(3a) The New Deal and the economy Flashcards

1
Q

Impact of New Deal policies on unemployment

A
  • 1929: 3.14%
  • 1933: 24.75% (roughly 18 million)
  • 1936: 17%
  • 1937 (2nd New Deal): 14.3%
  • 1938 (Roosevelt recession): 19%
  • 1939 (Start of wartime economy): 17.2%
  • 1940 (Wartime economy): 14.6%
  • 1944: 1.2%
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2
Q

There was an ______ distribution of unemployment in the USA.

A

There was an uneven distribution of unemployment in the USA.

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3
Q

Describe the trend of unemployment across the period

A
  • Unemployment sky rocketed due to the great depression.
  • Thanks to the new deal (and 2nd new deal), unemployment rates began to fall gradually.
  • Roosevelt spending cuts (achieve a balanced budget) - unemployment rose during recession and peaked at 19% in 1938.
  • However, the wartime economy led to many more employment opportunities - unemployment was practically eradicated by 1944 (1.2%).
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4
Q

The impact of New Deal on National Infrastructure

A
  • First time federal government provided opportunities for the unemployed through state funded work programmes (PWA and WPA).
  • Aim = kickstart the economy.
  • Agencies provided short term employment - many became unemployed after the programmes.
  • The new deal laid the economic foundations that supported the economy’s rapid growth, and prevented total economic collapse.
  • It failed in offering long term employment.
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5
Q

Impact of Alphabet Agencies

WPA + TVA

A
  • WPA 1935-1943:
    Built 2,500 hospitals, 5,900 schools, 570,000 miles of road, and 8,000 parks.
    CCC heavily involved in the development of nationals parks, roads, trees, and tourist facilities.
  • TVA 1933:
    Built 50 huge dams which provided hydroelectric power to the most impoverished areas of the USA (gave them electricity for first time.)
    New Industries relocated to rural areas - 1941: 40% of farmers had access to electricity (rose to 90% by 1950.)
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6
Q

The new deal ___________ national infrastructure.

A

The new deal transformed national infrastructure.

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7
Q

Impact of the New Deal on women: Key women

Eleanor Roosevelt.

A
  • Very active and political role - transformed the role of the first lady.
  • Helped make many New Deal policies - social and political links.
  • Unofficial member of FDR’s advisory team.
  • Championed the rights of women and ethnic minorities.
  • New Deal Years: 348 press conferences highlighting the plight of young people facing poverty and lack of opportunity.
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8
Q

Impact of the New Deal on women: Key women

Frances Perkins

A
  • First female cabinet member: 1933-1945: Secretary of Labour.
  • Helped pass a federal minimum wage (Fair Labour Standards Act - 1938).
  • Central role in establishing CCC.
  • Social Security Act 1935: her radical suggestions watered down.
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9
Q

Impact of the New Deal on women: Key women

Mary McLeod Bethune

A
  • Prominent black American.
  • 1936-1944: Director of Negro Affairs of the National Youth Administration.
  • Chair of ‘Black Cabinet’.
  • 1940: Vice President of NAACP.
  • Failure: Black Americans to achieve same wages as whites (in federal government).
  • Failure: Black youth to receive federal aid in fair proportion to white kids.
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10
Q

What does the NAACP stand for?

A

National Association for the Advancement of Coloured Persons.

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11
Q

Women in politics held more ___________ and _________ positions during the New Deal.

A

Women in politics held more influential and important positions during the New Deal.

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12
Q

3 other important women (quite minor)

A
  • Molly Dewson: Friend of FLOTUS. Women’s division of the democratic party.
  • Ellen Woodward: 1933-1935: Director of the Women’s Division of the Federal Emergency Relief Administration (FERA).
  • Ruth Bryan Owen: First female ambassador (to Denmark) in 1933.
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13
Q

Women in Employment: Positive Change

A
  • Female version of CCC (“she, she, she” camps) - employed women on short term projects.
  • New deal saved education through funding - 80% of teachers were women.
  • Some alphabet agencies offered opportunities for women.
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14
Q

Women in Employment: Limited Change

A
  • New Deal and Unions saw men as the principal wage earners.
  • Women average wage = $525 (1930s) - half that of men.
  • 1933 Economy Act: Only one family member working for fed govt - 75% of those who lost their jobs were women.
  • NRA codes allowed unequal wages.
  • Social Security Act didn’t include domestic servants ( 100,000s were women.)
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15
Q

Economy in 1939:

A
  • Unemployment high and Union membership at 27%. 5 corporations controlled 85% of all income generated.
  • 1939: Amendments made to 1935 Neutrality Acts. USA could sell to belligerents.
  • Within a year: Orders for 10,800 aircraft.
  • Lend-lease introduced by FDR - US loaned to UK and USSR but had to be paid back.
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16
Q

Economy in 1940:

Military spending

A
  • July 1940: $4 billion towards the US navy.

- October 1940: $17 billion towards defence.

17
Q

Economy in 1940:

How much healthier in 1940 compared to 1933?

A
  • Unemployment:
    • 1933 = 25%
    • 1940 = 18.9%
  • GNP:
    • 1933 = $68.3 billion.
    • 1940 = $113 billion.