Notes - NEW DEAL FDIC SEC CCC TVZ AAA WPA Social Security...

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3/5/2009 NEW DEAL FDIC SEC CCC TVZ AAA WPA Social Security “Court Packing” New Deal Objectives Relief, recovery, and reform FDR’s Advisors were called “Brain Trust” FDR was not the smartest guy ever, but he could tap the smartness from his friends Eleanor Roosevelt travelled around the country to promote the New Deal, talked to every different person FDR was making this up as he went along o Looking for capitalist solutions Root problem was under-consumption American government needed to check and balance American corps. Encourage the growth of labor unions o Success Address the income distribution problem o Leutchtenburg –wide gap between rich and poor Most immediate problem was the American banking system American banking system
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Many banks closed before FDR was elected “Bank Holiday” o Shut down the banks for a little so that FDR and Brain Trust could come up with a plan Emergency Banking Act – worked w/ Hoover’s act, took money out of the economy and the secretary of treasury loaned it to banks they seemed fit to reopen, Glass-Steagall Banking Act – set up FDIC Federal Depositor Insurance Corp. (FDIC) 1933 Guaranteed depositors that the US will pay them back if the bank failed o Earlier, people lost their money if banks failed Restored American confidence in banks, minimize the risks involved Success Federal oversight Securities And Exchange Commission (SEC) 1934 Required stock traders have investment licenses Stock transactions, full disclosures about their companies, Wall Street cleaned up Civilian Conservation Corps (CCC) 1933-1942 Personal favorite of FDR, most popular of the work relief program Flood control measures, prevent soil erosion, built dams FDR personally put himself in charge Preservation of land > dollar and cents Ended in 1942 Bad: Planted tamarisk trees in the CO river, the plants took over Later build a dam and the salmon go away Programs Allowed the workers to have some self esteem, my husband is working for the government
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Tennessee Valley Authority (TVA) 1933 Ambitious and controversial Build a series of dams in the TN river for rural communities New towns around the power stations Cultural component Unpopular for power companies o RAA – electrify rural America, low interest loans for the construction of power plants o Success Agricultural Adjustment Act (AAA) 1933 Farmers had been in bad shape since WWI Too much production AAA reduce production, domestic allotment plan o Paid farmers not to grow crops on a portion of their fields, immediately o Slaughter many animals while many people were starving
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This note was uploaded on 03/26/2009 for the course HIS 1302 taught by Professor Schulze during the Spring '09 term at University of Texas at Dallas, Richardson.

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Notes - NEW DEAL FDIC SEC CCC TVZ AAA WPA Social Security...

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