The New Deal(s) |
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The First One Hundred Days
Alphabet Agencies
Do you know your AAA from your CCC?
Roosevelt’s First ‘New Deal’ (1933-34) - Summary
Key Elements of Roosevelt’s First New Deal
- Emergency Banking Relief Act (EBRA),Gave the President power to regulate banking transactions and reopen solvent banks to restore confidence in the banking system. 1933
- Civilian Conservation Corps (CCC),Provided jobs for young men to work on environmental conservation projects, including reforestation, flood control, and improving national park infrastructure. 1933
- Agricultural Adjustment Act (AAA),Aimed to raise agricultural prices by paying farmers to cut production; this was intended to boost farmers’ income and reduce crop surpluses. 1933
- Tennessee Valley Authority (TVA),Created to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley region. 1933
- National Industrial Recovery Act (NIRA),Established codes of fair practice for industries and promoted industrial growth. Included the Public Works Administration (PWA) to fund infrastructure projects. 1933
- Federal Emergency Relief Act (FERA),Granted federal funds to state and local agencies to help the unemployed. 1933
- Glass-Steagall Banking Act,Separated commercial banking from investment banking, established the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits. 1933
- Securities Act of 1933 and Securities Exchange Act of 1934. Established the Securities and Exchange Commission (SEC) to regulate the stock market. 1933 & 1934
The Second New Deal (From 1935) - Summary
- Social Security Act (1935):** Established a comprehensive social insurance program including retirement benefits for elderly, unemployment insurance, and aid for dependent children and disabled individuals.
- Works Progress Administration (WPA):** Provided millions of jobs through public works projects, including the construction of roads, schools, and public buildings, and supported arts, drama, media, and literacy projects.
- National Labor Relations Act (Wagner Act, 1935):** Guaranteed workers' rights to unionize and collectively bargain, leading to significant growth in labor union membership and power.
- Rural Electrification Administration (REA):** Aimed to bring electricity to rural America, significantly improving living standards and agricultural productivity in previously underserved areas.
- Banking Act of 1935:** Strengthened the Federal Reserve's control over the banking system, improving regulatory oversight and aiming to prevent future financial crises.
- Wealth Tax Act (1935):** Imposed higher taxes on the wealthy and big corporations, aiming to redistribute wealth more evenly and fund New Deal programs.
First and Second New Deals - compared
The First and Second New Deals by President Franklin D. Roosevelt both aimed to tackle the Great Depression but each focused on different areas.
The First New Deal (1933-1934) was about immediate relief and recovery. It introduced programs (alphabet agencies) to stabilize the banking system, provide emergency relief to the unemployed, and start public works projects to get people back to work. Roosevelt saw this as him ‘priming the pump’. The Second New Deal (1935-1936), on the other hand, aimed at longer-term reforms - and the creation of a ‘welfare state’. It introduced the Social Security Act to help the elderly and unemployed, the Wagner Act to strengthen labor unions, and the Works Progress Administration to create more jobs. It also worked on improving the country's infrastructure and making sure electricity reached rural areas. This phase was more about creating safety nets to make sure the problem didn’t happen again, focusing on long term social justice and economic security. |