America: Opportunity and Inequality - The Effect of the New Deal in Society Flashcards
what were the three changes that FDR made in his first 100 days?
- introduced Emergency Banking Act which closed all banks for a four-day “bank holiday”. Every bank was inspected and only honest, well-run banks with enough cash were allowed to reopen. The government lent some money to the banks to help them - when the banks reopened people put money back into their accounts (totalling $1 billion). Well-run banks could now lend money to well-run businesses which would create jobs as businesses expanded
- the government needed money to help the unemployed, so FDR introduced the Economy Act, which cut the pay of everyone working for the government and the armed forces by 15%. This saved nearly $ 1 billion
- the Beer Act made it legal to make and sell alcohol again - legalising alcohol put the gangsters out of business
what was the new deal?
- in a famous speech FDR promised a “new deal” to help America
what was Roosevelt’s “brain trust” and how was it intended to deal with the problems of the Great Depression?
- FDR surrounded himself with clever men and women calling them his “Brain Trust” - sometimes their ideas would work, sometimes they didn’t
how was Roosevelt able to pass legislation so quickly?
- he asked Congress, the American Parliament, to give him extra powers to introduce laws quickly.
- Amazingly, Congress went along with the idea and for 100 days (8 March - 6 June 1933), it gave him the same powers as if the country were being invaded
why was Congress so willing to give Roosevelt extensive powers?
- they were so desperate to improve the economy
what does priming the pump mean?
- the government creates jobs by spending money
- once the workers earn wages, they start buying goods
- firms and businesses then start hiring new workers
- these new workers spend money
what were the Alphabet agencies for?
helping people recover from the Great Depression
how did the New Deal help farmers?
- the Farm Credit Administration lent $100 million to farmers who could not keep up with loan repayments. Having borrowed loans to purchase farming equipment in the 1920s, farmers had struggled with overproduction and falling prices.
- the (AAA) Agricultural Adjustment Agency paid farmers to produce less + destroy some of the food they had already produced
- as a result, food prices rose because the supply decreased
- between 1933 and 1939, farmers’ incomes doubled
- However, it faced heavy criticism - food was being destroyed at a time when millions in the city were going hungry
how did the New Deal help industry and workers?
- NRA (National Recovery Administration) encouraged workers and employers to work out a code of fair conditions, wages and prices for their workplaces. It stated that workers should have the right to trade unions. However, as a voluntary scheme, many refused to join and codes of practice weren’t always observed leading to strikes
- HOLC (homeowners loan corporation) gave loans to people who were struggling to pay their mortgages. It helped 300,000 homeowners in the first year
- TVA ( Tennesse Valley Authority) provided work building dams and electric power stations along the Tennesse River, one of the poorest areas in America
how did the New Deal help the unemployed?
- the CCC (civilian conservation corps) employed 18-25-year-olds to plant trees, dig canals, clear footpaths and strengthen riverbanks against flooding. It started a programme to control mosquitoes = ended malaria in America. the CCC created jobs for 25 million
- CWA (civil works Administration) provided temporary work for 4 million men, building schools, airports, roads + 150,000 public toilets. The work schemes meant that these people earned money once more - so were able to buy things and provide much-needed income for shops and business
- FERA (Federal Emergency Relief Agency) gave $500 million to states to help homeless, starving people. Money was spent on soup kitchens, blankets, clothes and nursery schools
what happened in November 1936?
- FDR faced his second election
- he won easily, receiving more votes than any other president in American history
- in a speech after his victory, FDR joked, “it seems everyone is against the New Deal…except the voters!”
why did the rich oppose the new deal?
- to help pay for the New Deal, FDR made rich people pay more tax, which most of them didn’t like
- they thought the way some Alphabet Agencies paid people to plant trees paint buildings and stock rivers with fish was a waste of money
why did business people oppose the new deal?
- many wealthy business owners didn’t like the way the New Deal “interfered” with business and gave more rights to workers
- the NRA codes, for example, allowed workers to join trade unions and forced employers to pay minimum wages, improve conditions and set limits on hours of work
why did the Supreme Court oppose the New Deal?
- The Constitution states that the president is only responsible for national affairs affecting all states
- local state governments are responsible for other affairs
- in 1935 the Supreme Court ruled that AAA Alphabet Agency was illegal
- As a result, all the help that the AAA gave to farmers stopped - the Supreme Court also declared many of the NRA codes illegal
why did Republicans oppose the New Deal?
- many Republicans were horrified by the way the New Deal was dominating people’s lives
- some said that Roosevelt was behaving like a dictator and making the government too powerful
- others claimed that all this government help would make Americans “unable to stand on their own two feet”
- some even worried that America would soon be controlled by the government and this was the type of system that communist Russia had