1. The New Deal Franklin D. Roosevelt The Three R’s Relief: To help people cope with the depression Recovery: To help end the depression. Reform: To prevent future economic problems

3. 1935 Supreme Court Decision Ended the first New Deal by declaring the Agricultural Adjustment Act and the National Recovery Act unconstitutional.

4. Did New Deal Prolong Depression? Yes- Folsom Anti-Free Market program of high taxes and special interest spending to certain banks, railroads, farmers and veterans created an antibusiness environment. No- Biles In spite of minimal reforms and non- revolutionary programs, the New Deal created a limited welfare state that implemented economics stabilizers to avert another depression.

5. Keynesian Policy (“Cane”nesian) Argues that when the economy stalls and falls into recession/depression, Congress should lower taxes and create jobs. When the economy overheats and suffers from inflation, Congress should raise taxes and create jobs. Safety nets and safe banks that are closely regulated are key policies.

6. The Stock Market Crash Buying “on Margin” Insider Trading Over-valuing of stock Solution Federal Securities Act Reform Problem Securities and Exchange Commission set up to enforce new government regulations of stock market.

7. Solution “Bank Runs” Federal Deposit Insurance Corp. Emergency Banking Relief Act & Bank Holiday Reform Relief Problem Lack of Consumer Confidence in Banking System

8. Problems Solution “Hoovervilles” People Can’t Afford Housing Federal Housing Administration Relief/Recovery Low demand for goods & services

9. ProblemSolution Dust Bowl Farm Security Administration Camp for Dust Bowl Refugees Relief Droughts in Mid-West cause storms and ruin crops.

10. ProblemSolution Agricultural Adjustment Act Farmers received subsidies in exchange for limiting production. Overproduction Overproduction of farm goods led to low prices. Some farmers protested by dumping crops or burning them for fuel. Recovery

11. Problems Massive UnemploymentExtreme Poverty 1/3 of population unemployed Families can’t pay rent Thousands migrate in search of better conditions Hunger & even starvation

12. Solutions: Unemployment Works Progress Administration (WPA) Federal Theater Project WPA Artist Sketches WPA Workers Puts people to work on government projects.  Both manual and intellectual projects.  Federal Writers Project (Including Historians!)  Artists Paint Post Office Murals Recovery

13. Solutions Civilian Conservation Corps (CCC) CCC Workers Build Fence in Greene, NY Young people were given jobs doing conservation & recreation related projects. Local examples include some of the pavilions at Chenango Valley State Park. Recovery

14. ProblemsSolution Underdevelopment of South High Unemployment Tennessee Valley Authority (TVA) TVA builds damns to provide electricity to rural South. Construction and operation also provides work for unemployed. Recovery

15. ProblemSolution Factory Closings Cause Unemployment National Industrial Recovery Act Required industries to create codes regulating wages, hours, working conditions, & prices. It was designed to promote recovery by ending wage & price deflation. Recovery

16. ProblemSolution Labor Disputes A Sit-down Strike National Labor Relations Act (Wagner Act) Guaranteed workers the right to bargain collectively and form unions w/out fear of punishment from management. Reform

17. ProblemsSolution Social Security Act Men signing up for social security. Old Age Pensions Aid to Disabled Encouraged states to provide matching benefits. Poverty among elderly & disabled. Relief