The New Deal

1. The New Deal The New Deal The United States during the 1930s. Debbie Donnelly, Kirkland H.S. and Jim Birney, Fife Education

2. Choose from Background The New Deal Success or Failure? Glossary Web Sites

3. The Background – early 1930s During President Hoover’s government the Depression was in full swing. Unemployment was at 13 million, industries were closed, farms repossessed and the Dust Bowl was disastrous, banks shut down and the stock market had major difficulties. People couldn’t find work anywhere so the government had to act. People searched the newspapers for job adverts.

4. The Background2 Hoover lost the 1933 presidential election and was succeeded by

5. The Background 3 A man who was to become one of the most successful and well liked presidents of all time Find out more about him.

6. The Background Roosevelt soon came to the conclusion that a massive change in the American way of life was needed to tackle the problems. What was needed was a “The nation asks for action and action now.” New Deal “Our greatest primary task is to put people to work.”

7. Destitute Alphabet Agencies Industry The New Deal Farming Stock Market Banking Find out more - Internet.

8. Banking Banking Acts 1933 and 1935 • Investors deposits insured • No gambling in securities Fireside chats used to encourage people to put money back into banks Bank Holiday • only secure banks allowed to re-open New Deal

9. Stock Market Faith in Securities Act 1933 Securities Act 1934 • Stricter control • Companies had to be honest New Deal

10. Destitute Federal Emergency Relief Act ( F E R A ) $500 million to state governments to provide relief Given as DOLE payments Problems Successes New Deal

11. Destitute - Problems Many states penalised by dollar matching arrangements People treated abominably by states who believed people should help themselves Variations in relief provided – Georgia didn’t provide direct relief. New Deal

12. Destitute - Successes Unique – a move away from laissez faire Helped prevent starvation Won political support for the Democrats from the poor Lowered unemployment from 13 million to 6 million by 1941. New Deal

13. Farming – First Agricultural Adjustment Act Put up prices by creating artificial scarcity, ie killing livestock, ploughing up crops This was considered by many to be unconstitutional and an extension of federal powers. New Deal

14. Farming – Second Agricultural Adjustment Act Insurance Scheme introduced. Parity price fixed for main crops Black sharecroppers still suffered. New Deal

15. Industry The New Deal introduced major breaks with traditional practices. N.R.A. Fair Labour Standards Act Social Security Act Wagner Act New Deal

16. Industry – N.R.A. The National Recovery Administration made:- • Industry less cut throat in its operation • Owners introduce a minimum wage • Rules on the maximum working hours Employers reacted differently from their workers. New Deal

17. Industry – N.R.A. Views Owners such as Henry Ford said:- • There would be an increase in monopolies • It was unconstitutional The workers were pleased because:- • It gave them greater security and bargaining power • Elevated the position of the worker for the first time New Deal

18. Industry – Fair Labour Standards Act Set new standards so that:- • Set a minimum wage of 40 cents an hour • Set a maximum working week of 40 hours • Banned child labour New Deal

19. Industry – Wagner and Social Security Acts The Wagner Act stated that workers could join a trade union The Social Security Actsestablished a contributory insurance scheme. New Deal

20. Alphabet Agencies Roosevelt created a number of major agencies known by their initials. P.W.A. C.C.C. T.V.A. Some opponents called them Alphabet Soup. New Deal

21. Tennessee Valley Authority T.V.A. The river Tennessee was transformed by • Overturning years of deforestation and soil erosion by replanting and soil conservation. • The building of a series of dams and canals. • Flood prevention. • Hydro electric power for homes and business. New Deal

22. Civilian Conservation CorpsC.C.C. The first New Deal project introduced in March 1933. • Created work for 2.5 million unemployed workers • Led to tree planting and soil conservation • Bridges, dams, nature trails and picnic areas were built • Blacks were segregated and women excluded New Deal

23. Public Works AdministrationP.W.A. Laws passed in Congress. • It was slow to get underway. • Capital intensive rather than labour intensive – money to T.V.A. and other organisations. • Built hospitals and roads and was involved in slum clearance. New Deal

24. Success or Failure? • Still 6 million out of work in 1941. • The numbers fell due to enlistment and rearmament in WW2. • Black people were segregated from white. • Women were excluded from the New Deal. • Tennessee benefited but many areas were still suffering. • Reduced unemployment by 7 million • Soil conservation schemes. • The Stock Market and banks recovered. • Transformed the Tennessee valley. • Roosevelt was re-elected.

25. Glossary Hooverville shanty towns built by homeless people during the Great Depression. Black October 29, 1929 when the Wall Street Tuesday stock market collapsed. Dust The years of drought which turned the Bowl soil of Mid West farms to dust.

26. Web Sites Franklin D. Roosevelt http://www.fdrlibrary.marist.edu/educat33.html The New Deal http://newdeal.feri.org/