X NOTES: New Deal

Sunday 8 March 2015

Franklin D. Roosevelt started this programme to counter Economic crisis of 1929-33/ Great Depression.
Programme for economic reconstruction and social welfare.
Steps to improve workers condition and create employment.
focused on what historians call the "3 Rs": Relief, Recovery, and Reform.
US recovered from crisis and industrial production picked up again.

New Deal

balance the "regular" (non-emergency) federal budget by cutting the salaries of government employees and cutting pensions to veterans by fifteen percent..

Emergency Banking Act, . It provided for a system of reopening sound banks under Treasury supervision, with federal loans available if needed. Three-quarters of the banks in the Federal Reserve System reopened within the next three days. Billions of dollars in hoarded currency and gold flowed back into them within a month, thus stabilizing the banking system.
The Glass–Steagall Act limited commercial bank securities activities and affiliations between commercial banks and securities firms to regulate speculations.

suspended the gold standard.
stopped the outflow of gold by forbidding the export of gold except under license from the Treasury.
The dollar was allowed to float freely on foreign exchange markets with no guaranteed price in gold.
Gold Reserve Act, 1934. These measures enabled the Fed to increase the amount of money in circulation to the level the economy needed.

Securities Act of 1933 was enacted. It required the disclosure of the balance sheet, profit and loss statement, the names and compensations of corporate officers, about firms whose securities were traded.
In 1934 the U.S. Securities and Exchange Commission was established to regulate the stock market and prevent corporate abuses relating to the sale of securities and corporate reporting.

Government funded public works project e.g. Schools, Dams, Bridges etc. provided employment to large number of people.