What was the New Deal?
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The New Deal refers to the programs Franklin D, Roosevelt undertook in 1930's to pull USA out of the Great Depression that started in 1929. Roosevelt used the term New Deal for the first time in 1932 while accepting the presidential nomination.
The Great deal contained programs for giving relief to the people affected by depression and for introducing reforms in financial, business, industrial and agricultural sectors.
Some of the main programs under the New Deal include:
- Work Progress Administration (WPA) and Civilian Conservation Corps (WAS) were established to dispense aid and to provide jobs on construction projects.
- National Recovery Administration (NRA) was created and granted power to introduce reforms in trade and industrial practices to review industrial activity.
- Federal Deposit Insurance Corporation (FDIC) granted insurance for bank deposits.
- Securities and Exchange Commission (SEC) was created to protect public from fraudulent stock exchange practices.
- Agricultural Adjustment Administration (AAA) attempted to raise prices of agricultural goods by restricting production.
- Tennessee Valley Authority (TVA) undertook major project in electric power generation and allied works including flood prevention and improving navigation.
- The Wagner Act improved Federal authority in matters relating to Industrial Relations and strengthened trade unions.
- Legislation to refinance mortgages and guaranteeing bank loan for housing were introduced
- Social security measures were introduced to provide benefits to old people, widows, unemployed and the disabled people.
"New Deal." Encyclopædia Britannica. 2009. Encyclopædia Britannica Online. 28 Aug. 2009 <http://www.britannica.com/EBchecked/topic/411331/New-Deal>.
Following the example of the American experience during World War 1, Franklin Delano Roosavelt's administration pursued a Keynesian policy of active government intervention in the economy that came to be the New Deal.
Initially, the New Deal attempted to restore prosperity by creating the National Recovery Administration (NRA), which required government, labor, and industrial leaders to work out regulations for each industry. Declared unconstitutional by the Supreme Court in 1935, the NRA was soon superseded by other efforst collectively known as the Second New Deal.
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