FDR and The New Deal Flashcards
How successful was the New Deal?
What was the New Deal as introduced in 1933?
The New Deal was not a fully worked out plan when FDR came into office. It evolved over time. Historians speak of the First New Deal in 1933, followed by a second one in 1935.
What were the 3 R’s?
Relief - help for the old, sick, unemployed, and homeless.
Reform - government schemes to provide jobs.
Recovery - make America a better place for ordinary people and ensure a depression like this could not happen again.
What was the Banking Act?
In his first 100 days, FDR temporarily closed the banks and only the ones that had been certified as sound and properly run could reopen. This was done in order to restore confidence in the banking system.
What was the Glass-Steagal Act?
It was government regulation of Wall Street and protected ordinary people from having their savings wiped out by the reckless investment decisions of the bank.
What were the effects of the abolishment of Prohibition?
This cut the ground from under the bootleg gangs, and provided the government with a new source of tax revenue.
What did the Civilian Conservation Corps (CCC) do?
Provided men aged 18-25 with work on conservation projects such as planting trees to combat soil erosion. More than 2 million men had taken part in this work by the time the US entered the Second World War. it developed useful practical skills and gave participants a sense of purpose.
What did the Federal Emergency Relief Administration (FERA) do?
Provided assistance to the poor, in the form of grants to state governments.
What did the Civil Works Administration (CWA) do?
Provided employment for 4 million people for a short term period in 1933-1934. It’s job-creation schemes varied from road-building to sweeping leaves.
What did the Public Works Administration (PWA) do?
Sponsored building projects, such as construction of dams and bridges.
What did the Home Owners’ Loan Corporation (HOLC) do?
Supplied loans to people unable to pay their mortgages and in danger of losing their homes.
What did the National Recovery Administration (NRA) do?
Was set up by the National Industrial Recovery Act (NIRA). It aimed to revive industrial production by setting fair prices for goods, whilst raising workers’ wages, and improving conditions in the workplace. Companies taking part signed codes of practice agreed with the government, and in return were issued with a ‘Blue Eagle’ logo to show that they were good employers, and to encourage people to buy from them. Over 5,000 industries had decided to participate by September 1933 and the symbol became widely known.
What did the Farm Credit Administration (FCA) do?
Provided low-interest loans to farmers.
What did the Agricultural Adjustment Act (AAA) do?
Controversially rewarded farmers for cutting production levels. Many were angry to see animals slaughtered and crops ploughed back into the ground, but farm incomes doubled during 1933-1939. It did not help farm labourers and share-croppers, many of whom were replaced by new machinery.
What did the Tennessee Valley Authority (TVA) do?
Set up an area of the south 80,000 square miles in size, covering parts of seven states from Mississippi to Virginia. The region was prone to flooding and soil erosion, and there were high levels of poverty and unemployment. Tree planting helped to prevent soil from being washed away, and the building of government-funded dams created jobs, controlled the flow of the river, and generated electricity with which to modernise the area’s economy. This programme helped both agriculture and industry and is generally regarded as one of the New Deal’s outstanding successes. To business interests, this was further government encroachment.
How and Why did the Character of the New Deal change?
In 1935 the Supreme Court ruled that the NRA and the AAA were illegal because federal government had no right to interfere in state’s affairs. Roosevelt had to think about how to secure his re-election in 1936, and he was under pressure from radical critics who wanted more done. The Second New Deal brought a change of emphasis, in that it was concerned with longer-term plans for social justice and welfare, and establishing workers’ rights. There were several major developments in 1935.
What did the Works Progress Administration (WPA) do?
The WPA was a new initiative to deal with unemployment through major building projects. Examples of its work included the San Francisco Bay Bridge, and New York’s La Guardia airport. It also supported the work of artists and writers, helping to improve the quality of life in many communities as well as giving work to more than 8 million people. By enabling people to work in return for money it avoided the stigma attached to receiving handouts.
What did the National Labour Relations Act (NLRA) do?
The NLRA affirmed the right of workers to form and join trade unions and to engage in collective bargaining. It also set up the National Labour Relations Board to protect workers who were victimised by employers.
What did the Social Security Act (SSA) do?
The SSA was a major move away from the idea that individuals alone should make their own provision for old age and other hazards of life. It created the first pensions for the elderly, together with benefits for orphans and victims of industrial accidents. It also set up a national system of insurance against unemployment. Although the payments were small, it marked an important change in the relationship between government and citizen.
What did the Resettlement Administration (RA) and Farm Security Administration (FSA) do?
The RA helped farm workers and share-croppers move to better land. In 1937 it was replaced by the FSA, which gave loans to help these people buy their own land. Its effects on the position of the poorest people in rural areas were, however, limited.
How did the New Deal face opposition from the Right?
- Conservatives felt it undermined individual initiative and excessively extended the power of the federal government. They included members of the official opposition party, the Republicans, and many business leaders. There were also some more conservative members of the Democrat Party in the South who did not support the New Deal. The short-lived American Liberty League was headed by two former democrat presidential candidates.
- These more traditional Americans were attached to the idea of self-help and many of them accused Roosevelt of promoting socialist or even communist ideas. They felt that Roosevelt’s policies increased the power of trade unions and interfered with the right of business leaders to run their companies. Press owner William Randolph Hearst, for example, referred to ‘Stalin Delano Roosevelt’. Such people resented the higher taxes that they had to pay and argued that many of the New Deal schemes were a waste of money.
- Although Roosevelt faced bitter hostility from the political right, it was never sufficiently well-organised to be a serious challenge to his position as president. The Republicans were divided on what they felt about the New Deal, with moderates not opposing it outright. The party’s candidate for presidential election, Alf Landon, found it hard to develop a distinctive policy position in opposition to FDR.
How did the New Deal face opposition from the Left?
- There were radicals who believed that the New Deal had not done enough to deal with unemployment and poverty. Three individuals in particular wanted to go further that FDR in redistributing wealth to the poor: Huey Long, Dr Francis Townsend, and Father Coughlin.
- Long, Townsend, and Coughlin appealed in different ways to different sections of the American public, and they may have indirectly influenced Roosevelt to adopt more radical parties in the Second New Deal. Life Roosevelt’s right-wing critics however, they were not able to offer a united front against him. The three men’s supporters came together to form the Union Party in 1936, but their candidate William Lemke only won 2% of the vote in the presidential election.
- FDR won another term in the White House in 1936, with over 27 million votes, because victims of the Great Depression were grateful for what he had done to help them, or decided that he should be given a second chance to finish the work he started.
Describe the opposition from Huey Long
He was a democrat who initially supported the New Deal but called for more radical action from 1934. His ‘Share the Wealth’ campaign called for higher taxation of the rich to fund welfare reforms. Long was a persuasive speaker and his movements were popular, attracting 8 million supporters. FDR’s supporters feared him as a possible presidential candidate in the 1936 election, but he was assassinated in September 1935.
Describe the opposition from Father Coughlin
He also turned against the New Deal after initially supporting it. The ‘radio priest’ used his broadcasts to call for increased workers’ rights and state control of industry. He was particularly popular in the industrial North and Mid-West and had an audience of 30 million by 1936. He lost influence after he started expressing admiration of European fascism.
Describe the opposition from Dr Francis Townsend
Dr Townsend was a retired doctor who campaigned for government pensions of $200 a month for all citizens aged over 60. Recipients would be obliged to spend the money, in order to stimulate the economy. The plan would also free up jobs for younger workers. Townsend secured 20 million signatures on a petition to Congress promoting his ideas.
