The New Deal Cause (Which part of the 1920s/Great Depression era did this event aim to fix?)
Name: _________________________________
Event/Description
Effect (What were the long and short term effects associated with this event?)
Emergency Banking Relief Act
March 1933 Reform Bank Failures (1932, 40 per day; 1933, all closed) Lack of public support of banking system
Closed banks for 4 days while their finances were inspected by the Treasury Department If they were sound, they could reopen; if not, they remained closed Reconstruction Finance Corp – buy bank stocks/take on debt/give loans
Reform
Glass-Steagall Act
1933 People had lost their savings Reorganize the banking system
Established the FDIC and insured bank accounts up to $5,000
Reform
Federal Securities Act
Loss of faith in stock market Irresponsibility of stock holders Prevent insiders from rigging the market Relief/Reform Overproduction of crops
Revive public confidence in banks Put banks back in good financial shape 5,000 banks reopened and money was available as loans for industry
Reassured people that their money was safe Banks were told to act cautiously Still exists today
1933 Provide complete information on stocks Regulation of the stock Made companies liable for market to prevent speculation misrepresentation of and inflation of stock value information Securities and Exchange Commission Agricultural Adjustment Act Declared unconstitutional 1933 Destruction of food and Raise crop prices by lowering animals left hungry Americans production upset Pay farmers for land left uncultivated
Raised prices - $ in pockets
Helped wealthier farmers Farmers used money to buy machinery, which decreased the amount of workers Tennessee Valley Authority
1933 Relief Put people to work after high unemployment Help areas that needed development due to lack of resources (7 poorest states)
program for regional development focused on the TN Valley
Brought electricity to the rural poor
Regenerate industry and agriculture
Came into conflict with private industry
Responsible for flood control and constructing dams to generate electricity
Increased availability of jobs and transformed the region
Civilian Conservation Corps
1933
Relief
Environmental projects for young men
High unemployment
Strict rules, similar to the military
Damage to the environment due to industrialization
$25 out of $30 had to be sent home
Reform/Recovery Help businesses that had suffered Help against wage cuts, low prices, and layoffs
Opened the region for trade
Some discrimination (usually white males) Some claimed it was forced labor Tough conditions but taught self-respect and appreciation for the outdoors Could still claim relief after serving in the CCC
Fish farming, fighting fires, controlling mosquitoes, helping soil erosion
Reforestation and development
National Industrial Recovery Act
Declared unconstitutional
1933 Series of codes of practices for industry Promote industrial growth
Government hoped people would support industries that had joined and boycott others Many codes proved unworkable (firms couldn’t
Set prices, ensured fair competition, established standard working hours Joint committee of business and workers
pay the wages) Hurt small businesses Did not bring about recovery
National Housing Act
1934 Relief Hoovervilles Help people who had been or were being evicted
Stabilize the housing market and prevent default on mortgages Guaranteed private mortgages, reduced down payments, and extended repayment times
Federal Housing Administration Federal Savings Loan Administration Greater opportunities for low income earners
Federal Emergency Relief Act
1933 Relief Provide jobs for those unemployed Other New Deal programs not providing relief
Relief AAA being declared unconstitutional Help the plight of farmers who had lost farms due to default on debt
Gave $$ to the states – half Some states refused and were was used for relief, half was denied money to pay each state for every $3 it spent on relief Limited effectiveness/funds Made states create FERA offices and organize relief programs
Deficit spending
Farm Security Administration
1935
Gave us a pictorial record of rural America
Loaned $ to help tenant farmers become landholders
Gave homes to migrants and land to farmers
Camps for migrant farm workers
Some farmers were reluctant to move
Planned to move families to more fertile land
Not enough funding
Works Progress Administration
1935 Relief High unemployment Lack of help from New Deal programs
Job creation w/ $45.5 billion budget Short term community work for unskilled workers
Produced guides on cities, pictures, images of America, airports, bridges, etc. Not allowed to compete with private firms (unlike TVA)
Construction, office work, actors, artists, photographers National Labor Relations Act (Wagner Act)
Reform Poor working conditions and unfair labor practices
1935
Rise in union membership
Not initiated by FDR
Slightly better working conditions
Forced employers to recognize unions, forbade firing due to being a union member, gave some legal protection to workers, NLRB for negotiation of wages and conditions Social Security Act
More compromise between workers and managers Peaceful way to solve industrial disputes
1935
Nothing paid out until 1942
Relief
Help for the needy
Ineffectiveness of New Deal programs
National insurance scheme
Most controversial – widened role of federal govt/new responsibility
Suffering poor, low income, and elderly families
Pensions, unemployment benefits, support for those with disabilities provided by contributions from workers, employers, and govt
Payments were low Farm laborers, casual workers, domestic servants exlcuded