Emergency Relief and Construction Act

Definition

The Emergency Relief and Construction Act was a U.S. federal law enacted in 1932 aimed at addressing the severe economic distress caused by the Great Depression. This legislation authorized the federal government to provide direct relief to the unemployed and fund public works projects, marking a significant shift towards government intervention in economic recovery efforts.

5 Must Know Facts For Your Next Test

1. The Emergency Relief and Construction Act was one of the first major pieces of legislation that marked a shift in the federal government's role in economic recovery.
2. Under this act, $1.5 billion was allocated for public works programs and $300 million for direct relief to states.
3. The act aimed to stimulate job creation through infrastructure projects, such as roads, bridges, and dams, helping to reduce unemployment during the Great Depression.
4. Despite its intent, many criticized Hoover for not doing enough, as the act was seen as a temporary solution rather than a comprehensive recovery plan.
5. The Emergency Relief and Construction Act set a precedent for future government intervention in economic crises, paving the way for more extensive New Deal programs under Franklin D. Roosevelt.

Review Questions

• How did the Emergency Relief and Construction Act reflect Hoover's overall approach to handling the Great Depression?
  • The Emergency Relief and Construction Act highlighted Hoover's belief in limited government intervention while recognizing the need for federal assistance during economic crises. By providing funding for public works and direct relief, Hoover aimed to stimulate job creation without fully embracing direct government involvement in the economy. However, many viewed his measures as insufficient, leading to criticism that he was not addressing the depth of the economic suffering faced by Americans.
• What were some key impacts of the Emergency Relief and Construction Act on state governments and local communities during the Great Depression?
  • The Emergency Relief and Construction Act had significant impacts on state governments and local communities by providing much-needed funding for public works projects and direct relief efforts. This financial support allowed states to address immediate needs such as unemployment and infrastructure deterioration. However, it also highlighted disparities between states, as those with less capacity to fund matching relief efforts struggled more than those with stronger economies. The act underscored the varying responses of states to the federal initiative.
• Evaluate how the Emergency Relief and Construction Act influenced future federal policies regarding economic crises in America.
  • The Emergency Relief and Construction Act set a critical precedent for federal intervention in times of economic distress, influencing how subsequent administrations approached economic recovery. Its focus on providing direct assistance marked a shift towards greater government responsibility in welfare measures. This approach was further expanded by Franklin D. Roosevelt's New Deal programs, which introduced more comprehensive strategies for addressing unemployment and economic instability. The act illustrated an evolving understanding of governmental roles during crises that continued to shape policy discussions in later decades.

Related terms

Public Works Administration (PWA): A New Deal agency created to provide jobs through the construction of public buildings and infrastructure projects.

Federal Emergency Relief Administration (FERA): A relief program established to provide direct financial assistance to state governments for emergency relief efforts during the Great Depression.

Hoovervilles:

Shantytowns built by homeless people during the Great Depression, named derisively after President Herbert Hoover, who was blamed for the economic crisis.