New Deal Flashcards
what were the ‘Hundred Days’
-In the first hundred days of his presidency Roosevelt worked round the clock with his advisers to produce a range of sweeping measures
what did Roosevelt do in his hundred days
-The Emergency Banking Act: Roosevelt ordered all banks to close for four days. They were checked over by government officials. Only trustworthy banks were allowed to re-open. 5,000 trustworthy banks re-opened
-Securities Exchange Commission (SEC): Took steps to regulate trading on Wall Street, particularly to stop reckless speculation
-Roosevelt sent fifteen proposals to Congress, all were adopted
-The Federal Emergency Relief Administration (FERA) provided $500 million for soup kitchens, blankets, employment schemes and nursery schools
-The Civilian Conservation Crops (CCC) was aimed at young unemployed men they could join for a period of six months which could be extended. They earned a dollar a day and most money was sent back to their families. They worked on environmental projects in national parks. 2.5 million men passed through the schemed
-The Agricultural (AAA) set quotas to reduce farm production to try and push up prices. It helped farmers modernise and use methods that would conserve and protect the soil. They helped some farmers with their mortgages. Unfortunately some of the more modern methods put farm labourers out of work
-National Industrial Recovery Act (NIRA) set up the public works administration (PWA) which used government money to build schools, roads, dams, bridge and airports. The NIRA also set up the national recovery administration (NRA) which improved working conditions in industry. It banned child labour, and set fair wages and sensible production levels. It was a voluntary scheme. Companies who joined could use the blue eagle as a sign of presidential approval. Over 2 million employers joined.
-The Tennessee Valley Authority (TVA). The Tennessee valley was a vast area which cut across seven states. It was prone to flooding in winter which washed away good soil creating a dust bowl, while in the summers there were droughts. The people in area lived in poverty, and the majority had no electricity. Non single state had the resources to tackle the problem. Therefore Roosevelt set up the TVA. It built a series of dams and transformed the region. It made it possible to irrigate dry areas of land and electricity was provided for this underdeveloped area. Building the dams created thousands of jobs.
-In addition to these methods Roosevelt addressed the people in ‘Fireside Chats’, these radio broadcasts were designed to build confidence and trust in the government and the economy.
why was there a second new deal
-By 1931 Roosevelt was facing much criticism and his policies didn’t seem to be transforming the USA in the way he had hoped
-Roosevelt summoned a group of supportive senators and advisors they came up with a list of proposals designed to make American a fairer place. These proposals were presented to Congress and became known as the Second New Deal
What were the key aspects of the second new deal
-Wagner Act: All employers had to allow employees to be members of unions. The unions could negotiate for better pay and conditions. It became illegal to sack someone for being a union member.
-Social Security Act: provided state pensions for the elderly and widows. It set up a scheme for unemployment insurance.
-Works Progress Administration (WPA): brought together all the organisations whose aim was to create jobs. Alongside building works it created jobs for office workers, actors, artists and photographers. The Federal Arts Projects paid artists to pain works of public art.
-Resettlement Administration (RA) helped smallholders and tenant farmers who had not been helped by the AAA, moving over 500,000 families to better-quality land and housing. It was replaced by the Farm Security Administration (FSA) in 1937 which gave loans to small farmers to help them buy land and built camps so migrant workers could live in decent conditions.
who felt the New Deal was not doing enough
-Huey Long (Governor of Louisiana 1928-32 and senator from 1932) wanted to help the poor, and heavily taxed big corporations and used the money to build roads, schools and hospitals. He proposed the Share Our Wealth scheme, where the maximum income would be $1 million a year. Everyone over 60 would receive a pension, a free washing machine and a radio. He was assassinated in 1935
-Dr Francis Townsend and the Catholic Priest, Father Coughlin, also felt the New Deal was not doing enough. Townsend set up the ‘Townsend Club’, which campaigned for $200 a month pension for those over 60 on the condition they spent it that month, which would stimulate the economy. Coughlin attacked Roosevelt in his radio programme, and set up the National Union for Social Justice, it had a large membership in the mid- 1930s but its importance had faded by the early 1940s.
Who felt the New Deal was doing too much
-Republicans and some members of the business community felt the New Deal was doing too much
They argued it was too complicated, that the market should be left to decide the level of wages (o.e trade unions which called for higher wages should not have government support. That schemes like the TVA created unfair competition for private businesses.
-They claimed Roosevelt was acting like a dictator and resented the level of centralised economic planning. They argued this was un-American and that Roosevelt’s economic plans were beginning to look like those of centrally controlled Communist states.
-Some of the wealthy believed they were rich because they worked hard. They argued higher taxes were unfair and that they discouraged people from working hard.
-There were smear campaigns against Roosevelt. It was claimed that he was disabled because of a sexually committed disease (he wasn’t, it was polio). Employers put message in pay packets telling workers that New Deal schemes would never happen.
why did the supreme court oppose the new deal
The Supreme Court was dominated by Republicans. They could overturn laws if they deemed them unconstitutional.
A case against the Schechter Poultry Corporation came before the Supreme Court. The Schechter Poultry Company had been found guilty of breaking National Recovery Association (NRA) guidelines as they had sold chicken unfit for human consumption, filed false sales claims, exploited workers and threatened government inspectors. The Supreme Court ruled that the government had no right to prosecute the company because the NRA was unconstitutional. They argued it gave federal government too much power, undermining the power of local states.
how did Roosevelt react to the NRA being declared unconstitutional
He asked Congress to give him the power to appoint six more Supreme Court justice who would be sympathetic to the New Deal.
However, the American public were alarmed by what they perceived as Roosevelt attacking the American system of government. Roosevelt had to back down and his plan was rejected.
The Supreme Court was shaken by Roosevelt’s response and became less obstructive. They approved most of the main measures in the Second New Deal.
Was the New Deal a success
-Unemployment and the Economy:
Unemployment stood as 23.6 % of the working population (14 million) in 1932, by the time the New Deal started in 1933 it was at 24.9%. Unemployment did fall under the New Deal, and by 1937 it was at 14.3%. (still high – in 1929 it had been 5.2%)
When the New Deal budget was cut in 1937 unemployment rose again. In 1938 it stood at 19%. (Does this suggest the economy was too dependent on government money?)
Unemployment only fell below 10% when America entered the war in 1941, in 1942 unemployment was at 4.7%.
The country went into another recession in 1937 following cuts to the New Deal budget.
It was only the massive boost of rearmament that ended mass unemployment.
The economy took longer to recover than most European countries. Although it could be argued that was because the effects of the depression were deeper in America, and that the European powers rearmed earlier than the US.
The Banks: The Emergency Banking Act did succeed in reducing bank failures. By 1933 500 banks had gone bankrupt, after 1933 there were very few banking failures, although it could be argued that this was because the weak banks had already failed.
-Relief:
Rapid response of Roosevelt in the Hundred days helped restore confidence and gave people hope.
Federal Emergency Relief Administration met the urgent needs of the poor providing $500 million to be spent on soup kitchens, blankets, employment schemes and nursery schools.
Civilian Conservation Corps provided jobs for 2.5 million young men (were part of the CCC for six months)
Agricultural Adjustment Act (AAA) set quotes reducing production, helped farmers modernise, in some cases helped with mortgages. Helped some by the unfortunate side effect was to put some labourers out of work.
Public Works Administration – provided millions of jobs to build schools, roads, dams, bridges and airports – significantly improved the infrastructure of the US.
Tennessee Valley Authority created thousands of jobs in a badly hit area.
Works Progress Administration – included the Federal Arts project.
-Reform:
PWA can be seen as a type of reform as it improved infrastructure.
CCC had a positive long term environmental effect.
National Recovery Administration – improved working conditions, outlawed child labour. Set fair wages and sensible level of production. Was voluntary. Joined by two million employers.
Wagner Act – made it illegal to sack workers for being part of a union.
Companies such as Ford, Republic Steel and Chrysler broke strikes with violence and used their own thugs or controlled the police.
TVA transformed the region, brining irrigation and electricity to an underdeveloped area.
Social Security Act - state pensions for the elderly and widows. Set up a scheme for unemployment insurance.
Resettlement Administration – helped smallholders and tenant farmers, moving over 500,000 families to better quality land and housing.
Attitudes – seen as being free from corruption, some saw it as restoring faith in the federal government, others resented Roosevelt’s power, and felt it undermined big business and local government.
Black people – 200,000 benefitted from the CCC and other agencies. Other benefitted from slum clearance. But were discriminated against within the New Deal and Roosevelt didn’t pass laws against lynching.
Indian Reorganisation Act provided money to help native Americans buy and improve land.
