New Deal LegislationA.P. U.S. HISTORY

FDR & the Three R’s

RELIEFREFORMRECOVERY

Agricultural Adjustment Act #1, 1933 Helped to counteract overproduction and bring up

falling prices that were hurting farmers An allotment system with cash subsidies to

farmers who cut production “Rent” for uncultivated fields & cash for reducing livestock Applied unevenly; helped larger farms, hurt tenant farmers

Paid for by tax on food processors Ruled unconstitutional (violated states’ rights & tax

benefited only a limited group)

Later Farming Acts Soil Conservation & Domestic Allotment Act,

1936 Farmers paid to plant soil-conserving crops or

leave fields fallow Court approved this act with its emphasis on soil

conservation

Second Agricultural Adjustment Act, 1938 Continued conservation payments; gave parity

payments on restricted crops; more fair prices

Civilian Conservation Corps, 1933 One of most popular, least controversial

programs Put young men to work in forests and parks

Fire-fighting Reforestation Flood control Swamp drainage

Most of money earned was sent to families Semi-military discipline

Federal Emergency Relief Act, 1933 Intended to keep people from starving till

recovery programs could work Much of it went to direct dole payments to

unemployed for: Food, shelter, clothing

Some went to wages for work projects (CWA: Civil Works Administration)

Continued for 2 years

Glass-Steagall Banking Reform Act, 1933*

Created the Federal Deposit Insurance Corporation (FDIC)

Insured individual deposits Practically eliminated bank failures Separated investment banking from

commercial banking to stop use of depositors’ funds for speculation

National Industrial Recovery Act, 1933

Created the National Recovery Administration

Encouraged 200+ industries to cooperate in creating codes for “fair competition”

Intended to: provide for minimum wages and maximum hours Keep prices and wages high

NIRA cont. Labor won the right to bargain collectively

with representatives of own choosing* ‘yellow dog” contract forbidden

Proved to be too complicated, unwieldy and prone to abuse

Declared unconstitutional in Schechter case Congress couldn’t give legislative power to Pres.

or control interstate commerce (chickens!)

National Youth Administration, 1935

Part of the Works Progress Admin (WPA) For “emergency relief and employment to

persons between the ages of 16 and 25” For on-campus jobs to help high school and

college students stay in school Also for young people who had left school

Works Progress Administration, 1935 Main federal relief agency from 1935-1943 Put relief workers on the federal payroll

Constructed roads, buildings, parks, airports, and bridges

Also employed artists such as actors, writers, musicians, painters (post office murals) thru “Federal One“ (Federal Art Project)

Paid only $55/month (subsistence=$100), but gave activity and self-respect

Rural Electrification Admin., 1935 Created a national program to bring

electricity to rural areas Private companies had bypassed rural

areas: “farmers too poor” REA set up 417 rural electric cooperatives

which also spurred private companies to electrify countryside

In concert with TVA

Federal Securities Act, 1933 & 1935*

Created the Securities and Exchange Commission to regulate the stock market by overseeing The buying of stock on “margin” (with credit) Restrict insider speculation (Martha Stewart?)

Full disclosure on stocks and bonds must be provided to buyers

Tennessee Valley Authority, 1933* One of most extensive and controversial

New Deal Programs (“too socialist”) Built 5 dams on the Tennessee River

To generate low-cost electrical power To establish “yardstick” for regulation of private

power companies To create jobs for some of poorest in US To improve the environment of the Tenn Valley

Wagner Act, 1935 AKA the National Labor Relations Act Set up National Labor Relations Board to

protect workers’ rights, including the right to collective bargaining

Outlawed unfair labor practices (blacklisting, etc)

Social Security Act, 1935* Provided basic pensions to most retired

private-sector workers over 65 Paid out of a federal-state pension fund to which

employers & employees contributed

Also aided dependent survivors, blind and other disabled

Joint federal-state unemployment benefits program, administered by the states

Frazier-Lemke Farm Bankruptcy Act, 1934

Suspended farm mortgage foreclosures for 5 years (1933)

Supreme Court found it unconstitutional Revised version upheld (1935)

Allowed suspension for 3 years

Public Works Administration, 1935

Established to employ large numbers of people on 34,000 useful projects

Spent billions on long-term projects such as Public buildings, bridges, roads and dams

Grand Coulee Dam on Colombia River

Federal Deposit Insurance Corp.* See Glass-Steagal Banking Reform Act

Housing Homeowners Loan Corporation, 1933

Refinancing for homes in danger of foreclosure (modification of Hoover measure)

Federal Housing Administration,1934* Small loans to householders to build or improve Insured home mortgages Helped revive the construction industry

US Housing Authority Subsidized slum clearance & housing projects

Critics Father Charles Coughlin (Michigan) Senator Huey Long (Louisiana) Francis Townsend (Long Beach, CA)