Franklin Roosevelt and The New Deal In 1932, voters elected a new president: Franklin D. Roosevelt (FDR). Roosevelt was very positive and offered hope to hurting Americans. He was prepared to try new things to deal with the Great Depression. He is famous for his pledge he made, “I pledge you, I pledge myself to a new deal for the American people”.

Franklin Roosevelt and The New Deal He introduced the New Deal, which is a government program that relied on deficit spending. Deficit spending is when the government goes into debt by spending borrowed money, in hopes that its programs would get people back to work and the economy headed in the right direction. One New Deal program was the Civilian Conservation Corps (CCC). The CCC provided jobs for young, unmarried men. These men worked in national parks installing electric lines, building fire towers and planting new trees.

New Deal Programs and their Impact  CCC – Civilian Conservation Corps: New Deal government agency that hired unmarried men ages 17-23_as well as war veterans of all ages to work on environmental conservation projects such as national parks, sewer systems, and bridges. o Impact – Provided work for many unemployed citizens. It worked very well in Georgia due to so much rural land and unemployed farmers due to the boll weevil problem.

(c) 2007 brainybetty.com ALL RIGHTS RESERVED.4 New Deal Programs The Civilian Conservation Corps (CCC) This program created jobs for thousands of young war veterans who were suffering from job loss & poverty In exchange for work, the men received housing, food, and money Work included soil conservation, reforestation, fire prevention, and park building Educational classes and job training were also provided Many Georgia parks were built by the CCC

CCC

First Agricultural Adjustment Act (AAA) Purpose: the recovery of agriculture Paid farmers who agreed to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer

New Deal Programs and their Impact  AAA – Agricultural Adjustment Act: Law passed by congress to pay farmers to grow and not to grow certain crops. This was an effort by the government to raise farm prices by paying farmers to change from growing cotton to produce more diverse crops. o Subsidies – Payments made to farmers by the government as incentive to produce or not produce certain crops. o Impact – Encouraged farmers to produce crops such as peanuts, corn, livestock, and not grow cotton. Today, Georgia is a leading producer of those crops, as well as peaches, poultry, and chicken.

(c) 2007 brainybetty.com ALL RIGHTS RESERVED.8 New Deal Programs The Agricultural Adjustment Administration (AAA) Purpose of the Agricultural Adjustment Act was to raise the price of staple crops by limiting supply Farmers in GA were paid to plant less cotton to drive the prices up This administration also hoped to raise the price of farms and vary crops grown They also hoped to protect the soil from being overworked

(c) 2007 brainybetty.com ALL RIGHTS RESERVED.9 New Deal Programs The Rural Electrification Administration (REA) Before 1935, very few rural areas in GA and around the country had electricity Private electric companies did not offer service to many people who lived near power lines This agency provided loans to states to improve electric service to rural areas The money was used to build power plants & power lines Within four years, GA was leading the country in the number of REA groups

New Deal Programs and their Impact (cont’d)  REA – Rural Electrification Administration: New Deal program that provided electricity to people in rural areas. o Impact – Within 15 years most farms and people that lived in rural areas had electricity.  SSA – Social Security Act: A new deal program that provided retirement pay and other government benefits such as unemployment insurance to workers. The act passed in 1935 despite the opposition from then Georgia Governor Eugene Talmadge. o Impact – People now had a government backed retirement and help if they lost their jobs. o Fact – Social Security is the only New Deal program still in effect today.

Franklin Roosevelt and The New Deal The New Deal also introduced a program to help people who retired or who were out of work. This program was called Social Security. It promised government money to the unemployed and those over 65. Social Security is the only New Deal program that still exists today.

(c) 2007 brainybetty.com ALL RIGHTS RESERVED.12 New Deal Programs The Social Security Act Passed by Congress in 1935 Permanent plan to protect workers from losing their wages Two social insurance programs were formed to remedy severe poverty & prevent it in the future: Old-age benefits for retiring workers would support them when they could no longer work (managed by federal government) Insurance was provided for unemployed and disabled to provide people with a sense of security in their jobs (managed by state & federal government)

Franklin Roosevelt and The New Deal The New Deal did NOT end the Depression. It wasn’t until WWII that the US economy greatly improved. The New Deal DID supply some relief to help get people through one of the darkest economic times in US history.