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When banks opened - more money invested than withdrawn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
FHA
Federal housing administration
1934 first new deal
Purpose: federal guarantees of private mortgages with reduced down payments from 30% to 10%, and extended repayment time from 20-30 years. Enabled more Americans to purchase own homes
Continues today
SEC
1944 first new deal
Securities and exchange commission
purpose: regulatory agency for trading in stocks and bonds to comply with federal laws
Continues today
Why was the second new deal introduced
Forced for change at work in Congress - mid term congressional elections in 1934 returned a more radical House of Representatives which was expecting legislative action and would support it
Support court overturning new deal legislation
Need to respond to radical forces
Some historians argued that as USA became more polarised FDR sought support of Left - as politics polarised
BB and SB need to be held more accountable. BB and wealthy had too big of influence
Wagner Act
1935 2nd new deal
Purpose: strengthened the power of labour unions by allowing collective bargaining
Comments: created a way of peacefully solving labour disputes without resorting to violence which Ahmad characterised employment disagreements in the past
WPA
Workings progress administration 1935
Purpose: established work relief programmes funding a vast range of projects directed at different areas, including the Federal Art Project (FAP) Run by Hopkins
Comment: ran for 8 years and employed 8.5 million people using local officials to administer the projects
NYA
National youth administration
NYA
purpose: established by the WPA to encourage the education and training of young people
Comment: disbanded during WW2
1935 2nd new deal
REA
Rural electrification administration
1935 2nd new deal
Purpose: gave loans for cheap rural electricity in areas where these was no public utility supply.
Comment: the Act was very successful in 1935/ only 10% farms had electricity. By 1940 it was 40% by 1950 90%
SSA
1935 second new deal
Social security act
Purpose: created guaranteed retirement payment for over 65s,
set up federal insurance for the unemployment and provided additional assistance for the disabled,
for public health and for dependent women and children
Comment: continues today
FSA
1937
Farm security administration
2nd new deal
Purpose: gave guaranteed loans to small farmers and tenants to buy small properties or to rehabilitate farms. This enabled more farmers to stay on their farms
Comment: maintained migrant labour camps for agriculture workers as part of its remit that no one should be excluded for its benefits
Fair labour standards act
1938 2nd new deal
Set a minimum wage of 40 cents an hour and a maximum working week or 40 hours for business involved in interstate commerce, and particularly for workers not in unions
Oppressed by southern conservatives on ground of excessive gov interference w business
Comment: have benefits of shorter working week and a maximum hourly week by statutes, rather than by union negotiations. This was the last new deal reform to become law
National housing act
1938
2nd new deal
Purpose: established the USA Housing authority and set up housing projects for low income families (forgotten man)
Comment;. Encouraged house building and home ownership, but was also discriminatory against black Americans and inadvertently promoted suburban over indemnity housing
When was the Roosevelt recession
1937
Eco collapse -1938
-relief
What did the 2nd new deal have more of?
Reform
Positive and negative of Wagner Act
By 1940- extend Wagner - 12 million workers
Membership inc
Not good for bb
Union membership violence - eg ford
Not till 1946 that workers could bring charges against employers for unfair work practises
NYA advantages and disadvantages
+long term skill
-disbanded- not needed
REA advantages and disadvantages
+help farmers etc
-1940- only 40%
SSA advantages and disadvantages
+ help to individuals by gov intervention
+protection
+pensions
+unemployment insurance
- doesn’t help all
- old age pension not until 1942
- no help many female and black etc
FSA advantages and disadvantages
+helped farmers
Fair labour standard act advantages and disadvantages
-southern dem no want it - feared southern industry w traditionally low wage structure would lose its competitiveness
+ minimum wage etc - help SOL
National housing act advantages and disadvantages
+helped low income families
-discriminate against black Americans
How radical was the second new deal
Many argue Wagner Act was entirely work of Senator Wagner and FDR considered vetoing it
Some say it only went through so quickly because Roosevelt passed it
Regardless trade membership inc
3m in 1930, and 9mill 1940. 15m 1950
SSA- state discrepancies over how much was received - the federal government didn’t have manpower to deal w such huge change and was dependent on states
Some argue even though millions had been helped - system that created depression still remained
What do right wing historians argue about FDRs new deal
Too radical
BB and wealthy said one too far
Hated revenue acts which raised taxation and opposed greater gov intervention
Conservative dem said too far
Roosevelt recession - due to Federal policies that reduced consumer income, federal reserve raised interest rates etc
FDR called for congress 1937 to pass measures such as new relief spending, and anti lynching bill - but latter did not work.
Unemployment declined but 1939- 17% still unemployed
Liberty league set up in 1934 supported by members of Republican Party and conservative dems- aim was to promote private property and enterprise. It has 250,000 members in July 1936. After FDR’s victory - lessened in popularity
How do left wing historians see FDR new deal
Too conservative
Small civil service and a lack of informed research
Hostility to ‘big’ gov since 1877
when TVA set up - private companies worked on gov behalf and this gave them a lot of power
Left advocates radical schemes like Old Age Revolving Pensions to popular leaders such as Huey Long
Upton Sinclair- scheme where unemployed be out to work in state run co-operatives
Long - ‘share our wealth system’- old age pension, and free college education - very popular
Coughlin’s radio messages were very influential. Mass support. Believed in redistribution of wealth. But anti-se metic - lost support
Later 30s: opposing fascism and reaffirming traditional values
LEFT WING
US communists who in 1930 attacked FDR now praised him and summoned writers and such to the anti fascist cause
The Spanish Civil war creates a new sense of worth for this group
The communist Party publicised lynching and took part in photography programmes highlighting the plight of African Americans
Later 30s: opposing fascism and reaffirming traditional values
RIGHT WING
Right wing motives can be seen in Hollywood movies such as The Grapes of Wrath - when a grass root family moved from dust bowl to California.
Revealing strength of ordinary people to overcome
Confrontation with fascism came largely e sport. In 1936- Owens won the 100m
A German American friends of new Germany developed 1936
Existing into late 30s with membership of 5000
Movement declines once war announced
Criticisms of FDR new deal in general
Lacked fierce leadership
Slightly passive not fiercely active in view
Secretive
Not assertive to everyone - Too compromising
Arrogant/domineering
Lack of specific policies
General good criticisms of FDR
Compliments FDRs un aggressive approach towards implementing new deal
Master manipulator
Did the new deal end the depression
YES
In 1933 14 million unemployed
In 1939 it was 9 million
Did the new deal end the depression
Economic
FDR believed in balanced budget —> reluctant to spend excessively on federal projects. Led to a reduction of budget deceit over course of presidency. In 1938 the deficit was lower than the $2.5b
National total of personal income decreased $15 billion 1929-1939
Despite pop inc of 9m during decade
1933- 18 mill unemployed
1939 9 mill unemployed
Roosevelt recession - 20% jobless by 1938
But most historians argue 1935 neutrality act 1939 was why unemployment fell
US spent $360m a day to sweat axis powers. Vanquished unemployment. Vanquished unemployment
Inc hiring of minorities women and elderly brought a middle class
Richest 5% saw share of income drop 25-17%
Large scale commercials farmers prospered benefiting from higher consumer prices, inc productivity, the development in chemicals that created fertilisers. Tenant and sharecroppers left and moved north and the agricultural pop fell 17%
Did the new deal end the depression
Politics
FDR allowed labour unions to take their place in the labour market and reluctantly recognised that the federal government had a role in settling disputes
Organised labour grew mightier growing from 9m to 14.8m unionised members
Far more strikes and inflation because of scarcity of goods created eco issues that were partially solved by congress letting FDR freeze wages, create rationing, control prices and rents in 1942. Only 8% ruse in remainder of war
Buying war bonds = curtailed inflation by decreasing purchase pier
Roosevelt raises taxes with the Revenue act 1942 raising top tier from 65% to 95%
Did the new deal end the depression
Social effects
Mass culture continues in 30s and 40s
Most proline could still afford movies
1939- 65% of Americans went to the movies at least once a week. Musicals and dramas created escapism from depression and acted as propaganda with Sherlock homes films disguised anti- Nazi sentiment
AA were in films
Women as heroines as scatterbraines-but as era developed - Mae West portrayed women as far more promiscuous, mocking conventions
1940 election
Dem won -85% electoral vote
Dem: 55% pop
Rep: 44% pop
How did new deal hinder AA
1932- AA unemployment twice as high as normal Americans
NRA- no rage hour protection to lower level positions where AA were concentrated
AAA- African Americans excluded from as AAA pursued policies that favoured farm landlords at expensive of tenants and sharecroppers
FDR reluctant to support 1930s federal law against lynching
How did new deal help AA
Switch in dem policies to help AA- black leader in Chicago ‘Mr Roosevelt gave us work and bread’
Harold Ickes- ran important public works programme - create jobs for unemployed
How did the new deal shift voting habits
AA shifted support towards democrats
81% black People in NY voted Dem
How did the new deal help native Americans
Indian reorganisation act 1934/ federal gov did not push native Americans to assimilate into mainstream society
Collier
How did the new deal hinder native Americans
CCC discriminatory - lower wages etc
How did the new deal help women
More representation of women in jobs etc
How did the new deal hinder women
Civil works administration - only 7% jobs= women
Economy act 1933 forbade members of same family from working for federal gov
CCC bared women
Do you think the new deals achievements for minorities outweigh its shortcomins?
Significant improvement compared to past
But could have been better
May historians talk about FDR’s presidency being a turning point for African American civil rights - support and reject this claim
-South - power - racist - discrimination
+helped AA to extent - many pres didn’t - showed a shift in politics
What the new deal was not
A coherent programme of relief and recovery
An attempt to redistribute wealth
An attempt to make the USA socialist or fascist (Roosevelt was a fiscal conservative)
A rigid adherence to maintaining a balanced budget
A programme that was concerned e depression in rest of world
A dramatic and radical solution but a conservative one or a set of improved measures - some of which were contradictory
The abandonment of capitalism or the rejection of enterprise and industrialisation
Realities behind new deal
Era of eco growth ended
Structural reform of economy needed
USA sufficient with economic isolationism
Did little for women
Roosevelt most important idea- gov had positive responsibilities for the general welfare. Not that gov itself must do everything but that everything practicable must be done; gov must insure smth is done
Life by 1940s
Over 60% of families went to movies each week age of talkies l. First Walt Disney caroons like 3 lil pigs and Mickey Mouse
1940 farmers building surplus - worrying as federal gov would have to pay them
1930 total expenditure: $9bill
1940: half a billion
By offering direct relief eg Wagner - Federal gov increased role
Political turnout inc 1924; 50% 1940: 60% AA- democrat FDR re-elected w reduced share of vote AA and women start to hold important positions in gov
What happened to the Republican and Democrat party 1933-38
1934 mid term election - 10 republican senators went down in defeat
Second new deal criticised by republicans
Hoover crusader against new deal - hoping unrealistically to be nominated again for president
Most major newspaper publishers favoured Republican moderate Landon for president - Roosevelt used radio to reach people
Black vote held for hoover 1933
1940 majority of northern blacks voted democratic
Roosevelt helped black but did not challenge segregation or the denial of voting rights in south
Minority parties tend to factionalize after 1936 Republican Party spilt into conservative faction and liberal faction
Roosevelt alienated many conservative Democrats in 1937 by his unexpected plan to ‘pack’ the Supreme Court via Judicial Reform Bill 1937- sharp recession 1938 and major strikes
Conservative Democrats mostly from south joined with Republicans led to Taft created the conservative coalition which dominated domestic issues in congress until 1964
What happened to the Republican and Democrat party 1939-52
1939-41 debate from republicans about whether to support Britain in war
In 1949 a total unknown Wilkie won over party, the delegates and was nominated. He crusaded against the inefficiencies of the new deal and Roosevelt’s break with strong tradition against 3rd term
Japanese attack 1941 ended isolationist-internationalist debate. Republicans further cut the democrat majority in 1942 mid-election
As a minority party, Republican had 2 wings / left wing supported most of new deal and right wing opposed it
1944 Roosevelt beat dewey but he had a good standing
Taft Hartley Act 1947 designed to balance rights of management and labour. It was the central issue of many elections in industrial states in the 1940s-50s but the unions were never able to repeal it
1948- republicans split left and right - Truman boldly called congress and sent it a load of liberal legislation consistent with Dewey platform and dared thencto act on it, knowing Conservative Republicans would block it
Eisenhower broke 21 year democrat
He did not roll back new deal but did expand social security system and built the interstate highway system
Was Eisenhower and effective party leader
No
What’s special about 1948 election
States rights party
