1. OBJECTIVE: 1. To understand the short-term and long-term effects of the New Deal 23.5: The Impact of the New Deal

2. Third New Deal??? By 1939 the New Deal was effectively over. Americans did not want a “Third New Deal” Depression seemed to be easing Problems in Europe taking center stage FDR did not like deficit spending, which continued expansion of New Deal would require.

3. Roosevelt’s Recession Recovery from 1933 to 1937 was modest 1937 – severe depression FDR authorizes “planned deficit spending” BLAME: Social Security payroll taxes Attempts to balance budget ANALYSIS: “deficit spending” of Keynesian economics could have ended depression and recession. US will have to wait for WWII to end it.

4. IMPACT LABORRURAL SCENE Protected workers’ rights Wagner Act Fair Labor and Standards Act National Labor Relations Board Controlled crop productions Set prices until they reached parity Price equal to what farmers had received between 1910-1914

5. IMPACT BANKING AND FINANCESOCIAL SECURITY Securities and Exchange Commission Federal Deposit Insurance Corporation Govt. assumed some responsibility for the social welfare of citizens Old-age insurance Unemployment Aid to families with dependent children

6. ENVIRONMENT Tennessee Valley Authority Part of Hundred Days legislation Revolutionary - govt. involvement in economy Established “fair rate” for electricity BENEFITS: - cheap power, - flood control, - cheap housing, - river navigation CRITICISM: socialist, state-owned industry CCC Soil Conservation Service

7. Review Questions Compare and Contrast the presidencies of Herbert Hoover and Franklin Delano Roosevelt Identify and discuss the causes and the effects of the Great Depression on people living in rural and urban areas. Identify the key programs of the New Deal. Discuss which programs were most important, most successful, most controversial and why.

8. TERMS Deficit Spending National Labor Relations Board Parity Securities and Exchange Commission Federal Deposit Insurance Corporation Tennessee Valley Authority OBJECTIVE: 1. To understand the short-term and long-term effects of the New Deal