The New Deal

The Three R’s Relief, Recovery and Reform

Impact of the Great Depression

Bread lines and Soup Kitchens

Malnutrition among children

25 – 30 Percent Unemployment

Public Works Administration PWAGovernment built schools, hospitals, roads and other public facilitiesTo provide jobs and improve the infrastructure.

Social Security ActNational pension plan to provide government payments to the elderly and disabled people.

Securities and Exchange Commission(SEC)

Government Agency that monitors the Stock Market to ensure fairness and enforces laws that regulate the stock market.

Federal Deposit Insurance Corporation(FDIC)

Federal insurance company that insures peoples money in banks up to $100,000.

Agricultural Adjustment Act (AAA)

Government paid farmers to not produce farm products.This would reduce supply and raise the price of crops.

Civilian Conservation Corps (CCC)Provided jobs to young men working in parks and national forests. Some of their pay had to be sent home to help the family get by.

Works Progress Administration (WPA)Provided construction jobs on hospitals, bridges, parks. Also hired actors and artists to put on plays, and paint mural on public buildings

National Industrial Recovery Act(NIRA) or (NRA)

Government created production codes and established minimum wages and maximum working hours. Declared unconstitutional by the Supreme Court.

Tennessee Valley Authority (TVA)Government built hydro-electric power dams along the Tennessee River. This provided electric power to several states including NC.

Court Packing SchemeAfter the Supreme Court ruled that the AAA and the NRA were unconstitutional, FDR tried to add 6 more judges to the Supreme Court,but Congress would not allow it. They said that Roosevelt was trying to take over the Supreme Court by putting his supporters on the court. This is known in history as the Court Packing Scheme.

Impact of New Deal

•The size and power of the Federal government grows.•The Federal government has more control over the economy.•People now expect the government to provide the poor and elderly with financial support.•Taxes increase to pay for the government programs.•Deficit spending by the government become commonplace. •The government borrows money each year to pay for the social programs.•Since New Deal, other government programs to help the elderly and poor have been passed such as Medicaid and Medicare and Obamacare