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The New Deal

The New Deal. Alphabet Agencies. Key Quote: FDR’s Inauguration Speech. This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask Congress for executive power to wage was against the emergency. The New Deal: Alphabet Agencies.

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The New Deal

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  1. The New Deal Alphabet Agencies

  2. Key Quote: FDR’s Inauguration Speech This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask Congress for executive power to wage was against the emergency.

  3. The New Deal: Alphabet Agencies • Set up to help reverse the ‘Spiral of Depression.’ • The main aim was to pump money into the economy by giving the unemployed jobs. • Not everyone in the Democratic Party agreed exactly how this should be done.

  4. Fall in demand Even more people lose confidence - spend less money Causes of the Depression Demand drops. Jobs lost Spiral of Depression Wages/hours cut Companies cut Costs by laying people off Loss of confidence - less spending Demand drops even further.

  5. Government spending $ More pay = more taxes Alphabet Agencies More jobs More jobs More goods have to be produced More spending Demand for goods increases Demand for goods increases More goods have to be produced More people with jobs = more pay More Spending Reversing the Spiral of Depression Spiral of Prosperity! Democrats called this process ‘Pump Priming’

  6. Harry Hopkins Harold Ickes How do you put the USA back to work? V

  7. Harry Hopkins Work Relief preserves a man’s morale. It saves his skill. It gives him a chance to do something socially useful Set up 2 key Alphabet Agencies: CWA & WPA which aimed to help unskilled unemployed. Criticised for wasting taxpayers’ money on‘boondoggles.’

  8. 800,000 km roads. 40,000 schools 500 airports & rebuilt 500 more. 150,000 public toilets. Paid people to sweep up leaves in parks. Paid unemployed actors to give free shows. Hired people to scare pigeons away from public buildings Boondoggling Civil Works Administration

  9. Harold Ickes ‘My PWA will give work to the unemployed by creating things of lasting use to the nation.’ • Set up the PWA which gave jobs to the skilled unemployed. • Was very careful how he spent taxpayers’ money.

  10. 70% US schools. 35% US hospitals. 4 river dams. Electrified the Washington - New York railway. 50 military airports. 2 aircraft carriers. 4 destroyers & cruisers for US Navy. New sewage system in Chicago. Public Works Administration PWA provided jobs for only the skilled unemployed!

  11. The unskilled unemployed…. When accused of ‘boondoggling’, by giving unemployed librarians jobs cataloguing historical documents, Hopkins replied: ‘Hell, they’ve got to eat just like other people.’ In 1934, the CWA was shut down because it was wasting money

  12. The unskilled unemployed…… • In 1935, after a terrible winter FDR decided to help the unskilled unemployed by setting up WPA with Harry Hopkins in charge. • The PWA continued working until 1939.

  13. 11,000 schools. 70,000 km roads. La Guardia airport in New York. Paid photographers to make a record of the Depression. Paid 12,000 actors to put on plays + concerts to cheer people up! Paid artists to make paintings for display in schools and public buildings. Gave work to 2 million a year. WPA: Works Progress Administration ‘Boondoggles’?

  14. Government spending $ More pay = more taxes Alphabet Agencies More jobs More jobs More goods have to be produced More spending Demand for goods increases Demand for goods increases More goods have to be produced More people with jobs = more pay More Spending Reversing the Spiral of Depression Spiral of Prosperity! Democrats called this process ‘Pump Priming’

  15. Question 1 • How useful is this source for explaining how the New Deal put America back to work?

  16. PWA = Public Works Administration. ‘Alphabet Agency’ designed to reverse ‘Spiral of Depression’ and kick start demand Jobs for skilled construction workers: builders & plumbers (inferred from poster) Shows number of schemes No mention of WPA which was set up to create jobs for the unskilled workers eg actors & photographers. Purpose of picture? To publicise New Deal? High grade = an answer which includes points from each column. Use Limits

  17. Question 2 • How successful was the New deal at putting USA back to work? Use the source and your knowledge to explain your answer.

  18. FDR is taking ‘action’ to end the Depression. FDR is pouring tax payers money to reverse the ‘Spiral of Depression.’ = ‘Pump Priming.’ FDR pouring away money – underground leaks and never – ending burden on taxpayers New Deal wasting money - $16 billion spent on ‘boondoggles’ created by alphabet agencies eg CWA & WPA. eg Scaring pigeons High grade= an answer which includes points from each column. Against For

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