FDR Roosevelt And The New Deals Flashcards
FDR aims to end depression
RELIEF
1933
CCC
FERA
HURC
NIRA PWA
CWA
How does FDR aimed to end depression
RECOVERY
1933 emergency banking act Economy act AAA TVA NIRA
1934
Silver purchase act
FHA
How does FDR aim to end the depression
REFORM
1933
Glass-Steagall Act
Truth in securities
1934
Securities act
Indian reorganisation act
Why did FDR win the 1932 election
Hoover - Depression Lacked charisma Poor relations with press Voluntarism Silver shirts - right - ineffective Socialists weakened by red scare - less then 1m votes polled
Roosevelt had background in politics 1920 dem candidate for vice 1928 gov on NY Set up ‘brains trust’ to listen to ideas Wanted gov intervention 1932 - new deal 57% popular vote
What did FDR do in the first hundred days
Passed 15 bills
Abandoned gold standard - decline value of dollar - increase in goods. Idea was people would spend and - more jobs and unemployment would end - But people DID NOT SPEND - no risk
Optimism
Set aside billions for federal relief to unemployed, recognising the inability of charities and state gov to cope w issue
Initiated the biggest public work programme
Instructed new institutions to restore economy
Halted banking panic
Federal emergency relief act - money to states to help poor and unemployed
FERA gave $500 to feed poor and unemployed
First week of the 100 days
4 day banking holiday - and half to all transactions in gold —>
2X a week Press conference —> invited people to write w their problems (Hoover did once a year)
Emergency Banking Act -> allowed banks to open on 13th March under supervision —> restored confidence
Introduce Beer Wine revenue act - end prohibition
Fireside chat - said safe to return savings to bank
When banks opened - more money invested than withdrawn
Change in FDRs actions within the first 100 days in comparison to 1900-1933
Federal emergency relief act - in comparison to voluntarism
BUT many stages cut relief spending knowing Hopkins would have to give them FERA money anyway
Roosevelt declines GS - :O
Fireside chat
????
Continuity in FDRs actions within the first 100 days in comparison to 1900-1933
Federal emergency act A 5 million to poor hungry
Emergency banking act —> opened bank 15 March under government supervision
Beer wine revenue act
????
How did FDR deal with 25% unemployment
Public work schemes eg CCC, PWA etc
Created 3700 playgrounds
22,000 housing projects
500 water treatment plants
How did FDR deal with wasteful competition driving down prices and profits
National industrial recovery act NRA 1933 - got companies together to set codes for fair competition
Created min wage and max hours
VOLUNTARY
Created 2 m jobs
Did not solve overproduction
BB set codes in their favour
How did FDR deal with the rural situation?
The rugged individualism of the 20s still strong and 58 farms per 1000 changed hands in 1929
19.5 were forced sales
In Oregon sheep were slaughtered as too expensive to sell
Chicago people rifled through rubbish looking for food
1932- word wheat price $0.3 bushel , less than cost of production
CCC men ages 17-25 = 9 months work on camps earning $30. $25 had to be sent home
10% drop out rate —> army stile rule
BUT white dominated and youth
3m benefit 1942- skills and price
TVA - cheap hydroelectricity
9/10 electricity 1935 :O
CWA
employed 4.25m in 33/34- avoided starvation
Farm credit administration
Relief
Diffuse farm crisis
AAA
Destroyed 4.5m acres of cotton and price rose 10c to 65c that year
1942 farm incomes doubled from 1932 levels
Agricultural debt reduced $1b
But war in Europe encouraged US production
BUT
Argued
AAA and FCA no help sharecroppers
AAA declared unconstitutional in US vs Butler 1936
Did FDR reduce poverty and unemployment
25% unemployment
1932- 3.8m one parent families headed by a woman
In Arkansas schools closed for 10 months —> lack of funds
11m farm workers = acute difficulties
‘Forgotten man’
Economy continued to grow until mid 30s and when FDR cut the money, it shrank
The 1937 recession proved spending shrunk
33% decline in industrial production, 35% fall in wages, 13% fall in national income
Spending in war solved depression???
Did people have faith in FDR
Confidence someone was doing something
FDR bold experimentations
FIRESIDE CHATS
Re-elected 1961- 61% popular vote and 55% in 1940
Opposition from communists, far right etc
Did FDR’s banking policies help?
49 banks going under a day in 1933
$41 b deposits in USA but only $6b to cover it
March 33- closed banks. Emergency banking act - assessed viability of banks and restored faith
1936- no bank failures
Stabilised stock exchange, securities and exchange commission
Businessmen resented it at time
Some - left - argue he should have nationalised banks - some day it wouldn’t pass in Congress and it was too socialist
Hoover asked him to close banks for FDR no support
Argued - wanted credit
Define relief
Temporary emergency help - short term employment
Define recovery
Financial stability - long term employment
Explain reform
Stopping - safety net / rights - permanent progress
FDR first new deal
Was relief a success
!
FDR 1st new deal
Was recovery a success
!
First new deal
Was reform a success!
!
FDR first new deal
Was industry a success!
!
FDR first new deal
Was agriculture a success
‘
AAA
1933- first new deal
Agricultural adjustment act
Used farm subsidies to regulate farm production
Disbanded after WW2
TVA
First new deal -1933
Purpose: regional planning of a deprived area w hydro-electricity production, environmental conservation, flood control and education and health projects. Involved stages such as Virginia and Alabama
It is still in operation but criticised for its unanticipated environmental impact
PWA
1933 first new deal
Purpose: run by Ickes
Programme financed 34,000 federal, state and local projects costing s total of $6 billion - a large source of employment.
Discontinued 1939 as X sufficient success in reducing employment or promoting private investment.
BUT
Gave over 4 million unemployed people paid work on useful local projects and helped to raise moral and create optimism that depression would end
Farm credit Act
Purpose: provided short and medium term loans to enable farmers struggling and low incomes to keep their homes and land by refinancing their mortgages
It removed the fear of losing both home and employment. It gave security of the future to enable farmers to take advantages of other gov agricultural programmes to raise production
First new deal 1933
NIRA
NRA
1933 new deal
National industrial recovery act
National recovery administration
Attempted to establish national economic planning by revising and running a series of codes for industries. The codes were to control production, prices, labour relations and trading practices. Run by General Hugh Johnson
NRA was ruled by unconstitutional by Supreme Court in 1935 and came to end
CCC
1933
Civilian conservation corps
Provided work for young men ages 18-25 paying $30 a month but $25 sent to family
Stayed in camps organised on military lives and worked on regional enviro projects such as rational parks where they built trail, recreation facilities and access roads
Disbanded 1942
Baking act
1933 new deal
Prohibited commercial banks from selling stock or financing corporations.
Created (FDIC) which guaranteed savings deposit up to $2500 (later raised to $5000, and now as €100,000) Protected the ordinary depositor from loss of savings
It separated investment banks from commercial banks so that investors’ money could no longer be used for speculative ventures on the stock marker. The guaranteeing of individual deposits diminished the fear that investors might lose all their savings through the misuse of their funds by the bank
FERA
1933 new deal
Purpose: families were paid relief benefits for taking work organised by the gov w $500 mill given to states and local gov
Suspended 1935 as Works progress administration projects started and financial aid was given as a result of the unemployment insurance of the SSA 1937
FCC
1934 first new deal
Federal Communications Commission
Agency to regulate wired and wireless communications, later to regulate television as well.Part of a new programme of gov regulation of new enterprises
Continues today