New Deal 1933-45 Flashcards
When was the First New Deal
1933-35
Hundred Days
The time of relief and legislation under the first ND aimed to tackle immediate problems
Banking Finance Relief Act year
1933
Consequence of Banking Relief Act 1933
Provided relief to smaller banks and prevented further collapse, restored some confidence in banks
Consequences of Glass Steagall Act 1933
Reduced power of banks and placed measures federally to prevent previous speculative mistakes, made banking more secure
Why was Agriculture prioritised over industrial relief
30% of labour force worked in agriculture
What does AAA stand for
Agricultural Adjustment Act 1933
AAA role
Agricultural Adjustment Administration would subsidise farmers to reduce their acreage and production to tackle overproduction,
AAA funded
Self funded through a tax on companies that processed food
What was the produce of over production
Cotton: By 1933 unsold cotton in USA exceeded annual world consumption
How did the AAA help with overproduction of cotton
10.5 million acres were ploughed which meant by 1933 price of cotton rose from 6.5 to 10 cents per pound
What was the negative aspect of AAA
Caused public outcry at slaughter and destruction of food considering many were starving (some dead carcass was used to feed the unemployed)
How popular was the AAA
95% of farmers signed up in its first year
What did the AAA achieve
1932-35 total farm income rose from 4.5 to 6.9 billion
What corporation managed under the Banking Relief Act
RFC- Reconstruction Finance Corporation
Banking relief act detail
RFC authorised to buy stocks and take on debts of collapsing banks
What bank became the largest in the world
RFC- Reconstruction finance corporation
What were the main aims for industrial recovery
To get people back to work as unemployment was at 25% by 1933, to increase consumer demand
What does NIRA stand for
National Industry Recovery Act 1933
What administrations did NIRA include
National Recovery Administration (NRA) and Public Works Administration (PWA)
What was the aim of the NRA
To promote fair practices in businesses to compromise between gov, industry and unions such as suspending anti trust legislation for two years
What did the NRA promote businesses to do
Do not use methods such as price cutting, maintain the minimum wage and working conditions
What was the ‘Buy Now’ campaign a response to
Used by Roosevelt to encourage people to spend to stimulate production due to ineffectiveness of NRA
When was the NRA ruled unconstitutional
1935 by SC
Why did the NRA fail, three reasons
Implemented rapidly without clear planning, many large firms such as Henry Ford did not participate, small firms could not afford to comply with codes such as the minimum wage
What did the PWA do
Through pump priming federal gove invested 3.3 billion dollars into public works projects such as hospital, school or road building
What was the aim of PWA
Aimed to stimulate areas of economy which would catalyse other industries and increase demand throughout economy
Successes of the PWA
Put many to work, helped development of public works such as 50,000 miles of roadwork, pumped money and stimulated economy
