The "Three Rs"
Roosevelt was elected President in 1932 with a massive victory of 42 out of 48 states. He proposed a new deal consisting of "three Rs"
- Relief: aimed at the homeless and the unemployed
- Recovery: aimed at rebuilding the economy
- Reform: aimed at created a fairer society
Hoover set up many government bodies to tackle the USA's problems. These bodies became known as "Alphabet Agencies". These agencies were designed to help american get back to work, which would give people money to pay off their debts and start spending again.
Roosevelt's first move was to allow only solvent banks to allow in business. These recieved government backing and helped restore the public's faith in the banking system.
The First new deal: Alphabet Agencies
1) Federal Emergency Relief Administration FERA
- Federal (government) money to individual states to help the unemployed and homeless
- One dollar given by the government for every three spent by the state. $500 million in total given
2)Civilian Conservation Corps CCC
- Conservation work for unemployed men aged 18-25
- Wokers given $30 dollars a week, $25 of which was sent home, in return for food and shelter
3) Agricultural Adjustment Administration AAA
- To help farmers increase profits
- Subsides farmers to destroy crops and slaughter animals to push prices up.
The First new deal: Alphabet Agencies 2
4) Tennessee Valley Authority TVA
- Provide aid for the poverty stricken Tenesse valley
- 21 dams built, hydro electricity produced.
5) National Industrial Recovery Act NIRA consisted of two parts;
(i) National recovery Administration NRA
- To encourage employers to improve work conditions
- Codes of practice drawn up on minimum wages, hours and conditions.
(ii) Public works administration PWA
- To be skilled unemployed workers on large construction projects
- Slum clearence, house building. Schools and hospitals built.
Problems with the New Deal and The 2nd New Deal
Some felt his policies interfered with people's lives too much. In 1935 the supreme court declared the NRA unconstitutional and in 1936 the same happened to the AAA. In retaliation the President Roosevelt filled the supreme courts with Judges who sypathised with his views and created a secound new deal which emphasis on worker's right.
The Second New Deal
1) Soil Conservation act
- Replace AAA
- Provide subsidies for farmers
2) Works progress Administration WPA
- To unite all agencies involved in job creation
- People put to work building roads, schools and airports.
The secound New Deal
3) Fair labout standards act
- To regulate hours and conditions of work
- Tighten up laws against child labour and minimum wages
4) Social Security act
- To set up national system of social security
- Benefits for unemployed, disabled, widows and orphans. Pensions for over 65.
5) National Labour Relationships Act (Wagner Act)
- Giving workers the right to join Trade unions.
- National Labour Relations Board. Workers able to negotiate better pay and conditions. Stopped employers sacking union members
Sucesses of the New deal
* The income of farmers soubled between 1932 and 1939 as a result of the A
* The TVA improved the lives of 7 million people
* 2.5 million people employed in the CCC
* 4 million people imployed on the public work schemes screated by the PWA and WPA
* Workers were protected by Codes of practice and trade unions introduced though NRA and Wagner act
Criticisms of the New deal
* The AAA (shoot the cows milk to government) failed to help sharecroppers and farm workers
* Unemployment did fall but ultimately it was the USA's entery into WW2 that took the country out of the depression
*Some argued that Roosevelts recovery projects were only short term labour, for example employing men as pigeon scarers
* Many viewed trade unions as un-american and some firms hired thugs to beat up members. Additionally paying benefits went against "Rugged indivualism"
* The rich objected to paying taxes to help poorer people
*Black people were often discriminated against and the aid did not reach them. Women benefited only fit they were married
* Some thought his policies had not gone far enough.