"I pledge you, I pledge myself, to a new deal for the American people."
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"The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it: If it fails, admit it frankly and try another. But above all, try something."
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“Once I spent two years in bed trying to move my big toe. After that everything else seems easy.”
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What was the New Deal?
"The New Deal was a series of social, economic, and governmental reforms initiated by the administration of Franklin Delano Roosevelt in response to the Great Depression of the 1930s. At the time, the New Deal was met with huge amounts of criticism from some quarters and massive praise from others; in retrospect, the New Deal was a major event in American history. Legacies of New Deal programs can be seen in every state, and it is clear that the New Deal shaped the American landscape and American attitudes.
In 1929, the American stock market crashed catastrophically, setting off a domino affect throughout the American economy. In addition to its economic struggles, the country was also facing major issues in the farming sector, as it became clear that land use policies were not sustainable. Many Americans found themselves extremely poor almost overnight, which triggered social unrest in the already troubled nation.
Roosevelt felt that the country needed three things: Relief, Recovery, and Reform. The New Deal focused on providing relief to unemployed Americans and the troubled manufacturing sector while promoting economic recovery and reforming the American finance system to prevent the recurrence of the Depression. Roosevelt pushed a number of acts of legislation and policy which came to be collectively known as the “New Deal,” a reference to a statement that he made in his inauguration speech.
Relief was provided through a number of social programs which created employment for many Americans. The New Deal was the driving force behind the construction of dams, state park facilities, and a wide range of other public facilities throughout the United States. New Deal work crews helped to build homes, pave roads, and build public structures, among many other things. The New Deal also established Social Security, and pushed membership in labor unions and sustainable farming
Under the New Deal, American financial systems were also reformed. Roosevelt pushed for a balance budget, more financial responsibility, and other policies which promoted economic health and growth. He also encouraged involvement in the Second World War, since he knew that it would revitalize the American economy. In addition, the New Deal had an impact on the arts, as it established funding for artists under the Works Progress Administration (WPA). Many enduring artistic expressions of the Great Depression were produced by artists with support from the WPA."
Source: Wise Geek
In 1929, the American stock market crashed catastrophically, setting off a domino affect throughout the American economy. In addition to its economic struggles, the country was also facing major issues in the farming sector, as it became clear that land use policies were not sustainable. Many Americans found themselves extremely poor almost overnight, which triggered social unrest in the already troubled nation.
Roosevelt felt that the country needed three things: Relief, Recovery, and Reform. The New Deal focused on providing relief to unemployed Americans and the troubled manufacturing sector while promoting economic recovery and reforming the American finance system to prevent the recurrence of the Depression. Roosevelt pushed a number of acts of legislation and policy which came to be collectively known as the “New Deal,” a reference to a statement that he made in his inauguration speech.
Relief was provided through a number of social programs which created employment for many Americans. The New Deal was the driving force behind the construction of dams, state park facilities, and a wide range of other public facilities throughout the United States. New Deal work crews helped to build homes, pave roads, and build public structures, among many other things. The New Deal also established Social Security, and pushed membership in labor unions and sustainable farming
Under the New Deal, American financial systems were also reformed. Roosevelt pushed for a balance budget, more financial responsibility, and other policies which promoted economic health and growth. He also encouraged involvement in the Second World War, since he knew that it would revitalize the American economy. In addition, the New Deal had an impact on the arts, as it established funding for artists under the Works Progress Administration (WPA). Many enduring artistic expressions of the Great Depression were produced by artists with support from the WPA."
Source: Wise Geek
New Deal Programs
AAA- AGRICULTURAL ADJUSTMENT ACT (Recovery)
Created in 1933, he AAA paid farmers for not planting crops in order to reduce surpluses, increase demand for seven major farm commodities, and raise prices. Farm income rose, but many tenants and share-croppers were pushed into the ranks of the unemployed. In 1936 the Supreme Court voided the AAA.
Created in 1933, the CCC took unmarried men aged 18-25 from relief rolls and sent them into the woods and fields to plant trees, build parks, roads, and fight soil erosion on federal lands. Young men sent their $30 a month home to their families and left a legacy of outdoor recreation areas (including the Blue Ridge Parkway). The CCC provided jobs for 2.5 million young men during its tCWA- CIVIL WORKS ADMINISTRATION (Relief)
Created in 1933, the CWA employed four million people--paid an average of $15 a week--many in useful construction jobs such as repairing schools, laying sewer pipes, building roads. Some CWA jobs, however, were criticized as useless (e.g., leaf raking). Roosevelt disbanded the program after less than a year.
FSA- FARM SECURITY ADMINISTRATION (Relief)The FSA was created in 1937 (formerly called the Resettlement Administration in 1935) to aid sharecroppers. The FSA set up temporary housing for "Okies" and "Arkies" (Dust Bowl refugees from Oklahoma and Arkansas) who migrated to California in hope of finding work.
FDIC- FEDERAL DEPOSIT INSURANCE CORP. (Reform)
To restore confidence in banks and encourage savings, Congress created the FDIC to insure bank customers against the loss of up to $5,000 their deposits if their bank should fail. Created by the Glass-Steagall Banking Reform Act of 1933, the FDIC is still in existence.
FERA- FEDERAL EMERGENCY RELIEF ADMIN. (Relief)
Created in 1933, FERA supported nearly five million households each month and funded thousands of work projects for the unemployed. It also provided vaccinations and literacy classes for millions of poor people.
FHA- FEDERAL HOUSING ADMINISTRATION (Recovery)
The FHA was created in 1934 to stimulate the building industry by providing small loans for home construction. A related program, also created in 1934, was the Home Owners' Loan Corporation (HOLC).
IRA- INDIAN REORGANIZATION ACT (Reform)
The Indian Removal Act of 1934 (called the "Indian New Deal, reversed the forced-assimilation policies in effect since the Dawes Act of 1887. The IRA tried to stop the loss of Indian lands and encouraged Native American tribes to establish local self-government and to preserve their native crafts and traditions.
NLRA- NATIONAL LABOR RELATIONS ACT (Reform)
The NLRA (also called the Wagner Act) of 1935 created the National Labor Relations Board to protect the rights or organized labor to organize and collectively bargain with employers.
NRA- NATIONAL RECOVERY ADMINISTRATION (Recovery)
The National Industrial Recovery Act of 1933 created the NRA to promote economic recovery by ending wage and price deflation and restoring competition. The NRA set business codes and quotas. Under its symbol of a blue eagle and slogan ("We Do Our Part"), the NRA temporarily restored investor confidence and consumer morale, but it failed to stimulate industrial production. In 1935 the Supreme Court declared the NIRA unconstitutional.
NYA- NATIONAL YOUTH ADMINISTRATION (Relief)
Created under the Emergency Relief Act of 1935, the NYA provided more than 4.5 million jobs for young people.
PWA- PUBLIC WORKS ADMINISTRATION (Relief/Recovery)
Established by the NIRA in 1933, the PWA was intended both for industrial recovery and unemployment relief. Eventually over $4 billion was spent on 34,000 construction projects including public buildings, highways, bridges (e.g., San Francisco's Golden Gate Bridge), and dams for water and power.
REA- RURAL ELECTRIFICATION ADMINISTRATION (Reform)
Before the New Deal, only 10 percent of the country outside cities and towns had electricity. The REA (1935) gave low-cost loans to farm cooperatives to bring power into their communities. By 1941, the REA succeeded in raising to 40 percent the number of farms with electricity.
SEC- SECURITIES AND EXCHANGE COMMISSION (Reform)
The SEC was created in 1934 to serve as a federal "watchdog" administrative agency to protect public and private investors from stock market fraud, deception and insider manipulation on Wall Street. The SEC is still in existence.
SSA- SOCIAL SECURITY ADMINISTRATION (Reform)
The Social Security Act of 1935 established the SSA to administer a national pension fund for retired persons, an unemployment insurance system, and public assistance programs for dependent mothers, children, and the physically disabled. The pension was financed by a payroll tax to begin in 1937. It exists to this day as the nation's most important and expensive domestic program, covering over 40 million Americans and accounting for about one-fourth of the federal budget.
TVA- TENNESSEE VALLEY AUTHORITY (Reform)
Perhaps the most ambitious undertaking of the New Deal, the TVA was a comprehensive federal agency created in 1933 for the economic development of the Tennessee River watershed. The TVA built twenty dams to control flooding, generate hydroelectrical power, increase agricultural production, and revitalize the Tennessee Valley region. The TVA also provided jobs, low-cost housing, reforestation and other services.
WPA- WORKS PROGRESS ADMINISTRATION (Relief)
Established under the $4.8 billion Emergency Relief Appropriation Act of 1935, the WPA lasted until 1943 and employed at least 8.5 million people at an average of $2 a day. They built thousands of roads, bridges, schools, post offices and other public construction projects. In addition, under the WPA's Arts Program, thousands of unemployed writers, musicians, artists, actors, and photographers temporarily went on the federal payroll, producing public projects ranging from murals to national park guidebooks.
Created in 1933, he AAA paid farmers for not planting crops in order to reduce surpluses, increase demand for seven major farm commodities, and raise prices. Farm income rose, but many tenants and share-croppers were pushed into the ranks of the unemployed. In 1936 the Supreme Court voided the AAA.
Created in 1933, the CCC took unmarried men aged 18-25 from relief rolls and sent them into the woods and fields to plant trees, build parks, roads, and fight soil erosion on federal lands. Young men sent their $30 a month home to their families and left a legacy of outdoor recreation areas (including the Blue Ridge Parkway). The CCC provided jobs for 2.5 million young men during its tCWA- CIVIL WORKS ADMINISTRATION (Relief)
Created in 1933, the CWA employed four million people--paid an average of $15 a week--many in useful construction jobs such as repairing schools, laying sewer pipes, building roads. Some CWA jobs, however, were criticized as useless (e.g., leaf raking). Roosevelt disbanded the program after less than a year.
FSA- FARM SECURITY ADMINISTRATION (Relief)The FSA was created in 1937 (formerly called the Resettlement Administration in 1935) to aid sharecroppers. The FSA set up temporary housing for "Okies" and "Arkies" (Dust Bowl refugees from Oklahoma and Arkansas) who migrated to California in hope of finding work.
FDIC- FEDERAL DEPOSIT INSURANCE CORP. (Reform)
To restore confidence in banks and encourage savings, Congress created the FDIC to insure bank customers against the loss of up to $5,000 their deposits if their bank should fail. Created by the Glass-Steagall Banking Reform Act of 1933, the FDIC is still in existence.
FERA- FEDERAL EMERGENCY RELIEF ADMIN. (Relief)
Created in 1933, FERA supported nearly five million households each month and funded thousands of work projects for the unemployed. It also provided vaccinations and literacy classes for millions of poor people.
FHA- FEDERAL HOUSING ADMINISTRATION (Recovery)
The FHA was created in 1934 to stimulate the building industry by providing small loans for home construction. A related program, also created in 1934, was the Home Owners' Loan Corporation (HOLC).
IRA- INDIAN REORGANIZATION ACT (Reform)
The Indian Removal Act of 1934 (called the "Indian New Deal, reversed the forced-assimilation policies in effect since the Dawes Act of 1887. The IRA tried to stop the loss of Indian lands and encouraged Native American tribes to establish local self-government and to preserve their native crafts and traditions.
NLRA- NATIONAL LABOR RELATIONS ACT (Reform)
The NLRA (also called the Wagner Act) of 1935 created the National Labor Relations Board to protect the rights or organized labor to organize and collectively bargain with employers.
NRA- NATIONAL RECOVERY ADMINISTRATION (Recovery)
The National Industrial Recovery Act of 1933 created the NRA to promote economic recovery by ending wage and price deflation and restoring competition. The NRA set business codes and quotas. Under its symbol of a blue eagle and slogan ("We Do Our Part"), the NRA temporarily restored investor confidence and consumer morale, but it failed to stimulate industrial production. In 1935 the Supreme Court declared the NIRA unconstitutional.
NYA- NATIONAL YOUTH ADMINISTRATION (Relief)
Created under the Emergency Relief Act of 1935, the NYA provided more than 4.5 million jobs for young people.
PWA- PUBLIC WORKS ADMINISTRATION (Relief/Recovery)
Established by the NIRA in 1933, the PWA was intended both for industrial recovery and unemployment relief. Eventually over $4 billion was spent on 34,000 construction projects including public buildings, highways, bridges (e.g., San Francisco's Golden Gate Bridge), and dams for water and power.
REA- RURAL ELECTRIFICATION ADMINISTRATION (Reform)
Before the New Deal, only 10 percent of the country outside cities and towns had electricity. The REA (1935) gave low-cost loans to farm cooperatives to bring power into their communities. By 1941, the REA succeeded in raising to 40 percent the number of farms with electricity.
SEC- SECURITIES AND EXCHANGE COMMISSION (Reform)
The SEC was created in 1934 to serve as a federal "watchdog" administrative agency to protect public and private investors from stock market fraud, deception and insider manipulation on Wall Street. The SEC is still in existence.
SSA- SOCIAL SECURITY ADMINISTRATION (Reform)
The Social Security Act of 1935 established the SSA to administer a national pension fund for retired persons, an unemployment insurance system, and public assistance programs for dependent mothers, children, and the physically disabled. The pension was financed by a payroll tax to begin in 1937. It exists to this day as the nation's most important and expensive domestic program, covering over 40 million Americans and accounting for about one-fourth of the federal budget.
TVA- TENNESSEE VALLEY AUTHORITY (Reform)
Perhaps the most ambitious undertaking of the New Deal, the TVA was a comprehensive federal agency created in 1933 for the economic development of the Tennessee River watershed. The TVA built twenty dams to control flooding, generate hydroelectrical power, increase agricultural production, and revitalize the Tennessee Valley region. The TVA also provided jobs, low-cost housing, reforestation and other services.
WPA- WORKS PROGRESS ADMINISTRATION (Relief)
Established under the $4.8 billion Emergency Relief Appropriation Act of 1935, the WPA lasted until 1943 and employed at least 8.5 million people at an average of $2 a day. They built thousands of roads, bridges, schools, post offices and other public construction projects. In addition, under the WPA's Arts Program, thousands of unemployed writers, musicians, artists, actors, and photographers temporarily went on the federal payroll, producing public projects ranging from murals to national park guidebooks.
More New Deal Terms:
Isolationism
A foreign policy based on withdrawal from international affairs.
Collective Bargaining
The process by which workers, organized together in a union, negotiate a contract with their employer. The right to collective bargaining is considered to be the bedrock principle of the labor movement. The most common way for employers and workers to settle their differences. Collective bargaining takes place when a union representing the collected employees sits down with managers to hammer out a contract.
Class Consciousness
In Marxist theory, the recognition of the working classes that they are being exploited by the bourgeoisie and the capitalist system in general.
Prohibition
The nationwide ban on alcoholic drinks, in effect from 1920 to 1933.
GNP
Gross National Product, a common measure of the overall size of a nation's economy.
Unconstitutional
The Constitution of the United States is, in its own words, the "supreme Law of the Land." That means that no other law can counteract or override the Constitution itself. If Congress passes a law (or the President undertakes an executive action) that runs afoul of the Constitution, the Supreme Court can use its power of judicial review to rule that such a law (or executive action) is unconstitutional and therefore should be overturned.
Activist state
A government willing to intervene aggressively into the capitalist economy to attempt to achieve particular social or economic objectives. The New Deal represented a dramatic increase in government power and influence; the United States has been an activist state ever since.
Retrenchment
Cutting back on expenses during times of economic difficulty. A business pursuing retrenchment would cut production and lay off employees; an individual pursuing retrenchment would cut back on consumer spending.
A foreign policy based on withdrawal from international affairs.
Collective Bargaining
The process by which workers, organized together in a union, negotiate a contract with their employer. The right to collective bargaining is considered to be the bedrock principle of the labor movement. The most common way for employers and workers to settle their differences. Collective bargaining takes place when a union representing the collected employees sits down with managers to hammer out a contract.
Class Consciousness
In Marxist theory, the recognition of the working classes that they are being exploited by the bourgeoisie and the capitalist system in general.
Prohibition
The nationwide ban on alcoholic drinks, in effect from 1920 to 1933.
GNP
Gross National Product, a common measure of the overall size of a nation's economy.
Unconstitutional
The Constitution of the United States is, in its own words, the "supreme Law of the Land." That means that no other law can counteract or override the Constitution itself. If Congress passes a law (or the President undertakes an executive action) that runs afoul of the Constitution, the Supreme Court can use its power of judicial review to rule that such a law (or executive action) is unconstitutional and therefore should be overturned.
Activist state
A government willing to intervene aggressively into the capitalist economy to attempt to achieve particular social or economic objectives. The New Deal represented a dramatic increase in government power and influence; the United States has been an activist state ever since.
Retrenchment
Cutting back on expenses during times of economic difficulty. A business pursuing retrenchment would cut production and lay off employees; an individual pursuing retrenchment would cut back on consumer spending.