Module 10 lesson 1 and 2 US history

Liberal critics worried that the New Deal would not go far enough to help the poor and to reform the nation's economic system.

Conservative critics argued that Roosevelt's direct relief plan would cost the government too much.

Roosevelt began to formulate a set of policies for his new administration. This program, designed to alleviate the problems of the Great Depression, became known as the

New Deal

parity

a government-supported level for the prices of agricultural products, intended to keep farmers' incomes steady.

National Industrial Recovery Act (NIRA)

a law enacted in 1933 to establish codes of fair practice for industries and to promote industrial growth.

Agricultural Adjustment Act (AAA)

a law enacted in 1933 to raise crop prices by paying farmers to leave a certain amount of their land unplanted, thus lowering production.

Social Security Act

a law enacted in 1935 to provide aid to retirees, the unemployed, people with disabilities, and families with dependent children.

The Federal Securities Act

a law, enacted in 1933, that required corporations to provide complete, accurate information on all stock offerings.

Wagner Act

a law—also known as the National Labor Relations Act—enacted in 1935 to protect workers' rights after the Supreme Court declared the National Industrial Recovery Act unconstitutional. The federal government again protected the right of workers to join unions and engage in collective bargaining with employers.

ecurities and Exchange Commission (SEC)

an agency, created in 1934, that monitors the stock market and enforces laws regulating the sale of stocks and bonds.

Civilian Conservation Corps (CCC )

an agency, established as part of the New Deal, that put young unemployed men to work building roads, developing parks, planting trees, and helping in erosion-control and flood-control projects.

Works Progress Administration (WPA)

an agency, established as part of the Second New Deal, that provided the unemployed with jobs in construction, garment making, teaching, the arts, and other fields.

The Federal Deposit Insurance Corporation (FDIC),

created by the Glass-Steagall Act of 1933, has shored up the banking system. It reassures individual depositors that their savings are protected against loss in the event of a bank failure.

On March 12, the day before the first banks were to reopen, President Roosevelt gave the first of his many fireside chats

radio talks about issues of public concern, explaining in clear, simple language his New Deal measures

New Deal policies focused on three general goals

relief for the needy, economic recovery, and financial reform.

Congress took another step to reorganize the banking system by passing the Glass-Steagall Act of 1933

the 1933 law that established the Federal Deposit Insurance Corporation to protect individuals' bank accounts.

mmediately upon taking office, the Roosevelt administration launched a period of intense activity known as

the Hundred Days, lasting from March 9 to June 16, 1933.

When the Supreme Court struck down the AAA early in 1936, Congress passed another law to replace it:

the Soil Conservation and Domestic Allotment Act. This act paid farmers for cutting production of soil-depleting crops. It also rewarded farmers for practicing good soil conservation methods.

The Resettlement Administration, created by executive order in 1935, provided monetary loans to small farmers to buy land. In 1937 t

the agency was replaced by the Farm Security Administration (FSA). The FSA loaned more than $1 billion to help tenant farmers become landholders. It also established camps for migrant farm workers, who had traditionally lived in squalid housing.

The Wagner Act also prohibited unfair labor practices such as

threatening workers, firing union members, and interfering with union organizing.

. In June 1934 Congress created the Securities and Exchange Commission (SEC)

to regulate the stock market. One goal of this commission was to prevent people with inside information about companies from "rigging" the stock market for their own profit.

Social Security, have helped

to stabilize the nation's finances and economy

The FSA hired photographers such as Dorothea Lange, Ben Shahn, Walker Evans, Arthur Rothstein, and Carl Mydans

to take many pictures of rural towns and farms and their inhabitants. The agency used their photographs to create a pictorial record of the difficult situation in rural America.

. The government soon implemented several rural assistance programs to aid farmers

. The Agricultural Adjustment Act (AAA) sought to raise crop prices by lowering production.

President Roosevelt established the Civil Works Administration (CWA) in November 1933.

It provided 4 million immediate jobs during the winter of 1933-1934.

Perhaps the most serious challenge to the New Deal came from Senator Huey Long of Louisiana.

Like Coughlin, Long was an early supporter of the New Deal. But he, too, turned against Roosevelt. Eager to win the presidency for himself, Long proposed a nationwide social program called Share-Our-Wealth. Under the banner slogan "Every Man a King," he promised something for everyone.

FDR was not idle during this waiting period, however. He worked with his team of carefully picked advisers—a select group of professors, lawyers, and journalists that came to be known as the

"Brain Trust."

Glass-Steagall Act established the Federal Deposit Insurance Corporation (FDIC).

The FDIC provided federal insurance for individual bank accounts of up to $5,000, reassuring millions of bank customers that their money was safe. It also required banks to act cautiously with their customers' money.

Congress and the president also worked to regulate the stock market, in which people had lost faith because of the crash of 1929.

The Federal Securities Act, passed in May 1933

The Public Works Administration (PWA) was created in June 1933 as part of the National Industrial Recovery Act (NIRA).

The PWA provided money to states to create jobs chiefly in the construction of schools and other community buildings

Roosevelt established under executive order the Rural Electrification Administration (REA).

The REA financed and worked with electrical cooperatives to bring electricity to isolated areas.

In 1934 some of the strongest conservative opponents of the New Deal banded together to form an organization called the

American Liberty League.

The administration also established programs to provide relief through work projects and cash payments.

One important program, the Civilian Conservation Corps (CCC), put young men aged 18 to 25 to work.

In addition to farmers, the Second New Deal assisted students, women, African Americans, and Native Americans.

One of the largest programs was the Works Progress Administration (WPA), headed by Harry Hopkins, the former chief of the Federal Emergency Relief Administration

In addition, Roosevelt persuaded Congress to approve a bill allowing the manufacture and sale of some alcoholic beverages.

The bill's main purpose was to raise government revenues by taxing alcohol. By the end of 1933, the Twenty-First Amendment had repealed prohibition altogether.

What people thought about AAA

These subsidies upset many Americans, who protested the destruction of food when many people were going hungry. It did, however, help raise farm prices and put more money in farmers' pockets.

The federal government was soon preparing for war and spending money producing guns, tanks, ships, airplanes, and other war supplies. In 1939 the deficit rose again, to $2.9 billion.

This massive spending finally brought the nation out of the Great Depression. Durin

National Labor Relations Board (NLRB)

created under the Wagner Act, continues to act as a mediator in labor disputes between unions and employers.

The Tennessee Valley Authority (TVA)

established on May 18, 1933, was particularly ambitious. The TVA renovated five existing dams and constructed 20 new ones, created thousands of jobs, and provided flood control, hydroelectric power, and other benefits to the region.

Nevertheless, the New Deal was popular. And President Roosevelt launched a second burst of activity,

often called the Second New Deal or the Second Hundred Days. During this phase, the president called on Congress to provide more extensive relief for both farmers and workers.

Another program, the National Youth Administration (NYA),

was created specifically to provide education, jobs, counseling, and recreation for young people. The NYA provided student aid to high school, college, and graduate students. In exchange, students worked in part-time positions at their schools. One participant later described her experience.

Federal Emergency Relief Administration (FERA),

was funded with $500 million to provide direct relief for the needy.

He persuaded Congress to pass the Emergency Banking Relief Act

which authorized the Treasury Department to inspect the country's banks.

In 1938 Congress passed the Fair Labor Standards Act

which set maximum hours at 44 hours per week, decreasing to 40 hours after two years. It also set minimum wages at 25 cents an hour, increasing to 40 cents an hour by 1945. the act also set rules for the employment of workers under 16 and banned hazardous work for those under 18.

The government's policy of deficit spending—spending more money than it receives in revenue

—was stimulating economic recovery, despite putting the government deeply into debt.