Warm Up

• Define in your own words the following terms: • Identify an options

• Gather information

• Predicting Consequences

• Implementing Decisions

Warm Up continued…Next, match up the scenario with the best process:• Scenario 1: The Federal government decision to build power plants on the Tennessee River.• Identifying options

• Scenario 2: The Federal government had to investigate the billing amounts from the existing power companies.

• Gathering information

• Scenario 3: The development of the river damn power plant systems could displace up to 15,000 families from their homes.

• Predicting consequences

• Scenario 4: The Federal government creates the Tennessee Valley Authority and a board to oversee the hiring, contracting and construction of the power plants on the Tennessee River.

• Implementing decision.

Unit 6: The Great DepressionThe New Deal, Reforms, and

Opponents

NEW DEAL POLICIES AND ITS OPPONENTS' APPROACHES TO RESOLVING THE ECONOMIC

EFFECTS OF THE GREAT DEPRESSIONRoosevelt Opponents

• Introduced higher taxes on the rich

• Believed if it was good for business, then it was good for America

New Deal divided into three parts (Relief, Reform, and Recovery)

• Believed too generous to the corporate interests

• Confiscate any personal fortune over $3 million and use this money to give each family in America

Promised a national minimum wage, old age pensions, and cheap food for the poor (opinions of Huey Long)

Reforms for Banks and the Stock Market

• Glass-Steagall Act of 1933 – established the Federal Deposit Insurance Corporation (FDIC) this would insure your money up to $5000. Today it will insure your money up to $100,000.

• Federal Securities Act – required corporations to provide information on all stock.

• Public Works Administration (PWA) was created as part of the National Industrial Recovery Act (NIRA) – Provided money to states for construction of schools, and other community buildings.

• Civil Works Administration (CWA) – Built more than 40,000 schools and paid the salaries of over 50,000 teachers. It also built more than half a million miles of road.

Reforms that help in the future

Social Security Act (1935) – Primarily provides retirement income1. old age insurance for retirees 65 and older and

their spouses2. unemployment compensation system3. aid to families with dependent children and the

disabled4. Upon the death of a participant their designated

family members would receive benefits. These family members are class beneficiaries.

• Issues with Social Security today: After World War II there was a population serge in the United States called “The Baby Boom.” Currently, these individuals are ready for retirement and upon death their beneficiaries will qualify for benefits. This put a huge strain on the social security funds.

Reforms for Agriculture

• Agricultural Adjustment Act (AAA) – Wanted to raise prices of crops by lowering production. The government paid farmers to leave a certain amount of every acre of land unseeded.

• The Government paid $200 million to cotton growers to plow under 10 million acres

• Paid hog farmers to slaughter 6 million pigs

• Soil Conservation and Domestic Allotment Act – Paid farmers for cutting production of soil depleting crops and rewarded farmers for practicing good soil conservation methods.

Reforms for workers which helped build our infrastructure

• Fair Labor Standards Act – Set maximum hours at 44 per week, decreasing to 40 after 2 years. It also set a minimum wage at 25 cents an hour and increasing to 40 cents an hour by 1945. It also set rules for workers under 16 and banned hazardous work for those under 18.

• Works Progress Administration (WPA) – Set out to create as many jobs as possible and as quick as possible. This program gave people a sense of hope and purpose.

• 850 airports• 651,000 miles of roads and streets• 125,000 public buildings• women sewing in groups made 300 million garments for the

needy • The WPA also made special efforts to help women, minorities,

and young people and the urging of Eleanor Roosevelt.

• Tennessee Valley Authority (TVA) – Renovated 5 existing dams and constructed 20 new ones for flood control, creating thousands of jobs, and provided flood control, hydroelectric power, and other benefits to an impoverished region.

• Civilian Conservation Corps (CCC) – Put young men to work

• building parks• planting trees – planted more than 200 million

trees (prevent another dust bowl)• roads• soil erosion• flood-control

Match the New Deal Program to its description

1. Protected consumer savings and still does today.

2. Provides retirement income.3. Created to control floods,

provide employment, and provide cheap electrical power.

4. Hired young men to build roads and plant trees.

5. Helped farmers with their crop production and soil conservation.

A. Social Security Act

B. Tennessee Valley Authority

C. Agriculture Adjustment Act

D. Civilian Conservation Corps

E. Federal Deposit Insurance Corporation (FDIC)