How did Roosevelt’s New Deal go about fixing the problems of the Great Depression?
FDR came into office with no clear or specific plan for what to
do. Roosevelt used to say “try something, if it doesn’t work try
something else.” He and his brain trust recognized, at least, that
they must try to do something. These attempts at least gave Americans
the hope that something was being done. Roosevelt’s basic
philosophy of Keynesian economics manifested itself in what became
known as the three “R’s” of relief, recovery and reform. The programs
created to meet these goals generated jobs and more importantly,
hope. They also generated what refer to today as “alphabet soup;” a
series of acts and agencies that created a huge federal bureaucracy.
I. The New Deal
A. What did Roosevelt mean by relief, recovery and
reform?1. Relief – Immediate action taken to halt the
economies deterioration.2. Recovery – “Pump – Priming” Temporary programs to restart the
flow of consumer demand.3. Reform – Permanent programs to avoid another depression and
insure citizens against economic disasters.
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deterioration. |
the flow of consumer demand. |
and insure citizens against economic disasters. |
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(AAA) to farmers as a payment for not growing food. This decreased supply so price would go up. |
(SEC)
activity and ensure that no fraud or insider trading was taking place. |
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Act
solvent ones. |
(NIRA) Administration) a consortium of businesses organized by the government and given the power to set rules and regulations for the economy. Members of the NRA displayed a blue eagle. |
(FDIC) money in savings banks. Originally insured up to $5,000 per depositor today it has increased to $100,000. |
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the form of cash payments. |
mortgages. This prevented people from going homeless and prevented banks from going under. |
Administration
older segment of society always would have enough money to |
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bridges. |
(WPA)
schools and other public works projects. |
Labor Relations Board (NLRA/NLRB) unions and thus helped workers. This acted created the NLRB (National Labor Relations Board) which enforced labor law and made sure that fair business practices where upheld. |
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sand bags and helping out at disaster type situations. Participants lived in barracks type housing. |
river valley. These dams provided more stable irrigation and cheap hydroelectric power. |
sure that another dust bowl was avoided. |
FAIR LABOR STANDARDS ACT — provided minimum wage for workers.
CIVILIAN CONSERVATION CORPS — provided work for jobless males
between 18 & 25 in reforestation, road construction, prevention
of forest erosion. Ended in 1941.
AGRICULTURAL ADJUSTMENT ACT — established principle of government
price support for farmers and guaranteed farm purchasing power.
TENNESSEE VALLEY AUTHORITY ACT — federal construction and
ownership of power plants regional development of Tennessee Valley (7
State Area)
FEDERAL SECURITIES ACT — required full disclosure of information
related to new stock issues.
NATIONAL EMPLOYMENT SYSTEM ACT — created US employment service.
HOME OWNERS REFINANCING ACT — use of government bonds to
guarantee mortgages.
BANKING ACT OF 1933 — created Federal Deposit Insurance Corp.,
guaranteeing the safety of bank deposits.
NATIONAL INDUSTRIAL RECOVERY ACT — minimum wages and self
regulation of industry — ended in 1935.
PUBLIC WORKS ADMINISTRATION — appropriated funds to construct
roads and other federal projects.
SECURITY AND EXCHANGE ACT — federal regulation of the operation
of stock exchange.
NATIONAL HOUSING ACT — federal housing administration insured
loans of private banks and trust companies for construction of homes.
COMMUNICATIONS ACT — federal housing administration insured loans
of private banks and trust companies for construction of homes.
HOME OWNERS LOAN ACT — government financing of home mortgages.
NATIONAL HOUSING ACT — construction of low cost public housing
and slum clearance.
SOIL CONSERVATION ACT — established federal soil conservation
services.
RESETTLEMENT ADMINISTRATION — built new model communities for low
income city workers
RURAL ELECTRIFICATION ADMINISTRATION — created and administered
program of bringing electricity to rural areas.
NATIONAL YOUTH ADMINISTRATION — federal work relief and
employment for young people.
NATIONAL LABOR RELATIONS ACT — encouraged collective bargaining
and formation of unions to be supervised by the National Labor
Relations Board.
SOCIAL SECURITY ACT — created Social Security System — old age
and survivors insurance; aid to dependent children etc.