Impact of the New Deal

Did the New Deal Meet It’s Goals?• Relief- put billions of dollars in

Americans pockets with direct relief• Recovery – Did not help the

economy recover for the long term– Had immediate upturn that was

wiped away by recession in 37-38– Still 10 million workers unemployed

in 1939• Reform – successful and long lasting

reforms of economy• FDIC (federal depositors insurance

corporation)– restored public confidence in banking system

• SEC (Securities Exchange Commission) – helped restore confidence in stock market

New Deal Winding Down• Republicans and Southern

Democrats in Congress became strong enough to stop some of the legislation proposed by Roosevelt

• The only major program passed in 1938 was the Fair Labor Standards Act– Set a minimum wage and

maximum work hours to 44 hours

– Required that workers receive time and a half for overtime

Impact of Federal Government

• Established a bigger government that was more actively involved in citizen’s lives

• • Government now

provided safety net for American’s - protect against economic disaster

Programs Still Around Today• FDIC – insures bank deposits up

to 250,000• Social Security – old age,

unemployment insurance, and disability insurance

• SEC – regulates and polices the stock market

• TVA – provides electrical power to 8 mill customers

• Federal Housing Authority – insures mortgage loans, assists low-income renters, and fights housing discrimination– Housing and Urban development

(HUD)

1938 Congressional Elections• Roosevelt campaigned hard to get

Congressional leaders that backed his ideas in office – attempted to overthrow the incumbents that were unsupportive

• His plan backfired and in all elections the candidate he promoted lost

• After elections, there was less support for the New Deal programs and attention began to turn to the crisis in Europe

• At the end of the decade, Americans went to work in factories making goods for war that were being ‘lent’ to Allied powers