President Hoover s Programs

Transcription

1 President Hoover s Programs Federal Home Loan Bank Act (1932): Lowered mortgage rates for homeowners and allowed farmers to refinance their farms loans to avoid foreclosure. Reconstruction Finance Corporation (1932): Congress provided $2 million for emergency financing for banks and large businesses. Today we would call this a bail out. Trickle Down Economics: Give tax breaks or money to big businesses or the rich. The bail out $ will trickle down to the average citizens through job growth and an improved economy.

2 Hoover Dam Employed out of work citizens, skilled and unskilled laborers, to build. Cost $165 million. Real name is the Boulder Dam. Constructed from on the Colorado River.

3 FDR New Deal=Government programs created by FDR to provide direct and indirect relief to the citizens. New Deal would be a series of trial and error actions. Take a method and try it. If it fails, admit it frankly and try another. FDR compared himself to a QB. He could not call the next play until he knew the results of the previous one. All there is to fear is fear itself.

4 3 Goals of the New Deal New Deal=Government programs created to provide direct and indirect relief to the citizens. 1. Relief for the needy: Immediate action taken to halt the economies deterioration. 2. Economic recovery: "Pump - Priming" Temporary programs to restart the flow of consumer demand. 3. Financial Reform: Permanent programs to avoid another depression and insure citizens against economic disasters. *FDR and Congress passed 15 major pieces of legislation in the first 100 days. No president has ever been close to breaking that record.

5 DEFICIT SPENDING Government spends more money than they collected in taxes. Government then borrows money at low interest rate to pay for their programs. Living outside your means. Why? Prime the pump! Prime the Pump=Dump $ into the economy to stimulate the economy.

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7 Emergency Banking Relief Act 1st day in office FDR declares a national banking holiday. Every bank in the country is closed. Permitted financially sound banks to reopen 4 days later. Unsound banks were not allowed to reopen until they were fixed. FDIC: insured personal accounts in banks up to $5,000. Fireside Chats: FDR convinces the American people their money is safe in the banks. Result=the next day the number of deposits exceeds withdrawals.

8 The Social Security Act, 1935 Supplemental income and retirement system. Employee contributes to the SS fund as does the employer. SS pays for: 1) Supplemental retirement: $10-85 month in ) Unemployment 3) Aid to families with dependent children and aid to people with disabilities.

9 Securities and Exchange Commission: SEC SEC regulated the stock market. Stock no longer is allowed to be sold on margin. Stock prices are based on profit-loss margin rather than speculation. Companies must now open their financial records to the public.

10 Rural Electrification Administration: REA In 1935, only 12.6 percent of American farms had electricity. FDR created the REA to create and finance electricity to rural areas of the country. 90% of American homes and farms had electricity by 1951.

11 Agricultural Adjustment Act: AAA Purpose: Raise crop prices by lowering production. Paid farmers to NOT plant crops even though people are starving. Result: Helps raise crop prices and puts $ into the hands of farmers.

12 CIVILIAN CONSERVATION CORPS:CCC Designed to employ men between the ages of Built state and national parks, recreational areas, soil conservation, forestry. Pay was $30/month. Directed by army officers and the forest service.

13 PUBLIC WORKS ADMINISTRATION:PWA Government spent $3.3 billion for public buildings, highways, bridges, flood control, and other improvements.

14 CIVIL WORKS ADMINISTRATION: CWA Provided jobs and wages to those able to work. make work jobs like leaf raking, ditch digging, highway building, etc. $900 million spent in the winter of

15 FEDERAL HOUSING AUTHORITY: FHA Agency established to furnish loans for home mortgages and home repairs. Still in existence today.

16 Tennessee Valley Authority: TVA Established in 1933 to construct dams and power plants along the Tennessee River and its tributaries. Employed out of work Americans and supplied electricity to citizens in 7 southern states. Song of the South

17 WORKS PROGRESS ADMINISTRATION: WPA Spent $5 billion to employ 8 million people with no skills. Built 850 airports; built or repaired 651,000 miles of roads and streets; built 110,000 libraries, schools, and hospitals. Also hired professionals to work in their field. Teachers, writers, artists, actors, and musicians.

18 NATIONAL YOUTH ADMINISTRATION: NYA Provided job training to unemployed youth and part-time jobs for needy students. 2 million high school and college age students were employed.

19 FAIR LABOR STANDARDS ACT Set the maximum hour work week at 44 hours. 40 hours by Minimum wage set at.25/hr..40/hr by No hazardous jobs for workers under the age of 18. Set rules on employing children under the age of 16.

20 Federal Emergency Relief Administration: FERA Provided $500 million for direct relief for the needy. Furnished food and clothing to the unemployed, the elderly, and the sick.