roosevelt and great depression
...mbers were unmarried and poor. They lived on camps and worked there and received food. People of CCC did useful social work. Other organization was for those who were still at school. The National Youth Administration was created in 1935. These students were paid regular wages. Recovery measures were meant to be to recover economic health. Farmers and Agriculture When Roosevelt came to power, farms faced mounting debts. Unable to pay them, many lost their farms to banks, insurance companies, etc. Some farmers rented the land to live on, others stayed homeless. To relieve the situation, the government issued some money, which farmers could borrow at low interest rate. Some used to buy food, pay taxes and refinance the loans. The system enabled to protect their homes and farms. To make a higher income for farmers, it was necessary to raise money for the farm products by the principle of supply and demand. Agricultural Adjustment Administration paid money to those, who agreed not to use one quarter to one half of their land. The money for these subsidies came from taxes levied on the food processors. The production and the government subsidized the farmers. The Supreme Court brought AAA to an end. The Court said that this power belonged to the states but not for authority to interfere. Building Industry New Deal programs attempted to revive the building industry; it creates many jobs in different spheres. The Public Works Administration began to contact with private firms to get the jobs. The federal government encouraged states and municipalities to carry out their own building programs. Building of homes would stimulate the jobs and it would build new homes for homeless people. Many houses were sold on the auctions, so the Home Owners Loan Corporation was created. With money borrowed at low interstates, people could pay off their or mortgages and at the same time they agreed to pay off their new mortgages over a long period of time with a much smaller monthly payment. Therefore many houses were saved. Federal Housing Administration was established in 1934. It lend money for repairing and building homes, etc. The Depression touched the transportation system as well. So, some western railroads lowered their passenger rates. This was very successful. Government loans enabled to improve the conditions of the railroad as well. The NIRA National Industrial Recovery Act came out in 1933 and it was intended to aid industry, consumers and labor. Under the act employers would cooperate in stabilizing prices, finding jobs for job seekers and raising wages. NIRA provided that each industry should adopt “a code of fair practices” The National Labor Board Congress established National Labor Relations Board to settle the confused points of the law. It could conduct elections in plants and determine which labor organization had the right to bargain for all the workers in that particular plant. It also served as a board of arbitration to settle labor disputes The Wager Act In 1935 Congress passed National Labor Relations Act (Wagner Act). It guaranteed to labor the right to organize, to bargain collectively for better wages and working conditions. Wagner Act considered unfair that a person belonging to a union would be discriminated. Only fundamental reforms would be able to protect the country from another depression. Protection for investors New Deal reforms straightened banks in several ways: - FRS put banks under supervision and FRB was given additional power to regulate credits. - To protect public from worthless stocks. Any bank, brokerage house or salesperson that failed to give full and honest information about the true value of stocks and bonds offered for sale was subject to severe penalty. The Security and Exchange Commission was created. Social security for the people Social Security Act of 1935 tackled the problem of individual security. - Money were given out to unemployed, which were collected from taxes - Provide pensions for old-aged people - Help handicapped with providing money Utility Congress passed Public Utility Holding Company Act in 1935. This measure gave Federal Power Commission authority to regulate the interstate production, transmission and sale of electricity. It gave Federal Trade Commission similar authorities over gas. It gave power to regulate the financial practices of public utility holding companies. New Deal hoped to end monopoly this way. Under the law, ...