| New Deal Initiative: | Description: | Outcome:
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| Emergency Banking Act/Federal Deposit Insurance Corporation (FDIC)
| Right after taking office as President, FDR shut down all of the banks in the nation and
Congress passed the Emergency Banking Act which gave the government the
opportunity to inspect the health of all banks. The Federal Deposit
Insurance Corporation (FDIC) was formed by Congress to insure deposits up to
$5000.
| These measures reestablished American faith in banks. Americans
were no longer scared that they would lose all of their savings in a bank
failure. Government inspectors found that most banks were healthy, and
two-thirds were allowed to open soon after. After reopening, deposits had
exceeded withdrawals.
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| Federal Emergency Relief Administration (FERA)
| Led by Harry Hopkins, a former social worker, this agency sent funds to
depleting local relief agencies. Within two hours, $5 million were given
out. Mr. Hopkins believed that men should be put to work and not be given
charity. His program also funded public work programs.
| Revitalized many deteriorating relief programs.
|
| Civil Works Administration (CWA)
| This public work program gave the unemployed jobs building or repairing
roads, parks, airports, etc.
| The CWA provided a psychological and physical boost to its 4 million
workers.
|
| Civilian Conservation Corps (CCC)
| This environmental program put 2.5 million unmarried men to work maintaining
and restoring forests, beaches, and parks. Workers earned only $1 a day but
received free board and job training. From 1934 to 1937, this program
funded similar programs for 8,500 women.
| The CCC taught the men and women of America how to live
independently, thus, increasing their self esteem.
|
| Indian Reorganization Act of 1934
| This act ended the sale of tribal lands and restored ownership of
unallocated lands to Native American groups.
| The outcome was obviously positive for the Native Americans.
|
| National Industrial Recovery Act (NIRA) of June 1933
| The decline in the industrial prices in 1930s caused business failures and
unemployment. The NIRA was formed in order to boost the declining prices,
helping businesses and workers. The NIRA also allowed trade associations in
many industries to write codes regulating wages, working conditions,
production, and prices. It also set a minimum wage.
| The codes stopped the tailspin of prices for a short time, but
soon, when higher wages went into effect, prices rose too. Thus,
consumers stopped buying. The continuous cycle of overproduction and
underconsumption put businesses back into a slump. Some businesses felt
that the codes were too complicated and the NRA was too rigid. Declared
unconstitutional later on.
|
| Public Works Association (PWA)
| The PWA launched projects such as the Grand Coulee Dam on the Columbia River.
| One of the best parts of the NIRA.
|
| Federal Securities Act of May 1933/ Securities and Exchange
Commission (SEC)
| This act required full disclosure of information on stocks being sold. The
SEC regulated the stock market. Congress also gave the Federal Reserve
Board the power to regulate the purchase of stock on margin.
| Critical for long-term success for businesses.
|
| Home Owners Loan Corporation (HOLC) / Agriculture Adjustment
Administration (AAA)
| In order to help people keep their houses, the HOLC refinanced mortgages of
middle-income home owners. The AAA tried to raise farm prices. It used
proceeds from a new tax to pay farmers not to raise specific crops and
animals. Lower production would, in turn, increase prices.
| Farmers killed off certain animals and crops as they were told to
by the AAA. Many could not believe that the federal government was
condoning such an action when many Americans were starving. Declared
unconstitutional later on.
|
| Tennessee Valley Authority (TVA) (May 1993)
| The TVA helped farmers and created jobs in one of America s least modernized
areas.
| Reactivating a hydroelectric power plant provided cheap electric
power, flood control, and recreational opportunities to the entire Tennessee
River valley.
|
| Works Progress Administration (WPA) 1935-1943
| This agency provided work for 8 million Americans. The WPA constructed or
repaired schools, hospitals, airfields, etc.
| Decreased unemployment.
|
| Farm Security Administration (FSA)
| The FSA loaned more than $1 billion to farmers and set up camps for migrant
workers.
|
| National Labor Relations Act (Wagner Act)
| It legalized practices allowed only unevenly in the past, such as closed
shops in which only union members can work and collective bargain. The act
also set up the National Labor Relations Board (NLRB) to enforce its provisions
|
| Fair Labor Standards Act of 1938
| This banned child labor and set a minimum wage.
| This law was a long awaited triumph for the progressive-era social
reformers.
|
| Social Security Act
| This act established a system that provided old-age pensions for workers,
survivors benefits for victims of industrial accidents, unemployment
insurance, and aid for dependent mothers and children, the blind and
physically disabled.
| Although the original SSA did not cover farm and domestic workers,
it did help millions of Americans feel more secure.
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