Franklin Delano Roosevelt (FDR) In 1932, Franklin Roosevelt was elected president of the United States. He inspired support and confidence in the American people and was a master politician. During his campaign, FDR stated, “I pledge you, I pledge myself, to a new deal for the American people”. His program to deal with the problems of the Great Depression was called just that…The New Deal.

The New Deal The New Deal was a series of programs that FDR used to combat the problems caused by the Great Depression. The New Deal had the following goals. Known as the 3 R’s of the New Deal: R: Relief for those who were suffering R: Recovery for the economy so it would grow again. R: Reform measures to avoid future depressions.

Relief Legislation of the New Deal Emergency Banking Act ,1933: FDR closed the nation’s banks by declaring a bank holiday in order to stop the collapse of the national banking system. The law ensured that only financially sound banks were operating. The time banks were closed was used to ensure the public that they could have confidence in banks once they reopened. Federal Emergency Relief Act (FERA), 1933: Between 1933 and 1935, some $500,000 was provided for distribution by states and cities for direct relief and work projects for hungry, homeless, and unemployed people. Public Works Administration (PWA), 1933: Provided jobs through construction projects, such as bridges, housing, hospitals, and schools, and aircraft carriers. Also moved government money into the economy. This “pump priming” was to help create jobs, revive production, and lead to more consumer spending.

Relief Legislation of the New Deal Civilian Conversation Corps (CCC), 1933: the CCC provided work for 2.5 million young men ages 18 to 25 conserving natural resources by planting trees, building bridges and parks and also setting up flood control projects. Only 8,000 women joined the CCC. Works Progress Administration (WPA), 1935: provided work for 25% of adult Americans. Created to replace direct relief public works projects. Spent the most money of any government program. WPA workers built bridges, airports, public buildings, playgrounds, golf courses, and also offered work to writers, artists, musicians, and scholars. Provided jobs to 8.5 million people who left a legacy in books, works of art, public buildings, bridges, tunnels and stadiums still in use today.

Relief Legislation of the New Deal Tennessee Valley Authority (TVA), 1933: built dams to prevent flooding and provide cheap electric power to seven southern states though regional planning; set up schools and health centers. Built 20 dams, and employed up to 40,000 workers. It also reforested millions of acres, built fertilizer factories and power plants and sought to bring electricity to rural areas.

Recovery Legislation of the New Deal National Industrial Recovery Act, 1933: established the NRA (National Recovery Administration) which had the authority to work with businesses to help them recover. Set “codes for fair competition” within industries to maintain prices, minimum wages, and maximum work hours. The NRA was not popular- some consumers claimed the NRA plan raised prices and that small companies felt at a disadvantage compared to larger companies. Some companies even opposed the provision giving unions the right to organize. The NRA was declared unconstitutional in 1935 by Schechter Poultry Corporation v. United States (1935). The court ruled the law illegally gave Congress power to regulate intrastate commerce and violated the separate of powers by giving the legislative powers to the executive branch.

Recovery Legislation of the New Deal First Agricultural Adjustment Act, 1933: aim was to raise farmers’ income by cutting the amount of surplus crops and livestock. The government paid farmers to reduce the number of acres they planted. The public was outraged that crops and animals were being destroyed to keep prices down. The AAA was declared unconstitutional in 1936 in United States v. Butler. Second Agricultural Adjustment Act (AAA), 1938: was passed in response to the drop in farm prices. The government paid farmers to store portions of overproduced crops until the price reached the level of prices from 1909 to 1914. Glass-Steagall Banking Act 1933: created the FDIC (Federal Deposit Insurance Corporation) which guaranteed individual bank deposits up to $5,000 ($250,000 today). The act also separated investment banks commercial ones. The act also increased the power of the Federal Reserve Board so that it more control over speculation on credit.

Reform Legislation of the New Deal Social Security Act 1935: provided old-age insurance, paid by taxes from paychecks, provided unemployment insurance for workers, and gave assistance to dependent children and the elderly, ill, and handicapped. Fair Labor Standards Act 1938: also called the Wages and Hours Act, this law set a minimum wage (25 cents per hour) and a maximum work week (44 hours) for workers in industries involved in interstate commerce. It also banned child labor. It gave Congress the power to regulate interstate commerce. National Labor Relations Act (Wagner Act)1935: guaranteed labor the right to form unions and practice collective bargaining. It created the National Labor Relations Board (NLRB) to halt practices such as blacklisting.