The New DealHow did the New Dealattempt to address thecauses and effects of theGreat Depression?Roosevelt gives aspeech- he promisedAmerica a “new deal”.(National Archives)VUS.10d
New Deal This program changed therole of the government toa more active participantin solving problems. Roosevelt rallied afrightened nation in whichone in four workers wasunemployed. ("We havenothing to fear, but fearitself.")FDR was elected 4times as President!
Roosevelt RestoredConfidence: The “BankHoliday” Fireside Chats The “BrainTrust”
The “3 R’s” Relief: direct assistance to thepoor Recovery: stimulating theeconomy to get it rolling again Reform: government policies toprevent another economiccollapse
Relief measures provided directpayment to people for immediatehelp Works ProgressAdministration (WPA):provided immediatejobs for people to do awide variety of tasks. Civilian ConservationCorps (CCC): gave jobsto young men to buildroads, plant trees andother conservation jobs.This CCC worker isplanting trees toprevent soil erosion.(National Archives photo)
Recovery programs were designedto bring nation out of depressionover time Agricultural AdjustmentAdministration (AAA):Subsidies to farmers whocut production- causedprices of crops to rise-helping farmers. National RecoveryAdministration (NRA): Setcodes for “fair trade”-minimum wage andworkers’ rightsMember businesses of theNRA displayed the “BlueEagle”. The AAA and theNRA were eventuallydeclared unconstitutionalby the Supreme Court.
Reform measures correctedunsound banking and investmentpractices Federal Deposit InsuranceCorporation (FDIC):established to protectpeople’s deposits in banks torenew faith in bankingsystem The Securities ExchangeCommission (SEC) providednew rules under which thestock market could preventanother crash.
Social Security Social Security Actprovided retirementplan for workers Provides old age,survivor, anddisabilitycompensation Longest lastingprogram...and stillan explosive issuetoday!
A permanent change inAmerica: The New Deal alteredpermanently the roleof Americangovernment in theeconomy. It also fosteredchanges in people’sattitudes towardgovernment’sresponsibilities. Organized laboracquired new rights,as the New Deal set inplace legislation thatreshaped modernAmerican capitalism.
Legacies of the New Deal Greater government involvement in people’slives – the government assumed theresponsibility to deliver public services Government size and power grew as theexpectation to intervene in the economy Relationship changed between thegovernment and the people as thegovernment increased its role to “promote thegeneral welfare” The New Deal did NOT bring us out of theGreat Depression...It would take anotherWorld War!