the new deal

1. NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) and NATIONAL RECOVERY ADMIN (NRA) were established to end animosity b/n labour and business • all was redirected to industrial growth • fair labour codes established - wages, no child labour, shortened work hours- business people challenged the NRA, claiming it was communist

2. TENNESSEE VALLEY AUTHORITY (TVA) - used to promote hydroelectric power, control flooding - lower rates • private industry, manuf. fertilizer •fed. gov't. took ownership (nationalization v. privatization)

3. This was the name FDR gave to his new program to fight the Depression

3.1. it was a revolution in American society - changed completely the way the gov't functions

3.2. the first phase of the New Deal dealt exclusively w/ eco. reform - unlike Hoover, FDR believed gov't legislation/involvement was crucial to stimulate the economy

3.2.1. step 1 - dealt w/ the banking crisis - BANKING HOLIDAY- banks shut down and subject to gov't inspection, allowed to open when "healthy"- people's confidence returned • they redeposited, allowing banks to invest in the economy

3.2.2. step 2 - stock market reform- Security Exchange Commission est. to police the NYSE (first chmn. was Joseph P. Kennedy)- practice of buying on margin was regulated

3.2.3. step 3 - to put more $ in circulation, FDR went off the GOLD STANDARD (gov't could print more $ than Fort Knox gold reserves would allow)- w/ more $ in circulation, wages and prices increased