The Impact of the New Deal Ch. 15-4

Expanded the Size of the Federal Government Government takes an active role in the economy; – Infusing the economy with cash; – Creating federal jobs (WPA, CCC); – Regulating supply & demand (AAA) – Settling labor/management disputes – Establishing new government agencies; Federal Deposit Insurance Corp. (FDIC) – insures deposits at banks Securities & Exchange Commission (SEC) – regulates buying/selling of stock

Protected Workers’ Rights Wagner Act & Fair Labor Standards Act – Set standards for wages and hours – Banned child labor – Ensured workers’ right to organize and bargain collectively – Created the National Labor Relations Board to mediate labor disputes

Social Security Government assumes some responsibility for the well-being of citizens. Social Security provides: – old-age insurance (support for retired workers) – unemployment compensation – aid to people with disabilities and families with dependent children

Agriculture New Deal legislation set quotas on certain farm products to control surpluses Made loans to farmers Environment FDR was committed to conservation CCC planted trees, created hiking trails ect. Soil Conservation Service taught farmers how to conserve soil TVA harnessed water power to generate electricity and prevent floods Added to the national park system

The New Deal Coalition The New Deal Coalition: a collection of various groups dedicated to supporting the Democratic party. – Southern Whites (often farmers) – Various Urban groups Immigrants and other ethnic minorities Working poor – African Americans – Unionized workers

Criticisms of the New Deal Did not actually end the depression; Increased the size of government; – Government more involved in our everyday lives; Government went deeply into debt to fund New Deal programs; – Our national debt is HUGE (now approaching 16 trillion) Increased the federal deficit; – The Government spent more money than it collected in taxes – continuing into the present New Deal programs, like Social Security continue to cost the government lots of $$$$$$

Reflection Should we consider the New Deal a success or a failure? Did the New Deal help or hurt America? How successful do you think FDR was as president? Support your opinions with facts!!!