The Three R's of the New Deal: Relief, Recovery, and Reform
Terms in this set (10)
Agriculture Adjustment Act(AAA)(Recovery)
Created in 1933, the AAA paid farmers for not planting crops in order to reduce surpluses, increase demand for seven major farm commodities, and raise prices. Farm income rose, but many tenants and share-croppers were pushed into the ranks of the unemployed. In 1936, the Supreme Court voided the AAA.
Civilian Conservation Corps(CCC)(Relief)
Created in 1933, the CCC took unmarried men aged 18-25 from relief roles and sent them into the woods and fields to plant trees, build parks, roads, and fight soil erosion on federal lands. Young men sent their $30 a month home to their families and left a legacy of outdoor recreation areas(including the Blue Ridge Parkway). The CCC provided jobs for 2.5 million young men during its ten years.
Fair Labor Standards Act(Reform)
The last major piece of the New Deal legislation(1938), this important labor law set minimum wage(25 cents an hour) and maximum hour standards(establishing the 40-hour work week). It also severely curbed the use of child labor.
Federal Deposit Insurance Corp(FDIC)(Still in Existence)(Reform)
To restore confidence in banks and encourage savings, Congress created the FDIC to insure bank customers against the loss of up to $5,000 of their deposits if their bank shall fail. Created by the Glass-Steagall Banking Reform Act of 1933, the FDIC is still in existence. This insures deposits of up to $100,000 today.
Federal Housing Administration(FHA)(Recovery)
The FHA was created in 1934 to stimulate the building industry by providing small loans for home construction. A related program, also created in 1934, was the Home Owners' Loan Corporation(HOLC).
Public Works Administration(PWA)(Relief/Recovery)
Eventually over $4 billion was spent on 34,000 construction projects including public buildings, highways, bridges (e.g., San Fransisco's Golden Gate Bridge), and dams for water and power.
Securities and Exchange Commission(SEC)(Still in Existence)(Reform)
The SEC was created in 1934 to serve as a federal "watchdog" administrative agency to protect public and private investors from stock market fraud, deception and insider manipulation on Wall Street. The SEC is still in existence [its' reputation was tarnished a bit by the Enron collapse in 2001-02].
Social Security Administration(SSA)(Still in existence)(Reform)
The Social Security Act of 1935 established the SSA to administer a national fund pension fund for retired persons, an unemployment insurance system, and public assistance programs for dependent mothers, children, and the physically disabled. The pension was financed by a payroll tax to begin in 1937. It exists to this day as the nation's most important and expensive domestic program, covering over 40 million Americans and accounting for about one-fourth of the federal budget.
Tennessee Valley Authority(TVA(Still in Existence)(Reform)
Perhaps the most ambitious undertaking of the New Deal, the TVA was a comprehensive federal agency created in 1933 for the economic development of the Tennessee River watershed. The TVA built twenty dams to control flooding, generate hydro-electrical power, increase agricultural production, and revitalize the Tennessee Valley region. The TVA also provided jobs, low-cost housing, reforestation and other services.
Works Progress Administration(WPA)(Relief)
Established under the $4.8 billion Emergency Relief Appropriation Act of 1935, the WPA lasted until 1943 and employed at least 8.5 million people at an average of $2 a day. They built thousands of roads, bridges, schools, post offices and other public construction projects. In addition, under the WPA's Arts Program, thousands of unemployed writers, musicians, artists, actors, and photographers temporarily went on the federal payroll, producing public projects ranging from murals to national park guidebooks.