The New Deal and 3 R's
The New Deal came about when Roosevelt decided it was the governments duty to help American people through tough times, like the Great Depression. He quickly delivered the New Deal which addressed reforms to guide America through the catastrophic events. Roosevelt got together with a group of university scholars and liberal theorists. to discuss what actions had to be made to help the struggling nation. During the first 100 days of his presidency, a never-ending stream of bills was passed in order to reduce poverty, unemployment, and speed up the economic recovery process.
First Hundred Days
The president, Roosevelt immediately started to submit reform and recovery measures for the congress to agree to. many important bill were passed. Roosevelt made a lot of changes, focusing on primarily the bank crisis. Roosevelt and congress passed laws to protect the market and bond investors.
-Emergency Banking Act, allowed the president with the ability to reopen viable banks.
-Economy Act, cut federal costs through reorganization
-Beer-Wine Revenue Act, legalized and taxed wine and beer
-Civilian Conservation Corps Act, Three million young men, between the ages of 18 to 25, found work in road building, forestry labor and flood control
-Federal Emergency Relief Act, established the Federal Emergency Relief Administration to distribute $500 million to states and localities for relief
-Emergency Banking Act, allowed the president with the ability to reopen viable banks.
-Economy Act, cut federal costs through reorganization
-Beer-Wine Revenue Act, legalized and taxed wine and beer
-Civilian Conservation Corps Act, Three million young men, between the ages of 18 to 25, found work in road building, forestry labor and flood control
-Federal Emergency Relief Act, established the Federal Emergency Relief Administration to distribute $500 million to states and localities for relief
Second Hundred Days
Congress also passed several more important relief and reform measures in the summer of 1935, also called the Second Hundred Days.During the Second Hundred Days, congress and Roosevelt passed:
-National Employment System Act, created the U.S. Employment Service
-Home Owners Refinancing Act, to establish the Home Owners Loan Corporation
-Glass-Steagall Banking Act, established the Federal Bank Deposit Insurance Corporation,
-Farm Credit Act, provide for the refinancing of farm mortgages
-Emergency Railroad Transportation Act, increased federal regulation of railroads
-National Industrial Recovery Act, established the Public Works Administration.
-National Employment System Act, created the U.S. Employment Service
-Home Owners Refinancing Act, to establish the Home Owners Loan Corporation
-Glass-Steagall Banking Act, established the Federal Bank Deposit Insurance Corporation,
-Farm Credit Act, provide for the refinancing of farm mortgages
-Emergency Railroad Transportation Act, increased federal regulation of railroads
-National Industrial Recovery Act, established the Public Works Administration.
The 3 R's
Relief
Immediate action taken to halt the economies deterioration.
Immediate action taken to halt the economies deterioration.
Emergency Banking Act
Closed the insolvent banks and only reopened the solvent ones.
Closed the insolvent banks and only reopened the solvent ones.
Home Owners Loan Corp.
Gave loans to home owners so they could pay their mortgages. This prevented people from going homeless and prevented banks from going under.
Gave loans to home owners so they could pay their mortgages. This prevented people from going homeless and prevented banks from going under.
Farm Credit Act.
Created an agency that covered everything to do with farms and gave out farm mortgages.
Created an agency that covered everything to do with farms and gave out farm mortgages.
Reform
Permanent programs to avoid another depression and insure citizens against economic disasters.
Permanent programs to avoid another depression and insure citizens against economic disasters.
Railroad Coordination Act:
Saved the railroad industry by enforcing consolidation, rate- making reforms and was a coordinated transportation system.
Saved the railroad industry by enforcing consolidation, rate- making reforms and was a coordinated transportation system.
Tennessee Valley Authority (TVA)
Agency created to build dams in the Tennessee river valley. These dams provided more stable irrigation and cheap hydroelectric power.
Agency created to build dams in the Tennessee river valley. These dams provided more stable irrigation and cheap hydroelectric power.
Beer Act:
This law made the sale of beer and wine legal and taxable, a step to end prohibition.
This law made the sale of beer and wine legal and taxable, a step to end prohibition.
Recovery
"Pump - Priming" Temporary programs to restart the flow of consumer demand.
"Pump - Priming" Temporary programs to restart the flow of consumer demand.
Civilian Conservation Corps (CCC)
Temporary jobs to unmarried single adults filling sand bags and helping out at disaster type situations. Participants lived in barracks type housing.
Temporary jobs to unmarried single adults filling sand bags and helping out at disaster type situations. Participants lived in barracks type housing.
Securities & Exchange Commission (SEC)
Permanent Agency set up to monitor stock market activity and ensure that no fraud or insider trading was taking place.
Permanent Agency set up to monitor stock market activity and ensure that no fraud or insider trading was taking place.
National Industrial Recovery Act (NIRA)
Created the NRA (National Recovery Administration) a consortium of businesses organized by the government and given the power to set rules and regulations for the economy. Members of the NRA displayed a blue eagle.
Created the NRA (National Recovery Administration) a consortium of businesses organized by the government and given the power to set rules and regulations for the economy. Members of the NRA displayed a blue eagle.
Other Acts Passed in The New Deal:
Soil Conservation Act
Laws mandating proper soil maintenance to make sure that another dust bowl was avoided.
Laws mandating proper soil maintenance to make sure that another dust bowl was avoided.
Social Security Administration
Permanent agency designed to ensure that the older segment of society always would have enough money to survive. The key here is that they would then also be able to spend throughout their lives.
Permanent agency designed to ensure that the older segment of society always would have enough money to survive. The key here is that they would then also be able to spend throughout their lives.
“Truth in Securities” Act
This law made it a requirement for sellers of stocks and bonds to make public information about the securities. allowing the Federal Trade Commission to block a sale.
This law made it a requirement for sellers of stocks and bonds to make public information about the securities. allowing the Federal Trade Commission to block a sale.
Federal Deposit Insurance Corporation (FDIC)
Permanent Agency designed to insure depositors money in savings banks. Originally insured up to $5,000 per depositor today it has increased to $250,000.
Permanent Agency designed to insure depositors money in savings banks. Originally insured up to $5,000 per depositor today it has increased to $250,000.
Civil Works Administration (CWA)
Provided temporary jobs repairing roads and bridges.
Provided temporary jobs repairing roads and bridges.
Works Progress Administration (WPA)
Provided long term government jobs building schools and other public works projects.
Provided long term government jobs building schools and other public works projects.
Agricultural Adjustment Act (AAA)
Taxed food processors and gave the money directly to farmers as a payment for not growing food. This decreased supply so price would go up.
Taxed food processors and gave the money directly to farmers as a payment for not growing food. This decreased supply so price would go up.
National Labor Relations Act and National Labor Relations Board (NLRA/NLRB)
Otherwise known as the Wagner Act it helped unions and thus helped workers. This acted created the NLRB (National Labor Relations Board) which enforced labor law and made sure that fair business practices where upheld.
Otherwise known as the Wagner Act it helped unions and thus helped workers. This acted created the NLRB (National Labor Relations Board) which enforced labor law and made sure that fair business practices where upheld.
Federal Emergency Relief Act (FERA)
Gave immediate help to those that needed it in the form of cash payments.
Gave immediate help to those that needed it in the form of cash payments.