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7 The legacies of the New Deal
Although the New Deal did not end the depression, all in all it helped to prevent the economy from decaying further by increasing the regulatory functions of the federal government in ways that helped stabilize previous trouble areas of the economy: the stock market, the banking system, and others. It also produced a new political coalition that sustained the Democratic Party as the majority party in national politics for more than a generation after its own end.
Also laying the foundations for the postwar era, Roosevelt and the New Deal helped enhance the power of the federal government as a whole. Roosevelt also established the presidency as the preeminent center of authority within the federal government. By creating a large array of protections for various groups of citizens—workers, farmers, and others—who suffered from the crisis, enabling them to challenge the powers of the corporations, the Roosevelt administration generated a set of political ideas—known to later generations as New Deal liberalism—that remained a source of inspiration and controversy for decades and that help shape the next great experiments in liberal reform, the civil rights movement and Great Society of the 1960s.
8 A list of New Deal programs
The New Deal was composed of countless programs, labeled an "alphabet soup" by its detractors. Among the New Deal acts were the following, most of them passed within the first 100 days of FDR's administration:
- United States bank holiday, 1933: closed all banks until they became certified by federal reviewers
- Abandonment of gold standard, 1933: allowed more money to be put in circulation to create a mild inflation
- Civilian Conservation Corps (CCC), 1933: employed young adults to perform unskilled work for the federal government
- Tennessee Valley Authority (TVA), 1933: a government program that ran a series of dams built on the Tennessee River
- Federal Emergency Relief Administration (FERA), 1933: provided breadlines and other aid to the unemployed
- Agricultural Adjustment Act (AAA), 1933: paid farmers to not grow crops
- National Recovery Act (NRA), 1933: created fair standards in favor of labor unions
- Civil Works Administration
- Public Works Administration (PWA), 1933: employeed middle-aged skilled workers to work on public projects, cost $4 billion
- Federal Deposit Insurance Corporation (FDIC) / Glass-Steagall Act: insures deposits in banks in order to restore public confidence in banks
- Securities Act of 1933, created the Securities and Exchange Commission (SEC), 1933: codified standards for sale and purchase of stock, required risk of investments to be acccurately disclosed
- Indian Reorganization Act, 1934
- Social Security Act (SSA), 1935: provided financial assistance to: elderly, handicapped, delinquent, unemployed; paid for by employee and employer payroll contributions
- Works Progress Administration (WPA), 1935: a reiteration of the PWA, created useful work for skilled workers
- National Labor Relations Act (NLRA) / Wagner Act, 1935: granted right of labor unions to exist
- Judiciary Act 1937: FDR requested power to appoint a new Supreme Court judge for every judge 70 years or older; failed to pass
- Fair Labor Standards Act (FLSA), 1938: established a maximum normal work week of 40 hours, and a minimum pay of 40 cents/hour