Emergency Relief and Construction Act

Definition

The Emergency Relief and Construction Act was a piece of legislation passed in 1932 during the Great Depression aimed at providing direct relief to unemployed Americans and stimulating economic recovery through public works projects. This act marked a significant shift in the federal government's role in economic intervention, as it authorized loans to states for emergency relief and funding for infrastructure projects, which was a key aspect of the Hoover administration's response to the economic crisis.

5 Must Know Facts For Your Next Test

1. The Emergency Relief and Construction Act was one of the first major federal efforts to combat the economic hardships of the Great Depression.
2. Under this act, $300 million was allocated for public works projects and $1.5 billion in loans were available for state and local governments.
3. The act aimed to not only provide immediate relief but also create jobs through infrastructure development.
4. The Emergency Relief and Construction Act faced criticism for being insufficient and for its reliance on state governments to administer relief.
5. This legislation laid the groundwork for more extensive federal relief programs that followed under the New Deal.

Review Questions

• How did the Emergency Relief and Construction Act represent a shift in federal government policy during the Great Depression?
  • The Emergency Relief and Construction Act signified a pivotal change in federal government policy by actively involving the federal government in providing direct assistance to citizens during an economic crisis. Previously, there had been a general reluctance for federal intervention in economic matters. This act authorized loans to states and funded public works projects, establishing a precedent for future federal involvement in economic recovery efforts.
• Evaluate the effectiveness of the Emergency Relief and Construction Act in addressing unemployment during the Great Depression.
  • The effectiveness of the Emergency Relief and Construction Act can be viewed as mixed. While it did provide some immediate relief and initiated important public works projects that created jobs, many critics argued that it was not enough to meet the overwhelming needs of unemployed Americans. The reliance on state governments for distribution of relief funds often resulted in unequal assistance across different regions, which limited its overall impact on reducing unemployment nationwide.
• Analyze how the Emergency Relief and Construction Act set the stage for later New Deal programs and policies.
  • The Emergency Relief and Construction Act laid important groundwork for subsequent New Deal programs by demonstrating a successful model for federal intervention in economic distress. Its emphasis on funding public works projects influenced later initiatives like the Public Works Administration (PWA) and Federal Emergency Relief Administration (FERA), which further expanded federal roles in job creation and direct relief. This act's approach established a framework that justified increased government spending on social welfare programs, ultimately reshaping America's social safety net.

Related terms

Public Works Administration (PWA): A New Deal agency created to provide jobs through the construction of public works projects, such as bridges and schools, helping to stimulate the economy.

Federal Emergency Relief Administration (FERA): An early New Deal agency that provided federal funds directly to state and local governments to help support unemployment relief efforts.

Hoovervilles: Makeshift shantytowns built by homeless people during the Great Depression, named after President Herbert Hoover, who was blamed for the economic crisis.