Unit 3 Lesson 2: Impact of the New Deal Flashcards
(35 cards)
Who were Brains Trust and what did they want to do
Roosevelt and his advisers, who were called the “Brains Trust,” wanted to address the underlying problems in the American economy. The Brains Trust was a group of scholars and experts from leading universities.
Farms around the country were suffering, but for different reasons. What was it like for farmers in the Great Plains?
In the Great Plains, drought conditions slashed crop production.
Passed into law on May 12, 1933, what was the AAA designed to do?
Passed into law on May 12, 1933, the AAA was designed to boost prices to a level that would reduce rural poverty and restore profitability to American agriculture.
Passed into law on May 12, 1933, the AAA was designed to boost prices to a level that would reduce rural poverty and restore profitability to American agriculture. How would these price increases be achieved?
These price increases would be achieved by encouraging farmers to limit production in order to increase demand.
How did the AAA offer firect relief?
The AAA offered some direct relief. Farmers received $4.5 million through relief payments.
The Brains Trust conceived of two of the most significant pieces of New Deal legislation:
the Agricultural Adjustment Act (AAA) and the National Industry Recovery Act (NIRA).
Farms around the country were suffering, but for different reasons. What was it like for farmers in the South
In the South, bumper crops and low prices prevented farmers from selling their goods at prices that could support them.
(AAA) These price increases would be achieved by encouraging farmers to limit production in order to increase demand. Would the farmers be paid for doing this
The government would pay the farmers for doing this. Wheat, cotton, corn, hog, tobacco, rice, and milk farmers were all eligible.
Example of the AAA at work
Corn producers would receive 30 cents per bushel for corn they did not grow. Hog farmers would get five dollars per head for hogs not raised
What was the AAA programs finaced by
The program would be financed by a tax on processing plants, but consumers would have to pay higher prices as well.
How did large farms cut production. How did this effect tenant famres and sharecroppers?
Large farms often cut production by laying off sharecroppers or kicking out tenant farmers, making the program even worse for sharecroppers and tenant farmers than for struggling small farm owners.
Another problem with the farm relief effort was the difference between large commercial farms. Elborate
large commercial farms, which received the largest payments and set the quotas, and small family farms, which received little or no relief.
How did paying farmers not to produce cause some problems. For example what would happen in the case that there was already an excess of crops and livestock?
For example, in some cases there was already an excess of crops and livestock, in particular cotton and hogs. This clogged the marketplace. A bumper crop of cotton in 1933, combined with the slow implementation of the AAA, led the government to order the plowing under of 10 million acres of fields. It also ordered the butchering of six million piglets and 200,000 sows. The plan worked to a degree; the price of cotton rose from six to twelve cents per pound. But critics saw it as the ultimate example of corrupt capitalism: the government was destroying crops and livestock to drive up prices while its citizens were suffering.
Their frustration led to the creation of the Southern Tenant Farmers Union (STFU). What was the STFU
the Southern Tenant Farmers Union (STFU), an interracial organization that sought out government relief for many of the disenfranchised farmers. T
Did the STFU change anything
The STFU organized, protested, and won its members some wage increases through the mid-1930s, but overall conditions for these workers remained dismal. As a result, many displaced farmers followed the thousands of Dust Bowl refugees to California.
The AAA did succeed on some fronts. Elaborate
The AAA did succeed on some fronts. By the spring of 1934, farmers had formed more than 4,000 local committees, with more than three million farmers agreeing to participate. They signed individual contracts agreeing to take land out of production in return for government payments, and checks began to arrive by the end of 1934.
What group of people did the AAA provide the most relief for
For some farmers, especially those with large farms, the program spelled relief.
How did AAA policies unintentionally hurt sharecroppers and tenant farmers?
AAA policies pushed large farms and plantations to cut production, which resulted in the eviction of sharecroppers and tenant farmers. They had nowhere to go once evicted.
Why did Roosevelt, his Brains Trust, and Congress created the National Industrial Recovery Act (NIRA) in 1933
Roosevelt, his Brains Trust, and Congress created the National Industrial Recovery Act (NIRA) in 1933 to help the nation’s industrial sector.
What was the purpose of the new government agency, the National Recovery Administration (NRA)
he National Recovery Administration (NRA), was in charge of administering the plan.
What did the NIRA do
The NIRA suspended antitrust laws and allowed businesses and industries to work together to create codes of fair competition. These included issues of price setting and minimum wages. New Deal officials thought that collaboration would help industries stabilize prices and production levels. Many, however, also thought that it was also important to protect workers from potentially unfair employment agreements.
The NRA also created codes that gave workers the right to organize and use collective bargaining. What’s that
Collective bargaining allows workers to negotiate wages and working conditions as a group rather than individually.
How did the NRA protect workers
The NRA mandated that businesses accept a code that included minimum wages and maximum work hours.
Influencee of the Communist PArty
Workers wanted to make sure their wages rose with prices. They soon sought out groups that would help them organize.
The Communist Party tried to create widespread protests against the American industrial system. The number of strikes nationwide doubled between 1932 and 1934, with more than 1.5 million workers going on strike in 1934 alone.
