Hoover Roosevelt Quiz Flashcards
Trickle-Down Theory
- Herbert Hoover
- helped big businesses, said the wealth would trickle down to the lower classes
- Laissez-Faire, rugged individualism (seemed insensitive)
- RFC
Reconstruction Finance Corporation (RFC)
Hoover 1932 - Government loans $$ to corporations to help people find jobs again
- Assist relief agencies (gave no aid to individuals)
- Frowned upon bc it was a lot of $$ for a Laissez-Faire president
Percolator Theory
- Franklin D. Roosevelt
- Government needs to help the common man, trickle-down will not help lower classes
- Alphabet agencies & deficit spending
- The 3 R’s (relief, recovery, reform)
The New Deal
Franklin D. Roosevelt, borrowed Teddy Roosevelt’s “Square Deal” idea
- “The Hundred Days”
- Bank Holiday
- Fireside chats
- The 3 R’s
- Pump Priming
- Alphabet agencies
- Social Security
“The Hundred Days”
FDR would have anything passed in the first 100 days of his presidency, Congress passed anything the White House wanted in order to try to stabilize the economy
Bank Holiday
FDR:
- Banks were closed to stop the panic of runs on the bank
- After a govt. audit, banks reopened
- Later added the FDIC (Federal Deposit Insurance Corporation)
The 3 R’s
relief - programs to help people w/ poverty & hunger
recovery - programs to get the economy back on track
reform - programs of regulation
Brain Trust
Young college professors who were supposed to brainstorm new ways to jump start the economy
- John Maynard Keynes & pump priming
Pump Priming
Govt must spend $$ (even if they don’t have it) in order to get the economy going again
- John Maynard Keynes
FDIC
Federal Deposit Insurance Corporation
- aimed to maintain stability in the nation’s financial system
AAA
Agricultural Adjustment Act
- Provided farm subsidies
- Set up Federal land bank
- Killed by Supreme Court Case U.S. v Butler (unfair taxes)
NRA
National Recovery Administration or “The Blue Eagle”
- Wage & price controls
- Killed by the Supreme Court Case Schechter Poultry v United States or “The sick chicken case” (killed the NIRA/NRA)
TVA
Tennessee Valley Authority
- Built dams & helped provide electricity in the South
- Most controversial (accused of creeping socialism)
CCC
Civilian Conservation Corps
- Set up work camps to employ young men in conservation tasks
- Most successful
WPA
Works Progress Administration
- Large scale national works programs to put the unemployed to work (sidewalks, bridges, etc.)
Court Packing
Court reform called for by FDR
- asked to add one additional judge for every judge that was >70 & served 10+ years
- would have had 15 judges, but idea was rejected by ALL
Social Security
Signed by FDR, aimed to give financial security to elders
- precursor was the Second New Deal (more social legislation)
Father Coughlin
Had 40 million radio fans, advocated for re-distributing wealth
- seen as a threat
Huey Long
Senator who was seen as a threat
- wanted to confiscate the property of the rich, so anyone with wealth above $1 million
- was going to run for president, but was assassinsated
Criticisms of the “New Deal”
- Big Bureaucracy (greatly increased # of federal workers)
- Re-organized the presidency & made it larger
- Deficit spending & pump priming led to the national debt
Wagner Act/National Labor Relations Act
Created the NLRB
- explicitly legalized labor unions
- closed shops (automatically part of the union)
Francis Perkins
First female Cabinet member
- Secretary of Labor
