Lesson 6: Roosevelt’s New Deal

Question 1

Bank Holiday Definition

Answer 1

one or more weekdays when banks are closed; during the Great Depression, a four-day period when the federal government ordered banks closed

Question 2

Civilian Conservation Corps Definition

Answer 2

(CCC) a New Deal program that hired unemployed men to work on natural conservation projects

Question 3

Collective Bargaining Definition

Answer 3

process by which a union representing a group of workers negotiates with management for a contract

Question 4

Congress of Industrial Organizations Definition

Answer 4

(CIO) a labor organization founded in the 1930s to represent workers in basic mass-production industries

Question 5

Fireside Chat Definition

Answer 5

a radio speech given by President Franklin D. Roosevelt while in office

Question 6

Hundred Days Definition

Answer 6

the first hundred days of President Franklin D. Roosevelt’s presidency, when much New Deal legislation was enacted

Question 7

National Debt Definition

Answer 7

the total sum of money that a government owes to others

Question 8

National Labor Relations Act Definition

Answer 8

a law passed in 1935 that protects American workers from hostile management practices

Question 9

National Recovery Administration Definition

Answer 9

(NRA) a government agency set up during the Great Depression to enforce codes meant to stabilize industry

Question 10

New Deal Definition

Answer 10

the program of President Franklin D. Roosevelt to end the Great Depression

Question 11

Pension Definition

Answer 11

a sum of money paid to people on a regular basis after they retire

Question 12

Polio Definition

Answer 12

a highly infectious disease that leads to paralysis

Question 13

Sit-down Strike Definition

Answer 13

a strike in which workers refuse to leave the workplace until a settlement is reached

Question 14

Social Security Act Definition

Answer 14

a 1935 law that set up a system of pensions for older people and the nation’s first system of unemployment insurance

Question 15

Tennessee Valley Authority Definition

Answer 15

(TVA) a New Deal program that built dams to control flooding and produce cheap electric power

Question 16

How was Franklin Delano Roosevelt’s early life? What school did he attend? Who did he marry?

Answer 16

Franklin Delano Roosevelt, known as FDR, came from a wealthy, influential family. He attended Harvard University and Columbia Law School. In 1905, he married a distant cousin, Anna Eleanor Roosevelt.

Question 17

What post did Franklin Delano Roosevelt serve in during WWI? In 1920, what was he running for? Did he win?

Answer 17

During World War I, FDR served as assistant secretary of the navy. In 1920, he was the Democratic candidate for Vice President but lost in the Harding landslide.

Question 18

In the summer of 1921, what disease did FDR obtain? What is the state of polio in the United States today? Before the development of what innovation made polio so devastating? What did polio do to FDR’s health?

Answer 18

Then, in the summer of 1921, Roosevelt was stricken with a severe case of polio. A disease caused by a virus, polio has been almost totally wiped out in the United States today. However, before the development of a vaccine in the 1950s, polio was a devastating disease. FDR’s legs were completely paralyzed. He struggled for years to rebuild his strength.

Question 19

After seven years of battling polio, what was he elected as in 1928 in New York? What was he made in 1932 by the Democrats? Who did the Republicans chose as their candidate?

Answer 19

In time, Roosevelt returned to public life. In 1928, he was elected governor of New York. Then, in 1932, the Democrats made him their presidential candidate. The Republicans again nominated Herbert Hoover, even though they knew he had little chance of winning.

Question 20

In the election of 1932, how did FDR set a new tone right away? What “new deal” did he pledge? Did he elaborate on it? What did he promise in campaign speeches?

Answer 20

Roosevelt set a new tone right from the start. He broke with tradition by flying to the Democratic convention to accept the nomination in person. Standing before the delegates, he declared: “I pledge myself to a new deal for the American people.” Roosevelt did not spell out what he meant by “a new deal.” Still, he sounded a hopeful note. In campaign speeches, he promised to help the jobless, poor farmers, and the elderly.

Question 21

How did FDR’s confident manner and personal charm lead to his landslide victory in the 1932 Election? How did the President address the American people on Inauguration Day? After this, what had the President called for? How did the people respond?

Answer 21

Voters responded to FDR’s confident manner and personal charm. On election day, he won a landslide victory. Democrats also gained many seats in Congress. On inauguration day, the new President addressed the American people with optimism. President Roosevelt then issued a call to action. “This nation asks for action and action now,” he said. Many Americans welcomed this energetic new President, especially since Hoover’s more cautious approach had failed to end the nation’s economic crisis.

Question 22

During his campaign for presidency, what did FDR seek advice for? Who did he get the advice from? Who were the Brain Trust? What did they help him do?

Answer 22

During his campaign for the presidency, FDR had sought advice on how to fight the Depression. He turned to a number of college professors who were experts on economic issues. These experts, nicknamed the Brain Trust, helped Roosevelt to plan bold new programs.

Question 23

Who did President Franklin Roosevelt choose as Secretary of the Interior? Who did he choose as Secretary of Labor? Why was this choice monumental? What did he urge his staff to do?

Answer 23

Once in office, President Roosevelt chose able advisers. Harold Ickes (IK eez), a Republican reformer from Chicago, became secretary of the interior. The President named social worker Frances Perkins the secretary of labor. Perkins was the first woman to hold a Cabinet post. The new President moved forward on many fronts. He urged his staff to “take a method and try it. If it fails, admit it and try another. But above all try something.”

Question 24

What was FDR’s first challenge as President? What did he issue on his second day in office? What was a bank holiday? What was the Emergency Banking Relief Act? What did this Act state?

Answer 24

Roosevelt’s first challenge was the nation’s crumbling banking system. Many banks had closed. Fearful depositors had withdrawn their savings from other banks. People hid their money under mattresses or buried it in their yards. The President knew that without sound banks, the economy could not recover. On his second day in office, he declared a bank holiday. He closed every bank in the country for four days. He then asked Congress to pass the Emergency Banking Relief Act. Under this act, only those banks with enough funds to meet depositors’ demands could reopen. Others had to stay closed.

Question 25

A week after taking office, what did President Franklin Roosevelt tell Americans through the radio, concerning the banking system? What was the influence of this broadcast? How did it strengthen the banking system?

Answer 25

A week after taking office, President Roosevelt spoke to Americans by radio. Under the new law, the President told the people, “it is safer to keep your money in a reopened bank than under your mattress.” The radio broadcast worked. FDR explained things so clearly, said humorist Will Rogers, that even the bankers understood the situation. Reassured by the President, depositors returned their money to banks, and the banking system grew stronger.

Question 26

How many radio speeches did FDR give during his time in office? Why did he call them fireside chats? What did people feel he understood?

Answer 26

FDR gave 30 radio speeches while in office. He called them fireside chats because he spoke from a chair near a fireplace in the White House. All across the nation, families gathered around their radios to listen to Roosevelt. Many felt the President understood their problems.

Question 27

Between March 9 and June 16, 1933, how many major new laws did Congress pass under FDR? What was the period known as the Hundred Days? What did the bills cover and make up? What was Roosevelt’s New Deal? What were its three main objectives?

Answer 27

The bank bill was the first of many bills that FDR sent to Congress during his first three months in office. Between March 9 and June 16, 1933, Congress passed a record 15 major new laws. Even the President admitted he was “a bit shellshocked” by the Hundred Days, as this period was called. The bills covered programs from job relief to planning for economic recovery. Together, they made up Roosevelt’s New Deal. The New Deal laid out three main goals: relief for the jobless, plans for economic recovery, and reforms to prevent another depression.

Question 28

When Roosevelt took office in 1933, how many Americans were unemployed? What did he asks of Congress in response? What was the Civilian Conservation Corps? What did they do? What was their dual purpose? What did the Federal Emergency Relief Administration do?

Answer 28

In 1933, when Roosevelt took office, 13 million Americans were out of work. The President asked Congress for a variety of programs to help the jobless.
Among the earliest New Deal programs was the Civilian Conservation Corps (CCC). The CCC hired unemployed single men between the ages of 18 and 25. For $1 a day, they planted trees, built bridges, worked on flood-control projects, and developed new parks. The CCC served a double purpose. It conserved natural resources, and it gave jobs to young people. The Federal Emergency Relief Administration (FERA) gave federal money to state and local agencies. These agencies then distributed the money to the unemployed.

Question 29

When did the Works Progress Administration come into existence? What did the Works Progress Administration do for the jobless? How about art? What did the Federal Theatre do? What did Works Progress Administration writers collect information about? Which information do we use today?

Answer 29

The Works Progress Administration (WPA) came into existence in 1935. The WPA put the jobless to work making clothes and building hospitals, schools, parks, playgrounds, and airports. The WPA also hired artists, photographers, actors, writers, and composers. Artists painted murals on public buildings. The Federal Theatre put on new plays for adults and children, as well as classics by such writers as Shakespeare. WPA writers collected information about American life, folklore, and traditions. Some WPA writers interviewed African Americans who had lived under slavery. Today, scholars still use these interviews to learn firsthand about slave life.

Question 30

Why did critics criticize the Works Progress Administration?

Answer 30

Critics accused the WPA of creating make-work projects that did little to benefit the nation in the long run. “People don’t eat in the long run,” replied a New Dealer. “They eat every day.”

Question 31

To bring about recovery, what two industries did President Franklin D. Roosevelt have to boost? What did he do in response?

Answer 31

To bring about recovery, the President had to boost both industry and farming. He developed programs that greatly expanded the government’s role in the economy. With these and other programs, he hoped to prevent another depression.

Question 32

How did overproduction and declining prices serve as causes of the Great Depression? What did New Dealers do in response?

Answer 32

Overproduction and declining prices had been a major cause of the depression. Low prices during the depression had caused business to fail and created widespread unemployment. Aiming to boost the economy, New Dealers drew up plans to control production, stabilize prices, and keep workers on the job.

Question 33

What was the National Industrial Recovery Act? What did it state? What did it attempt to do? Why did Congress set up the National Recovery Administration? What did companies that followed the National Recovery Administration codes do to signify it? What problem did the National Recovery Administration soon run into?

Answer 33

A key new law was the National Industrial Recovery Act (NIRA). Under this law, each industry wrote a code, or set of rules and standards, for production, wages, prices, and working conditions. The NIRA tried to end price cutting and worker layoffs. To enforce the new codes, Congress set up the National Recovery Administration (NRA). Companies that followed the NRA codes stamped a blue eagle on their products. The government encouraged people to do business only with companies displaying the NRA eagle. The NRA soon ran into trouble, however. Many companies ignored the codes. Also, small businesses felt that the codes favored the biggest firms.

Question 34

Which act created the Public Works Administration? What did it do? Despite its various efforts, how effective was it at bringing about recovery?

Answer 34

The NIRA also set up the Public Works Administration (PWA). It promoted recovery by hiring workers for thousands of public works projects. PWA workers built projects such as the Grand Coulee Dam in Washington, public schools in Los Angeles, two aircraft carriers for the navy, and a deep-water port in Brownsville, Texas. Despite these efforts, the PWA did little to bring about recovery.

Question 35

How did overproduction pose a problem on farms?

Answer 35

On farms, overproduction remained the main problem. Surpluses kept prices and farmers’ incomes low. A surplus occurs when farmers produce more than they can sell.

Question 36

What was the Agricultural Adjustment Act, passed to help farmers? What did it state and do? What did FDR hope the act would do? Why were many Americans upset with the destruction of crops and animals, which was part of the Agricultural Adjustment Act? Despite this, what made it necessary?

Answer 36

To help farmers, the President asked Congress to pass the Agricultural Adjustment Act (AAA). Under the AAA, the government paid farmers not to grow certain crops. Roosevelt hoped that with smaller harvests, the laws of supply and demand would force prices to rise. The government also paid farmers to plow surplus crops under the soil and to destroy surplus cows and pigs. Many Americans were outraged that crops and livestock were being destroyed when people in the cities were going hungry. Yet, the plan seemed necessary to help farmers recover and keep them growing food.

Question 37

What was the Rural Electrification Administration? What did they do? How did the percentage of farms with electricity increase as a result of this Administration? How did electricity help farmers?

Answer 37

The Rural Electrification Administration (REA) was created to help people in rural areas get the same electrical service as people in urban areas. The REA provided money to extend electric lines to rural areas. The number of farms with electricity rose from 10 percent to 25 percent. Electricity helped save many farms from ruin. For example, with refrigeration, dairy farmers did not have to worry about milk going sour before it could be sent to market.

Question 38

What was the Tennessee Valley Authority? What did it set out to do? How were many effected by the flooding of the Tennessee River Valley? To control flooding, how many dams did the Tennessee Valley Authority build across seven states? What else did they do for the region?

Answer 38

Perhaps the boldest program of the Hundred Days was the Tennessee Valley Authority (TVA). It set out to remake the Tennessee River Valley. This vast region often suffered from terrible floods. Because the farmland was so poor, more than half the region’s families were on relief. The TVA was a daring experiment in regional planning. To control flooding, TVA engineers built 49 dams in seven states. The dams also produced cheap electric power. In addition to building dams, the TVA deepened river channels for shipping. It planted new forests to conserve soil and developed new fertilizers to improve farmland. The agency also set up schools and health centers.

Question 39

What did critics of the Tennessee Valley Authority say?

Answer 39

The TVA sparked a furious debate. Critics argued that the government had no right to take business away from private companies in the region. Power companies in the Tennessee River Valley were especially outraged. They pointed out that the government, which did not have to make a profit for shareholders, could supply electrical power more cheaply than a private company could. Having to compete with the government, they said, might force them out of business.

Question 40

What did supporters of the Tennessee Valley Authority say? In the end, what did the Tennessee Valley Authority accomplish?

Answer 40

Supporters replied that the TVA showed how the government could use its resources to help private enterprise. In the end, the program helped transform a region of desperate poverty into a prosperous and productive area.

Question 41

What was the third goal of FDR’s New Deal? What did Congress do in response to this goal? What was the Truth-in-Securities Act? What did it state? What did it do to stock trading? What did many experts agree was a cause of the 1929 stock market crash?

Answer 41

The third New Deal goal was to prevent another depression by reforming the economic system. During the Hundred Days, Congress passed laws regulating the stock market and the banking system. The Truth-in-Securities Act was designed to end the risky buying and selling of stocks in the hope of making a quick profit. Experts agreed that uncontrolled buying and selling was a leading cause of the 1929 crash.

Question 42

What was the Federal Deposit Insurance Corporation? What did it do? What happened if a bank insured by the Federal Deposit Insurance Corporation failed?

Answer 42

Another law set up the Federal Deposit Insurance Corporation (FDIC). It insured depositors’ accounts in banks approved by the government. If a bank insured by the FDIC failed, the government would make sure depositors received their money.

Question 43

What other kinds of reforms did later New Deal laws bring about? In 1938, what was the extension of the Pure Food and Drug Act of 1906?

Answer 43

Later New Deal laws brought about other kinds of reforms. Laws regulated gas and electric companies. In 1938, a new law extended the Pure Food and Drug Act of 1906. It protected consumers by requiring manufacturers to list the ingredients in certain products. It also made sure that new medicines passed strict tests before they were put on the market.

Question 44

True or False: During the years of the New Deal, FDR supported programs to help workers and the elderly. Both groups faced particular hardship during the Great Depression.

Answer 44

True

Question 45

In 1935, what was the National Labor Relations Act, or Wagner Act? Who was its sponsor? What did it do? What was collective bargaining?

Answer 45

In 1935, Congress passed the National Labor Relations Act, or Wagner Act. Senator Robert Wagner of New York, the act’s sponsor, was a strong supporter of labor. The Wagner Act protected American workers from hostile management practices, such as firing a worker for joining a union. It also guaranteed workers the right to collective bargaining. Collective bargaining is the process by which a union representing a group of workers negotiates with management for a contract. Workers had fought for this right since the late 1800s.

Question 46

How did the National Labor Relations Act, or Wagner Act, increase membership in labor unions? How did John L. Lewis’ Congress of Industrial Organizations help labor even further?

Answer 46

The Wagner Act helped union membership grow from 3 million to 9 million during the 1930s. Union membership got a further boost when John L. Lewis set up the Congress of Industrial Organizations (CIO). The CIO represented workers in whole industries, such as steel, automobiles, and textiles. With more members, unions increased their bargaining power. They also became a powerful force in politics.

Question 47

Despite the Wagner Act, also known as the National Labor Relations Act, what did employers try to do? How did workers utilize the new sit-down strike to get around this? When did the Supreme Court outlaw the sit-down strike?

Answer 47

Despite the Wagner Act, employers tried to stop workers from joining unions. Violent confrontations often resulted. Workers then tried a new strategy. At the Goodyear Tire Factory in Akron, Ohio, workers staged a sit-down strike. They stopped all machines and refused to leave the factory until Goodyear recognized their union. The tactic worked. Workers at other factories made use of sit-down strikes until the Supreme Court outlawed them in 1939.

Question 48

Remember: Meanwhile, the President sought to help the elderly. In the 1930s, the United States was the only major industrial nation that did not have a formal pension program. A pension is a sum of money paid to people on a regular basis after they retire. Roosevelt and Secretary of Labor Perkins pushed to enact an old-age pension program.

Answer 48

Meanwhile, the President sought to help the elderly. In the 1930s, the United States was the only major industrial nation that did not have a formal pension program. A pension is a sum of money paid to people on a regular basis after they retire. Roosevelt and Secretary of Labor Perkins pushed to enact an old-age pension program.

Question 49

In September 1935, what was the Social Security Act? What did it state and set up? What were the three parts of this plan?

Answer 49

In September 1935, Congress passed the Social Security Act. The new law had three parts. First, it set up a system of pensions for older people. Payments from employers and employees supported this system. Second, the new act set up the nation’s first system of unemployment insurance. People who lost their jobs received small payments until they found work again. Third, the act gave states money to support dependent children and people with disabilities.

Question 50

Why did critics condemn the Social Security Law?

Answer 50

Critics condemned the Social Security law. Some liberals pointed out that it did not include farm workers, domestic servants, or the self-employed—many of whom were women or members of minority groups. Some conservatives, on the other hand, saw Social Security as another way for the government to take money away from people who had jobs. Others saw it as an unacceptable expansion of the role of government.

Question 51

Despite criticism, what is the influence of the Social Security system today?

Answer 51

Despite these attacks, the Social Security system survived and expanded over the years. Today, it provides medical benefits and pensions to older Americans, as well as unemployment insurance to workers.

Question 52

What did some of FDR’s harshest critics have in common? What was Senator Huey Long’s criticism?

Answer 52

Some of Roosevelt’s most severe critics were people who had supported him in 1932. Among the most outspoken of these was Senator Huey Long of Louisiana. Long believed that the New Deal had not gone far enough to help the poor. Adopting the motto “Share Our Wealth,” Long called for heavy taxes on the rich.

Question 53

What was reformer Francis Townsend’s criticism of the New Deal?

Answer 53

Reformer Francis Townsend, a California doctor, claimed the government had turned its back on older citizens. Townsend wanted everyone over age 60 to get a pension of $200 a month. People receiving the pension would have to retire, thus freeing up a job for someone else. They would also agree to spend the pension money at once to boost the economy.

Question 54

Why was the criticism of conservatives on the New Deal? Why did big names, such as the DuPont family and Alfred P. Sloan of General Motors, for the Liberty League?

Answer 54

On the other hand, many conservatives opposed the new government programs. They did not like the government intervention in business, banking, the stock market, or in the lives of individuals. Eventually, big names in industry and finance, including the DuPont family and Alfred P. Sloan of General Motors, formed the Liberty League in an effort to combat the New Deal.

Question 55

What did the Liberty League accuse FDR of doing? In the end, what did the league end up doing?

Answer 55

The League accused Roosevelt of abusing power and suggested that the New Deal was based on a socialist agenda. The government, they warned, was taking away basic American freedoms. In the end, the Liberty League lacked political savvy and ended up angering many Americans while alienating many of Roosevelt’s other critics.

Question 56

How did FDR face objections from the Supreme Court? How did he attempt to combat this?

Answer 56

In 1935, members of the Supreme Court began to attack the New Deal. In that year, the Supreme Court ruled that the National Industrial Recovery Act was unconstitutional. The NIRA, the Court ruled, gave too much power to the President and to the federal government. A year later, the Court struck down the Agricultural Adjustment Act. Then, it overturned eight other New Deal laws on constitutional grounds. To Roosevelt, the Supreme Court rulings threatened not only the New Deal but also his ability to lead the nation. Roosevelt waited until after the 1936 election to take action. In that election, he easily beat his Republican opponent, Alf Landon of Kansas. Soon after his inauguration in January 1937, Roosevelt put forward a plan to enlarge the federal courts. He called for raising the number of Justices on the Supreme Court from 9 to 15. The change would make it possible for him to appoint six new Justices who supported his programs.

Question 57

How was the President forced to withdraw his proposal for 15 justices, after harsh criticism from the people? How did he technically still get the majority he was looking for?

Answer 57

The President’s move raised a loud outcry. Both supporters and critics of the New Deal accused him of trying to “pack” the Court with Justices who supported his views. They saw his move as a threat to the principle of separation of powers. For six months, the President fought for his plan. Even his allies in Congress deserted him. Finally, he withdrew his proposal. Still, in the end, Roosevelt got the Supreme Court majority he wanted without a battle. One Justice who had voted against many New Deal laws changed his views. Another retired. Roosevelt filled his place with a new Justice who was favorable to his programs.

Question 58

True or False: The New Deal changed American government forever. Ever since, Americans have debated whether the change was good or bad for the country.

Answer 58

True

Question 59

What were the criticisms of the New Deal? What was deficit spending and national debt? Did the New Deal achieve its major goal?

Answer 59

Before the 1930s, most Americans had little contact with the federal government. New Deal programs, however, touched almost every citizen. The federal government grew in size and power. Many people worried about the increased power of government. They complained that the government was intruding in people’s lives, threatening both individual freedoms and private property. These critics called for a return to the traditional policy of laissez faire—the idea that government should play as small a role as possible in the economy. Critics also expressed alarm because the government was spending more than it took in. This practice of deficit spending was creating a huge increase in the national debt, or the total sum of money the government owes. Finally, despite its vast spending, the New Deal had not achieved its major goal—ending the depression. In fact, full economic recovery did not come until 1941. This recovery was partly the result of increased U.S. production for nations fighting in World War II.

Question 60

What were the supports of the New Deal?

Answer 60

Supporters of the New Deal noted that FDR had steered the nation through the worst days of the depression. New Deal legislation had ended the banking crisis, protected farmers, and created work for millions of unemployed. Supporters also argued that the government had a responsibility to use its power to help all of its citizens, not just businesses and the wealthy. Programs such as Social Security, New Dealers said, were necessary for national survival. Most important of all, supporters argued, the New Deal had saved the nation’s democratic system. Elsewhere in the world, people were turning to dictators to lead them out of hard times. President Roosevelt, on the other hand, restored the nation to economic health while preserving its democracy.

Question 61

True or False: Today, many Americans rely on Medicare, Medicaid and other similar programs to defray their healthcare costs. New Deal programs established a precedent for the federal government to provide support for people who are poor, elderly, disabled, or unemployed.

Answer 61

True