The “New Deal”

8.3 Students will understand how the government expanded its role to meet the challenge of the Great Depression.

What different areas did the federal government suddenly get involved in?

“We have nothing to fear but fear itself” (and deflation)

Deflation

Alphabet Agencies

“fireside chats” (1933-1944)

Series of 30 evening radio addresses given by FDR

15-45 minutes long, usually started with “Good evening, friends”

80% of the words were from the 1,000 most common words in the English language

Purpose: To take his message directly to the people, reassure the public about the recovery, and ask them to have faith in the banks and the New Deal laws

“fireside chats” (1933-1944)

AAA (May 12, 1933) Agricultural Adjustment Act Federal loans restricted agricultural

production by paying farmers subsidies NOT to plant a part of their land and to kill off excess livestock

Created the Agricultural Adjustment Administration to oversee distribution of subsidies

Purpose: To reduce surplus supply to raise value of crops

Money to pay subsidies came from a tax on food processing companies

AAA (1936) Ruled

unconstitutional in 1936 . Supreme Court said regulation of agricultural was a state power

Law was changed so money came from Federal government instead

FDIC (1933) Federal Deposit Insurance

Corporation Government corporation created

by the Glass-Steagall Act of 1933 Provided deposit insurance in

member banks up to $2,500 Banks were required to place

signs that said:

SEC (June 6, 1934)

Created a federal agency, the Securities and Exchange Commission

Five commissioners, appointed by the President to 4-year staggered terms

Enforces securities laws Regulates the nation’s stock exchanges Purpose: To prevent corporate abuses Investigates fraud, false information,

“insider trading” Public companies must submit quarterly

and annual reports

security = stock

SSA (August 14, 1935) Created independent

government agency to administer Social Security (social insurance)

Workers pay social security tax on earnings

When they retire or become disabled or their survivors’ need money, benefits are based on contributions during their lifetimes

The first Social Security check

WPA (1935-1943) Created the Works Progress

Administration (renamed in 1939 as the Works Projects Administration)

Employed millions of unskilled workers to carry out public works projects.

Tried to provide one paid job for all families where breadwinner suffered long-term unemployment

At peak in 1939 gave paying jobs for 3 million unemployed men (some women)

Between 1933-1943, created 8 million jobs

WPA

Fed children, redistributed food, built bridges, parks (especially in rural areas and the West)

Created public buildings, roads, opera, arts, drama, media, literary projects

The Effects of the New Deal

“socialism”? Many

criticized the New Deal as being a “socialistic experiment”

Does history repeat itself?

Does history repeat itself?

Does history repeat itself?

Who was right,Hoover or Roosevelt?