1. Farm, Industry, and Relief 19-1

2. Farms and Industry FDR: farmers/businesses suffering because prices were too low and production was too high FDR: farmers/businesses suffering because prices were too low and production was too high Competition inefficient and bad for economy Competition inefficient and bad for economy Create federal agencies to manage the economy Create federal agencies to manage the economy

3. The AAA Prices too low because supply too high Prices too low because supply too high Program (Agricultural Adjustment Administration): gov’t pay some farmers not to raise certain livestock and not to grow certain crops Program (Agricultural Adjustment Administration): gov’t pay some farmers not to raise certain livestock and not to grow certain crops Some farmers not to produce dairy Some farmers not to produce dairy Farmers slaughtered 6 million baby pigs Farmers slaughtered 6 million baby pigs Plowed under 10 million acres of cotton Plowed under 10 million acres of cotton

5. The AAA Farmers received $1 billion in support payments Farmers received $1 billion in support payments Farm surplus fell by 1936 Farm surplus fell by 1936 Food prices rose as did farm income Food prices rose as did farm income BUT: country in a Depression…so this hurt the public BUT: country in a Depression…so this hurt the public Not all farmers benefited. Large commercial farmers (one crop) benefitted more than small farmers Not all farmers benefited. Large commercial farmers (one crop) benefitted more than small farmers Poor tenant farmers became homeless and jobless when landlords stopped using fields Poor tenant farmers became homeless and jobless when landlords stopped using fields

7. The NRA National Industrial Recovery Act (NIRA) National Industrial Recovery Act (NIRA) Suspended antitrust laws and allowed business, labor, and gov’t to cooperate in setting up voluntary rules for each industry Suspended antitrust laws and allowed business, labor, and gov’t to cooperate in setting up voluntary rules for each industry Codes of fair competitions Codes of fair competitions Prices, min wages, two shifts per day, shorter hours, unionize Prices, min wages, two shifts per day, shorter hours, unionize National Recovery Administration (NRA) National Recovery Administration (NRA) Ran NIRA Ran NIRA Displayed NRA symbol in window Displayed NRA symbol in window

9. The NRA Small companies complained Small companies complained Large corporations wrote the codes to favor themselves Large corporations wrote the codes to favor themselves Employers didn’t like unions Employers didn’t like unions High min wages forces higher prices High min wages forces higher prices Codes hard to enforce, business owners didn’t have to sign agreement Codes hard to enforce, business owners didn’t have to sign agreement Productions fell after the NRA was established Productions fell after the NRA was established NRA unconstitutional in 1935 NRA unconstitutional in 1935

10. Relief Programs Fundamental cause of GD low consumption? Fundamental cause of GD low consumption? Money to needy = recovery Money to needy = recovery Solution = work programs Solution = work programs

11. The CCC Civilian Conservation Corps Civilian Conservation Corps Offered unemployed men 18-25 opportunity to work under the direction of the forestry service planting trees, fighting forest fires, and building reservoirs Offered unemployed men 18-25 opportunity to work under the direction of the forestry service planting trees, fighting forest fires, and building reservoirs Planted 200 million trees to prevent another Dust Bowl Planted 200 million trees to prevent another Dust Bowl Lived in camps, earned $30 a month, $25 of which sent directly to families Lived in camps, earned $30 a month, $25 of which sent directly to families Average: returned home after 6-12 months Average: returned home after 6-12 months 40,000 recruits taught to read and write 40,000 recruits taught to read and write

13. FERA and the PWA Federal Emergency Relief Administration Federal Emergency Relief Administration Harry Hopkins ran agency Harry Hopkins ran agency In two hours he spent $5 million on relief projects In two hours he spent $5 million on relief projects Didn’t make sense in the long run  “People don’t eat in the long run—they eat every day” Didn’t make sense in the long run  “People don’t eat in the long run—they eat every day”

15. FERA and PWA Public Works Administration Public Works Administration 1/3 of nation’s unemployed were in construction agency 1/3 of nation’s unemployed were in construction agency PWA build highways, dams, sewer systems, schools, and other government facilities PWA build highways, dams, sewer systems, schools, and other government facilities Awarded contracts to construction companies Awarded contracts to construction companies Insisted on no discrimination against African Americans Insisted on no discrimination against African Americans

17. CWA Neither FERA nor PWA reduced unemployment significantly Neither FERA nor PWA reduced unemployment significantly Civil Works Administration Civil Works Administration Hired workers directly Hired workers directly Employed 4 million people (300,000 women) Employed 4 million people (300,000 women) 1,000 airports, 50,000 miles of road, 40,000 school buildings, and 3,500 playgrounds/parks 1,000 airports, 50,000 miles of road, 40,000 school buildings, and 3,500 playgrounds/parks Spent $1 billion in just 5 months Spent $1 billion in just 5 months

19. The CWA FDR shut it down in the spring of 1934, afraid that people would get used to the gov’t providing them with jobs FDR shut it down in the spring of 1934, afraid that people would get used to the gov’t providing them with jobs

20. Success of the First New Deal Tons of legislation passed during FDR’s first year Tons of legislation passed during FDR’s first year Did not restore prosperity, but reflected FDR’s zeal for action and willingness to experiment Did not restore prosperity, but reflected FDR’s zeal for action and willingness to experiment Did reopen banks and less people were losing their houses and farms Did reopen banks and less people were losing their houses and farms Most important change: change in spirit of American people Most important change: change in spirit of American people