The New Deal Notes

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The 3 R’s that the New Deal focused on:

★ Relief: help for the unemployed and the poor


★ Recovery of the economy
★ Reform of the financial system to prevent depression

1. Relief agencies
■ Soup kitchens: government provided the Federal
Emergency Relief Administration (FERA) with money to feed
people
■ Job creation: The Civil Works Administration (CWA)
created jobs with low wages. CWA workers repaired roads
and schools. The CWA also employed teachers to teach adult
literacy. It hired unemployed writers, photographers,
painters and performers to raise the morale of America’s
people.

2. Recovery agencies
● ·Agriculture: Congress passed the Agricultural Adjustment
Act (AAA). The intention was to stop overproduction and
help farmers who suffered. The government paid farmers to
produce less (crops, meat, milk) and taxed big food
processing companies to raise money for Farmers.
● Industry: The National Industry Recovery Act (NRA)
intended to get the economy moving again. It controlled
American industry to ensure that big and small businesses
along with trade unions could collaborate. Set limits to
prevent overproduction.
● Public works: US government gave the Public Works
Administration
(PWA) millions of $ to build roads, dams, libraries, hospitals,
schools and courts.

3. Reform agencies
● Banking: Roosevelt’s first act as president was to deal with
the banking crisis. Many banks were forced to close due to
the GD and people started losing their faith in the system.
They drew their savings and stored their money at home.
Roosevelt ordered all banks to close and congress passed the
Emergency Banking Relief Act to ensure that they would only
reopen once they were found to be financially secure.
● Trade unions: The National Labour Relations Board (NLRB)
was set up and allowed for trade unions to be formed. Made
it illegal for workers to be harassed during a strike.
● State responsibility for welfare: The Social Security Act
(SSA) provided
the unemployed with wages and the elderly with pensions.
Opposition to the New Deal
● Opposition from wealthy & conservative: resented
paying social security contributions and extra tax and
power of unions. Republicans feared high
government spending, increased taxes and
bureaucracy
● Criticism from the left: Huey Long argued for redistribution
of wealth and
nationwide minimum wage. American Communists saw
FDR as a dictator. Catholic priest (Charles Coughlin)
disappointed at slow rate of reform.
● Opposition within the Democrats: Representatives of Southern
States against
viewing African Americans as political and social equals

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