8. President F.D. Roosevelt and the New Deal

Question 1

Hoover’s actions

Answer 1

The Hoover administration’s attempt to raise tariff rates to keep out cheap foreign goods backfired as other countries increased their tariffs, causing world trade to drop by 40%.

Question 2

Shift in Federalism

Answer 2

The Great Depression led to a shift from dual federalism to cooperative federalism, where responsibility was shared between state and local governments.
o Dual Federalism (“Layer Cake” Federalism)
 Definition: A system where the federal and state governments operate independently in their own spheres of influence, with limited interaction.
 Characteristics: Clear division of responsibilities; states handle their own issues, and the federal government deals with national matters.
o Cooperative Federalism (“Marble Cake” Federalism)
 Definition: A system where the federal and state governments collaborate and share responsibilities to solve common problems.
 Characteristics: Overlapping functions, joint efforts in policymaking, and shared costs.

Question 3

social despair and some witty puns that criticize the gvmt before FDR

Answer 3

People lost homes, jobs, and hope. Soup kitchens and shantytowns (“Hoovervilles”) became common.
shantytown - nyomornegyed

Question 4

No Federal Safety Net aka no:

Answer 4

No unemployment insurance, social security, or major federal aid programs yet.

Question 5

Pre-New Deal Efforts

Answer 5

• Hoover’s Response: The Hoover administration’s approach was minimalist, primarily relying on voluntary efforts and believing that the market would self-correct. Hoover’s main policy measure was to raise tariff rates to keep out cheap foreign goods, but this resulted in other countries increasing their tariffs and world trade dropping by 40%.
• Charities & Local Relief: Private charities and local relief organizations attempted to help, but they were quickly overwhelmed by the sheer scale of the need (unemployment, poverty)
• Limited Government Programs: There were a few public works projects, but they were not nearly enough to combat the magnitude of the economic crisis6. Before the New Deal, there was also no unemployment insurance, social security, or deposit insurance.

Question 6

“forgotten man”

Answer 6

• FDR’s rhetoric often centered on the “forgotten man,” the ordinary American who was struggling during the Depression.
  o These were the unemployed, the working poor, farmers, and the marginalized—those whose needs had been neglected
  o FDR sought to build plans that rested on these ordinary Americans who were the “indispensable units of economic power”
  o Shared Fate: FDR emphasized that the “forgotten man” was not just an individual, but part of a shared national fate
  o FDR inverted the original meaning of the term, which came from social Darwinist William Graham Sumner, who used it to refer to a self-reliant individual who wanted little from the state
   In contrast, FDR’s version of the “forgotten man” was enmeshed in a shared national fate, and needed governmental support to achieve economic security and exercise their freedom
   Significance: This concept was central to FDR’s political vision, representing a move toward a more inclusive and economically just society. It also served to differentiate the Democratic Party from the more conservative policies of the previous administration. The concept of the “forgotten man” helped to mobilize a broad coalition in support of the New Deal.

Question 7

Good Neighbor Policy

Answer 7

This policy was about being hands-off in Latin America. Rather than intervening like previous U.S. administrations, FDR promised to be a better neighbor and respect Latin American sovereignty. He essentially chose to “ignore” the region’s problems rather than interfere, which contributed to the perception of inactivity.

Question 8

Neutrality Toward the Spanish Civil War

Answer 8

FDR kept the U.S. out of the Spanish Civil War (1936-1939). While there were sympathies for the democratic republicans in Spain, FDR maintained neutrality—refusing to support either side, which was seen as “inactive” compared to the more interventionist approaches of past presidents.

Question 9

Withdrawal from the London Economic Conference

Answer 9

FDR pulled the U.S. out of this 1933 conference that was aimed at solving the global economic crisis. By stepping back, he signaled that his main concern was America’s own recovery, not international cooperation, again making his foreign policy seem inactive.

Question 10

Neutrality Acts (1935-1939)

Answer 10

These were laws designed to prevent the U.S. from getting involved in wars by avoiding trade with belligerent countries. FDR’s government passed these acts, basically making sure America wouldn’t be dragged into global conflicts. It was a deliberate “inactive” stance in global affairs.

Question 11

Shift from Domestic to International Concerns

Answer 11

By 1936-1937, as the New Deal seemed to stabilize the US economy, FDR shifted his focus to international security due to the growing threats from Germany and Japan.
o He called on other countries to “quarantine” nations undermining world order, referencing Japan’s invasion of China.
o He began to position the United States in an anti-German and anti-Japanese stance.
o He recognized the Soviet Union.

Question 12

“National Security” Redefined

Answer 12

FDR broadened the concept of “national security,” moving beyond the protection of the US territory to include the worldwide protection of American ideas and values. He argued that in an era of totalitarian dictators and advanced weaponry, a narrower definition of self-defense was obsolete.
o Rhetorical Shift: He began speaking less about “self-defense” and “the national interest,” and more about “national security”
 FDR argued that Americans had to defend “the tenets of faith and humanity” on which their civilization was founded
 He warned that technology was collapsing geographical distance, making it impossible for America to remain isolated
 He warned against the U.S. becoming a “lone island in a world dominated by the philosophy of force”

Question 13

First Phase of the ND

Answer 13

(1933-1935): Focus on Relief and Recovery
* Goal: Primarily focused on boosting prices and lowering unemployment during the initial years of the Great Depression.
* It was characterized by experimental policies, with a “groping for solutions” rather than a clear, unified plan
* This phase was marked by mixed results and some major policy failures, including the Supreme Court’s eventual ruling that the NIRA was unconstitutional
* The initial focus was on business and finance, rather than on labor or the redistribution of wealth

Question 14

Civilian Conservation Corps (CCC)

Answer 14

1933
o Purpose: Provided short-term jobs for young, unemployed men, mostly in environmental conservation projects like reforestation and flood control.
o Impact: Employed around 3 million young men, contributing to national park development and environmental preservation.

Question 15

Agricultural Adjustment Act

Answer 15

1933
o Purpose: Aimed to stabilize agricultural prices and reduce overproduction by paying farmers to reduce crop production. It also sought to increase farmers’ purchasing power.
o Impact: Reduced crop surpluses and helped raise farm prices, though it led to the destruction of crops and livestock, causing controversy.

Question 16

surplus

Answer 16

többlet, felesleg

Question 17

National Industrial Recovery Act (NIRA)

Answer 17

1933
o Purpose: Sought to stimulate industrial recovery by fostering cooperation among industries, setting fair competition codes, and establishing labor rights.
o Impact: Created the National Recovery Administration (NRA), which tried to regulate prices and wages, but it was ultimately ruled unconstitutional by the Supreme Court in 1935.

Question 18

Emergency Banking Act

Answer 18

1933
o Purpose: Provided for the reopening of banks under strict conditions and provided federal loans to stabilize the banking system.
o Impact: Restored public confidence in the banking system, leading to a reduction in bank runs.

Question 19

Economy Act

Answer 19

1933
o Purpose: Aimed to balance the federal budget by reducing government salaries and veterans’ benefits.
o Impact: Aimed at reducing the deficit but faced criticisms for disproportionately affecting veterans and government workers.

Question 20

Tennessee Valley Authority (TVA) – (1933)

Answer 20

o Purpose: Focused on regional development in the Tennessee Valley by providing electricity, improving flood control, and promoting agricultural and industrial development.
o Impact: Drastically improved living standards in the region, though faced criticisms for its monopolistic practices.

Question 21

Second Phase

Answer 21

(1935-1938): Focused on aiding the poor, the aged, unorganized workers, and farmers. The hallmark of this phase was the Social Security program.
* It was characterized by a more cohesive, proto-Keynesian vision for reform, and a more pro-labor approach.
* This phase is considered to have produced more enduring policies and is seen by some as a rare “working class interlude” in U.S. history.
* This period also saw a significant shift in the Supreme Court, which began to uphold New Deal measures

Question 22

• Social Security Act – (1935)

Answer 22

o Purpose: Established a system of old-age pensions, unemployment insurance, and assistance to dependent children and the disabled.
o Impact: Created the foundation for the modern welfare state in the U.S.

Question 23

• National Labor Relations Act (Wagner Act) – (1935)

Answer 23

o Purpose: Strengthened labor rights by guaranteeing workers the right to organize unions and engage in collective bargaining.
o Impact: Led to a significant increase in union membership and laid the foundation for modern labor relations in the U.S.

Question 24

• Fair Labor Standards Act (FLSA) – (1938)

Answer 24

o Purpose: Established a federal minimum wage, regulated overtime pay, and set standards for child labor.
o Impact: Protected workers, especially children, and established the foundation for modern labor laws in the U.S.

Question 25

• Works Progress Administration (WPA) – (1935)

Answer 25

o Purpose: Provided jobs to the unemployed through public works projects, including construction of roads, schools, and other infrastructure.
o Impact: Employed millions of workers and left a lasting legacy of public infrastructure.

Question 26

• National Youth Administration (NYA) – (1935)

Answer 26

o Purpose: Created jobs and educational opportunities for young people, particularly those from disadvantaged backgrounds.
o Impact: Provided work-study programs and job training for over 2 million young Americans.

Question 27

“Economic Royalists”

Answer 27

FDR used strong rhetoric against “economic royalists” who he believed had subverted American democracy, declaring that political equality was meaningless in the face of economic inequality.

Question 28

World War II as a Catalyst:

Answer 28

World War II had a significant impact, reviving the economy in a way the New Deal could not. The war consolidated existing policies and curtailed further reforms.
o WWII drastically increased industrial production and employment, which helped end the Great Depression. The war effort demanded large-scale government spending and mobilization that the New Deal couldn’t match in scale or effect.

Question 29

“Black Thursday”

Answer 29

October 24, 1929: “Black Thursday” - The Stock Market Crash marks the beginning of the Great Depression. Stock prices drop by 50%.

Question 30

1929-1933

Answer 30

Bank failures and widespread loss of savings. Overproduction and underconsumption contribute to the economic downturn.

Question 31

Early 1930s:

Answer 31

State governments become overwhelmed by the economic crisis, leading to calls for federal intervention. Minimal federal action under the Hoover administration, including the Smoot-Hawley Tariff, worsens the global trade collapse. World trade drops by 40%.

Question 32

FDR’s two influential speeches at the beginning

Answer 32

1932:Franklin D. Roosevelt (FDR) delivers his nomination speech, promising a “New Deal for the American people.” He begins referring to the “forgotten man” as a centerpiece of his vision.
FDR delivers his Commonwealth Speech, outlining the need for economic security to support individual liberty

Question 33

1933:First New Deal Phase (1933-1935):

Answer 33

Focus on Relief and Recovery.
FDR’s administration passes the Emergency Banking Act, reopening banks under strict conditions, and the Economy Act, aimed at balancing the federal budget.
The Civilian Conservation Corps (CCC) is established to provide jobs for young, unemployed men.
The Agricultural Adjustment Act (AAA) is enacted to stabilize agricultural prices by reducing overproduction.
The National Industrial Recovery Act (NIRA) is passed, establishing the National Recovery Administration (NRA) and attempting to regulate prices and wages.
The Tennessee Valley Authority (TVA) is created to develop the Tennessee Valley region.
FDR pulls the US out of the London Economic Conference.
1935:The Supreme Court rules that the NIRA is unconstitutional.

Question 34

Second New Deal Phase (1935-1938):

Answer 34

Focus on aiding the poor, aged, unorganized workers, and farmers.
The Social Security Act is passed, establishing a system of old-age pensions, unemployment insurance, and aid to the disabled and children.
The National Labor Relations Act (Wagner Act) strengthens labor rights by guaranteeing workers the right to organize unions.
The Works Progress Administration (WPA) is established to provide public works jobs.
The National Youth Administration (NYA) is created to provide jobs and educational opportunities for young people.

Question 35

international focus, when and how?

Answer 35

1936-1937: As the US economy begins to stabilize, FDR begins to shift his focus to international security issues, due to rising threats from Germany and Japan. FDR calls on other countries to “quarantine” nations undermining world order.

Question 36

Fair Labor Standards Act (FLSA)

Answer 36

1938: The Fair Labor Standards Act (FLSA) is passed, establishing a federal minimum wage and regulating overtime pay and child labor.

Question 37

1939 unemployment percentage

Answer 37

Unemployment remains at 17%.

Question 38

Post-WWII:

Answer 38

Many New Deal programs are scaled back or eliminated, shifting focus to consumerism. The era of the New Deal is seen as a unique period of large-scale government intervention, setting the stage for the modern welfare and regulatory state.

Question 39

Franklin D. Roosevelt (FDR):

Answer 39

32nd President of the United States (1933-1945). He is the central figure of the text, championing the New Deal programs to combat the Great Depression. His main goals included alleviating the depression, implementing social and economic reforms, and expanding the scope of national government through social welfare programs and a move to a more cooperative federalism. He delivered landmark speeches, including his nomination speech where he famously used the phrase “new deal for the American people”, and his Commonwealth Speech, in which he emphasized the need for economic security to support individual freedom. He also redefined “national security,” shifting the concept beyond just protecting US territory to include protecting American ideals and values worldwide. He was initially inactive in foreign affairs, before shifting focus to international security in the mid-1930s as tensions rose in Europe and Asia.

Question 40

Herbert Hoover:

Answer 40

31st President of the United States (1929-1933). His presidency coincided with the beginning of the Great Depression. His policies, which were largely minimalist and relied on voluntary efforts and market self-correction, were seen as ineffective. His attempt to raise tariffs to protect American goods led to the opposite result.

Question 41

“The Forgotten Man”:

Answer 41

A term used by FDR to describe ordinary Americans who were struggling during the Great Depression. This group included the unemployed, the working poor, farmers, and marginalized citizens. This concept was central to his political vision, representing a move toward a more inclusive and economically just society. The term had its origins in social darwinism, but FDR inverted it, making it the heart of his vision of shared national destiny.

Question 42

“Economic Royalists”

Answer 42

A term used by FDR to criticize those he believed had subverted American democracy by promoting economic inequality. This concept is central to FDR’s argument that political equality is meaningless without economic equality.

Question 43

William Graham Sumner:

Answer 43

Social Darwinist who originally coined the term “forgotten man” to refer to a self-reliant individual who wanted little from the state.

Question 44

Good Neighbor Policy:

Answer 44

FDR’s foreign policy toward Latin America, emphasizing non-intervention and respect for Latin American sovereignty

Question 45

Laissez-Faire:

Answer 45

An economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies.

Question 46

Great Exception:

Answer 46

The term referring to the New Deal era as a unique period in American history where the government actively supported the economic interests of non-elite Americans.

Question 47

What were two major causes of the Great Depression, according to the text?

Answer 47

Two major causes of the Great Depression were the stock market crash of 1929, which saw stock prices plummet by 50%, and bank failures caused by panic-driven bank runs. Overproduction coupled with underconsumption was also a major factor, as the mass of Americans were too poor to buy all goods produced.

Question 48

Explain the difference between dual federalism and cooperative federalism, and what led to the shift between the two.

Answer 48

Dual federalism, or “layer cake” federalism, is where the federal and state governments operate independently with limited interaction, while cooperative federalism, or “marble cake” federalism, is where they collaborate and share responsibilities. The Great Depression forced a shift from dual to cooperative federalism as state governments were overwhelmed and unable to respond adequately to the economic crisis.

Question 49

What was the significance of FDR’s “New Deal” pledge in his 1932 nomination speech?

Answer 49

FDR’s “New Deal” pledge in his 1932 nomination speech was significant because it offered a vague but resonant promise of hope and change to a population suffering greatly during the Great Depression. This pledge became the banner for his ambitious domestic policy agenda and signaled a major shift away from the previous administration’s minimalist approach.

Question 50

How did FDR redefine the concept of the “forgotten man,” and why was this concept significant to his policies?

Answer 50

FDR redefined the “forgotten man” as the ordinary American struggling during the Depression – the unemployed, the working poor, and the marginalized – who needed governmental support to achieve economic security and exercise their freedoms. This was significant because it served as the basis of his political vision, focusing on a more inclusive and economically just society.

Question 51

Describe the goals and actions of FDR’s foreign policy during his first term.

Answer 51

During his first term, FDR’s foreign policy was largely inactive, focused primarily on domestic issues like pulling America out of the Great Depression. He adopted a “Good Neighbor” policy toward Latin America and maintained neutrality in conflicts such as the Spanish Civil War, while also withdrawing from the London Economic Conference and passing Neutrality Acts.

Question 52

What were two main criticisms of the New Deal programs?

Answer 52

Two main criticisms of the New Deal were its limited economic impact—as unemployment remained high even after several years—and its failure to fully address the needs of marginalized groups like African Americans and women. Some critics also saw it as an overreach of government power that deepened the crisis, while others viewed it as a profoundly conservative response.

Question 53

What was the purpose of the Agricultural Adjustment Act (AAA) and what was one of its controversial results?

Answer 53

The Agricultural Adjustment Act (AAA) aimed to stabilize agricultural prices and reduce overproduction by paying farmers to reduce crop production. A controversial result of the AAA was the destruction of crops and livestock, which angered some who found it wasteful in times of great need.

Question 54

What were the goals of the second phase of the New Deal (1935-1938)?

Answer 54

The goals of the second phase of the New Deal (1935-1938) were to aid the poor, the aged, unorganized workers, and farmers, characterized by a more cohesive and pro-labor approach, the hallmark of which was the Social Security program. This phase was considered more progressive, including legislation such as the Wagner Act and the Fair Labor Standards Act.

Question 55

How did the New Deal reshape federalism in the United States?

Answer 55

The New Deal reshaped federalism by establishing greater cooperation between national and state governments. The responsibilities shifted from being a clear division of labor (layer cake) to a more blended system where roles and responsibilities were shared (marble cake). The national government’s size and budget increased dramatically due to the New Deal programs.

Question 56

What is meant by the New Deal being considered the “Great Exception” in American History?

Answer 56

The New Deal is considered the “Great Exception” in American history because it was a period where the central government used its resources to support the economic interests of non-elite Americans, marking a break from the traditional laissez-faire policies. It represented a significant deviation from past and subsequent norms by focusing on welfare and labor rights.