Although, the growth of business was booming and consumption was extremely high during the 1920's employers failed to equally distribute the benefits to its industrial workers who got the short end of the stick and did not see any profit from productivity. Since there was no law at the time established on how many hours a person was to work and get paid, employers would overwork and underpay the laborers. This became a major problem because it brought about high unemployment rates, which for laborers, the shortage of jobs meant strong competition among each other for finding and keeping a job, and low wages, which brought down consumption.
Several of the policies created to specifically help the jobless during that time were, Emergency Relief Appropriations Act (1935) run by the Public Works Administration (PWA), designed for the construction of public building, roads, dams and other projects. Federal Project No. 1, also run by PWA, gave jobs to writers, musicians, and artist.
"The idea was to provide jobs and thus, stimulate the economy through increased consumer spending". (pg 469 Out of Many)
The most benefited policies created through the New Deal for employment, one, the Social Security Act (1935), provides "old-aged pensions and unemployment insurance. A payroll tax on workers and their employers were created a fund from which retirees received monthly pensions after age sixty-five." (pg 470... [continues]
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