The New Deal Franklin D. Roosevelt The Three Rs Relief: To help people cope with the depression Recovery: To help end the depression. Reform: To prevent future economic problems Solution Bank Runs Federal Deposit Insurance Corp. Emergency Banking Relief Act & Bank Holiday Reform Relief Problem Lack of Consumer Confidence in Banking System ProblemsSolution Underdevelopment of South High Unemployment Tennessee Valley Authority (TVA) TVA builds dams to provide electricity to rural South. Construction and operation also provides work for unemployed. Recovery ProblemSolution Agricultural Adjustment Act Farmers received subsidies in exchange for limiting production. Overproduction Overproduction of farm goods led to low prices. Some farmers protested by dumping crops or burning them for fuel. Recovery Problems Massive UnemploymentExtreme Poverty 1/3 of population unemployed Families cant pay rent Thousands migrate in search of better conditions Hunger & even starvation Solutions Civilian Conservation Corps (CCC) CCC Workers Build Fence in Greene, NY Young people were given jobs doing conservation & recreation related projects. Local examples include some of the pavilions at Chenango Valley State Park. Recovery Solutions: Unemployment Works Progress Administration (WPA) Federal Theater Project WPA Artist Sketches WPA Workers Puts people to work on government projects. Both manual and intellectual projects. Federal Writers Project (Including Historians!) Artists Paint Post Office Murals Recovery ProblemSolution Factory Closings Cause Unemployment National Industrial Recovery Act (NIRA) Required industries to create codes regulating wages, hours, working conditions, & prices. It was designed to promote recovery by ending wage & price deflation. Recovery ProblemsSolution Social Security Act Men signing up for social security. Old Age Pensions Aid to Disabled Encouraged states to provide matching benefits. Poverty among elderly & disabled. Relief The Stock Market Crash Buying on Margin Insider Trading Over-valuing of stock Solution Securities and Exchange Commission (SEC) Reform Problem Also the FSA (Federal Securities Act) set up to enforce new government regulations of stock market. Problems Solution Federal Emergency Relief Administration (FERA) provided state assistance for the unemployed and their families operated a wide variety of work relief projects, including construction, projects for professionals (e.g., writers, artists, actors, and musicians), and production of consumer goods. household unemployment of unskilled workers Relief ProblemsSolution Public Works Administration (PWA) was a large-scale public works construction agency of SKILLED workers It built large-scale public works such as dams, bridges, hospitals, and schools. Its goals were to spend $3.3 billion in the first year, and $6 billion in all. Unemployment of skilled workers Recovery Grand Coulee Dam