Great Depression & New Deal (progressivism On Sterioids)

Question 1

GREAT DEPRESSION & NEW DEAL (“progressivism on steroids”)

Answer 1

Heavy impulse to involve government improve society, and create a fewer playing field for business

• Middle Class is hurt by G.D., poor and rich stayed the same.
• Hoover- Great Depression

Question 2

President Hoover (1929) vs. President Bush (2008)

RECONSTRUCTION FINANCE CORPORATION (RFC)

Answer 2

Believed that the government can empower the states by investing $2 billion to lend money to local government, banks and big business. If industry recovers, then jobs are created.

Question 3

President Hoover (1929) vs. President Bush (2008)

Answer 3

Hoover Great Depression= He was blamed for economic depression, because they thought he did nothing to address G.D. He believed it was unconstitutional to distribute wealth among others.

Question 4

Bush (2008) - Great Recession

TROUBLED ASSET RELIEF PROGRAM (TARP)

Answer 4

Bush’s effort to address Great Recession. This program suggested with helping with banks, industry ; economy recovery is underway.

Question 5

Franklin Delano Roosevelt (FDR) 
New Deal (3 R's: recovery, relief, reform) 

RECOVERY

Answer 5

(Recover the economy) = He established 15 major laws. Many of FDR’s programs are deemed unconstitutional.

Question 6

RECOVERY

BANK HOLIDAY

Answer 6

• 1st effort that F.D.R. Took when taking office.

Temporary shut down but actually was permanent

Question 7

RECOVERY

EMERGENCY BANKING ACT

Answer 7

• closed all bank; many banks don’t reopen, unless they’re solvent. (Able to stay in business and debt free)

Question 8

RECOVERY

GLASS STEAGALL ACT –> FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

Answer 8

• introduces Federal Deposit Insurance Corporation (FDIC) insured people’s money in the bank.

HISTORICAL SIGNIFICANCE:
Take government responsibility, give trust in government to insure their money.
• leads to the growth of federal government power.

Question 9

AGRICULTURAL ADJUSTMENT ACT (AAA)

Answer 9

• Paid Parity (equity,equal) payment for farmers to STOP producing crops –> created more demand –> increases prices —> people stop buying —> starvation and children experienced undernourishment.
• AAA was trying to balance supply and demand so that proper prices can be given to farmers.
• ends sharecropping

Question 10

RECOVERY

Answer 10

RECOVERY of G.D., banks, railroads.

Question 11

RECOVERY

TENNESSEE VALLEY ACT

Answer 11

• created more jobs such as building roads, dams, electrical grids –> creates more income.
• Govt. Bureaucracy guarantees certain amenities (electricity), which increases the role of the federal government.

Question 12

RELIEF

Answer 12

Provides relief for families by giving them money

Question 13

FEDERAL EMERGENCY RELIEF ACT (FERA) –> CIVIL WORKS ADMINISTRATION (CWA)

Answer 13

• created jobs (e.g. Sweep sidewalks, paint the curb, pick up the trash) –> gives them money.
• The Supreme Court eventually declares this unconstitutional.
• This created dependency on FEDERAL GOVERNMENT —> INCREASES ROLE –> INCREASES THEIR POWER.

Question 14

RELIEF

BEER ACT

Answer 14

• creates jobs (6,000-7,000) —> creates income –> leads to relief.

Question 15

RELIEF

CIVILIAN CONSERVATION CORPS

Answer 15

• Government hired young men to work in National Parks to do projects, (e.g. Working in parks, building roads, buildings, planting trees) –> government gives them money.
**

Question 16

RELIEF

WORKS PROJECT ADMINISTRATION (WPA)

Answer 16

• Created jobs and provided money for doing infrastructure, building roads, bridges.
• employed 3.4 million –> decreased unemployment rate.
• F.D.R. saw W.P.A. As “Priming the pump for the economy.”
• somewhat of an effective approach, but wasn’t fully received.
• eventually declared unconstitutional.

Question 17

REFORM

Answer 17

Fundamentally changes the relationship between government and citizens.

• when people fear personal or economic safety, they tend to turn to the federal government or trade in their rights to government.

Question 18

REFORM

WAGNER ACT

Answer 18

AKA National Labor Relations Act
•federal government guaranteed workers the right to join a union.
HISTORICAL SIGNIFICANCE: this creates more dependency on the federal govt. and strengthens relationship.

Question 19

REFORM

SOCIAL SECURITY ACT

Answer 19

• provided for general welfare of public (e.g. Elderly, disabled, children, maternal) by paying them benefits.
• Pyramid or Ponzi Scheme = payed a few people; average life expectancy was 61 years but the social security act gave retirement money at 65 years.
• citizens didn’t know it was a scheme so it strengthened the relationship Between federal government and citizens because citizens were depending on the federal government.