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6: The New Deal and its impact (Section B
The nature of the FDR administration and the New Deal
Dealing with the banking crisis 193334
Dealing with the crisis in agriculture 193335
Dealing with unemployment and Industry 193335
The socalled second New Deal 193538
Welfare unions and restructuring of…

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o Wealth Tax Act
o 1936= Soil Conservation Domestic Allotment Act
o Roosevelt wins second term with a landslide
o 1937= WagnerSteagall Act establishes US housing Authority
o 1938= Agrciultural Adjustment act
o Fair Labor standards Act mimimum wage
o Federal National Mortgage Association set up
o 1939= outbreak of…

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o ¼ of Americans lost their homes in 1932 alone, on top of the 350,000 lost
in previous years.
o Capitalist USA seemed to be approaching meltdown

o Social consequences of slump and depression= deeply troubling.
o Crime escalated= an index of the rising level of human misery. Prison

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treasury team. Act also used Hoover's RFC to buy stock and sometimes
buy up bank debts in order to make institutions financially sound when
they reopened. Legislation banned: export of gold and suspended dollar
convertibility to gold.
o 70% of banks were able to reopen and by the beginning of…

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o Commodity Credit Agency = made loans to farmers to store their
products and the loans only had to be repaid when a certain price for the
crop was reached (products= corn, cotton, milk..) Payments= financed by
a tax on food processing= cost being passed onto the consumer.
o Critism=…

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o Soil Erosion Act, 1935 and Soil Conservation Act 1936. = Farmers were
paid for planting soil conserving grasses and legumes, thereby reducing
the acreage of crops whose output was seen as too great.

o No pretence at solving problem of how urban America could afford to buy
what US…

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too much power developing in the large unions who did not always have
regard the individual. Significantly= code were established to regulate
prices, working conditions and agree minimum wages--the agency
excluded agricultural workers and domestic servants.
o Public Works Administration = well funded, with $3.5billion available but
its record is…

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for 2,500 hospitals, 6,000 schools and 570,000 roads. Over 2 million
employed within 6 months.
o Hopkins= granted a budget of $4billionand began to allocate it with relish.
By 1943= spent $11billion on war relief employing 8 million.
o Schemes (CCC, PWA, WPA, CWA) only employed 1/3 of those who…

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dictatorial and although some workers were well paid (notably in
Automobile industry) their rights were severely circumscribed.
o Number of congressman believed= fundamental reform of industrial
relations was essential = it would provide greater stability and put a fair
wage in people's pockets to help stimulate longterm recovery.
o National…

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o The stock market collapsed by 30% in 1937 and unemployment rose from
6 to 10 million in 1938. All caused by the treasury cutting spending much
too early!

Curing a sick economy
o Widespread agreement= New Deal did not cure the economy.
o Shlaes and Powell= FDR's policies actually…


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