1. The New Deal Franklin D. Roosevelt & The First New Deal

2. The New Deal A relief and recovery program instituted by FDR to confront the emergency of the depression = Numerous programs and legislation to achieve recovery

3. The New Deal & Banking

4. The Bank Holiday Temporary closure of all banks –March 6-12, 1933 Designed to stop the massive withdrawals from banks

5. 1. Emergency Banking Act Authorized the fed. government to examine all banks Only banks that were financially sound could reopen Goal: restore public confidence in the banking system

6. 2. FDIC Federal Deposit Insurance Corp. Created by Congress to insure bank deposits –Insured deposits up to $5000

7. FDIC Today Increased its amount of protection for depositors to $250,000

8. 3. Home Owners Loan Corporation (HOLC) Created to assist homeowners who couldn’t pay their mortgage Granting low-interest, long-term loans

9. 4. Farm Credit Administration (FCA) Provided low-interest, long-term loans to farmers Allowed farmers to keep their farms, buy them back, or purchase equipment & supplies

10. The New Deal & Poverty Relief

11. 5. Federal Emergency Relief Admin. (FERA) Distributed money for relief to state & local governments Over ½ of money was distributed to families in need Other ½ went to work-relief projects (raking leaves, litter)

12. 6. Civilian Conservation Corps (CCC) Provided jobs for unemployed young men 18 – 25 Planted trees, cleared brush, created park trails, and developed campgrounds in national parks

13. The New Deal & Economic Recovery

14. 7. Securities & Exchange Commission (SEC) Created to protect investors from stock fraud Regulated companies that sold stocks & bonds Goal: restore faith in the stock market

15. SEC Today Continues to regulate companies selling stocks & bonds

16. 8. National Industrial Recovery Act (NIRA) Stimulate industrial & business activity and to reduce unemployment Goal: stabilize prices, raise wages, limit hours, and create jobs

17. 9. Public Works Administration (PWA) NIRA agency created to make jobs Built roads, public buildings, and other public projects

18. 10. National Recovery Administration (NRA) stabilize prices, raise wages, & reduce work hours Encouraged companies to create codes of fair competition Eventually ruled unconstitutional

19. The New Deal & Farmers

20. 11. Agricultural Adjustment Admin. (AAA) Paid farmers to reduce the output of crops Output reduction led to higher prices Farmer’s income increased Critics argued it came at the expense of consumers

21. 12. Tennessee Valley Authority Largest of New Deal Programs Aided a rural seven-state region that was economically distressed Built new dams, flood control stations, and recreational facilities

22. The New Deal Franklin D. Roosevelt & The Second New Deal

23. 1934 Congressional Elections: –Democrats gain more seats With support Roosevelt initiates more New Deal programs

24. 1. The Works Progress Administration (WPA) Designed to help Americans find work Budget: over $5 billion for job creation programs Employed 8.5 million people over the next 8 years

25. WPA: Types of Work Blue-Collar Workers: –Built public buildings & roads White-collar Workers: –Research & teaching jobs Artists: –Given work through the government & encouraged to develop pride in American Culture

26. 2. Contained Three Major Provisions:

27. Unemployment Insurance Provided to workers who lost their jobs Funds came from a payroll tax on employers

28. Pensions Provided to retired workers over the age of 65 Funds came from: –Payroll tax on employers –Tax on employees’ wages

29. Disability A shared federal-state program Provided payments to people with disabilities, the elderly, and wives & children of deceased male workers

30. Result: Social Security Has been expanded to cover 95% of American workers

31. 3. Rural Electrification Administration (REA) Designed to aid Americans Provided electricity to isolated rural areas of the country Also allowed regulation of gas & electricity to keep prices low

32. Result: REA Modernized the isolated parts of the region Finally diversified the South’s economy

33. 4. Revenue Act of 1935 Developed to prevent an unjust concentration of wealth & economic power Sharply raised taxes on the nation’s richest citizens