History- New deal Flashcards
abbreviation for poliomyelitis, an infectious disease that affects skeletal muscles and often results in permanent disability or deformity.
Polio
A monetary standard in which one ounce of gold equals a set number of dollars.
Gold standard
Closing of banks during the Great Depression to avoid bank runs.
Bank Holiday
Radio broadcasts made by Roosevelt to the American people to explain his initiatives.
Fireside Chats
Franklin Delanore Roosevelt was a distant cousin to Teddy Roosevelt.
Franklin went to Harvard and Columbia law school.
While he attended Harvard he met his wife who was Teddy’s niece. He also had polio.
Early Life of FDR
His political career started in 1910 when he became a NY state senator.
Later won the VP for the democratic ticket that lost in 1920.
He contracted Polio but still ran to be the governor of NY in 1928 and won narrowly.
He then won again in 1932 by a landslide and in 1932 he won the nomination for president for the democrats.
Political career/milestones
Roosevelt won the president election in 1932 but things continued to get worse.
Before his inauguration, bank runs were still being made, by 1933 4,000 banks had closed which wiped out $9 million in savings, and in 38 states governors declared bank holidays.
Economic crisis
The new deal began when Franklin’s advisors ran into his office with ideas on how to end the Great Depression.
Franklin sent bill after bill to congress and between March 9th- June 16th congress passed 15 major acts to resolve the economic crisis.
The new deal inititatives
Franklin knew his programs wouldn’t work if the banks just stayed closed so within a week of him taking office, the Emergency banking relief act was passed, which meant banks would be examined and declared financially stable or not, and if they were they could re-open.
Restoring confidence in public banking systems
He gave his first fireside chat to 60 million listeners and assured them that it would be safer to keep their money in a re-opened bank rather than under their mattress.
On March 13th, banks re-opened and deposits heavily outweighed withdrawals.
Banking reforms and fireside chats
The gold standard was brought in to take the dollar off the gold standard, Franklin wanted this because the dollar had decades of deflation. It lasted 9 months and it helped prices, wages, and production because people had more money. Once he felt the dollar had been restored, he put it back on the gold standard and 1 oz of gold cost $32.
Gold standard changes
The gold standard change almost immediately caused inflation.
Inflation from the gold standard change
Securities Exchange Commission (SEC) was made to require companies that sold stock to provide truthful information to investors, and stop fraud.
Separated commercial and investment banking meant commercial banks were no longer allowed to risk depositors money on speculation in the stock market.
Federal depositors insurance corporation (FDIC), used government insurance for bank deposits.
Glass-steagall act’ relief programs- financial regulations
allowed unemployed 18-25 yr olds to work under the direction of the forestry service planting trees, fighting forest fires, and building reservoirs, they earned $30 a month with $25 sent directly to their families.
Civilian conservation corps (CCC)
gave money to state and local governments for relief projects, and the Public works Administration (PWA) began building roads, dams, schools, and government facilities.
The federal emergency relief program (FERA)
employed 4 million people, including 30,000 women, to work on roads, airports, schools, and playgrounds.
They spent $1 billion after 5 months and were shut down a year after it started.
The Civil works administration (CWA)
government practice of spending borrowed money rather than raising taxes, usually in an attempt to boost the economy.
Deficit spending
a process in which a neutral party hears arguments from 2 opposing sides and makes a decision that both must accept.
Binding arbitration
a method of boycotting work by sitting down at work and refusing to leave the establishment.
Sit-down strike
believed the new deal regulated business too tightly and thought it gave the federal government too much power over the states. In 1934 the right wing increased opposition when Roosevelt started deficit spending.
Criticism from the right wing (republicans)
Believed the new deal didn’t go far enough and wanted more economic intervention to shift wealth to the middle-class and poor people.
Criticism from the left wing (democrats)
the largest public works program. In 1935-1941, 8.5 million people were employed and spent $11 billion to construct 650,000 miles of roads, 125,000 buildings, 853 airports, and 8,000 parks.
Work progress administration
provided some financial security for older Americans, unemployed workers, and others. Workers earned the right to receive benefits because they paid special taxes to the federal government.
Welfare payments went out to those in need (people with disabled children or mothers with dependent children).
The core of social security was monthly retirement benefits which people collected when they stopped working at 65.
It is still a part of American life today but had cost some problems because it is an ‘entitlement’ program and the US government had borrowed from these funds before.
Social security act
the act of a leader to change the political balance in a nation’s judicial system by appointing judges who will rule in favor of his or hers policies.
court packing
