Post on 27-Mar-2015
The New Deal
FDR to the rescue!
Relief Policies•Unprecedented federal involvement in welfare
•Helped the “forgotten men” and their families
•Did not help all•Some were unemployable and states were unwilling or unable to help them
•relief policies often were only a “partial success”
The FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. As the FDIC celebrates its 75th anniversary, we present a historical perspective on the rich history of protecting consumers.
(FDIC Website)
-insure individual accounts up to $5,000
- relief / reform
provided work training based on U.S. citizenship and financial need for youth between ages sixteen and twenty-five offering courses in writing, reading, and arithmetic
train unemployed, out-of-school youth
provide work-study training for high school, college, and graduate students
Civilian Conservation Corps (CCC)
• Employed 2.5 million young men•Men 18 - 25Facilitate gang reconciliations Spearhead river cleanups Read to Head Starters in underserved communities Fix potholes Weed gardens for the elderly Assist settlement house patrons Provide at-home help for busy working moms
accounted for about 3% of the total population
“Boy Scout" work
Formerly unemployed men andwomen would shovel snow, rake leaves, and clean up National parks through that winter
Works Progress Administration (WPA)
• Most important relief agency• $11 billion• Short-term, make-work projects to help the
unemployed• Built 2500 hospitals, 5900 schools, 13,000
playgrounds• Funds for theater, arts and writers projects• Financial aid to 2 million HS and college
students• Aid to 2.6 million young people not in school
• “Partial success”
• Pump priming
- to administer the construction of various public works such as public buildings, bridges, dams, and housing developments
- to make loans to states and municipalities for similar projects
- budgeted several billion dollars to be spent on the construction of public works
- designed to spend "big bucks on big projects."
- 2 year emergency program - adopt a fair code of practices - Wagner Act .... labor can organize collective bargaining strikes-Schector v. U.S. (1935)
- NlRA declared unconstitutional in 1935 (WHY?)
- power to conduct elections implants - choose which unions could engage in collective bargaining- Board of Arbitration - Critics (i.e. business) "NLRB favors labor
- govt. lends $ to homeowners at low interest rates to pay off mortgages- refinanced mortgages of middle-income home owners
- improve housing conditions- insure residential loans and financing - help first – time buyers- assist in “shoring-up” the mortgage market ( aide the financial market)
- loans are made available to farmers so they can pay off their loans (extend length of mortgages)
- limit farm production - subsidies - derived from taxing other industries (farm processors)- DID IT WORK? (Hint: 1933 Then 1933 – 1937)- Butler v. U.S.
- no constitutional right to regulate farm production - any such right belongs to the states
Reform Legislation
• Significant, long-term
• FDIC
• SEC
• Banking Act of 1935
• TVA
• Fair Labor Standards Act
• Social Security Act
-regulate the stock exchange- stock offerings cleared by the SEC
- unemployment insurance - old age pensions - disabled, aged, dependent children
- responsible for developing a program for generating and distributing electricity in isolated rural areas
- improve economic and social conditions for people living in this region - 21 dams produce electricity - dams used for hydroelectric power - created ....... - reservoirs for recreation, flood control, prevent soil erosion, creation of jobs
Legacy of the New Deal
• Changed federal government’s attitude and responsibility
• Democratic Party became the majority party
• “Big government”