Relief, Reform and Recovery The New Deal was a series of programs focused on relief, reform and recovery: Relief to the unemployed Reform to the economy Recovery from the Depression The first wave of the New Deal focused on short- term efforts such as stabilizing the banking system with the Federal Deposit Insurance Corporation created in 1933 to insure individual bank deposits. THE NEW DEAL Franklin D. Roosevelts program of government spending to help the people of the United States against the Depression. He wanted to prime the pump. He believed that putting money into peoples pockets was like pouring gas into an engine to get it started. ALPHABET AGENCIES CCC (Civilian Conservation Corps) Cut fire lanes through forests. Planted trees Worked in camps received food and shelter. ($1/day) WPA (Works Progress Adm.) Built schools, buildings & roads Paid people to act, paint, sculpt and write PWA (Public Works Adm.) Built dams & bridges TVA (Tennessee Valley Auth.) Aims were to stop floods, make electricity and create fertile land. AGRICULTURE Agriculture Adjustment Act (1933) Reduced farm crop and livestock outputs and raised farm prices Provided subsidies to farmers TRADE UNIONS Wagner Act (1935) In 1935 Roosevelt passed a law which gave workers the right to form unions. SOCIAL SECURITY Social Security Act (1935) Gave government pensions to those who could not provide for themselves. Unemployment insurance was introduced. Taxed workers to provide money for social security. LABOUR LAWS FAIR LABOUR STANDARDS ACT (1938) Set out the maximum hours of work and minimum wage laws. Discuss: Why is this change in policy so significant? What specific changes to ideology does it represent? Canadas Response Read pgs ``Government Response to the Depression in Canada`` -How are these policies different from the policies in place in the USA during the same period? - How are these policies similar? Brainstorm How did the governments of Canada and the USA react to the recent economic crisis? - Give specific examples of policies What ideologies or principles are reflected in these policies? How have governments changed their approaches to economic crises, if at all? Examples of Policies Interest rate lowered to 0.25% in 2009 (Canada) Government bailout of auto industry Job stimulation (public works) Protection of banks CMHC mortgage requirements Shorter mortgage terms ``Buy American`` clause