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3 main aims of the New Deal (Relief (Agricultural Adjustment Agency (AAA),…
3 main aims of the New Deal
Relief
Relieve extreme poverty, feed the starving and stop people losing their homes or farms.
Agricultural Adjustment Agency (AAA)
Paid farmers to produce less food by taking land out of production or reducing livestock
Successes
Prices went up
Farmers incomes doubled between 1933 and 1939
Failures
The govt. bought and killed 6 million piglets in 1935
Some of the meat was tinned and given to the poor but about nine-tenths of it was destroyed
The AAA helped the farmers but not the tenants and sharecroppers that worked on the land
Many of them were evicted because there was not much work to do
Farmers replaced with machinery bought with government money
First 100 days
Federal Emergency Relief Administration (FERA)
$500 to help thousands of Americans who were homeless, penniless and starving.
Successes
Money used to increase # of soup kitchens and to provide clothing, schools and employment schemes
First 100 days
Farm Credit Administration (FCA)
Made loans to a fifth of all farmers so that they would not lose their farms
Home Owners Loan Corporation (HOLC)
Loaned money to over a million people to prevent them from losing their homes
Reform
Make the USA a better place for ordinary people by bringing in measures such as unemployment insurance and old-age pensions, and help for the sick, disabled and needy.
Tennessee Valley Authority (TVA)
Set up to reform the Tennessee Valley, which was a vast area that cut through seven states.
Actions of TVA
33 dams built
Improved the quality of the soil
650 mile waterway that linked major river systems and gave easy access to the area
New power stations → TVA became biggest electricity producer in the USA
Industries like light engineering moved into the area to take advantage of cheap power
Successes
Thousands of jobs were created
Land was conserved and improved
Health and welfare facilities were provided
Recovery
Revive the economy by getting industry going and people working again.
Civilian Conservation Corps (CCC)
Gave jobs to single men under 25 - they lived in government camps in the countryside and did hard work e.g. planting trees, strengthening river banks, etc.
1933-1942 → 3 million men took part in CCC
Successes
Men learned skills that would help them get jobs afterwards
Young men working got food, clothing and a sense of purpose
Hoped that men would become healthy and fit as a result of fresh air
Failures
Criticised as cheap labour → $1 a day
First 100 days
Civilian Works Administration (CWA)
Short term scheme to give as many people jobs as possible (four million over winter of 1933-1934)
Jobs included sweeping up leaves, out of work actors giving free shows
Failures
Most of these jobs were short term and just gave people something to do
Not a stable job
No stable income
Public Works Administration (PWA)
Create public works - $7 billion spent employing skilled men to build dams, sewage systems, etc.
Successes
Created public works of real and lasting value
1933-1939 → PWA built 70% of America’s schools
1933-1939 → PWA built 35% of America’s hospitals
First 100 days
National Recovery Administration (NRA)
Aims
Increase workers wages → spend more on the economy
Increase prices of factory goods → help factory owners make more profit → more employment
Give workers a fairer deal e.g better working conditions, shorter hours, etc.
Successes
Fixed prices for goods, limited workers hours, set minimum wages, prohibited child labour
Advertisement → businesses that signed up were allowed to use the NRA's sign (Blue Eagle). Big publicity campaigns and parades encouraged the public to buy goods from members.
First 100 days