Relief, Recovery, and Reform

Franklin Roosevelt’s motto for the New Deal was “Relief, Recovery, Reform.” Relief of people’s immediate suffering; Recovery to help people get back on their feet; and Reform to make sure that the Depression will happen again.

New Deal Legislation

1. Federal Deposit Insurance Corps (FDIC)

• 1933• Government guaranteed depositors’

money so people would not lose their savings if the bank closed or failed.

New Deal Legislation

2. Public Works Authority (PWA) – 1933• $6 billion went into the construction of

airports, aircraft carriers and hospitals

New Deal Legislation

3. Agricultural Adjustment Act (AAA) – passed 1933; revised 1938

Government regulated how much crops farmers grew and how many animals that were slaughtered

Supreme Court Case

United States v. ButlerFarmers sued the gov’t saying it could not

tell farmers how much to grow or what animals to kill worries about communism!○ Farmers won○ law revised so that gov’t paid farmers not to

grow certain crops or slaughter animals.

New Deal Legislation

4. Tennessee Valley Authority (TVA) – 1933

Provided free or cheap electricity to farmers

Relief, Recovery, and Reform

5. National Recovery Act (NRA) – 1935

established fair codes of business practices, gave workers minimum wages and maximum number or hours per week they would work.

Supreme Court Case

United States v. Schecter aka – “The Sick Chicken Case”Established that only states have the right to

control business within a state

6. Wagner Act (1935) Allowed workers to unionize

7.7. Social Security Act (1935)Social Security Act (1935) Gave pension to retired workers and their

spouses and helped people with disabilities

Relief, Recovery, and Reform

8. Securities & Exchange Commission Supervised the stock market and stopped

dishonest practices

FDR & the Supreme Court1. Trying to avoid Supreme Court rulings

against New Deal legislation, FDR proposes a bill:

Whenever a Supreme Court justices reached 70 years of age without retiring, the president could add a new justice (up to 15)

Congress said “NO” FDR’s attempt to “pack the court” failed

Impact of the New Deal

1. The Federal government gets involved in people’s lives and regulates business more!

2. Increase in presidential power3. Increase in power of the Federal gov’t4. Federal social programs welfare5. Deficit spending starts spending $ you

don’t have6. Greater concern for workers7. Renewal of FAITH IN DEMOCRACY

DUST BOWL