FDRNew Deal=Government programs created by FDR to provide direct and indirect relief to the citizens.•New Deal would be a series of “trial and error” actions.•“Take a method and try it. If it fails, admit it frankly and try another.”•FDR compared himself to a QB. He could not call the next play until he knew the results of the previous one.•“All there is to fear is fear itself.”

3 Goals of the New Deal

New Deal=Government programs created to provide direct and indirect relief to the citizens.

1.Relief for the needy.2.Economic recovery.3.Financial Reform.

*FDR and Congress passed 15 major pieces of legislation in the first 100 days. No president has ever been close to breaking that record.

DEFICIT SPENDING

• Spending more money than the government receives in revenue (go into debt).

• “Living outside your means.”• Why? Prime the pump!Prime the Pump=Dump $ into the economy to

stimulate the economy.

Emergency Banking Relief Act• 1sy day in off ice FDR declares a national banking

holiday.• Every bank in the country is closed. Permitted

financially sound banks to reopen 4 days later. Unsound banks were not allowed to reopen until they were fixed.

• FDIC: insured personal accounts in banks up to $5,000.

• Fireside Chats: FDR convinces the American people their money is safe in the banks. Result=the next day the number of deposits exceeds withdrawals.

Securities and Exchange Commission: SEC

• SEC regulated the stock market.• Stock no longer is allowed to sold “on

margin”.• Stock prices are based on profit-loss margin

rather than speculation.• Companies must now open their financial

records to the public.

Agricultural Adjustment Act: AAA

Purpose: Raise crop prices by lowering production.Paid farmers to NOT plant crops even though people are starving.

Result: Helps raise crop prices and puts $ into the hands of farmers.

CIVILIAN CONSERVATION CORPS:CCC• Designed to employ men between the ages

of 18-25.• Built state and national parks, recreational

areas, soil conservation, forestry.• Pay was $30/month.• Directed by army officers and the forest

service.

PUBLIC WORKS ADMINISTRATION:PWA

• Government spent $3.3 billion for public buildings, highways, flood control, and other improvements.

Federal Emergency Relief Administration: FERA

• Provided $500 million for direct relief for the needy.

• Furnished food and clothing to the unemployed, the elderly, and the sick.

CIVIL WORKS ADMINISTRATION: CWA

• Provided jobs and wages to those able to work.

• “make work” jobs like leaf raking, ditch digging, highway building, etc.

• $900 million spent in the winter of 1933-34.

FEDERAL HOUSING AUTHORITY: FHA

• Agency established to furnish loans for home mortages and home repairs.

• Still in existence today.

WORKS PROGRESS ADMINISTRATION: WPA

• Spent $5 billion to employ 8 million people with no skills.

• Built 850 airports; built or repaired 651,000 miles of roads and streets; built 110,000 libraries, schools, and hospitals.

• Also hired professionals to work in their field. Teachers, writers, artists, actors, and musicians.

NATIONAL YOUTH ADMINISTRATION: NYA

• Provided job training to unemployed youth and part-time jobs for needy students.

• 2 million high school and college age students were employed.

FAIR LABOR STANDARDS ACT

• Set the maximum hour work week at 44 hours. 40 hours by 1940.

• Minimum wage set at .25/hr. .40/hr by 1945.

• No hazardous jobs for workers under the age of 18.

• Set rules on employing children under the age of 16.

The Social Security Act, 1935

• Supplemental income and retirement system.• Employee contributes to the SS fund as does

the employer.• SS pays for:1)Supplemental retirement: $10-85 month in

1935.2)Unemployment3)Aid to families with dependent children and

aid to people with disabilities.

Rural Electrification Administration: REA

• In 1935, only 12.6 percent of American farms had electricity.

• FDR created the REA to create and finance electricity to rural areas of the country.

• 90% of American homes and farms had electricity by 1951.

Tennessee Valley Authority: TVA• Established in 1933 to construct dams and

power plants along the Tennessee River and its tributaries.

• Employed out of work Americans and supplied electricity to citizens in 7 southern states.

• Song of the South