New Deal
What is it?
The New Deal was the name that United States President Franklin D. Roosevelt gave to his complex package of economic programs 1933-36 with the goals of what historians call the 3 Rs. In summary, it was a plant to help with the three Rs, relief, recovery, and reform, during the devastation of the Great Depression.
What are the 3 Rs?
Three stages: relief, recovery, and reform. Relief is for the poor/unemployed, Recovery of the economy to the levels that it used to be at, and Reform applies to the financial system. They couldn’t repeat the depression, so they had to change what they did. Laws and organizations were created during the first term of President Franklin D. Roosevelt to help with the 3 R's.
Political Affects.
The New Deal produced a political realignment, making the Democratic Party the majority, with its base in liberal ideas, the white South, traditional Democrats, big city machines, and the newly empowered labor unions and ethnic minorities. Conservatives opposed the entire New Deal and named it the enemy of business and growth, while liberals accepted some of it and promising to make it more efficient. The New Deal Coalition was the name given to the New Deal movement and the advocates that dominated most presidential elections in the 1960s. Democratic Party became the majority after the new deal. Seven out of the nine presidents that were in office from 1933 to 1969 were Democrats. The Conservative Coalition controlled Congress mostly from 1937 to 1963. By 1936, the term "liberal" typically was used for supporters of the New Deal, and "conservative" for its opponents.
The New Deal was the name that United States President Franklin D. Roosevelt gave to his complex package of economic programs 1933-36 with the goals of what historians call the 3 Rs. In summary, it was a plant to help with the three Rs, relief, recovery, and reform, during the devastation of the Great Depression.
What are the 3 Rs?
Three stages: relief, recovery, and reform. Relief is for the poor/unemployed, Recovery of the economy to the levels that it used to be at, and Reform applies to the financial system. They couldn’t repeat the depression, so they had to change what they did. Laws and organizations were created during the first term of President Franklin D. Roosevelt to help with the 3 R's.
Political Affects.
The New Deal produced a political realignment, making the Democratic Party the majority, with its base in liberal ideas, the white South, traditional Democrats, big city machines, and the newly empowered labor unions and ethnic minorities. Conservatives opposed the entire New Deal and named it the enemy of business and growth, while liberals accepted some of it and promising to make it more efficient. The New Deal Coalition was the name given to the New Deal movement and the advocates that dominated most presidential elections in the 1960s. Democratic Party became the majority after the new deal. Seven out of the nine presidents that were in office from 1933 to 1969 were Democrats. The Conservative Coalition controlled Congress mostly from 1937 to 1963. By 1936, the term "liberal" typically was used for supporters of the New Deal, and "conservative" for its opponents.
The only thing we have to fear is fear itself.
~President Franklin D. Roosevelt
Organizations
•CCC – Civilian Conservation Corps, 1933 – 1942
Employed young men in outdoor projects such as building roads/trails/parks, replanting forests to control flooding, and draining swamps. Eventually two million young men worked for the CCC.
•TVA – Tennessee Valley Authority – 1933 – still in action
Created jobs building roads, bridges, dams (which improved flood control, river navigation, and brought electricity to remote areas), and other construction projects. Also, provided a path for electricity for rural areas (rural electrification administration of 1935). Helped the poverty stricken area around the Tennessee River.
•SSA – Social Security Act – 1935 –still in action
Created system for retirement and unemployment money.
•FDIC – Federal Deposit Insurance Corporation – 1933 – still in action
From the stock market crash in the fall of 1929 to the end of 1933, about 9,000 banks suspended operations, resulting in losses to depositors of about $1.3 billion. The closure of 4,000 banks in the first few months of 1933, and the panic that accompanied these suspensions, led President Roosevelt to declare a bank holiday on March 6, 1933. The financial system was on the verge of collapse, and both the manufacturing and agricultural sectors were operating at a fraction of capacity. The crisis environment led to the call for deposit insurance. Ultimately, the force of public opinion spurred Congress to enact deposit insurance legislation. The Banking Act of 1933, which created the FDIC, was signed by President Roosevelt on June 16, 1933.
•FHA – Federal Housing Administration – 1934 – still in action
The Federal Housing Administration (FHA) is a division within the Department of Housing and Urban Development (HUD). Founded in 1934 to revive a housing industry leveled by the Great Depression, FHA sought to stimulate homeownership by providing mortgage insurance and regulating interest rates. Over time, the agency has contributed to a dramatic increase in the number of homeowners, across a diverse income-scale. Early programs especially increased the market for single family homes, while special housing initiatives for veterans in the post-WWII era - and for the elderly, disabled and lower-income buyers in subsequent decade - expanded untapped or difficult market areas. Since its inception, FHA has insured 34 million homes, and manages a current insurance portfolio of $400 million. The agency was incorporated into HUD when the latter became a cabinet-level agency in 1965.
•SEC – Securities & Exchange Commission – 1934 – still in action
The Securities and Exchange Commission was established in 1934 to regulate the commerce in stocks, bonds, and other securities. After the October 29, 1929, stock market crash, reflections on its cause prompted calls for reform. Controls on the issuing and trading of securities were virtually nonexistent, allowing for any number of frauds and other schemes. Further, the unreported concentration of controlling stock interests in a very few hands led to the abuses of power that the free exchange of stock supposedly eliminated.
•AAA – Agricultural Adjustment Administration – May 1933
The Agricultural Adjustment Administration (AAA) (Pub.L. 73-10, 48 Stat. 31, enacted May 12, 1933) restricted agricultural production in the New Deal era by paying farmers to reduce crop area. Its purpose was to reduce crop surplus so as toeffectively raise the value of crops, thereby a portion of their fields lie fallow. The money for these subsidies was generated through an exclusive tax on companies which processed farm products. The Act created a new agency, the Agricultural Adjustment Administration, to oversee the distribution of the subsidies.[1] It is considered the first modern U.S. farm bill. Worked with farmers to limit their production so crop prices would rise.
•NRA – National Recovery Administration – June 1933
Worked with farmers to help limit their production. This helped them earn more money. They created the Textile Code. U.S. government agency established by President Franklin D. Roosevelt to stimulate business recovery through fair-practice codes during the Great Depression. The NRA was an essential element in the National Industrial Recovery Act (June 1933), which authorized the president to institute industry-wide codes intended to eliminate unfair trade practices, reduce unemployment, establish minimum wages and maximum hours, and guarantee the right of labourto bargain collectively. The agency ultimately established 557 basic codes and 208 supplementary codes that affected about 22 million workers.
Helpful Sites
http://www.pbs.org/wgbh/americanexperience/features/general-article/dustbowl-new-deal/
http://americanhistory.about.com/od/greatdepression/tp/new_deal_programs.htm
https://www.youtube.com/watch?v=6bMq9Ek6jnA
http://americanhistory.about.com/od/greatdepression/tp/new_deal_programs.htm
https://www.youtube.com/watch?v=6bMq9Ek6jnA