Influence of New Deal Programs
New Deal
Program
Aid to the
Elderly
Aid to
Farmers
Direct
Relief
Insured
bank
Deposits
Investment
In Youth
Jobs
Programs
Description of Program
How Program Affected
Society During Depression
Provided care through the Social
Security Act
Gave financial support to those over
65 yrs and retired workers
Got money by 2% Social Security
Tax on working Americans
Helped elderly people with aid
States had done the Social Security
Act before with $16 per/month.
Now it ranged from $10 to $85 per/
month
The AAA aimed to adjust farmers’
production of goods to match the
country’s declining ability to purchase
and consume goods.
Government paid for farmers to plant
fewer crops and destroy a portion of
crops & livestock
Government distributed $1.5 billion in
aid to farmers
Government programs moved
farming families to fertile
farmlands.
Irrigated millions of acres of dry
land
Planted 127 million trees to block
dust storms in the Great Plains
Government helped farmers repay
their mortgages and bank loans
which brought relief the farmers
States used money to set up soup
kitchens and food-distribution
warehouses
Establish housing camps for
homeless jobseekers
Provided small families with small
cash payments for monthly living
expenses.
Made sure that deposited money in
federally approved banks would not
lose all their money
FDIC was $2500 before raising it to
$5000 insured.
FDIC charged banks premiums, or
fees, for the insurance.
Made safe investments in order to
create a pool of money to pay
claims.
NYA paid young men and women
$6 to $25 per/mo. to perform a
variety of jobs.
Youth included African Americans,
Whites, a small number of Native
Americans.
Youth workers built public pools,
cleaned & landscaped public parks,
cooked food in local cafeterias,
sewed garments, built summer
camps, watched children, worked in
libraries, museums, science labs &
hospitals
Provided work-study assistance
giving youths financial aid & parttime jobs
Majority of work-relief jobs
involved construction.
WPA workers built or renovated
public buildings; roads, bridges,
parks, airports
Built sidewalks, golf courses, tennis
courts, wells, swimming pools,
wilderness trails and irrigation
canals & ditches
Women produced clothing for the
needy.
Provided immediate direct relief to
Americans in need of food, shelter and
money
Established the Federal Emergency
Relief Administration (FERA) which
gave $500 million in Federal Grants to
state & local relief agencies.
Established Federal Deposit Insurance
Corp. (FDIC) which protected bank
depositors’ money if their banks failed
FDIC mission was “to maintain
stability and public confidence in the
nation’s banking system
FDIC monitored banks to ensure their
practices were fair & profitable.
Established National Youth
Administration (NYA).
Agency oversaw work programs and
educational grants for men & women
16 to 25 yrs.
1 in 7 youths lived in poverty and
received relief payments.
NYA aimed to provide financial aid
and work assistance to unemployed
youth and help high school & college
students continue their education
Establish job programs such as the
CCC, CWA, WPA to provide
economic relief to the U.S.
Employed about 15 million people,
mostly white men.
Programs spent $14 billion in federal
funds
How Program has Affected
Contemporary Society
Still around and provided support for
the unemployed, disabled, elderly,
and mothers & their dependent
children
2000s American workers and
employers paid 15% Social Security
Tax.
Mid 1990s – eventually eliminated
federal support for farmers.
2000s Federal government continued
to pay generous subsidies to
American farmers
The United States received pressure
from poorer countries to eliminate the
funding because of the world marker,
foreign countries & organizations.
2000s the government continues to
provide direct relief to needy
American families through Federal &
State programs
Public assistance programs include
monthly payments, low-cost or free
health care & food stamps to povertystricken families
FDIC continues to operates today
Now insures up to $100,000
Held $49 billion in reserve and was
authorized to borrow up to $30 billion
from US Treasury.
Since FDIC was established it has
never borrowed money from the
government.
2000s government still supports a
variety of programs to help youths
establish a solid future
Financial aid programs provide
college students with grants and
work-study opportunities.
Job training programs give young
people skills they need to make a
living.
In 1980s and 1990s conservative
politicians pushed to reduce
government-sponsored relief, this
caused for many programs to be
eliminated
2000s, small state-regulated
“workfare” replaced the old federal
job programs.
Welfare recipients worked at lowpaying, low-skill jobs in return for
benefits.
Influence of New Deal Programs
New Deal
Program
Promotion
of Worker’s
Rights
Public
Housing
Public
Works
Regulated
Stock
Market
Rural
Electrification
Support for
The Arts
Description of Program
How Program Affected
Society During Depression
First national labor policy
established
The program injected new life
into the U.S. labor movement
Workers had rights to organize
labor union and elect union
reps.
PWA demolished slums and lowrent housing
Built 51 housing projects
More windows, more space and
outdoor areas with trees and grass
& community rooms
Labor unions increased in size
and had equal footing with
businesses
Union membership jumped
from 3.2 million to 10.5 million
1/3 of labor force joined a union
Workers strikes doubled
Program helped renovate and
build farm housing &
constructed camps for migrant
workers and other homeless
jobseekers
Provided construction jobs,
encouraged industrial growth and
improved landscapes
PWA ran own construction
projects and provided loans &
building grants
Regulated stock market by laws
Formed Securities & Exchange
Commission (SEC) which policed
the stock market
Stock-issuing companies had to
register with U.S. govt’s and
disclose information
By 1940 the WPA had
constructed 70% of all schools,
65% of city halls & its sewer
systems, 35% of hospitals, 10%
of transportation
Tennessee Valley Authority
(TVA) changed the life of rural
families by bring electrical power
and economic recovery to farmers
TVA built and improved
waterways to stop flooding
Planted trees and developed the
use of fertilizer for crop growth
TVA worked to preserve valuable
natural resources (timber & soil)
Provided $27 million to Fine Artt
Project - fine art, music, literature
& theater
Art programs employed 40, 000
professionals (actors, dancers,
historians, musicians, painters,
writers, photographers, etc.)
SEC required companies to
submit financial reports and
disclose all transactions.
SEC set limits on how much
credit banks could extend.
Limited amount of borrowed
money invested.
Investigated wrong doings in
the stock market
TVA created cheap watergenerated power
Helped make cheap public
power, which competed with
the governments.
Using local labor, TVA built
dams, power lines, and power
plants to bring electricity to
rural homes
Forced private utilities to lower
rates to compete w/govt.
Made cities more beautiful
Writers created 51 guidebooks
for states & cities
Many free shows were provided
Projects celebrated American
life and the New Deal
New Deal artists had much
creative freedom
How Program has Affected
Contemporary Society
A federal labor board continued
to operate in 2000s
Board enforced labor laws and
unions as needed
Unions still had collective
bargaining power
National membership declined
Federal agency devoted to
community and housing
developed still exist
Department of Housing and
Urban Development included
funding to low-income housing
and funds to private builders.
Beginning in 1939 the PWA was
dissolved
2000s Federal government
provided funding for public
works projects (construction of
highways, dams, bridges, etc
SEC function remains unchanged
since New Deal.
SEC continues to regulate the
stock market
2000s, TVA continued to operate
the same as during the New Deal
Nation’s largest and cheapest
suppliers of electrical power
Dams continue to provide power
and water to desert
communicates.
Federal government still gives
money to the arts by way of the
Nation Endowment for the Arts
(NEA)
NEA provided grants & financial
gifts
NEA funds museums and
students art programs, preserves
American art, like crafts and
folksongs