In 1932 voters chose Franklin D. Roosevelt over Hoover. By his inauguration on March 4, 1933, banks in most states had closed. Roosevelt promised action: "the only thing we have to fear is fear itself." In his first Hundred Days, Congress passed fifteen major laws.
Key idea
The New Deal aimed at relief, recovery and reform. Key programs: the CCC and TVA (1933), deposit insurance (FDIC, 1933), the SEC (1934), the WPA, Social Security and the Wagner Act (1935), and the Fair Labor Standards Act (1938).
| Program | Year | What it did | R |
|---|---|---|---|
| Civilian Conservation Corps (CCC) | 1933 | Jobs for young men planting trees and building parks | Relief |
| Tennessee Valley Authority (TVA) | 1933 | Dams, flood control and electric power for a poor region | Recovery |
| FDIC (Banking Act of 1933) | 1933 | Insured bank deposits, ending bank runs | Reform |
| Securities and Exchange Commission (SEC) | 1934 | Regulated the stock market | Reform |
| Works Progress Administration (WPA) | 1935 | Millions of jobs building roads, schools and post offices, and for artists and writers | Relief |
| Social Security Act | 1935 | Old-age pensions and unemployment insurance, paid for by payroll taxes | Reform |
| Wagner Act (National Labor Relations Act) | 1935 | Protected workers' right to form unions and bargain | Reform |
| Fair Labor Standards Act | 1938 | A minimum wage (25 cents an hour at first), limits on hours, an end to most child labor | Reform |
Why it works
Why such a mix? Roosevelt was willing to experiment and to drop what failed. The first New Deal (1933 to 1934) tried to stop the collapse and plan recovery with business and farmers. The second New Deal (1935 to 1936) built lasting safety nets and protections for workers. Frances Perkins, his labor secretary and the first woman in a cabinet, shaped Social Security and the labor laws.
Work it through
Worked example: Sort by the three Rs
Is each relief, recovery or reform: WPA jobs; the SEC; the TVA?
- Relief helps people now: a WPA paycheck.
- Recovery aims to restart the economy: the TVA's dams and power for a region.
- Reform aims to prevent another crash: the SEC policing the stock market.
Answer: WPA: relief. TVA: recovery. SEC: reform.
Common mistake
Students mix up the three Rs. Relief helped people now (WPA jobs, the CCC). Recovery aimed to restart the economy (the TVA, the farm and industry programs). Reform aimed to prevent another crash and protect people for good (the FDIC, the SEC, Social Security). Some programs did more than one.