How did Roosevelt deal with the Depression
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- Created on: 01-04-14 20:38
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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,
- Fireside chats
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