New Deal NEW Flashcards

Question

Farm security administration

Answer 1

1937 -helped rural poor buy their own farms and get new equipment to use on them -$1bn in loans to help farmers in 4 years -helped migrant workers who travelled across USA to find work by setting up migrant camps to provide shelter and paid for doctors and dentists.

Answer 2

1937 -RA only built three new towns for families, so this act was passed to create a new agency to replace shanty homes -160,000 homes were built between 1939 and 1943

Answer 3

1938 -created compulsory measures to limit production using quotas. -effectives as they did not rely on the co-operating from farmers. -enforced through heavy taxes on sales above the quotas.

Answer 4

1935 -created a federal pension system. Employees paid into a scheme for their retirement, with their contributions matched by a tax on their employer -contributions went from 1% to 3% of their income. -Created Federal unemployment insurance. Employers of more than 8 people paid a tax to the government, and was sued to provide unemployment pay for up to 16 weeks at half the normal rate -Federal support for disadvantaged groups. Federal matching grants(gov matches state money) provided money for very poor old people, families with dependent children and disabled groups. -$50m set aside for needs of elderly and $25m for dependent children -7,000 children helped after 4 years from grants -payments only covered a third of workers -self-funded, so US economy took longer to recover -domestic servants and farmers were not included in the unemployment and pension schemes

Answer 5

1935 -workers became legally allowed to join unions -banned unfair practices like firing union members and company unions -offered federal protection to unions. NLR Board was set up, which defended workers who had been fired, supervised union negotiations and helped union gain recognition from employers -union membership rose to 9 million by 1940 -NLR Board had grown by 16 times in 4 years -strikes were violent sometimes

Answer 6

1935 -created a board of governors of the Federal Reserve System -gave financial powers to the Board, taking them away from powerful banks -in 1936 no national bank closed and little had to be paid out in deposit insurance

Answer 7

1938 -enforced employment laws such as minimum wage -helped 700,000 workers to get high pay -enabled 1.5 million people to work fewer hours each week

Answer 8

1935 -Raised the highest rate of tax to 75% for incomes grater than $5 million -raised taxes on business profits

Answer 9

-There were many remote poor farms, and it was not profitable for private electrical suppliers to run electricity lines to them -only 10% of farms had electricity, and only 1% in some areas, whereas 90% of all other homes had electricity -farmers could not use modern methods of production like keeping chicks in electric brooders or other consumer appliances

Answer 10

1st New Deal 1. TVA: built dams to generate electricity and lent money to co-operatives to lay power cables 2. Electric Home and Farm Authority” helped farmers to buy electrical appliances. Encouraged appliance companies to make cheaper models for the TVA areas and provided loans for farmers to buy items. Backed up the RFC 2nd New Deal 1. Rural Electrification Administration (REA) took over TVA (was very successful) for the electrification programme and made loans to rural co-operatives across the USA

Answer 11

-35% of farms had electricity by 1941 (10% in 1930) -417 co-operatives had been helped with loans to lay electric wires for new customers by 1939 -EHFA had arranged 100,000 contracts for electrical goods by 1938 -spite lines were built along proposed REA routes to link up richer communities by utility companies that were worried about losing profit, REA still continued, and 40% of farms electricity by 1945

Answer 12

1939, where although Alphabet Agencies continued to operate, the start of WW2 became the focus of his presidency

Answer 13

Successful because: -farm income had risen from $2.5to $4.6bn a year -New deal helped unemployment fall 25% by 1939 Unsuccessful because: -farm income rarely reached 1929 levels during the 1930s -tenant farmers were thrown off their land and recovery relied on regular government payments -old industries like coal and textiles remained unprofitable and the entire country experienced a deep recession in 1937-38 -106 banks that received extra funds were forced to close despite help form the RFC -by the end of the 1930s, unemployment was at 17% compared to 3% in 1929

Answer 14

Successful Because: -WPA employed 8 million people -work relief projects created new parts, roads and schools -35% of the population received relief from the government -social security act provided unemployment insurance for the first time Unsuccessful because: -the projects relied heavily on government spending -work relief projects provided work for only about 40% that needed it -little social housing for the poor -recovery relied on government spending: Roosevelt tried cutting spending in 1937 and unemployment rose by 5% and the president had to go back to Congress to ask for $3bn work relief -Americans were very dependent on federal relief

Answer 15

Successful: -Social Security: provided help to disadvantage groups -industrial labour: unions were recognised, minimum wages introduced and working hours limited -living conditions of agriculture: families provided with electricity, land improved and financial help provided to help them keep it -financial regulations: banking system centralised and greater controls placed on the stock market Unsuccessful: -social security system left out large groups of people such as agricultural workers and household servants. Payments were also small -social security was also mostly paid for out of people’s wages instead of federal money, so the gap between rich and poor was not reduced

Answer 16

Successful: -More influence in politics because of Roosevelt’s wife, Eleanor Roosevelt -given specific help by women’s and professional division in the WPA -grants provided for women with dependent children due to the social security act Unsuccessful: -Paid less than men: in 1937, a woman earned around half a man’s wage -the number of women in professional jobs fell from 14.2% to 12.3% -alphabet agencies provided ore help for men: CCC created 2.5 million jobs for men, camps for women only offered 5,000 places a year

Answer 17

Successful: -‘Black Cabinet’ gave black people more political power -30% of black families received relief -early signs of the end of segregation as some CCC camps were integrated Unsuccessful: -AAA forced black tenants off farmlands and NRA caused many black people to lose their jobs -Relief payments were often lower than those given to white people -most black workers had no access to social security

Answer 18

Successful: -the Indian Reorganisation Act 1934 restored 7.4m acre as of land to tribes -Native American were given a chance to vote and govern themselves -the new law recognised the right of Native American women to vote Unsuccessful: -some new deal policies such as a plan to kill large numbers of the Navajo tribe’s sheep and goats were unpopular -most were still very poor -reliance on New Deal agencies like the WPA left native Americans without help when they closed down

Answer 19

WW2: -Roosevelt convinced Congress to allow the USA to sell military supplies to Britain and the Allies -this created jobs in industry and agriculture, to meet needs to the allies -unemployment fell from 9.5m in 1939 to 5.5m in 1941 -US farms rose by 50% between 1939 and 1941 -in the first 3 years of the war, US exports grew by 70% -the number of people on work relied fell from 3.3m in 1939 to 2.2m in 1941