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Flashcards in Ch. 4 pt. 2 GD Deck (20)
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1

Populism

Nineteenth-century political movement favoring greater government intervention and policies such as the nationalization of the railroads. Historian Arthur Schlesinger argued that the New Deal mimicked the movements of Populism and Progressivism.

2

Progressivism

Late nineteenth century and early twentieth-century political movement to expand the role of the government in dealing with social and economic problems and tackle corruption and abuses.
Historians have argued that, like populism, this influenced the New Deal.

3

Social Security

Relief and benefits for those in need of government support, such as the old and sick. When FDR presented the Second New Deal legislation package, Harry Hopkins was excited by the inclusion of social security.

4

US Chamber of Commerce

non-governmental organization responsible for speaking for business in the USA. Roosevelt was angry with them because they attacked his policies in May 1935, and he believed he had been elected to save American business and felt let down by the lack of support from American business.

5

WPA

Works Progress Administration; As part of the Emergency Relief Appropriation Act, Harry Hopkins was given control of the new WPA, which recruited people for public works projects. It became a major employer- by 1941, it employed 20% of the workforce. It only employed people for one year and did not compete with private enterprise.

6

NYA

National Youth Administration. Set up to encourage education and provide part time jobs for students. There was a division for African American students, too, to ensure that they got a more fair chance; this was led by Mary Bethune, a black lady. Eleanor Roosevelt also encouraged minorities to participate in government schemes.

7

REA

Rural Electrification Administration, May 1935, formed to build generating plants and power lines in rural areas because so few farms had electricity since it was not profitable for companies to cater to farm electricity. But the REA offered low-interest loans for farmers to acquire electricity.

8

RA

Resettlement Administration, May 1935, This was the product of a decision to merge all rural rehabilitation projects into one new agency. It was run by agricultural economist Rexford Tugwell, who planned to move families to better farming areas. However, it failed because it only moved 4441 families because it was expensive, and generally, people did not actually want to move to better land.

9

Greenbelt communities

As part of the RA and Tugwell’s plan, he wanted to build new greenbelt communities, but he only completed 3- Greenbelt, Maryland, Greenville, Ohio, and Greendale, Wisconsin. Greenbelt communities were new towns in rural areas based on careful planning with residential, commerical, and industrial sectors separated.

10

Deficit spending

when the government spends more than it receives in income. The Revenue (Wealth) Tax Act was intended to raise more money through taxing the rich, which FDR hoped would decrease the need for deficit spending.

11

Federal Inheritance tax

government tax on the estate of the deceased. This was one of the measures of the Revenue Tax Act that was defeated in Congress.

12

Payroll Taxes

taxes paid by employers for each of their employees. The Social Security Act of 1935 allowed unemployment insurance to be paid for by payroll taxes. This was the first act to provide national benefits, but it was not direct relief because people had to buy into it

13

Sick chicken case

The most serious decision of the Supreme Court which moved FDR into action. A butchers firm, the Schecter Brothers from NY, were selling chickens unfit for human consumption and were prosecuted by the NIRA for breaking codes of practice, but the company argued the verdict in the Supreme Court, which ruled that their prosecution was a New York matter, not a federal matter. Therefore the poultry code was unconstitutional. The case basically meant that the federal government could only be involved in interstate commerce, not internal state commerce; the government had no power to get involved in economic affairs of the nation except for interstate commerce. Therefore, FDR tried to reform the Court, which largely failed.

14

Interstate commerce

Trade between different states

15

Dustbowl

a natural disaster in rural America which led to one of the biggest migrations in US history. Overploughing had left the soil dusty, and the dry, windy climate that year blew the topsoil away, thanks to a drought. The landscape and houses were covered with dust, people lost their homes, they migrated to California and were not welcome. However, it had good long term effects because the remaining farms became bigger and more efficient.

16

Blackleg labor

“blacklegs” are people who break strikes by going into work. The mid 1930s saw poor labor relations, as labor unions wanted to exercise their new rights but employers refused to recognize them. Labor unions were angry with blackleg labor, specifically if the blacklegs were from a different ethnicity than the strikers.

17

CIO

Committee of Industrial Organizations. It was formed by John Lewis, United Mine Laborer president, who believed that industrial laborers should be allowed to form unions, not just craft laborers. By threatening massive strikes, the CIO achieved recognition in the rubber, steel, car, electrical, textile, and agricultural industries because firms could not afford strikes during economic recovery. FDR did not help either side at first- neither unions nor companies- but was expected to because the union leaders contributed to his campaign.

18

Roosevelt Recession

Downswing in the economy associated with Roosevelt’s cutbacks in government spending in 1937. FDR wanted to stick to a balanced budget, so he cut back government spending, but that caused unemployment to rise and much of the gains of the New Deal to be lost because the economy had not recovered enough. FDR eventually tried to fix it by going back to deficit spending, but recovery was slow.

19

What debates exist about the first New Deal? (At least two)

Historians, like Michael Parrish, argue that the first New Deal was a series of measures in response to a crisis, not an overall master plan. Some argue, however, that because the New Deal set so many precedents, it was a blueprint for major change. Another debate is whether or not the New Deal helped the economy. Historian Paul Johnson maintains that it impeded economic recovery. However, most agree that it did mark a major turning point in the role of the government. Some think that it was just to save capitalism and that was not good enough.

20

What was the impact of the Second New Deal?

It centralized the banking system, it addressed some of the worst excesses of capitalism (such as holding companies) and helped small businesses, it gave labor unions legal voice, the Social Security Act created the first system of national benefits, it further developed the existing policies (like the WPA), and the REA helped modernize rural America. Historians say that the first New Deal was about relief/recovery from Depression, the second New Deal was about creating permanent reforms. Conservatives generally disliked the new deal though.