Online College and University Degree Guide
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The New Deal, introduced by F
D Roosevelt was to transform America's
economy which had been shattered by the Wall
Street Crash. The economic downturn that followed the Wall
Street Crash also had a major psychological impact on America and that
Roosevelt was actually doing something did a great deal to boost America's
self-esteem.
In Roosevelt's
first Hundred Days many acts were introduced which were to form the basis of the
New Deal. The New Deal was
to cover as many issues as could be imagined - be they social, economic,
financial etc. The wave of popularity that had swept Roosevelt into power meant that parts of the
New Deal were
passed without too much scrutiny. In later years many acts in the New Deal were deemed unconstitutional by the Supreme Court of America.
The New Deal introduced acts that became part
of the law and numerous agencies that worked with the Federal government in ensuring
that the acts were enacted.
On March 15th 1933, Roosevelt
asked Congress to pass the Economy Act. This cut the pay of everybody who worked
for the government and the armed forces by 15%. Government departmental spending
was also cut by 25%. The saved money, about $1 billion, was to go towards
financing his New Deal.
On March 20th 1933, Roosevelt asked Congress
to pass the Beer Act which finally killed off prohibition. The sold beer would
raise revenue for the government by tax and it would also introduce a fee-good
factor in that perfectly normal people who wanted an alcoholic drink would no
longer be criminalised simply because they wanted a drink.
The Acts
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Emergency
Banking Act 1933
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The
Federal government insured people's deposits in banks against losses
caused by public panic. This helped restore the public's confidence in the
nation's banking system |
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National
Industrial Recovery Act '33
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This
act had three parts to it. It set up the Public Works Administration (PWA)
to
manage public works projects; The PWA spent $7 billion and employed
millions of men.
It set up the National Recovery
Administration to set up codes of practices for such things as hours
worked, wages, unfair competition and outlawing child labour. 16 million
workers were covered by these code and child labour was outlawed. Workers
went on to a 8 hours week and a minimum wage of $1.25 was
introduced.
The third
strand of the NIRA was to give trade unions the legal right to bargain
with employers. Membership of trade unions increased after the
introduction of this act.
NIRA was declared unconstitutional in
1935.
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| Agricultural
Adjustment Act 1933 |
This
act paid farmers to limit the amount of
crops they grew or simply to dig back into the ground crops already grown.
The federal government bought farm animals and then slaughtered then to
raise the price of farm products.
Between 1933 and 1937, farm prices
doubled but in 1936 the AAA was declared unconstitutional.
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| Tennessee
Valley Development Act '33 |
This
set up the Tennessee Valley Authority (TVA). Its sole task was to
re-develop the Tennessee Valley which encompassed 7 states and 40,000
square miles.
HEP stations were built, flood control
was introduced as was soil conservation. The valley was regenerated.
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| National
Labour Relations Act '35 |
This
act forced employers to deal with trade unions. Workers were also given
the right to form and join trade unions and to take part in collective
bargaining. A board was set up to investigate and punish those companies
bosses who did not abide by the rules of the NLRA.
In 1935 trade union membership stood at
3.6 million. By 1941 it was 8.6 million. In 1935 the CIO (Congress of
Industrial Organisations) came into being.
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| Social
Security Act 1935 |
This
act set up the first national old age pensions scheme. Workers and
employers had to pay into a federal pension fund. Each state was also
expected to work out a plan for unemployment insurance.
This one act covered 35 million people
despite opposition from Republicans who felt the whole idea smacked of
socialism.
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| Soil
Conservation Act 1936 |
The
federal government paid subsidies to farmers
who agreed to leave land fallow or planted crops that put nitrogen back
into the soil. The federal government also financed research into soil
conservation. |
| Fair
Labour Standards Act 1938 |
The
FLSA sort to cut the maximum hours someone could work and to raise the
minimum wage for those who worked in inter-state trade.
This act gave protection to over 13
million people. It introduced a 40 hour week and a minimum wage of 40
cents an hour.
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| Agricultural
Adjustment Act 1938 |
The
act introduced the Federal government subsidising the price
of many farm products. The aim was to gradually increase the subsidy until
farm prices reached their pre-1914 figure to give all farmers
a guaranteed minimum income. |
The Agencies
| Civilian
Conservation Corps of 1933 |
This
employed jobless single men between the ages of 18 and 25. They worked for
6 months in mountains and forests where they were taught forestry, flood
control and fire prevention. Nearly 3 million men took part in the scheme
which ran from 1933 to 1941. |
| Works
Progress Administration of 1935 |
The
WPA coordinated all public works schemes. It spent over $10.5 billion of
Federal money and employed 3.8 million men from 1935 to 1941. It had built
77,000 bridges, 24,000 miles of sewers, 664,000 miles of road, 285
airports, 122,000 public buildings and 11,000 schools. |
| Reconstruction
Finance Corporation |
This
agency loaned money to state and local governments to assist the poor. It
also lent money to firms which were in debt or wanted to invest. |
| Farm
Credit Administration |
This
agency used Federal money to pay off farm creditors and save farmers
from bankruptcy. |
| Home
Owners Loan Corporation 1933 |
This
agency used Federal money to pay of mortgages so that home owners did not
lose their homes. |
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