In response to the problem of economic recovery, the National Industrial Recovery Act launched the Nation Recovery Administration.

The NRA established a system of industrial selfgovernment to handle the problems of overproduction, cutthroat competition, and price instability that had caused business failures. Each industry, large and small, hammered out codes of prices and production quotas. The NRA created Minimum Wages and Maximum hours and banned Child Labor. Section 7(a) gave workers the right now organize and bargain collectively. In order to combat the unemployment of the U.S., the Federal Emergency Relief Administration was set up and run by Harry Hopkins. FERA was designed to keep people from starving. Dole is the direct payment to citizens as a form of relief. PWA under Ickes was unsuccessful because of his cautiousness. The Civil Works Administration was more effective under Hopkins; employing 4 million workers. Roosevelts executive order abandoned the international gold standard and allowed gold to rise in value like any other commodity. It provided the Federal Reserve System freedom to attempt to promote stable prices and full employment without being tied to the value of gold. Alphabet Soup Agencies were what the New Deal Program became known as. Congress established the Securities and Exchange Commission (SEC) to regulate the stock market. The Banking Act of 1935 authorized the president to appoint a new board of governors of the Federal Reserve System. This brought banking to a Federal Level instead of a State level. This promoted centralization of the nations banking system. Not everyone liked the New Deal. The Liberty League was formed by conservative Democrats to lobby against the New Deal and its Reckless Spending. On Black Monday, the Supreme Court struck down the NRA in Schechter v. US. The Sick- Chicken case also went against the New Deal. The NRA could not control interstate commerce. Townsend came up with the Old Age Revolving Pension Plan, which would give 200 dollars to old people every month. They had to retire from jobs and spend the money within a month. Coughlin creates the National Union for Social Justice and Senator Long created the Share Our Wealth Society. (Both against the New Deal) The First New Deal focused on Recovery and the second focused on Reform. The Wagner Act sponsored by Senator Wagner of New York,

protected labor. It gave workers rights to join a union and outlawed many unfair practices such as firing workers for union activities. The Act also established the nonpartisan National Labor Relations Board (NLRB) to protect workers from employer coercion. The Social Security Act provided pensions for most workers in the private sector. Pensions were to be financed by a federal tax that both employers and employees would pay. The act also mandated categorical assistance programs to the blind, deaf, and disabled. Categorical assistance grew and became integral part in Welfare System. The Works Progress Administration was the main federal relief program. The workers only received 55 dollars a month. The Revenue Act of 1935, a tax reform bill that increased estate and corporate taxes and instituted higher tax on personal income in the higher brackets. Landon (Kansas), republican candidate in 1936, and the Republicans concentrated on criticizing the inefficiency and expense of many New Deal programs. The Roosevelt Recession occurred when Roosevelt cut WPA funding in half. This caused 1.5 million workers to lose their jobs. Roosevelt bought us out of the recession. Deficit spending was the spending of public funds obtained by borrowing rather than through taxation to stimulate the economy when private spending proves insufficient. Republicans used the court-packing scheme and the Roosevelt recession against president Roosevelt to gain 8 senate seats and 81 in the house. New Deal caused the federal bureaucracy to grow. The amount of federal employees grew astoundingly. The Congress of Industrial Organization (CIO) served as the cutting edge of the union movement by promoting industrial unionism, organizing all the workers in an industry, both skilled and unskilled, into one union. Lewis leader of the United Mine Workers left the American federation of labor and helped form CIO CIOs commitment to racial justice helped it gain supporters.