Flashcards in FDR's New Deal Deck (111):
Who won the 1932 election?
FDR by a landslide
What did FDR call for when he went into office?
Reduction in federal spending
Balanced federal budget
End to farm relief programs
Removal of government from areas of provate enterprise
Crisis still gripped to what industry when the new preisdent took office in March 1933?
What action did FDR take that was saw as a necessary action of government intervention in economic affairs?
To close the banks and declare a national banking holiday
What did the first 100 days of the New Deal focus on?
Relef, Recovery, and Reform
What were FDR's two types of revovert in ND?
business recovery (the work week was reduced to 30 hours per week; industries drew up codes of fair competition)
Each buisness joined a trade association
Who was John Maynard Keynes?
Father of the "New Economics"
Advocated gov't spending to "prime the pump" during periods of economic distress
"Governemt intervention is oftern needed to promote economic stability"
Whose ideas were based on Keynesian theory?
What is the eonomic theory?
the US follows the principles of a Market economy (allowing buisnesses and individuals the freedom to make thier own economic choices)
What is a market system driven by?
Competition in the marketplace, entrepereneurship, and private ownership of property
What are the primary tools used by the gov't to manage the economy?
What is fiscal policy?
regulating the nation's taxing and spending levels
What does Priming the Pump mean?
governemtn should start spending in order to start the economy growing again
What are other fiscal policies of FDRs?
the creation of a Social Secutirity tax, and Agricultural Ajustment Act
What did the AAA try to do?
attempted to reduce overproduciton by paying farmers to destroy some of their crops
Between 1933 to 1936, governemtn expernitures rose by how much?
83% and the deficit skyrocketed
What is the Monetary Policy?
deliberate regulation of the nation's money supply and interest rates
Is there a direct or indirect relationship between the nation;s moneysupply and the level of business activity?
What is the result if the supply of money and credit increases too rapidally?
period of rising prices known as inflation
What happens during inflation?
the purchasing power of hte dollar falls, meaning that people get less for what they spend
Who's roll is to watch the supply of meoney in circulation, altering it when necessary to avoid rapid inflation?
What did FDR do to reform the monetary policy?
Stabalize banking and stock market
What was created to regulate the stock market?
Secutities and Exchange Commission (SEC)
Whayt was created to insure individuals deposits at banks?
The Federal Deposit Insurance Corportation (FDIC)
How much did unemployment drop to in 1935, and where did it return to in 1938?
On the eve of America's entry into WWII and 12 years after Black Tuesday, how many americans were still jobless?
What came along with WWII?
Revival with American allies
What fuelded a post war boom?
Government investment in war related business
When did the GD end?
When WWII started
Franklin Delano Roosevelt?
immediately set to work creating New Deal policies to end GD upon taking office in 1933
AGRICULTURAL ADJUSTMENT ACT
Created in 1933, he AAA paid farmers for not
planting crops in order to reduce surpluses,
increase demand for seven major farm
commodities, and raise prices.
CIVILIAN CONSERVATION CORPS
Created in 1933, the CCC took unmarried men
aged 18-25 from relief rolls and sent them into the
woods and fields to plant trees, build parks, roads,
and fight soil erosion on federal lands
$30 per month
went on for 9 years
CIVIL WORKS ADMINISTRATION
generated temporary labor for those most in need
Created by FERA
FARM SECURITY ADMINISTRATION
The FSA was created in 1937 (formerly called the
Resettlement Administration in 1935) to aid
sharecroppers. The FSA set up temporary
housing for "Okies" and "Arkies" (Dust Bowl
refugees from Oklahoma and Arkansas) who
migrated to California in hope of finding work.
FEDERAL DEPOSIT INSURANCE CORP.
To restore confidence in banks and encourage
savings, Congress created the FDIC to insure
bank customers against the loss of up to $5,000
their deposits if their bank should fail.
Regulated lending policies and forbade banks from investing in the stock market
FEDERAL EMERGENCY RELIEF ADMIN.
Gave $500 mill to states
Half the money was to bail out bankrupt state and local governments
other half was given directly to the people
INDIAN REORGANIZATION ACT
promote triabal organizaiton and give federal reognitin to tribal govt
reversed the Dawes Severalty Act
NATIONAL LABOR RELATIONS ACT (Wagner Act)
The NLRA (also called the Wagner Act) of 1935
created the National Labor Relations Board to
protect the rights or organized labor to organize
and collectively bargain with employers.
NATIONAL RECOVERY ADMINISTRATION
Stimulte industrial production and improve competition by drafting codes of conduct
Sought to limit production of consumer goods to drive up prices
Established by National Industrial Recovery Act
PUBLIC WORKS ADMINISTRATION
construct public roads, bridges, and buildings
SECURITIES AND EXCHANGE
Regulate trading on wall street and curb the out of control speculation tht had led to the crash in 1929
SOCIAL SECURITY ADMINISTRATION
federal retiree pension system for many workers funded by a doble ta on every working american paycheck
unemployment insurance plan to provide temorary assistane
made funds for the blind and disabled
TENNESSEE VALLEY AUTHORITY
Modernize and reduce unemployment in TV one of the poorest and hardest hit regions in the country
hired local workers to construct dams and hydroelectric plants which brought cheap electricity to the people
The program also creted affordable employee housing, manufactured cheap fertilizer, and drained thougsads of acres for farming
WORKS PROGRESS ADMINISTRATION
Effort to appease the Longites who clamored for more direct assisstance from the federal govt
Simular to PWA, but hired 10 mill to construct new public buildings, roads, and bridges
Congress put $10 bill into it
What helped FDR win a second term?
African mericans voting pattern changed from R to D
What was the lasting impact of hte ND?
Federal Govt had expanded controls into many parts of lives
When was the First ND?
When was the Second ND?
The National Industiral Recovery Act set up what?
codes of fair competition
What type of plan was the Social Secutity Act?
What organization was to regulate the stock market and prevent fraud?
Securities and Exchange Commission
Which group restored workers rights to organize collectively baragain?
Started March 6, 1933
lasted five days
closed banks temporarily to give them a short break to reopen on more solid footing.
Immediate relief to the AMerican people that Hoover and the R failed to provide
Long term economic recovery
Reform the banking and finacncial sector of the exonomy to curb bad lending practices
What programs were apart of the First ND?
What programs were apart of the Second ND?
Social Security Act
the basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise.
WHy was the ND so important?
Governement was put into more of society
WHere is Keynes from?
What were the First 100 days?
FDR set out to create relief reform recover programs called the ND
Inspired by Keynes
Emergency Banking Relief Act?
gave FDR the power to regulate banking transactions and foreign exchange
Glass Steagall Banking Reform Act?
protected savings deposits
FDR radio station to over 50 mill listeneres
encouraged americans to redeposit their moeny in newly opened banks
Farm Credit Act?
provided loans to farmers in danger of bankruptcy
Why was the AAA controverseal?
sme landowners who received aid unjustly used it for farm equipment which could eliminate farm owners need for sharecroppers and tenant farmers
People were outraged that the government told them to destroy crops when people were starving
What was the outcome of the AAA?
raised prices to their pre WWI highs
Why was the TVA controversial?
Government productuion of electricity was mild form of socialism and disrupted market prices too much
Electric companies also attacked them for selling cheaper electricity
What was the TVA resutl?
Made a profound effect on the economy and way of life
Goverment made simular projects in the south and west
Within a decade, major rivers producred hydroelectric power provided both electricity and jobs
What is the National Industrial Recovery Act?
federal govt first attempt to revive the country as a whole
Created National Recovery Admin (NRA)
Created Public Works Admin (PWA)
improving the public infrastructure would put more money into the economy
What did FDR do with the gold standard?
He took the country off of it which alloweed citizens and foreign coutnries to exchane paper money for gold
To prevent people from hoarding precious metal, FDR ordered all private gold stocks to be turned over to the US Treasury in exchange for paper dollars
Even decades after the GD, D contines fighting for what?
More govt intervension in the economy
redistribtion of wealth
aid for the neediest
What is the relief programs?
immediate relief for Americans that Hoover ad the R failed to provide
What organizaitons are relief?
Federal Emergency Relief Administration
Civil Works Admin
National Recovery Admin
Public Works Admin
Wht is recovery programs?
Many progrms taht were for immediate relief were also for long term economic recovery
When the US emerged out of the GD, it had hundreds of new roads, public buildings, widespread electrical power, and replenished resources for industry
Wht organizaitons were recovery?
Public Works Admin
What is reform programs?
Reform the banking system and finacncial sector of the economy to curb bad lending practices, poor trading techniques, and corruption
What organizaitons wer reform?
What was the Good Neighbor Policy?
FDR went on a tour of the Ltin America region
Signed new, friendlier treaties with several Latin america countries
pledged to avoid military intervention in Latin America
Shunned the Roosevelt Corollary to the Monroe Doctrine by withdrawing troops from several countries
Who was Huey Long?
LA senator who critized the ND for not doing enough to help American people
was assassinated (1935) before he cou seriously challenge FDR
Share the Wealth Programs (Every Man a King): would levy enormous taxes on the rich s that every family could have $5000 a year
Who was Father Charles Coughlin?
Catholic priest in Michigan and outspoken ND critic
Blamed crah of 1929 on wealthy financiers, wall street, and Jews
wnted federal govt to take over entire baanking system
Brodcasted a weekly show that critized the ND and had over 40 mill listeners who agreed
Campained for the nationalization of the entire banking system
Who was Alred Landon?
KS governer that ran against FDR on anti ND republic ticket in election of 1936 (he lost)
What are the differences from the 1st ND to the 2nd N?
2nd ND legislation relied more heavily of the Keynesian stule of deficit spending tahtn the 1st one
FR altered his policy because more americans still needed federeal relief assisstance
He aimed half of the 2nd ND at long term reform
Which party did an unprecedented number of people join during GD?
American communist party
What did socialist advocates denounce?
ND because it was too coservative and did not provide the appropriate relief and assisstance
What have people argued that the GD would not have last as long if...
FDR handed more federal money out to a greater number of Ameicans
How did the Social Security Act impact the GD?
not only gave income to some of the most destiture but also changed the way americans thought about work and retirement
Paycheck taxes were seen as personal retirement savings plan even though they were being redistributed as soon as the were collected
REtirement came to be something every worker could enjoy
What was the critic of the Socail Security Act?
It wasnt extending pensions to enough people like unskilled black and women laborers
Soil Conservation and Domestic Allotment Act?
continued to subsidized farmers to curb overproduciton and also to either plant soil enriching crops or not gorw any crops
reduce crop acrege
United States Housing Authority?
Gave assistance to american urbanites
built houses for over half a million americans
Why was the Indian Reorganization Act partly successful?
Some tribes had difficulty understanding the terms of the new treaty while others (like the Navajo in the southwest) rejected it
Many tribes saw more immediate benifit from relief programs like CCC, PWA, and WPA and nearly 100,000 young NA men participated
What was the effect of the Wagner Act?
Paved way fpr more collective bargaining and striking
Ex: General Motors had a series of sit down strikes where they would sit at there stations so scabs couldnt come in
GM accepted this and recognized their right to organize
What was the election of 1936 like?
R stood no chance against FDR
FDR had strong support from blacks, unskilled laborers, ad residence of west and south
Alfred Landon campaingned a anti ND platform
FDR won by a landslide by 523-8
FDR's victory proved that amaericans widely supported the ND
What organizaitons were in 1st ND?
What organizaions were the 2nd ND?
Social Security Act
Soil Conservation and Domestic Allotment act
Schechter v United States?
majority of justices called tha the National Recovery Act was unconstitutional
Act gave too much power to the president and was an attempt to control intrastate commerce
Butler vs United States?
Struck down AAA that it was unconstitutional and tried to exert federal control of ag production
What did FDR do when he thought the supreme court would shoot down the NRA and AAA (Court Packing Scheme)?
He petitioned congress to alter the makup of the supreme court on the pretense that the justices, old age was affecting their work and concentration
He called in 6 new justices bringing in 15 total to replace the justices over 70
The true aim was to enable FDR to ensure only pro ND would sit on the court
How did the Court Packing Scheme backfire?
people saw it as a misuse of executive powers
his blatant disregard for separation of powers shocked the people
FDR denied the charges and said that aging justices cannot perform their duties
It went on for months until FDR and Congress reached a compromise
Congress made minor reforms in the lower courts but left the supreme court untouched
What were the consequences of the ND?
Took a toll to FDR's popularity
started the end of the ND
Federal govt under the tight control of a single individual would be dictatorship
FDR attempt to cover up the Scheme made him look guiltier
Supreme Court Justice Owen Roberts who struck down ND laws in the past voted for the Wagner Act and Scial Security Act after FDR announced replacing 6 justice members
What did FDR scale back in 1937 and why?
Deficit spending because he thought the worst was over and he was receiving pressure from the conservatives in Congress
WPA was severly reduced along with ag subsidies
What was the result of FDR scaling back in 1937?
Economy buckled again and was called Roosevelt Resession
Stock market crashed again
price of consmer goods dropped significantly
the economy had not pulled far enough out of the depression to survive on its own
It made FDR look worse by blaming spendthrift business leaders
D lost a lot of seats in the House and Senete i nthe 1938 congressional elections
The return of R power killed the ND
forbade most civil servants from participating in politccal campains and public office holders (ie FDR and NDers) from using federal dollars to fund their reelection campaigns
Made it illegal for americans who received federal assisstance to donate money to politicians
Conservatives hoped that these measures would divorce the funcitons of govt from the campain frenzy and ultimately dislodge ND who preyed on a desperate public for votes
Did the ND end the GD?
millions were still hungry, homeless, and without jobs as late as december 1941 when US entered WWII
When did the economy begin to grow again?
after the surge in demand for war related goods such as munitions, ships, tanks, and aiplanes
How was the ND a crucial turning point in history?
Politicis have never been so involved in the daily lives of regular americans
critics lamented that the US became a welfare state
National debt more than dobled in 10 years
Budget deficit increased dramatically each year
Helped millions survjive the GD
What is the overview of FDR and the ND
FDR wanted direct releif to the people
ND helped create new jobs, build houses, and shelters for homeless, and distribute food to the hungry.
Raised ag prices, put banks back on solid footing, and improved the national infrastructure
ND creaded a number of govt institutions, like Social Security, that we still have today
a political leader who seeks support by appealing to popular desires and prejudices rather than by using rational argument.