(2d) Roosevelt and the First New Deal, 1933-35 Flashcards
When was Franklin Delano Roosevelt elected?
1932
What did Roosevelt promise to do when he was elected?
promised a New Deal to restore faith in the economy through the goals of Relief, Recovery and Reform. No specific blueprint about how this would be achieved. Committed to a balanced budget. Charismatic, appealed to population through ‘fireside chats’.
What did the 1st 100 days see?
The first 100 days saw more legislation passed than any previous time in history. Transformed role of Federal Government and the expectations placed upon it by the people.
What did the emergency legislation set up?
The emergency legislation was passed and set up ‘alphabet agencies’ to deal with the problems of the Depression.
When was the Federal Emergency Relief Administration (FERA)?
May 1933
What did Federal Emergency Relief Administration (FERA) include?
Given $500 million to divide equally among states to provide unemployment relief
Half given by FERA to the states
Other half kept back, to give states $1 for every $3 of their own funds they spent on relief
How many alphabet alphabet angles were there?
16
When was the Agricultural Adjustment Agency?
1933
What were the negatives to FERA?
Some states refused to comply
Insufficient for scale of problem but set precedent for direct government relief
What did the AAA do?
Paid farmers to produce less to tackle problem of overproduction
What were the impacts of the AAA?
Prices did increase: Cotton rose from 6.5 to 10 cents per pound
Contentious issues such as the slaughter of 6 million pigs
Total farm income rose from $4.5 billion 1932 to $6.9 billion 1934
AAA did cause problems later on
What was the The National Industry Recovery Act (NIRA),?
set up the National Recovery Administration (NRA).
Firms that participated agreed to codes of practice such as good working conditions and product standards.
What was set up as part of the NRA?
Public Works Administration (PWA),
What did the PWA include?
funded with $3.3 billion with the aim of pump priming (pumping government money in to get things working again)
The hope was that spending on public works such as road building would stimulate the economy and create permanent jobs.
What was the downside to the PWA?
Many workers ended up unemployed again after contracts ended
Offered temporary relief but less successful in long term recovery
What had the CCC done by 1935?
This was one of Roosevelt’s proudest agencies.
By 1935, 500,000 young people (mainly men) were given useful jobs such as tree conservation in national parks.
When was the Emergency Banking relief Act?
March 1933:
What did The Emergency Banking Relief Act (EBRA) include?
6th March 1933, all banks closed for 4 days
He gave the first fireside chat aiming to restore confidence in the banks again by explaining the situation in simple terms
EBRA gave the Treasury authority to investigate any bank, and Reconstruction Finance Corporation was authorised to buy up their debts
How much money had been put back into the banks by 1st April due to EBRA?
$1 billion had been redeposited in banks
What was the The Glass-Steagall Act?
Longer term measure that aimed to reform banking system to prevent another collapse.
What did the The glass-steagall act include?
Banned savings banks from speculative investment
Gave Federal Reserve Board more ability to supervise and regulate
Set up Federal Deposit Insurance Corporation which insured individual bank deposits of up to $2,500. State banks had to join the Federal Reserve system to qualify
What are the Criticisms of the glass-steagall act?
Some wanted more direct government control
some felt banks were being subsidised to stay open as a reward for their inefficiency
Federal Reserve given too much control.
What acts regulated the stock exchange?
The Truth in Securities Act:
The Securities Act 1934:
What was the Truth in Securities Act?
brokers had to be honest about securities they were selling
