BY: ESTHER YOO COURTNEY BREEN CHRISTIAN WHALLEY 11. What has been the long term effect of the New Deal on the economy, industrial & farm workers, and banking & finance.

Economy President & Federal Government = More Active In what ways were they “more active”: - Millions of dollars - Created Federal Jobs - Attempted to regulate supply and demand - Set labor & Management disputes

Effects of the New Deals Reduced the suffering of everyone Alleviated many problems Regained sense of dignity  The Federal Government had to go in debt in order to provide jobs and aids  Deficit Spending

Industrial Workers Before:  Workers on their own  Government sided with business not labor During:  Wagner Act and Fair Labor Standards Act  Wages, hours, and banned child labor

Farmers First Agriculture Adjustment Act  Set quotas Second Agricultural Adjustment Act  Parity  Price supports Federal Aid Rural Electrification Administration  Cheap electricity Farmers Subsidizing and workers minimum wages  More money  Economy began to recover

Banking and Finance The New Deals: Securities and Exchange Commission (SEC)- continues to monitor the stock market and enforce laws regarding sale of stocks and bond Federal Deposit Insurance Corporation (FDIC)- shored up the banking system by reassuring individual depositors that their savings are protected against bank failures Today: Individual accounts in US federal banks are insured by FDIC for up to $100,000

Important Key Terms Parity: - a government-supported level for the prices of agriculture products, intended to keep farmers’ income steady. Deficit Spending: - spending more money than the government receives in revenue. National Labor Relations Board: -Created under Wagner Act, continues to act as a mediator in labor disputes between unions and employers

Diagram: Federal Deficit and Unemployment

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A. MORE PEOPLE HAD MORE MONEY TO SPEND B. SOLVED ALL THE PROBLEMS OF THE DEPRESSION C. DIDN’T DO VERY MUCH How did the New Deal legislation effect the nations economy?

THERE WERE MORE JOBS AND AID WHICH GAVE A MAJORITY OF PEOPLE MORE MONEY TO SPEND. A. More people had more money to spend

A. SECURITIES AND EXCHANGE COMMISSION; MONITORS STOCK AND MARKET, & ENFORCES LAWS REGARDING THE SALES OF STOCKS AND BONDS. B. FDIC; PROTECTED AGAINST THE LOSS OF SAVINGS IN THE EVENT OF BANK FAILURE. C. EMERGENCY BANKING RELIEF ACT; AUTHORIZED THE TREASURY DEPARTMENT TO INSPECT BANKS. What was created by the Glass- Steagull Banking Act and why is it so important?

THE FEDERAL DEPOSIT INSURANCE CORPORATION WAS MADE IN ORDER TO PROTECT SAVINGS IN CASE OF ANOTHER EVENT SUCH AS THE STOCK MARKET CRASH. B. FDIC; protected against the loss of savings in the event of bank failure