FDR and the New Deal Flashcards
What were the eight steps that FDR took in the First Hundred Days?
Step 1: Restore Confidence in Banks
Declared “Bank Holiday”
Bill passed in congress to provide federal aid to banks in danger of collapsing
Step 2: Restore Farm Income
Created Agricultural Adjustment Agency (AAA)
Increased crop prices and farm income
Step 3. Employ Young Men
Created Civilian Conservation Corps (CCC)
Employed 2.5 million men, kept in camps run by military
Step 4: Help City Dwellers Keep Homes
Created Homeowners Loan Corporation (HOLC)
Step 5: Bring Electricity to Stimulate Economy
Developed in entire regions to spread it
Made the Rural Electrification Act (REA)
Step 6: Gov’t Business- Labor Alliance
Created National Recovery Administration (NRA)
Step 7: Stabilize Stock Market
Federal Trade Commision (FTC) given power to regulate new stock offering
Step 8: Provide Help for Unemployed
Created Federal Emergency Relief Administration
And Civil Work Administration Administration (CWA)
What was FDR’s basic approach to the economy?
He intervened at a powerful and intense level
Had an experimental approach: trial and error
-What role did Eleanor play in his administration?
She traveled around interacted with all types of people
She was an advocate for many
Cautious FDR
Balanced Budget
Regulate Economy
Avoid Dependence
Work with Businesses and the Wealthy
Aggressive FDR
Deficit Spending
Plan Economy
Fight Poverty
See Business and the Wealthy as Obstacles
Father Charles Coughlin (Catholic priest)
Initially supported FDR, but believed he didn’t go far enough towards “Social Justice”
Huey Long (Sen. from LA)
“Share Our Wealth” Program- every family would receive $5,000 at the expense of a prosperous business man
Dr. Francis E. Townsend (retired doctor)
Anyone 60+ would receive $200 (but had to spend all within that month)
What were the four initiatives of the ‘Second Hundred Days’?
Social Security Administration (SSA)-Pension paid with employee/employer payroll taxes received after 65, benefits based on earning
Wealth Tax Act-Raised Real Estate, gift and capital stock taxes
Banking Act-Strengthened federal reserve system
Wagner Act: National Labor Relations Board- Guaranteed right of labor to bargain collectively, stopped Union “busting”
How did the Wagner Act affect union membership?
Increased very much after 1938
What were the reasons for Roosevelt’s anger with the Supreme Court?
The SP voted his New Deal Unconstitutional
What was his court reform plan, what happened to it, and what were the repercussions?
He introduced a bill to expand the Supreme Court, one member for every member over 70 but no over 15 justices
Democratic Congress refused to pass it, they thought FDR was overstepping
Few New Deal programs were passed after that
FDR appointed 9 new justices during his presidency
Which four groups did FDR seek to help?
Unemployed, senior citizens, disabled and farmers
What were the suspected causes of the “Roosevelt Recession” of 1937?
New Social Security taxes cut into pay checks and gov’t cut back on spending to preserve
balanced budget
What was the economic philosophy of John Maynard Keynes?
Gov’t spending can end economic downturn
