HIST 2112 1ST Edition Lecture 15 Outline of Last Lecture I American workforce s productivity outreaches wages II Margin Buying III 1929 October Stock Market Crashes IV V VI VII 1929 Herbert Hoover is President Hoover Tried Democrats Regain the White House March 1933 Hundred Days Outline of Current Lecture VIII Federal Emergency Relief Act IX Tennessee Valley Authority TVA X National Industrial Recovery Act NIRA XI XII XIII XIV XV Public Works Administration PWA Agricultural Adjustment Act AAA Very Important New Deal Critics In return FDR creates a Second New Deal Congress Fights Back Current Lecture 10 10 13 New Deal America Continued Look at ELC New Deal legislation Federal Emergency Relief Act Silver lobby persuades FDR to buy more silver too in regards to the end of the gold standard The Federal Emergency Relief Act handed money to local governments who gave money food or clothing to needy These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Direct dole to poor massive unemployment during this time Tennessee Valley Authority TVA In a impoverished isolated valley Provided flood control dams and began to generate hydroelectric power that would be available at a low cost rate to local area Tennessee valley Drew industries and jobs National Industrial Recovery Act NIRA Created the NRA Somewhat socialist Worked with workers and employers and competitors to work out fair codes of competition wages employment hours Government intervention tried to stabilize Public Works Administration PWA Geared toward serving public good Focused on building waterworks dams sewers ships Needed large workforce Government paid to create jobs FDR also created the WPA on the same basis Public buildings employed artists history teachers etc to contribute to public good Agricultural Adjustment Act AAA Very Important Primary reason Farm productivity outstripped consumer activity The Act intended to solve the crisis in agricultural commodity prices which was causing many farmers to go under The act was made to subsidize farmers who agreed to reduce their production whether it be cotton corn or dairy Oversaw by local committees by election However not a successful part of the New Deal and showed that the New Deal had little consideration caution in its action Rewarded reductions when farmers reduced acreage by giving crop reduction payments People are starving and farmers are trashing foods etc Payments were financed by a processing tax o Ex wheat farmer sold to flour mill which paid the tax and passed it on to consumers o Thus the tax only shifted poverty from farmers to consumers AAA declared land owners could NOT evict sharecroppers if they reduced land to get crop reduction payments HOWEVER this lead to the mass eviction of sharecroppers as the legislation by the AAA is ignored Owners were able to farm remaining acreage with day laborers Received checks from AAA and used them to purchase tractors in large quantities so there is an even lesser need for sharecroppers Sharecroppers from a movement out of anger Sharecroppers are the penalized people who needed the most help from the AAA New Deal Critics Huey P Long Louisiana Governor Share the wealth program Everything at the time was skewed to benefit the rich So Huey proposed a program that would have a wealth cap at 5 8 million an income cap at 1 million Whatever was over that cap would be taken and redistributed the wealth to the families would needed it Every US family would be guaranteed an annual income of at least 2 000 also promised old age pensions for people 60 years old Huey was popular and threatened FDR s presidency Francis E Townsend Townsend Plan also created Townsend clubs Proposed a plan that would give 200 per month to retirees 60 years of age however they had to spend it in 30 days The plan would be funded by 2 transactions tax but this would have cost over half of the nation income to pay only 9 of the population In return FDR creates a Second New Deal For 1936 election to combat critics and help US citizens regain faith in New Deal Put as many people back to work as possible National Labor Relations Act Formed NLRB to oversee labor management relations Increased reliance for Democratic party Social Security Act 1935 Modest pension guaranteed to elderly Old age insurance Projected level of spending some tried to save but most had to spend Revenue Act of 1935 Get back at overly wealthy Income 5 million imposed a 75 income tax The soak the rich tax didn t circulate back into the economy HOWEVER it did convey a good image for FDR showing him going after the greedy FDR was reelected due to the Second New Deal Black voters elected Democratic instead of Republican a political shift Fair Labor Standards Act Secures position of labor Mandated a Minimum Wage and maximum 40 hour work week for employees of those businesses engaged in interstate commerce 40 cents per hour 40 hour week Other provisions of the act banned the use of workers under the age of 16 The act was also responsible for the creation of the Wage and Hour Division of the Labor Department New Deal Liberal movement Congress fights back 1936 US vs Butler Struck down processing tax The Court found the Act unconstitutional because it attempted to regulate and control agricultural production an arena reserved to the states Even though it does have the power to tax and correct funds the court ruled it violated the 10th Amendment The loophole It can however promote general welfare As a refute to Congress and to replace the AAA the Soil Conservation and Domestic Allotments Act was created in 1936 Instead of crop reduction payments they were given soil conservation payments 1938 Second Agricultural Adjustment Act Enacted as an alternative and replacement for the farm subsidy policies The act revived the provisions in the previous Agriculture Adjustment Act with the exception that the financing of the law s programs would be provided by the Federal Government and not a processor s tax Also enforced as a response to the accomplishment of the Soil Conservation and Domestic Allotment Act of 1936