The New Deal was set up by Franklin D. Roosevelt, a Democrat.

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Ambareen Naqvi                

Candidate No:                Spring Term 2003

Second Assignment

a) The New Deal was set up by Franklin D. Roosevelt, a Democrat. There was two New Deals, both combating the problems faced by Depression. Roosevelt devised schemes to bring America back to its prosperity. He stated, “I pledge you, I pledge myself, to a new deal for the American people.” Roosevelt’s main aims were getting Americans back to work, protecting their savings and poverty, providing relief for the sick, old and unemployed and getting American industry and agriculture back on its feet. These would all be done thorough the main features that were set up-the Alphabet Agencies.  

The first of Roosevelt’s schemes was the ‘Hundred days´. The ‘Hundred Days´ was a relief program in which Roosevelt passed 15 laws which tackled some of America’s biggest problems, all within Hundred days. First of all, Roosevelt introduced the Emergency Banking Act (EBA). The EBA was designed to end the banking crisis in America. All banks were closed for ten days and only those approved by the federal government were allowed to reopen. Roosevelt used the radio to talk directly to the citizens of America. On the radio Roosevelt explained his policies through a series of ‘fireside´ chats. He explained that he was doing something to help America and that he would need their cooperation. The public was obviously convinced that Roosevelt was on their side because when the banks reopened, many people began to reinvest their money in a reopened bank. Within the ‘Hundred Days´ relief program, there was also a rapid program of legislation which would help solve the country’s problems. The other Acts within the ‘Hundred Days´ were the AAA, TVA, HOLC and NIRA. All of these schemes were aimed to bring relief to as many people as they could and to bring the relief quickly.

        Although these agencies were set up in the ‘Hundred Days’, the main concern was relief. This was achieved by setting up shelters and soup kitchens to feed the millions of unemployed. Soon, the concern shifted to recovery. Roosevelt set up several agencies, some of which have been mentioned. The main keystone was The National Recovery administration (NRA). This was created in June 1933 and it permitted businesses to draft ‘codes pf fair competition’. This regulated price, wages, working conditions and credit terms. The main function for this act was to create purchasing power which would help industry recover and stimulate employment. Within this Act the NRA (Nation Recovery Administration) was set up. The NRA was aimed at employers and encouraged them to cut out unnecessary competition, to lay down minimum wages and maximum hours and to allow formation of unions. Employers who did follow these guide-lines were awarded with a Blue Eagle Badge which showed that they were participants. The NIRA also set up the PWA (Progress Works Administration) which created employment in heavy construction such as dams etc. However, some employers failed to implement the NRA guide-lines and disappointed workers went on strikes. In 1935, the Supreme Court declared NIRA unconstitutional. However, in the same year, the government then introduced the Wagner Act which safeguarded the right of workers to join unions. By 1939, 9 million people had joined a union.

        Unemployment was also a major problem in America in the 1930s. Firstly, there was immediate relief for the unemployed through a 500 million dollar Federal aid. Roosevelt knew that this aid was only temporary so he introduced huge public work schemes to keep unemployment down. There were three main work schemes to provide jobs for the unemployed. The Civilian Conservation Corps (CCC) set up work camps which would provide work for the young. The type of work they had was forestry, prevention of erosion etc. The Civilian Works Administration (CWA) was a work creation programme for 4 million men. However, these jobs were of little value. The CWA was replaced by the Works Progress Administration (WPA) The WPA conducted large public works. It gave jobs to about 2 million people and kept them busy on projects such as schools, roads, Dams, community schemes etc. The WPA also had work for artists, actors, writers etc. The WPA employed people and gave them back their self-respect. All of these schemes were “pump-primers “. The government ‘pumped´ money into the economy which would encourage the economy to start up again. The best example to show the success of the public work schemes is the TVA (Tennessee Valley Authority). Farmland in the Tennessee Valley had become very poor because of over-cultivation, flooding and soil erosion. Only one farm in 50 had electricity and half its population of 2.5 million people was living below the poverty line. The TVA was an ambitious policy intended to provide cheap electricity, stop floods, and to make the soil fertile again. Twenty dams were built to generate electricity and millions of trees planted to prevent further soil erosion. The scheme worked. By 1943, for example, 80 % of the valley farms had converted from kerosene lamps to electricity and farmers were doing better than they had ever done before. Rivers could now be controlled, there was no more soil erosion, navigation improved and there were some leisure pursuits.

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        The Fair Labour Standards Act (1938) established a Federal minimum Wage and maximum hours policy. The minimum wage, 25 cents per hour applied to many workers. The law was made to prevent competitive wage cutting by employers when the economy turned to war production.

        These all were the main features of the New Deal which had been installed to meet the aims set by Roosevelt. The alphabet agencies did their own part to restore America, but some agencies were seen as unconstitutional and were met by many critics. In conclusion the main features of the New Deal were the NIRA, ...

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