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The New Deal by Mind Map: The New Deal
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The New Deal

Step 1: Banking Holiday

banks shut down and subject to gov. inspection

ppls confidence returned and redeposited allowing banks to invest in the economy

used to fight the Depression


changed the way gov. functions

1st phase

dealt w/ exclusively economy reform

FDR believed gov. was crucial to stimulate economy

Step 2: Security Exchange Commission

Stock Market Reform

practice of buying on margin was regulated

Step 3: put more $$ in circulation

Gold Standard

Could print more $ than Fort Knox gold reserves would allow

w/ more circulation, wages and prices increased

Keynesian economics

Inflation, causing dollar value to lower- gave gov. spending power.

National Industrial recovery Act (NIRA) and National Recovery Admin (NRA)

established to end animosity but not labor and business

all was redirected to industrial growth

fair labor codes established, wages, no child labor, shortened work hours

Business people challenged the NRA, claiming it was communist

Liberty League, The Supreme Ct. overturned the NIRA & NRA- claimed fed. gov. was exceeding its authority (thru interfering in state jurisdiction)

Tennessee Valley Authority (TVA)

used to promote hydroelectric power, control flooding- lower rates

private industry, manufacturing fertilizer

Fed. gov. took ownership


Annual Move

Otis Dozier, 1936

Kansas City from Politics, Farming, and the Law

Thomas Hart Benton, 1936

Construction of the Dam

William Gropper

Agricultural Adjustment Act

passed in 1933 to aid formers

objective was to restore farmers' purchasing power; the family farm

had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce)

Bad side

food production down when millions were starving

Black sharecroppers were hurt: white landowners paid not to farm so they got rid of Black tenant formers


AAA declared unconstitutional by courts so it was revised and introduced as new legislation (too much control over individual states), Food Stamp Act of 1939, gave away surplus food to poor, also guaranteed (small) farmers market

Civilian Conservation Corps

set to establish work for young men in areas of reforestation, soil conservation, flood control, road conservation

took them out of urban labor markets but Blacks permitted to enroll

National Youth Admin. (NYA)

created jobs for young in urban areas

Fed. Emergency Relief Act. (FERA)

aimed at older workers

worked well but was still at 6 million

Social Reform Aspect

National Labor Relations Act

legitimized unions and labor tactics such as collective bargaining & collective action

outlawed Blacklists and other anti-union practices

Social Security Act

"creeping socialism". typifies the Welfare State: unemployment insurance, old age pensions

Problem: it took some $$ out of circulation at a time when purchasing power was already low & only covered the unemployed= "Soak the Rich" tax


FDR won easily