How did Roosevelt deal with the Depression

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  • How did Roosevelt deal with the Depression?
    • Fireside chats
      • He gave his first one in March 1933,
      • He sat by a fire in his office to make it welcoming and informal,
      • He spoke directly to the American People and also spoke freely,
      • Millions of people listened to him and he reassured them that everything would be alright,
      • He encouraged people to write about their problems so had to employ people to deal with letters,
      • He connected with the people like a father and gave the impression he cared,
    • PWA (Public works administration)
      • It was funded with $3.3 billion,
      • It's purpose was 'Pump Priming' so it hoped that expenditure on public work projects would stimulate the economy,
      • Road building wopuld lead to an increased demand for concrete which would encourage employment and these workers would then have more money to spend,
      • Advantages
        • Work was carefully planned as the Government didn't want to be accused of wasting money,
        • The Secretary of Interior, Ickes, was in charge and demanded value for money,
        • It was responsible for building 50,000 miles of roads, 13,000 schools and dams to help irrigate land that was semi-desert,
        • Hundreds of thousands of people gained jobs,
      • Disadvantages,
        • Public work projects involve lengthy preparations with planning and organising,
        • Progress was slow,
    • WPA (Works Progress Administration)
      • It had 2 million employees,
      • It was a major employer,
      • Advantages
        • It had reasonable wages
        • It took on jobs that private companies didn't want,
        • It built 1,000 airport landing fields, 8,000 schools and hospitals and 12,000 play grounds,
        • It gave people experience,
      • Disadvantages
        • People were taken for only 1 year,
        • They weren't allowed to compete for contracts with private firms,
        • Many of its projects such as surveying historic sites wouldn't have been carried out by private contractors,
    • EBA (Emergency Banking Crisis)
      • It was in 1933,
      • Banks had gone bankrupt as businesses were unable to repay loans
      • When Roosevelt became President, he closed the banks for four days to give time for new laws to be passed,
      • Only the banks that are well managed are allowed to open,
      • The government guaranteed deposits in banks of up to $2,500 so people will put money in banks,
      • Roosevelt prevented banks from speculating on the stock market and split saving accounts from standard accounts,
      • This enables the economy to function as this was a huge success,
    • AAA (Agricultural Adjustment Act)
      • It was in May 1933
      • There is criticism at destroying over-produced food as people are starving,
      • There is a public outcry when 6 million piglets are killed but they were late used to feed unemployed,
      • Advantages
        • It paid farmers to reduce their production which drives prices up so it was effective,
        • The drought in 1933 made wheat harvest the poorest since 1896 which helped the Government,
        • In the next few years, tobacco beef and dairy farmers were bought into schemes,
        • Between 1932 and 1935, total farm income rose from $4.5 billion to $6.9 billion,
        • 95% of tobacco growers signed up for the AA agreements,
      • Disadvantages
        • it only helped farm owners and not farm workers so many blacks lost their jobs,
        • A lot of food was destroyed due to over production which caused public outcries as people were starving,
    • FERA (Federal Emergency Relief Administration)
      • May 1933
      • $500 million was to be divided between the states of America equally to help with unemployment
      • Half of the money given to one state would go straight there and the other half would be conditional on the amount spent in each state on relief,
      • Disadvantages
        • Many state Governments believed that the poor were in their position because of themselves so refused to spend more,
        • Those needing relief were treated badly in some states,
        • Poor people were often left in long ques on hot days,
        • Even after filling out forms, there were long delays in making payments,
      • Advantages
        • It established the idea that Federal governments could give funds directly to relief,
    • CWA (Civil Works Administration)
      • November 1933
      • It was set up to provide emergency relief during the winter of 1933-34
      • Advantages
        • It provided work for 4 million people on public projects,
        • It closed down but promised to follow this up with funded building projects,
        • They did building projects like scared crows from crops and paid people to sweep leaves,
      • Disadvantages
        • It closed down so the 4 million employed became unemployed again,
        • It wasn't a permanent job,
    • HOLC (Home Owners Land Corporations)
      • In 1933
      • It gave out new loans to home buyers
      • Advantages
        • Mortgage rates were low to try to prevent buyers from losing their homes,
        • three hundred thousand loans were given in one year,
      • The intention was to stimulate the housing market,
    • NRA (National Recovery Administration)
      • In June 1933,
      • It set about to improve work,
        • It outlawed child labour,
        • Set out for fair wages,
        • It tried to improve working conditionss
      • Advantages
        • Industries were encouraged to adapt a new code of practice that was fair to workers,
        • 557 codes were drawn up by industries which was represented by the blue eagle with the logo 'We do our part'.
        • 2 million employers were involved which helped 22 million employees
        • Stopped child labour and improved working conditions,
      • disadvantages
        • There were critisism of how they operated,
        • The Supreme Court declared it unlawful,
    • TVA (Tennessee Valley Authority)
      • May 1933
      • The river Tennessee ran through seven of the poorest states in the USA
      • The aim was to build 20 dams  to control floods that affected the region from time to time
      • Advantages
        • In dry seasons, there was the dust bowl but farming could be improved as farmers could use the dams to control the drought
        • The dams provided hydroelectricity power to areas where there was none,
        • Tourisms and leisure was created by the dams,
        • Farmers could develop more successfully with more use of fertiliser,
        • Brings employment,
        • Creates money for poorer states so improves the area,
    • The CCC (Civilian Conservation Corporation)
      • March 1933
      • It employed young men aged 18-25 (later increased to 28) by the Department of Labour
      • They work in civilian conservation corporations like in parks and other public places,
      • Advantages
        • It was set up for two years but was later extended through the 1930s,
        • About 3 million people were involved which means  3 million employed
        • Young men used so keeps them out of trouble
        • They lived in camps and were provided with food,
        • They benefitted from the experiences and training,
      • Disadvantages
        • They received small wages
        • They were criticised for focusing on white men
        • There was no guarantee of a job afterwards,
      • They built 65,100 phone1lines and planted 1.3 billion trees,
    • SSA (social Security Act) 1935
      • It was in 1935
      • It provided old-age pensions for over 65s and unemployment insurance,
      • Advantages
        • It was a step towards providing welfare welfare for those in need
        • Pensions weren't paid at a flat rate but according to how much they earned before,
        • Republicans criticised it as it was against their ideas and beliefs
        • It was the first time help was given to Americans so it shows a change in attitude,
      • Disadvantages
        • it wouldn't start until 1940,
        • It was self-financing and paid for by employees and employers,
        • Unemployment benefits were paid for only a limited time and were low,-maximum of $18 a week for 16 weeks,

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