what alphabet agencies had an economic impact on the usa
1st new deal:
- AAA
- scrapped prohibition
- PWA
- CCC
- EBA
- HOLC
- EA
- FERA
2nd new deal:
- WPA
- FSA
- social security act
AAA impact on economy
helped farmers with mortgages, meant the farming industry could prosper and more crops could be sold, increasing money
scrapped prohibition impact on economy
FDR taxed the makers and distributors of alcohol, this increased government money to spend
PWA impact on economy
spent $3 billion in 2 years on building schools, dams, bridges, this created millions of short term jobs. more jobs = more money to spend on consumer products
USED TAX PAYERS MONEY
CCC impact on economy
helped 2.5million people with 6month programmes (environmental) paying $30 a month, people had more money to spend
USED TAX PAYERS MONEY
HOLC impact on economy
helped 20% people between 1933-36 pay mortgages, people could spend more money on essentials they needed
USED TAX PAYER MONEY
EA impact on economy
cut government employee wages (even FDR) 15% so they had more to spend on fixing the economy
FERA impact on the economy
gave $500million to states to spend on soup kitchens and employment schemes
USED TAX PAYER MONEY
WPA impact on economy
created 8million jobs in 8 years, more people having jobs and earning money meant that people could spend on consumer goods helping businesses prosper and helping the economy
FSA impact on economy
loaned $1billion to farmers to help during the depression and help set up camps for migrant workers
social security act impact on economy
provided financial help to sick, disabled, elderly and widows
EBA impact on economy
FDR shut all banks for 4 day and after inspection of records, 5000 trustworthy banks were allowed to reopen. this restored trust amongst US population, and over $1 billion was redeposited into banks
successes of new deal on economy
- stabilised banks (EBA)
- reduces business failures
- reduces unemployment by creating millions of jobs (PWA, CCC, WPA) : people had wages therefore could get out of poverty, and spend more
failure of new deal on economy
- people had low confidence, spending 75% less than they had before 1929
- USA economy took longer that Europe to recover
- unfair distribution of wealth
- by 1935: 10.6 million were still unemployed
handling tax payer money
success:
- the government handled billions of dollars of tax payer money with no corruption scandals
- Harold Hopkins handled $10billion dollars
- created trust in the government
overall summary
new deal helped fix the US economy significantly
- restored security and confidence between people when spending money
- reduced unemployment, more people had a disposable income to spend on consumer goods , helping businesses to prosper
