First New Deal Flashcards

1
Q

Why did Roosevelt win the 1932 presidential election?
- Roosevelt himself as factor?

A
  • by far the strongest Democratic nominee for president
  • Good relations with press (whilst Hoover’s poor)
  • Exuded charisma (Hoover lacked)
  • determined to win
  • national radio address in April 1932 he called for the government to help “the forgotten man”
  • used radio effectively
  • above all americans voting for change
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2
Q

Why did Roosevelt win the 1932 presidential election?
Hoover’s shortcomings?

A
  • Hoover only possible Republican nominee
  • too busy fighting Depression to campaign effectively
  • poor relations with press
  • lacked charisma
  • most importantly expected to lose
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3
Q

Why did Roosevelt win the 1932 presidential election?
What did Roosevelt promise/ or not promise?

A
  • Roosevelt did not promise gov action to solve eco problems
  • speech on 19 Oct attacked Hoover’s “extravagant government spending” + pledged 25% cut in fed budget
  • many promises vague/ contradictory
  • San Francisco advocated economic regulation as last resort
  • Georgia spoke of “bold experimentation” to beat Depression + redistribution of national income
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4
Q

Describe Roosevelt’s presidential win

A
  • won biggest majority since Abraham Lincoln in 1864
  • not overwhelming: 57% of popular vote
  • no one really knew what he stood for
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5
Q

How did the New Deal begin?

A
  • following inauguration:
  • Roosevelt called Congress into special session that lead to the 100 days and development of First New Deal
  • this resulted in setting up many “alphabet agencies”
  • measures intended to bring about “relief, recovery or reform”
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6
Q

What were Roosevelts aim’s and how did he address these?

A
  • create economic improvements + improve infrastructure
  • ensure the system would be modern
  • charismatic + used personality
  • “fireside chats” explained his policies helped restore confidence
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7
Q

Why was agriculture more important than industry?

A
  • higher priority
  • 30% of labour force worked in agriculture
  • if they could afford to buy more, industry would be stimulated
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8
Q

What acts did roosevelt pass in first new deal to help agriculture?

A
  • Agricultural Adjustment Act, May 1933
  • Tennessee Valley Authority (TVA), May 1933
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9
Q

What did the AAA do?

A
  • Agricultural Adjustment Act
  • 1933
  • Overproduction greatest problem in agriculture
  • Gov would subsidise farmers to reduce acreage and production voluntarily
  • By producing less, cost of food would increase and also farmer’s income
  • Agency set up: Agricultural Adjustment Administration:
  • pay farmers to reduce prodution of “staple” items e.g corn, cotton, milk, tobacco and wheat
  • programme self financing through tax placed on companies that processed food
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10
Q

What was the effect of the AAA on cotton production?

A
  • reduction of cotton production most pressing need
  • 1933: unsold cotton in US exceeded average annual world consumption of A cotton
  • paid to destroy basically
  • 10.5 million acres of land ploughed under
  • price of cotton rose 6.5 cents per pound in 1932 to 10 cents in 1933
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11
Q

What was the effect of the AAA on food production?

A
  • 6 million piglets bought and slaughtered
  • many carcasses ed to unemployed
  • public outcry enourmous
  • Western ranchers sought to bring beef cattle under protection of AAA in 1934
  • By Jan 1935: gov had purchased 8.3 mill head of cattle
  • in return ranchers agreed to reduce breeding cows by 20% in 1937
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12
Q

What was the effect of the AAA on crops?

A
  • Drought helped make the 1933 wheat crop the poorest since 1896
  • agreements reached to limit acreage in other crops in subsequent years
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13
Q

How successful was the AAA?

A
  • Total farm income rose from $4.5 billion in 1932 to $6.9 billion in 1935
  • The percentage of farmers signing up high e.g 95% of Tobacco farmers
  • Overall AAA effective to deal with crisis of overproduction, although there were problems
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14
Q

What was the TVA?

A
  • Tennessee Valley Authority 1933
  • TVA set up to deal with underdevelopment and poverty in Tennessee Valley
  • to harness power of River Tennessee which ran through seven of poorest states in US - the area had population of 2 million
  • several major tasks:
  • construct 20 dams to control floods
  • develop ecological schemes such as tree planting to stop soil erosion
  • to encourage farmers to use more efficient means of cultivation - e.g contour ploughing
  • provide jobs by setting up fertiliser manufacture factories
  • develop welfare and educational programmes
  • produce hydro-electric power for area whose existing supplies of electricity limited to 2/ every 100 farms
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15
Q

Was the TVA successful?

A
  • largely responsible for the modernisation and improved living standards
  • residents increased their average income by 200% in period 1929-1949
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16
Q

Describe the state of the banking sector by the time of Roosevelt’s innaugauration?

A
  • pressing concern - American banking system
  • 1932: banks were closing at the rate of 40 a day
  • 1932: Governor of Nevada declared a bank holiday and closed every bank in the state
17
Q

What acts did Roosevelt pass in relation to banking?

A
  • Emergency Banking Relief Act 1933
  • The Glass-Steagall Act 1933
    More smaller ones:
  • The Truth-in-Securities Act, 1933
  • The Securities Act, 1934
18
Q

What did the EBRA do?

A
  • Emergency Banking Relief Act 1933
  • 1933: Roosevelt closed all banks in country for 4 days
  • act aimed to restore confidence in banking sector
  • gave Treasury power to investigate banks threatened by collapse
  • The Reconstruction Finance Corporation authorised to buy their stock to support them and take on many of their debts
  • Roosevelt gave fireside chats to restore confidence in banks
  • By beginning of April $1 billion in currency returned to bank deposits - crisis over
19
Q

What did the G-S Act do?

A
  • The Glass-Steagall Act 1933
  • Commercial banks that relied on small-scale depositors banned from involvement in type of investment banking that fuelled 1920’s speculation
  • Bank officials not allowed to take personal loans from own bank
  • Authority over open-market operations was centralised by being transferred from Federal Reserve Banks to the Federal Reserve Board in Washington
  • Individual bank deposits to be insured against bank failure up to $2500, with insurance fund administrated by FDIC
20
Q

What were the two security acts passed and what did they do?

A
  • The Truth-in-Securities Act, 1933: required brokers to offer clients realistic information about the securities they were selling
  • The Securities Act, 1934: set up to oversee stock market activities + prevent fraudulent activities
21
Q

How important and successful was Roosevelt with industrial recovery?

A
  • priority
  • limited success due to scale of industrial collapse
  • Economy grew 10% during R first term from 1933-1936
  • however, output had fallen so low since 1929: unemployment at 14%
22
Q

What act did roosevelt pass to stimulate industrial growth?

A

National Industry Recovery Act (NIRA) 1933
came in two parts:
- National Recovery Administration (NRA)
- Public Works Administration (PWA)

Separate thing:
Civil Works Administration (CWA) 1933

23
Q

What was the NRA?

A
  • Headed by General Hugh Johnson
  • suspended anti-trust legislation for 2 years
  • Firms encouraged to agree to codes of practice to prevent unfair competition
  • agree matters of working conditions and minimum wages
  • codes did not help economic recovery
  • so attempted “Buy Now” campaign 1933 - to encourage people to spend –> stimulate production
  • advocated 10% wage increase and 10-hour cut in working week (neither successful)
24
Q

Problems with NRA

A
  • critics say NRA codes did nothing except give large firms op to indulge in unfair practices
  • codes seen to be unworkable - not planned through
  • Many large manufactures, e.g Henry Ford - never subscribed
  • small firms struggled to comply with regulations esp minimum wage one
25
Q

What was the PWA?

A
  • Public Works Adminstration
  • headed by secretary of the Interior, Harold Ickes
  • funded with $3.3 billion - stimulate economy
  • PWA put hundreds of thousands of people to work
  • built 13,000 schools and 50,000 miles of roads
  • pumped billions of dollars into economy
  • West: enabled dams to be built to help irrigate former semi-desert land, electricity to be produced and 4 vast National Parks to be created
26
Q

What was the CWA?

A
  • Civil Works Administration: Nov 1933
  • $400 mill grant primarily to provide emergency relief to unemployed during winter 1933-1934
  • put 4 mill people to work
  • closed when winter over
27
Q

Downsides of these industrial measures

A
  • Unemployment and social problems remained
28
Q

What did the Federal Government pass in the way of relief?

A
  • Federal Emergency Relief Act 1933
  • Civilian Conservation Corps 1933
29
Q

What did the FERA do?

A
  • Federal Emergency Relief Act 1933
  • Run by Harry Hopkins
  • $500 million to be divided equally among states to help provide for unemployed
  • half as outright relief
  • remainder: gov would pay each state $1 for every $3 it spent on relief
  • Act said that each state should set up a FERA office and organise relief programmes
  • When states such as Kentucky and Ohio refused to comply - he threatened to deny them federal monies
  • set important precedent of fed gov giving direct funds for relief
30
Q

What were the limitations of the FERA?

A
  • Many states found idea of expenditure on relief extremely distasteful
  • felt poor ur own fault
  • waits and delays + bad treatment: thus scheme limited
  • 1935: it was paying about $25 per month to average family o relied: whilst average monthly minimum wage for subsistence estimated $100
31
Q

What did the CCC do?

A
  • Civilian Conservation Corps, 1933
  • Men between ages 17-24 recruited to work in CCC in national forests, parks and public lands
  • CCC set up for 9 years
  • CCC installed 65,100 miles of telephone lines, spent 4.1 mil man hours fighting forest fires and planted 1.3 billion trees
32
Q

Changes unemployment between 1933 + 1934

A
  • 1933: 12.8 million
  • 1934: 10.6 million