Ch.+26+New+Deal+Philosophy

New Deal PhilosophyThe three R’s: President Roosevelt’s New Deal programs were to serve the three R’s: · Relief for the people out of work · Recovery for business & the economy as a whole · Reform of American economic institutions Immediate action taken to halt financial deterioration. ||  || **__Recovery __** "Pump - Priming" Temporary programs to restart the flow of consumer demand. ||  || **__Reform __** Permanent programs to avoid another depression and insure citizens against economic disasters. ||
 * **__ Relief __**

Declared so that the panic would be stopped. ||  || **Agricultural Adjustment Act (AAA) ** Taxed food processors and gave the money directly to farmers as a payment for not growing food. This decreased supply so price would go up. ||  || **Soil Conservation Act ** Laws mandating proper soil maintenance to make sure that another Dust Bowl were avoided. ||
 * **Bank Holiday **

Closed the insolvent banks and only reopened the solvent ones. ||  || **Works Progress Administration (WPA) ** Provided long term government jobs building schools and other public works projects. ||  || **Federal Deposit Insurance Corporation (FDIC) ** Permanent Agency designed to insure depositors’ money in savings banks. ||
 * **Emergency Banking Act **<span style="font-family: 'Arial','sans-serif';">

Temporary jobs to unmarried single adults filling sand bags and helping out at disaster type situations. Participants lived in barracks type housing. ||  || **<span style="font-family: 'Arial','sans-serif';">Home Owners Loan Corp. **<span style="font-family: 'Arial','sans-serif';"> Gave loans to home owners so they could pay their mortgages. This prevented people from going homeless and prevented banks from going under. ||  || **<span style="font-family: 'Arial','sans-serif';">Social Security Administration **<span style="font-family: 'Arial','sans-serif';"> Permanent agency designed to ensure that the older segment of society always would have enough money to survive. It is also good if they spend throughout their lives. ||
 * **<span style="font-family: 'Arial','sans-serif';">Civilian Conservation Corps (CCC) **<span style="font-family: 'Arial','sans-serif';">

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To shape his New Deal President Roosevelt had a group of advisers that had assisted him when he was governor of New York. These advisers were known as the Brain Trust they included Rexford Tugwell, Raymond Moley, and Adolph A. Berle, Jr. They helped him with problems that had to do with the economy. He also had a diverse group of people for positions in the U.S cabinet during his presidency.