The New Deal

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  • Created on: 25-04-09 13:26
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THE USA: How successful was the New Deal?
The New Deal
FDR's priorities:
Get American's back to work.
Protect their savings and property.
Provide relief for the sick, old and unemployed.
Get American industry and agriculture back on its feet.
The Hundred Days:
Hundred days after his inauguration FDR worked all the time ­ sent 15 proposals to Congress
and all were adopted.
Firstly tackled non trust of banks and banking crisis:
Emergency Banking Act:
Ordered all banks to be closed the day after his inauguration.
Government officials checked them over and a few days later 5000 trustworthy banks
were reopened.
Even supported by government money if necessary.
Securities Exchange Commission:
Roosevelt's advisers came up with a set of rules and regulations which would prevent
reckless speculation.
Fireside chats:
Took time to explain to the Americans what he was doing.
Sunday broadcasts on the radio.
About 60 million Americans listened to the fireside chats.
Civilian Conservation Corps (CCC):
Worked mostly on environmental projects in national parks.
Money earned usually went back to the men's' families.
Aimed at unemployed young men in particular.
Could sign on for 6 months which could be renewed if they still couldn't find work.
Around 2.5 million young men were helped.
Agricultural Adjustment Administration (AAA):
Took a long-term view of the problems faced by farmers.
Set quotas to reduce farm production ­ force prices up.
Helped farmers modernise their farming techniques and in extreme cases helped them
with their mortgages.
Bad effect: modernisation put many farm labourers out of work.
National Industrial Recovery Act (NIRA) set up 2 important organisations:
Public Works Administration (PWA):
Used government money to build schools, roads, dams, bridges and airports.
Created millions of short term jobs.
National Recovery Administration (NRA):
Outlawed child labour.
Improved working conditions in industry.
Set out fair wages and sensible levels of production ­ stimulate the economy by
giving workers money to spend and not overproducing and causing a slump.
Voluntary ­ firms who joined could use the `blue eagle' ­ symbol of presidential
Over 2 million employers joined.
Immediate effect ­ restored confidence in govn.

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Tennessee Valley Authority:
TV was a huge area cutting across seven states.
Physical problems ­ flooding in the wet season and drought in the dry season.
Farming land around TV was a dustbowl ­ soil erosion turning the land into desert.
People in the valley lived in poverty ­ no electricity etc.
FDR set up the TVA which cut across the powers of local state governments.
TVA aimed to build dams on the Tennessee River, transforming the region.…read more

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Aggressive man with many friends and enemies.
Assassinated in 1935.
Dr Francis Townsend:
Founded Townsend Clubs ­ campaign for people over 60 to be given $200 a month
provided they would spend it all and stimulate the economy.
Father Coughlin:
Catholic priest.
Set up radio station to attack Roosevelt.
Gained lots of members but by the 1940s had faded in importance.
Doing too much:
Complicated ­ too many codes and regulations.
Government shouldn't interfere with business and allow trade unions and calls for higher
wages.…read more

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Industrial Workers:
NRA and Second New Deal strengthened the position of labour unions against the
industrial giants.
FDR's government generally supported trade unions and made large corporations
negotiate with them,
Some labour unions merged to form the Committee for Industrial Organisation (CIO) in
1935 ­ large enough to be able to negotiate with large corporations.
Union of Automobile Workers (UAW) recognised by the very anti-union corporations of
Ford and General Motors.
Big businesses were still very powerful despite challenge from the government.…read more

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Most New Deal agencies aimed to help men (only about 8000 women were involved in
the CCC).
Local governments tried to avoid paying out social security payments to women by
introducing special qualifications and conditions.
Frances Perkins was viciously attacked in the press as a Jew and Soviet spy. Even her
cabinet colleagues tended to ignore her at social gatherings.
Native Americans:
Indian Reorganisation Act 1934 provided money to help Native Americans buy and
develop land.…read more


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