The main features of The New Deal introduced by Franklin D. Roosevelt.

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The New Deal

(a)        The main features of The New Deal introduced by Franklin D. Roosevelt were:

        The Emergency Banking Act passed on 9th March 1933

This dealt with the country's banking crisis.  There had been a crash in the financial sector called 'The Wall Street Crash' in 1929 which caused a fifth of all banks to go out of business and millions of people lost their savings.  People had therefore lost faith in the banking system and were withdrawing their money and keeping it at home.  The Emergency Banking Act guaranteed that savers would not lose their money if there was another financial crisis.  A Federal Deposit Corporation was set up to insure peoples' savings.  It also forbade the banks to use investors' money to trade on the Stock Exchange.

The Federal Emergency Relief Administration (FERA)

This was implemented to reduce the misery for those who were unable to work.  It was given $500,000,000 to help with cash relief for the poor providing soup kitchens, employment and nursery schools amongst other things.

Roosevelt said that unemployment could only be solved "by direct recruiting by the Government itself".

The Economy Act

This reduced wages of state employees.  It also reduced pensions.  This was to take into account the fall in prices and difference in cost of living.

Projects were introduced to carry out certain tasks:

Works Projects Administration (WPA)

When Roosevelt became president he put his friend, Harry Hopkins, in charge of the Works Projects Administration (WPA). The purpose of the WPA was to give wages to people currently unemployed. By 1936 over 3.5 million people were employed on various WPA programs. This included the Civilian Conservation Corps. (CCC), the National Youth Administration (NYA) and the Public Works Administration (PWA) under Harold Ickes the Secretary of the Interior.

Civilian Conservation Corps. (CCC)

This was a program designed to tackle the problem of unemployed young men aged between 18 and 25 years old. The CCC camps were set up all over the United States. The organisation was based on the armed forces with officers in charge of the men. The pay was $30 dollars a month with $22 dollars of it being sent home to their families. The men planted trees, built public parks, drained swamps to fight malaria, restocked rivers with fish, worked on flood control projects and a range of other work that helped to conserve the environment. Between 1933 and 1941 over 3,000,000 men served in the CCC.  Many of them managed to find work after 6 months.

The National Youth Administration (NYA)

This program helped those who were between the ages of 16 and 25 who, because they wanted to continue with their education, were given part-time jobs. More than 700,000 students enrolled in this program. The high levels of unemployment meant that part-time jobs were not easy to find and most of the schemes were based in the cities and large towns.

National Recovery Administration (NRA)

Roosevelt appointed General Hugh S. Johnson as the person to administer the National Recovery Administration (NRA). This involved organizing thousands of businesses under fair trade codes drawn up by trade associations and industries.

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While these negotiations took place, Congress passed legislation that set a 40 hour week for clerical workers, a 36 hour week for industrial workers, a minimum wage of 40 cents an hour, abolished child labour and guaranteed the right that trade unions could organize and exercise the right of collective bargaining.

The NRA program was voluntary. However, those businessmen who accepted the rules developed by the various trade associations, could put a NRA blue eagle symbol in their windows and on the labels of their goods. This virtually made the scheme compulsory as those companies that did ...

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