Policies to rebuild
the economy that
had suffered due
to the Depression
Measures to help
the millions who
the 100 day measures
during the first 100 days that Roosevelt was elected he created the alphabet agencies.
A department to help people to employ unemployed men between 18 and 25 to work in forests, in special camps. The workers would get food and accommodation as well as a dollar a day from the Government.
This gave $500m to the states to spend on food and shelter for the unemployed and homeless. For every $3 each state gave to its people, the Government gave $1.
The AAA tried to encourage farmers to produce less by paying them not to produce in the hope that prices would rise and farmers would make a profit.
This gave support to people of the Tennessee Valley who had suffered from food shortages. They built 21 dams to produce hydro-electricity, providing work for thousands of people and bringing electrical power to the area.
(i) NRA - National Recovery Administration – This encouraged workers to improve their working conditions, and laid down rules on minimum wages, hours of work and conditions of work. The companies taking part in the scheme were entitled to display a blue eagle badge.
(ii) PWA - Public Works Administration – This provided jobs on major building projects for highly skilled workers. It dealt with slums and shanty towns, and built houses, schools and hospitals.
This created a variety of jobs for people in the countryside. It combined all agencies responsible for job creation and provided work building roads, schools and airports. Authors and artists received contracts to carry out creative work.
the new deal
As a result of the
AAA, farmers’ money
lives of 7 million
The CCC created
work for 2.5 million
The PWA and the
work for 4 million
The NRA and the
Wagner Act brought
conditions for workers
and introduced trade
the new deal
They intervened in the
business of Americans.
The Supreme Court
announced that the AAA
and NRA were
The AAA paid farmers not to
produce food – "shoot the cows
and milk the government." This
did not help people who
depended on farms for their
income, eg farm hands.
Many argued that Roosevelt’s
projects were a short-term solution,
and that they provided the
government with cheap labour.
People thought trade unions
were un-American and that
they challenged the idea of
Some felt that the New Deal did not help
enough, Dr Francis Townsend argued
that Roosevelt had not done enough to
help the elderly. He wanted a pension of
$200 per month for everyone over 60 –
they would have to spend this money
within the month and therefore generate
a demand for goods and equipment.
Roosevelt skilfully used his
inaugural address to
reassure the American
people that "the only thing
we have to fear is fear itself
- nameless, unreasoning,
Fireside chats - in March 1933,
about 60 million Americans
gathered around their radios to
be told in a warm tone - ""I can
assure you that it is safer to
keep your money in a reopened
bank than under the mattress"".
Stabilised the banking system -
with the banking system in crisis,
the president declared a nationwide
bank holiday to allow time for
people to regain their nerve. The
Emergency Banking Relief Bill
brought all banks under federal