The New Deal

The New DealAlphabet Agencies

WPA

By Mr RJ Huggins

Key Quotes: FDR’s Inauguration Speech

This Nation asks for action, and action now. Our

greatest primary task is to put people to work. I shall

ask congress for broad executive power to wage

was against the emergency.

Causes of the Depression

Fewer goods are sold.

Demanddrops.

In order to stay in businesscompanies cut

wages

People lose theirconfidence &

start saving their money

Demanddrops even

further.

Companies are forced to cut costs

by laying people off

Even more peopleLose their confidenceAnd spend less money

People lose their jobs.

The Spiral Of

Depression

Reversing the Spiral of Depression

Government Spending $

Alphabet Agencies

More Jobs

More Spending

Demand for goods increases

More goods have to be produced

More people withJobs = more pay $

More Spending

Demand for goods increases

More goods have to be produced

More Jobs

More Pay = More Taxes

Cycle of

Prosperity!

Democrats called this Process

‘Pump Priming’

The New Deal: Alphabet Agencies

The Alphabet Agencies were set up to help reverse the ‘Spiral of Depression.’

The main aim was to pump money back into the economy by giving the unemployed jobs.

Not everyone within the Democratic Party agreed exactly how this should be done.

AAA – Agricultural Adjustment Act

Reduced and controlled farm production, causing prices to rise.

Paid farmers to produce less.Between 1932-1939 the income of

farmers more than doubled.Many criticised the Act saying it was

unjustified government interference.

Civilian Conservation Corps (CCC)

Set up to provide work for unemployed 18-25 year old men.

Stayed in camps whilst planting trees, cutting fire breaks in forests and other conservation tasks.

Over 9 years 2 million young men benefitted from this work.

Critics compared the CCC to the Hitler Youth Movement.

Federal Emergency Relief Administration (FERA)

• Provided emergency cash relief for the poor.

• Gave help to poor relief schemes set up by individual states.

• Gave $500 million for this purpose.• Critics said it was wrong as the money

was given not lent.

National Recovery Administration (NRA)

Encouraged companies to provide good conditions for their workers and recognise trade unions.

Companies asked to sign NRA codes that fixed fair prices and minimum wages.

Companies received a Blue Eagle badge to help sell their products.

Many employers, however, were totally against trade unions and refused to sign the codes.

Some critics also suggested that some industries used the NRA to push up prices.

Civil Works Administration (CWA) and Public Works Administration (PWA)

Built 800,000 km of roads.

Built 40,000 schools

Built 500 airports & rebuilt 500 more.

Built 150,000 public toilets.

Paid people to sweep up leaves in the parks.

Paid unemployed actors to give free shows.

Hired 100 people to scare pigeons away with balloons from public buildings in Washington DC.

Boondoggling

How do you put the USA back to work?

Harry Hopkins Harold Ickes

V

Harry HopkinsWork Relief preserves a

man’s morale. It saves his skill. It gives him a chance

to do something socially useful

Set up two key Alphabet Agencies: CWA & WPA which aimed to help the unskilled unemployed.

Criticised for wasting taxpayers money on ‘boondoggles.’

What about the unskilled unemployed?

In response to being accused of ‘boondoggling’, when he gave unemployed librarians jobs cataloguing historical documents, Hopkins replied:

‘Hell, they’ve got to eat just like other people.’

In 1934, the CWA was shut down because it was wasting money

What about the unskilled unemployed?

• In 1935, after a terrible winter FDR decided to help the unskilled unemployed by setting up WPA with Harry Hopkins in charge.

• The PWA continued working until 1939.

Harold Ickes

Set up the PWA which gave jobs to the skilled unemployed.

Was very careful how he spent taxpayer’s money.

‘My PWA will will give work to the unemployed

by creating things of lasting use to the nation.’

PWA = Public Works Administration

Built 70% of USA Schools.Built 35% of USA Hospitals.Built for river dams.Electrified the New York Washington

railway.

Built 50 military airports.Built two aircraft carriers.Built four cruisers & destroyers for the

US Navy.Built a new sewage system in Chicago.

PWA only provided jobs for the skilled unemployed!

WPA = Works Progress Administration

Built 11,000 schools.

Built 70,000 km of roads.

La Guardia airport in New York.

Employed photographers to make a record of the Depression.

Employed 12,000 Actors to put on plays and concerts to cheer people up!

Employed artists and painters to make paintings for display in schools and public buildings.

Gave work to 2 million people a year.

‘Boondoggles?’

Recap: Reversing the Spiral of Depression

Government Spending $

Alphabet Agencies

More Jobs

More Spending

Demand for goods increases

More goods have to be produced

More people withJobs = more pay $

More Spending

Demand for goods increases

More goods have to be produced

More Jobs

More Pay = More Taxes

Cycle of

Prosperity!

Democrats called this Process

‘Pump Priming’

Summary

• In order to get a a grade ‘C’ upwards in exams, you must learn and use the key words & facts.

• These concepts will be awarded as key ‘knowledge.’

Spiral of Depression

Pump PrimingUnskilled & Skilled

workers‘Boondoggling’CWA, WPA &

PWAAlphabet

Agencies

Key Words

Exam Question 1

• How useful is this source for explaining how the New Deal put America back to work?

Mark SchemeLevel Grade Description

1 E Simple undeveloped answer.

2 D Uses or combines information from the sources.

3 C/B Uses sources & own relevant knowledge / concepts.

4 A/A* Balanced answer covering both parts of the question

Level 3

PWA = Public Works Administration.

‘Alphabet Agency’ designed to reverse the ‘Spiral of Depression’ and kick start demand

Jobs created for skilled construction workers: E.g. Builders & Plumbers deducted from poster

No mention of WPA which was set up to create jobs for the unskilled workers such as actors & photographers.

Photograph taken by a WPA photographer.

For Against

Level 4 = an answer which includes one from each column.

Exam Question 2

• How successful was the New deal at putting USA back to work? Use the source and your knowledge to explain your answer.

Mark SchemeLevel Grade Description

1 E Simple undeveloped answer.

2 D Uses or combines information from the sources.

3 C/B Uses sources & own relevant knowledge / concepts.

4 A/A* Balanced answer covering both parts of the question

Level 3

FDR = Roosevelt taking ‘Action’ to end the Depression.

FDR is Pouring tax payers money to reverse the ‘Spiral of Depression.’ = ‘Pump Priming.’

New Deal wasting money 16 billion spent on ‘boondoggles’ jobs created by alphabet agencies such as CWA & WPA.

E.G. Scaring pigeons with balloons

For Against

Level 4 = an answer which includes one from each column.