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New Deal and Worker Policies: Analysis

TITLE

How significant a feature of the New Deal were policies aimed at improving the lives of workers? Explain your answer.

ESSAY

The policies aimed at improving the lives of workers were a significant feature of the New Deal, but their impact was somewhat limited and overshadowed by other aspects of the economic recovery plan. The National Industrial Recovery Act (NRA), introduced in 1933, had the goal of stabilizing prices and improving working conditions in factories. It allowed for increased bargaining power for workers by introducing the first federal minimum wage. Furthermore, the NRA permitted businesses to create voluntary codes to regulate prices, hours, and pay, with the aim of keeping workers employed.

The NRA also utilized the Blue Eagle as a patriotic symbol to encourage consumers to buy products from businesses abiding by these regulations. This approach led to a reduction in incidents of child labor and improved working conditions for some workers. Additionally, the Wagner Act of 1935 supported workers' rights to form trade unions, and the government officially recognized these unions. The act outlawed unfair practices and established the National Labor Board to act as a referee between unions and management.

The Social Security Act, another significant policy, introduced insurance schemes for unemployed and sick workers, providing pensions for widows and the elderly. These measures aimed to provide some level of financial security for workers and their families during periods of unemployment or illness.

However, it is important to acknowledge the limitations and mixed successes of these worker-focused policies. The NRA was declared unconstitutional in 1935, undermining its effectiveness. Many smaller businesses also failed to adhere to its regulations, limiting its impact mainly to larger firms. Furthermore, the insurance provided under the Social Security Act was limited in scope and not available to women, while its coverage was short-term.

Additionally, it is arguable that the policies aimed at different groups, such as farmers, the unemployed, and the poor, had a more significant impact overall. The Agricultural Adjustment Act (AAA), Resettlement Administration (RA), and Farm Security Administration (FSA) were implemented to alleviate the struggles faced by farmers. The Civilian Conservation Corps (CCC), Civil Works Administration (CWA), and Public Works Administration (PWA) provided jobs to skilled workers, young Americans, and some black Americans, creating four million jobs by 1934. The Federal Emergency Relief Administration (FERA) allocated $500 million towards relief efforts for the poor, while the Emergency Banking Act (EBA) stabilized banks and provided support for their reopening. The Securities and Exchange Commission (SEC) was established to regulate stock market activities, preventing the kind of abuses that contributed to the Great Depression.

In conclusion, while the New Deal did include policies aimed at improving the lives of workers, their significance should be considered alongside the broader range of measures implemented. The worker-focused policies had limited success, with the NRA being declared unconstitutional and smaller businesses failing to adhere to its regulations. Alternatively, policies targeting farmers, the unemployed, and the poor had broader and more significant impacts, creating jobs, providing relief, and stabilizing crucial sectors of the economy.

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NOTES

How significant a feature of the New Deal were policies aimed at improving the lives of workers? Explain your answer. Yes – National Industrial Recovery Act introduced NRA which aimed to stabilise prices and improve working conditions in factories; allowed for more bargaining power over wages and working hours – introduced first federal minimum wage; allowed businesses to draw up voluntary codes to regulate prices, hours and pay to keep workers in jobs; use of Blue Eagle as patriotic symbol encouraged consumers to buy products from these businesses; reduced incidents of child labour and improved working conditions for some; Wagner Act in 1935 supported workers' rights to form trade unions and government officially recognised them; outlawed unfair practices and set up National Labour Board to act as referee between unions and management; Social Security Act introduced insurance schemes for unemployed and sick workers; provided pensions for widows and elderly; WPA provided jobs for unskilled workers etc. No – NRA declared unconstitutional in 1935; failed to affect all businesses, mainly larger firms; some businesses ignored Wagner Act; insurance not available to women and only provided short term insurance; More significant: policies aimed at farmers – AAA, RA and FSA; unemployed – CCC, CWA and PWA provided jobs to skilled workers, young Americans and some black Americans – 4 million jobs created by 1934; the poor – FERA spent $500 million on relief banks – EBA closed unstable banks and gave support to banks when reopened; SEC regulated stock market activity etc.

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