Lesson 3:
Solutions to the Depression
Handout 1
New Deal Legislation
Farm Relief and Rural Development
- Agricultural Adjustment Administration (AAA), 1933: to aid farmers and to regulate crop production
- The Tennessee Valley Authority (TVA), 1933: to develop the resources of the Tennessee Valley
- Rural Electrification Administration (REA), 1935: to provide cheap electricity for isolated areas
Business Assistance and Reform
- Emergency Banking and Relief Act (EBRA), 1933: to regulate bank transactions in credit, currency, foreign exchange, gold and silver
- Federal Deposit Insurance Corporation (FDIC), 1933: to protect bank deposits up to $5,000. The amount now protected by the FDIC is $100,000.
- National Recovery Administration (NRA), 1933: to provide “codes” of fair competition and to give labor the right of collective bargaining
- Securities and Exchange Commission (SEC), 1934: to supervise the stock exchanges and eliminate dishonest practices
- Public Utilities Holding Company Act, 1935: to eliminate holding companies of utilities that did not operate efficiently and economically
- Banking Act of 1935: to create a seven-member board of public officials to regulate the nation’s money supply and the interest rates on loans
- Food, Drug and Cosmetic Act, 1933: to require manufacturers to list ingredients in food, drugs, and cosmetics
Employment Projects
- Civilian Conservation Corps (CCC), 1933: to provide jobs for young single males on conservation projects
- Federal Emergency Relief Act (FERA), 1933: to help states provide jobs for the unemployed
- Civil Works Administration (CWA), 1933: to provide work even if it means “making work” in federal jobs
- Public Works Administration (PWA), 1933: to create jobs in public works which would increase worker buying power and stimulate the economy
- Works Progress Administration (WPA), 1935: to create as many jobs as possible as quickly as possible, from jobs in the construction industry to jobs in symphony orchestras
- National Youth Administration (NYA), 1935: to provide job training for unemployed youths and part-time jobs for students in need
Housing and Social Security
- Home Owners Loan Corporation (HOLC), 1933: to give loans at low interest to home owners who could not meet mortgage payments
- Federal Housing Administration (FHA), 1934: to provide loans for the building and repair of houses
- Social Security Act, 1935: to provide a pension for retired workers and their spouses and to aid the handicapped
- United States Housing Authority (USHA), 1937: to provide federal loans for a nation-wide home improvement program
Labor Relations
- National Labor Relations Act (Wagner-Connery Act of 1935): to define “unfair labor practices” and to establish a National Labor Relations Board to settle differences between employers and employees
- Fair Labor Standards Act, 1938: to set up a national minimum hourly wage, a maximum work week and to prohibit children under sixteen from working in factories