3/21/2012
The New Deal
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What were the goals of the New Deal?
What policies were implemented and what institutions were created to meet those goals?
What were the reactions to those policies and institutions?
What are some of the legacies of the New Deal and Great Depression?
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First New Deal (1933‐1934)
Reactions
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Second New Deal (1935‐1941)
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Legacies
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product or service or otherwise on a password-protected website for classroom use.
General goals: relief, recovery, and reform
Not much of anything had improved in over 3 years
Do not forget the mentality of the American people f
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(and politicians) that is the backdrop of the decade
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product or service or otherwise on a password-protected website for classroom use.
Works Projects Administration
Focused on relatively small projects like roads and employed creative artists
Public Works Administration
Focused on relatively big projects like dams, hospitals, and airports
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product or service or otherwise on a password-protected website for classroom use.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
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National Recovery Administration
Antitrust laws were suspended
Allowed for formal agreements to set prices and ll
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output
Identified as one of the crown jewels of the New Deal
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product or service or otherwise on a password-protected website for classroom use.
Securities and Exchange Commission
Regulated securities (i.e. Wall St)
Federal Reserve System
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Created Fed Board of Governors, located in Washington
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product or service or otherwise on a password-protected website for classroom use.
Federal Deposit Insurance Corporation & Federal Savings and Loan Insurance Corporation
Insured depositors
Glass‐Steagall Act
Separated commercial and investment banking
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product or service or otherwise on a password-protected website for classroom use.
Agricultural Adjustment Administration
Attempted to limit supply to increase prices
What were primary and secondary effects?
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product or service or otherwise on a password-protected website for classroom use.
Many policies were not warmly received
But, the idea that something was being tried was generally well received by the public
The fireside chats were great tools
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product or service or otherwise on a password-protected website for classroom use.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
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Labor was very supportive
National Recovery Act provided new powers to unions to strike and organize free of employer interference
After NRA was declared unconstitutional, the National Labor Relations Act (Wagner Act) provided even more support for union activity
The Fair Labor Standards Act creates many of the laws we deal with today:
• Minimum wage
• Rules for overtime pay
• Child labor laws
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
The Court supported some but not all of the New Deal policies
Ruled unconstitutional
Ruled unconstitutional:
1937 is argued to be a major turning point in American history with regard to the powers of the federal government
• National Recovery Act
• Agricultural Adjustment Act
Ruled constitutional:
• Fair Labor Standards Act
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product or service or otherwise on a password-protected website for classroom use.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
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General goal: social insurance
The attitude of the country towards social insurance changed dramatically after 1932
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Was “sold” to the public as insurance with employee and employer equally sharing in contributions
Recall burden of taxes from Micro principles
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Two major plans:
Social Security
Unemployment Insurance
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product or service or otherwise on a password-protected website for classroom use.
It is perhaps impossible to separate the Great Depression, FDR, and WWII
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