty finding jobs during the Great Depression in the United States while at the same time implementing a general natural resource conservation program in ever state and territory.

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FERA stands for "Federal Emergency Relief Administration"

President Herbert Hoover created this in 1932, and had came apart of the Great Deals.

This was the new name for the ERA.

The organizations purpose was initially to distribute 500 million dollars in federal funds to state agencies. These funds were grants and not loans.

FERA's main goal was alleviating household unemployment by creating new unskilled jobs in local and state government. Jobs were more expensive than direct cash payments, but were psychologically more beneficial to the unemployed.

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The Works Progress Administration

This was the renaming of the WPA, It was renamed in 1939. Liquidated on June 30, 1943

This was the largest ambitious American New Deal Agency, employing millions of unemployed people which were (Mostly Unskilled Men) to carry out public works projects, including the construction of public buildings and roads.

The WPA was a national program that operated its own projects in cooperation with state and local governments, which provided -30% of the costs.

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The Agricultural Adjustment Act

The Agricultural Adjustment Act was set in 1933, it was also known as the farm relief bill.

This was an act to relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for extraordinary expenses, occurred by reason of such emergency.

The goal of this act was a United States Federal Law New Deal era which reduced agricultural production by paying farmers subsidies not to plant on part of their land and to kill off excess livestock

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NRA stands for "National Industrial Recovery Act"

This law was passed by congress in 1933.

This was used to authorize the president to regulate industry in an attempt to raise prices after severe deflation and stimulate economic recovery.

The NIRA is considered as a policy failure, both in the 1930's and by historians today. Disputes over the reasons for this failure continued. Among suggested causes are that the Act promoted economically harmful monopolies that the Act lacked critical support from the business community, and that it was poorly administrated.

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The TVA Act

TVA stands for the "Tennessee Valley Act"

President Roosevelt signed this act on May 18, 1933.

This new Agency was asked to tackle important problems facing the valley, such as flooding, providing electricity for homes and businesses, and replanting forests.

The TVA act was in sad shape in 1933. Much of the land had been farmed too hard too long, eroding and depleting the soil. Crop yields had fallen along with the farm incomes. The best timber had already been cut. TVA built dams to harness the regions rivers. The dams controlled floods, improved navigation and generated electricity. The most dramatic change in Valley life came from the electricity generated by TVA dams. Electric lights and modern appliances made life easier and farms more productive. Electricity also drew industries into the region, providing desperately needed jobs.

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The Social Security Act

The Social Security Act was established on August 14, 1935.

This provided a system of old-age benefits for workers, benefits for victims of industrial accidents, unemployment insurance, aid for dependent mothers and children, the blind, and the physically handicap.

This act created a uniquely American solution to the problem of old-age pensions. Unlike many European nations, U.S. social security "Insurance" was supported from "Contributions" in the form of taxes on individuals' wages and employers' payrolls rather than directly from Government funds.

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The Wagner Act

The Wagner Act was passed by Roosevelt on July 5, 1935.

This was instrumental in preventing employers from interfering with workers' unions and protests in the private sector.

The Wagner Act is arguably the most important piece of legislation to date protecting workers' and unions' rights. It involved the federal government in this protection and in arbitrating employer-employee disputes, a key step in preventing unjust treatment of workers

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Glass-Steagall Act

The Glass-Steagall Act was adopted by two members of congress in 1933.

This act separated investment and commercial banking activities.

As a collective reaction to one of the worst financial crises at the time, the GSA set up a regulatory firewall between commercial and investment bank activities, both of which were curbed and controlled. Banks were given a year to decide on whether they would specialize in commercial or in investment banking.

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PWA stands for the "Public Work Administration"

This was a large scale public works construction agency in the United States headed by secretary of the Interior Harold L. Ickes. It was created by the National Industrial Recovery act in June of 1933 in response to the Great Depression.

The PWA spent over 6 billion, but did not succeed in returning the level of industrial activity to pre-depression levels. Nor did it significantly reduce the unemployment level or help jump-start a widespread creation of small businesses. FDR, personally opposed to deficit spending, and he refused to spend the sums necessary to accomplish these goals.

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The Fair Labor Standards Act

The Fair Labor Standards Act became apart of the New Deal in 1938.

A federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

The Wage and Hour Division of the U.S. department of labor administers and enforces the FLSA with respect to private employment, state and local government employment, and federal employees of the Library of Congress, U.S. Postal services, Postal Rate Commission, and the Tennessee Valley Authority.

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The Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation Act was established in 1933.

It is an independent agency created by the banking act of 1933. It supports the United States against bank failure.

The Federal Deposit Insurance Company mitigates any potential damage to the United States economy by insuring deposits made to banks and other financial institutions. Savings, checking, individual retirement accounts and other deposit accounts are insured up to 250,000 dollars per depositor.

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The Securities and Exchange Commission Act

The Securities and Exchange Commission Act was founded on June 6, 1934.

This was a government commission created by congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers in the U.S. The SEC is composed of five commissioners appointed by the U.S. President and approved by the Senate.

The Securities Exchange act of 1934 created the SEC to regulate exchanges, brokers, and over-the-counter markets, as well as monitor the required financial disclosures.