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
1. Relief - Immediate action taken to halt the
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.
EARLY NEW DEAL MEASURES
Immediate action taken to halt the economies
"Pump - Priming" Temporary programs to restart
the flow of consumer demand.
Permanent programs to avoid another depression
and insure citizens against economic disasters.
Declared so that the panic would be stopped.
Agricultural Adjustment Act
Taxed food processors and gave the money directly
to farmers as a payment for not growing food. This decreased
supply so price would go up.
Securities & Exchange Commission
Permanent Agency set up to monitor stock market
activity and ensure that no fraud or insider trading was
Closed the insolvent banks and only reopened the
National Industrial Recovery Act
Created the NRA (National Recovery
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.
Federal Deposit Insurance Corporation
Permanent Agency designed to insure depositors
money in savings banks. Originally insured up to $5,000 per
depositor today it has increased to $100,000.
Federal Emergency Relief Act (FERA)
Gave immediate help to those that needed it in
the form of cash payments.
Home Owners Loan Corp.
Gave loans to home owners so they could pay their
mortgages. This prevented people from going homeless and
prevented banks from going under.
Permanent agency designed to ensure that the
older segment of society always would have enough money to
survive. The key here is that they would then also be able
to spend throughout their lives.
Civil Works Administration (CWA)
Provided temporary jobs repairing roads and
Works Progress Administration
Provided long term government jobs building
schools and other public works projects.
National Labor Relations Act and National
Labor Relations Board (NLRA/NLRB)
Otherwise known as the Wagner Act it helped
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.
Civilian Conservation Corps (CCC)
Temporary jobs to unmarried single adults filling
sand bags and helping out at disaster type situations.
Participants lived in barracks type housing.
Tennessee Valley Authority (TVA)
Agency created to build dams in the Tennessee
river valley. These dams provided more stable irrigation and
cheap hydroelectric power.
Soil Conservation Act
Laws mandating proper soil maintenance to make
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
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
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
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
SOCIAL SECURITY ACT -- created Social Security System -- old age
and survivors insurance; aid to dependent children etc.
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