Impact of New Deal on Economy

Question 1

Aim of New Deal

Answer 1

• Relief (for the unemployed)
• Recovery
• Reform

Question 2

Unemployment did not fall below __ % of the workforce in any year after __ ?

Answer 2

• 14% of the workforce

- in any year after 1933

Question 3

How many Americans out of work 1939?

Answer 3

9.5 million (17% of workforce)

Question 4

What did FDR focus on and how was this detrimental?

Answer 4

Focused on domestic solutions to economic issues= prolonged global depression and depressed US exports

Question 5

How much did personal income in the US fall?

Answer 5

Fell by approximately $13 billion

• 1929: $86 billion
• 1939: $73

(despite population increase of 9 million)

Question 6

What proportion of Americans receiving gov relief by 1939?

Answer 6

1/5 receiving relief

Question 7

What was the Roosevelt Recession 1937-38?

Answer 7

Sharp economic decline:

• 33% decrease in industrial production (in 10 months)
• 12% decrease in GNP
• 4 million lose jobs, unemployment rises to 11.5%

Question 8

Why was FDR partially to blame for the recession?

Answer 8

FDR cut federal expenditure sharply: gov contribution to consumer spending falls by over $3 billion 1936-37

Question 9

How did WPA contribute to US infrastructure?

• hospitals
• schools
• roads

Answer 9

From 1935-1943 WPA built:

• 2,500 hospitals
• 5,900 schools
• 570,00 miles of roads

Question 10

How did CCC contribute to US infrastructure?

Answer 10

• Developed US national Parks and State Parks

- Tree-planting, building tourist facilities, building roads (made National Parks more accessible)

Question 11

How did TVA contribute to infrastructure?

Answer 11

• Transformed areas with economic under-development
• Built dams and locks to make river navigation more accessible, which also generated hydro-electric power used for domestic and industrial used

Question 12

How did REA contribute to infrastructure?

Answer 12

• Rural Electrification Administration provided electricity to rural areas, transforming rural life as it powered labour-saving devices and established new industries
• However amount of acres cultivated did not increase much at all: 1 billion to 1.05 billion in 10 years

Question 13

Proportion of farmers that had electricity due to REA?

Answer 13

• By 1940: 50%

- By 1950: 90%

Question 14

DID NEW DEAL PROVIDE ECONOMIC RECOVERY?

Answer 14

• While ND did not bring on full economic recovery, it did prevent economic collapse. Millions of jobs provided by 1940, more hospitals and schools built, more infrastructure and ability to travel. Rural areas saw electrification.
  = Laid foundation for rapid economic growth in WW2