Impact of the New Deal

Did the New Deal Meet It’s Goals? Relief- put billions of dollars in Americans pockets with direct relief Recovery – Did not help the economy recover for the long term – Had immediate upturn that was wiped away by recession in – Still 10 million workers unemployed in 1939 Reform – successful and long lasting reforms of economy FDIC (federal depositors insurance corporation)– restored public confidence in banking system SEC (Securities Exchange Commission) – helped restore confidence in stock market

New Deal Winding Down Republicans and Southern Democrats in Congress became strong enough to stop some of the legislation proposed by Roosevelt The only major program passed in 1938 was the Fair Labor Standards Act – Set a minimum wage and maximum work hours to 44 hours – Required that workers receive time and a half for overtime

Impact of Federal Government Established a bigger government that was more actively involved in citizen’s lives Government now provided safety net for American’s - protect against economic disaster

Programs Still Around Today FDIC – insures bank deposits up to 250,000 Social Security – old age, unemployment insurance, and disability insurance SEC – regulates and polices the stock market TVA – provides electrical power to 8 mill customers Federal Housing Authority – insures mortgage loans, assists low-income renters, and fights housing discrimination – Housing and Urban development (HUD)

1938 Congressional Elections Roosevelt campaigned hard to get Congressional leaders that backed his ideas in office – attempted to overthrow the incumbents that were unsupportive His plan backfired and in all elections the candidate he promoted lost After elections, there was less support for the New Deal programs and attention began to turn to the crisis in Europe At the end of the decade, Americans went to work in factories making goods for war that were being ‘lent’ to Allied powers