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20 terms

New Deal Programs Pros and Cons

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Pros of Bank Holidays
Fulfilled its purpose, restored citizens confidence in the American banking system
Pros of AAA
In theory, it would control supply and command of the agriculture industry by removing excess crops and storing them to drive up the price
Pros of CCC
1. First example of work-relief program: extremely successful
2. Employed over 3 million young men
3. On its institution in 1933 it employed 250,000 men
4. Helped men to support their families
Cons of CCC
1. Did not help young men get jobs after they left the agency
2. Many who left the agency immediately enlisted in the military to serve in WWII
Cons of AAA
1. Declared to be unconstitutional in 1936
2. Severely hurt sharecroppers and tenant farmers
3. Plantation and farm owners theoretically should have paid their hired help the usual pay out of the money given to them out of their checks, but in reality, this rarely happened as farmers kept the money for themselves and the sharecroppers and tenants were left destitute
Pros of FERA
1. Work relief program, kept people from going on the dole
2. Helped people keep their dignity by not being on the dole but having jobs
Cons of FERA
1. It was more expensive for the government to provide jobs than to simply give handouts, the program could have been more efficient
2. Ultimately replace in 1935 by the WPA and SSA
Pros of TVA
1. Helped prevent flooding in the Tennessee River Valley
2. Helped with energy generation for the 7 states in the TRV
3. Provided jobs for the regions
4. Helped to modernize the region with introducing crop rotation, fertilizers, and other innovations
5. Still in operation today—extremely successful
Cons of TVA
Viewed as dangerously socialistic by critics
Pros of NIRA
1. Provides workers with regulation of maximum working hours and minimum wages
2. Allows for workers to unionize—something previously denied to them
Cons of NIRA
1. Institutes the NRA, later declared to be unconstitutional in 1936
2. The NRA heavily hurt the small businesses in the US
Pros of NRA
1. Theoretically allowed for each industry to set its own minimum wage, production levels, etc
2. Theoretically helped provide minimum wage (still set so low it was starvation level) and a maximum set work week (40 hours)
Cons of NRA
1. The largest companies in the industry wrote the codes for each industrial system
2. Bill was so complex that it was impossible to execute at all much less with any sort of efficiency
3. Codes hugely benefited the large companies who wrote them
4. In publicity, the NRA linked participation to patriotism to draft companies to join
5. Moved away from regulating industry and further to mandating them
6. Companies would only pay minimum wage
Drastically harmed small businesses
Pros of PWA
Provided work relief jobs for many people through building dams bridges, warships, and schools
Cons of PWA
1. Did not help produce housing as it claimed it would—only built 25,000 units in a span of 4 ½ years
2. Biggest example of Roosevelt priming the economic pump, which failed
3. The economy was not aided by the act nor did it return pre-depression activity levels as it theoretically should have
Pros of CWA
1. Hired both men and women
2. Gave temporary work relief to 4 million people for 5 months
3. Created manual labor jobs for the unemployed during the winter of 1933-1934
Cons of CWA
1. Racked up a massive price tag of almost 850 million in its 5 months of existence
2. Spent approximately 200 million a month
Pros of PWA
1. Over its 8 year lifespan, the agency put more than 8.5 people to work
2. Provided work and income for millions of Americans through the construction and repair of roads, bridges, public schools, post offices, parks and airfields.
3. Established projects to employ artists and scholars
4. Fed children and redistributed food
5. Employed men and women
Cons of PWA
1. Estimated costs of this agency exceed $11 billion
2. Largest New Deal Agency
3. Critics view this agency as inefficient and wasteful
4. Did little to aid the bleeding South
Cons of Bank Holidays
None