2 - How did Roosevelt deal with the Depression? Flashcards
Roosevelt’s fireside chats
These were radio broadcasts to the American people. This helped him gain public confidence
The banking crisis
Americans had little confidence in banks. Many Americans had already withdrawn their savings - if more Americans tried to do this, the whole banking system would collapse, so Roosevelt declared a ‘bank holiday’ and shut all banks. They then backed 5,000 banks, reassuring all American people their money was safe. The banks re-opened a few days later, with restored confidence in the banking system. Also known as the Emergency Banking Act
The New Deal
The main aims of this were:
- Relief - relieving extreme poverty, feeding the starving, providing shelter for the homeless
- Recovery - reviving the economy by getting industry going and people working
- Reform - increasing the responsibility of the government by helping those in need eg the sick, disabled and old
Federal Emergency Relief Administration (FERA)
12th May 1933 - Poverty and unemployment - $500 million allocated to help relieve suffering of poor (food, clothing etc), seed and equipment for farmers, schemes to create jobs, soup kitchens, blankets, nursery schools and employment schemes
Civilian Conservation Corps (CCC)
31st March 1933 - Unemployment among young men - men ages 18-25 given six months work and had to send the money home to parents/wives. 2.5 million men were benefited. The work involved working for the environment in national parks
Public Works Administration (PWA) (became Works Progress Administration in 1935)
16th June 1933 - Unemployment - paid for public works projects (eg schools, roads, hospitals) and used unemployed workers
Agricultural Adjustment Act (AAA)
12th May 1933 - Rural poverty, unemployment and low crop prices - advised farmers on marketing and farming techniques and helped solve the problem of overproduction by government buying the produce. Wealthy farmers gained the most and modernisation put labourers out of work
National Industrial Recovery Act (NIRA)
General economic condition of the USA - set up the National Recovery Administration (NRA) which set standards on working practises eg hours and child labour. Helped create more jobs. Over 2 million employers joined the scheme
Tennessee Valley Authority (TVA)
18th May 1933 - large areas of land flooded causing erosion - set out to build dams in 7 states. Huge public works projects - dams, canals, water transport etc. Hydroelectric power created thousands of jobs. New housing built. Farmers given loans and training.
Civilian Works Administration (CWA)
8th November 1933 - this provided temporary work for 4 million people during Roosevelt’s first winter as president and saved many lives
National Recovery Administration (NRA)
16th June 1933 - set out to improve conditions in industry by setting out fair wages and establishing workers ‘rights to join a trade’ union. Codes of fair practise were introduced. In 1935, the Supreme Court declared this as unlawful. The Wagner act of 1935 re-established some of what had been lost.
Home Owners’ Loan Corporation (HOLC)
13th June 1933 - this gave out loans to homebuyers with low mortgages. the aim was to avoid owners losing their homes because they were behind on mortgage payments by encouraging home ownership.
Works Progress Administration (WPA)
8th April 1935 - this replaced the PWA and extended the range of employment provided from builders to phhotographers
Social Security Act
14th August 1935 - provided state pension to the elderly and widows, helped the sick and disabled and set up a scheme for unemployment insurance
