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Key Terms:• National Recovery Administration (NRA)• Works Progress Administration (WPA)• Francis TownsendI. The New Deal A. Relief: immediate action taken to halt the economy's deterioration B. Reform: permanent programs to avoid another depression and insure citizens against economic disasters 1. Tries to fix instability in banking industry first 2. Closes all banks in the country to figure out which ones are stable a. This goes on for 8 days, no one does any banking 3. Americans deposit more money into banks than they withdrew because they have confidence in FDR a. Given American people trust in banks 4. FDIC created = money you put in the bank is backed by insurance 5. Home Owner's Loan Corporation = people won't be foreclosed or evicted by their homes anymore 6. Glass-Steagall Act = separation between commercial banking and investment banking a. Overturned in 1990s - lead to weaknesses in American economy 7. Bring farmers electricity to engage in different industries because farms were not profitable a. Once they have electricity they'll purchase more things and engage the economy b. Tennessee Valley Authority 35% of American farm families have electricity 8. Agricultural Adjustment Act a. Creates new relationship between government and famers b. Subsidies for limits on production - wheat, corn, cotton, tobacco c. Pay farmers not to plant because there's too much product - kill livestock and destroy plants d. Fewer products on the market and then raise the prices e. Declared unconstitutional in 1936 C. Recovery or "priming the pump": temporary programs to restart the flow of consumer demand 1. NRA - National Recovery Administration a. Revive industry and put people back to work so they can buy goods b. Representative, government official, and worker sits down for each industry to guarantee minimum wages c. Blue sticker goes in a window of the business to show people they're trying to fix the problem d. Doesn't work - works for big businesses but small businesses can't afford to pay their workers min. wage 2. Schechter Poultry V. US a. Their chickens are sick and the gov't won't let them sell them, they want to anyway and for whatever price they want b. They sue the gov't, and the supreme court says they're right c. They're only selling chicken to NY, and gov't can't regulate interstate trade 3. Civilian Conservation Corps (CCC) a. Hire people to do public jobs - once they earn money they'll spend money b. First jobs program gives $6 million to economy c. Hire young white men to work in nation's parks and forests d. Money was sent to men's families to spend because men lived in wilderness and couldn't spend 4. Works Progress Administration (WPA) a. Hires people to create work - labor intensive jobs b. Some jobs were inefficient but it was meant to pay people money to survive and spend 5. Social Security a. How to take care of the elderly when they couldn't work anymore b. But payments were incredibly small and many jobs were not covered by SS - helps well-off white men c. Many people didn't like this -Huey Long: senator of Louisiana, opposes New Deal as "too conservative" -wanted to take from the rich and give to the poor: Share Our Wealth Program -wants to guarantee every family a minimum income of $2000 -Francis Townsend: California physician who finds himself unemployed at 67 with no savings -Townsend Plan: asks for $200 from government for people over 65 every month and they have to spend it all -65 year olds have to retire to open up jobs for younger


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