Federal Emergency Relief Administration : This agency was created to assist the states in caring for the unemployed.

Public Works Administration : (PWA) lent money to local government for public works. It built offices, court houses, dams and highways. It spent on projects that could be carried out on public property. It’s activities included conservation, construction, educational and cultural programme.

The National Youth Administration : (NYA) this agency gave part-time work to students who were still in school and college.

The Work Progress Administration : This organization was instructed to find projects that could be carried out on public property at federal expense. WPA artists painted murals, writers wrote guide books, musicians gave concerts and actors put on plays. They called it “boondoggling”. By 1943 WPA approximately spent about 11 billion dollars and helped 8,500,000 persons to find temporary jobs.

Agricultural Adjustment Administration : ( AAA) the new deal setup plan whereby the government would pay farmers to cut down their production, Congress passed (AAA) in May 1933 and made cash payments to farmers who agreed to reduce the acreage planted in certain crops and made loans on agricultural products on relatively high prices. Farm income increased but American farm products could be sold in foreign market only with government assistance.

Tennessee Valley Authority (TVA) : This public corporation was set up to develop the economic and social well-being of an area embracing parts of seven states and including the power project at Muscle Shoals. It was the triumphant achievement of Republican Senator George Norris of Nebraska who had long sought to place the power resources of Tennessee river at the disposal of the people and manufacture nitrogen fertilizers, make plans for food control and the improvement of navigation on inland rivers. TVA had completed 7 dams and undertook soil conservation measures and sold electric power and fertilizers at cheap rate.

Social Security Act ( 1935) : Congress passed it in 1935. This was the most important product of the New deal and set up a government- run insurance plan which is still in operation. It provided pensions for the aged, care for dependent children and the needy blind. Provision was also made for a system of Federal State. Unemployment insurance that is usually called the social security system. Roosevelt Administration through it’s bold experiment “the new deal” was undermining the capitalistic system. Conservatives complained that the government was destroying private enterprise through It’s interference in every phase of business activity. Many businessmen and politicians called the new deal policy a “ radical” one and began to resist it.

Drawbacks : Critics object to it on the political ground by stating that the New deal had helped in the formation of “an all powerful centralized state.


  • Has led to more government in business and this means the loss of United states traditional individualism.
  • It has discouraged private initiative which is the motivating factor of American progress.
  • Has not completely solved unemployment problem.