Warm Up
• Define in your own words the following terms:
• Identify an options
• Gather information
• Predicting Consequences
• Implementing Decisions
Warm Up continued…
Next, match up the scenario with the best process:
• Scenario 1: The Federal government decision to build power plants on the
Tennessee River.
• Identifying options
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Scenario 2: The Federal government had to investigate the billing amounts from
the existing power companies.
Gathering information
Scenario 3: The development of the river damn power plant systems could
displace up to 15,000 families from their homes.
Predicting consequences
Scenario 4: The Federal government creates the Tennessee Valley Authority and a
board to oversee the hiring, contracting and construction of the power plants on
the Tennessee River.
Implementing decision.
Unit 6: The Great Depression
The New Deal, Reforms, and
Opponents
NEW DEAL POLICIES AND ITS OPPONENTS'
APPROACHES TO RESOLVING THE ECONOMIC
EFFECTS OF THE GREAT DEPRESSION
Roosevelt
Opponents
• Introduced higher taxes on the rich
• Believed too generous to the corporate
interests
• Believed if it was good for business,
then it was good for America
New Deal divided into three parts (Relief,
Reform, and Recovery)
• Confiscate any personal fortune over
$3 million and use this money to give
each family in America
Promised a national minimum wage, old
age pensions, and cheap food for the
poor (opinions of Huey Long)
Reforms for Banks and the Stock
Market
• Glass-Steagall Act of 1933 – established the
Federal Deposit Insurance Corporation (FDIC) this
would insure your money up to $5000. Today it
will insure your money up to $100,000.
• Federal Securities Act – required corporations to
provide information on all stock.
• Public Works Administration (PWA) was created
as part of the National Industrial Recovery Act
(NIRA) – Provided money to states for
construction of schools, and other community
buildings.
• Civil Works Administration (CWA) – Built more
than 40,000 schools and paid the salaries of over
50,000 teachers. It also built more than half a
million miles of road.
Reforms that help in the future
Social Security Act (1935) – Primarily provides
retirement income
1. old age insurance for retirees 65 and older and
their spouses
2. unemployment compensation system
3. aid to families with dependent children and the
disabled
4. Upon the death of a participant their designated
family members would receive benefits. These
family members are class beneficiaries.
• Issues with Social Security today: After World
War II there was a population serge in the
United States called “The Baby Boom.”
Currently, these individuals are ready for
retirement and upon death their beneficiaries
will qualify for benefits. This put a huge strain
on the social security funds.
Reforms for Agriculture
• Agricultural Adjustment Act (AAA) – Wanted
to raise prices of crops by lowering
production. The government paid farmers to
leave a certain amount of every acre of land
unseeded.
• The Government paid $200 million to cotton
growers to plow under 10 million acres
• Paid hog farmers to slaughter 6 million pigs
• Soil Conservation and Domestic Allotment
Act – Paid farmers for cutting production of
soil depleting crops and rewarded farmers for
practicing good soil conservation methods.
Reforms for workers which helped
build our infrastructure
• Fair Labor Standards Act – Set maximum hours at 44
per week, decreasing to 40 after 2 years. It also set a
minimum wage at 25 cents an hour and increasing to
40 cents an hour by 1945. It also set rules for
workers under 16 and banned hazardous work for
those under 18.
• Works Progress Administration (WPA) – Set out to create as
many jobs as possible and as quick as possible. This program
gave people a sense of hope and purpose.
• 850 airports
• 651,000 miles of roads and streets
• 125,000 public buildings
• women sewing in groups made 300 million garments for the
needy
• The WPA also made special efforts to help women, minorities,
and young people and the urging of Eleanor Roosevelt.
• Tennessee Valley Authority (TVA) – Renovated
5 existing dams and constructed 20 new ones
for flood control, creating thousands of jobs,
and provided flood control, hydroelectric
power, and other benefits to an impoverished
region.
• Civilian Conservation Corps (CCC) – Put young
men to work
• building parks
• planting trees – planted more than 200 million
trees (prevent another dust bowl)
• roads
• soil erosion
• flood-control
Match the New Deal Program to its
description
1. Protected consumer
savings and still does
today.
2. Provides retirement
income.
3. Created to control floods,
provide employment, and
provide cheap electrical
power.
4. Hired young men to build
roads and plant trees.
5. Helped farmers with their
crop production and soil
conservation.
A. Social Security Act
B. Tennessee Valley Authority
C. Agriculture Adjustment
Act
D. Civilian Conservation
Corps
E. Federal Deposit Insurance
Corporation (FDIC)