New Deals (1932-41) Flashcards
1
Q
3
Describe the 3 pillars of the New Deals
A
- Relief
- Recovery
- Reform
2
Q
5
Describe the failings of Hoover in the 1932 election
A
- Only ran for 2nd term as saw no other viable Republican candidate
- Public works programmes in 1932 came too late to turn around depression
- Became synonymous with depression and prohibition
- only made 7 radio speeches - unlike the utilisation of radio by FDR
- lacked charisma of FDR
3
Q
3
Describe FDR as NY Governor
A
- Had enacted intervention policies in New York
- built hydroelectric power on St Lawrence River
- Allowed test for ND policies, which proved effective
4
Q
3
Describe the image of FDR in 1932
A
- courted press
- in national radio address in April 1932, called for govt to help ‘the forgotten man’
- talked directly to voters through radio
5
Q
3
Describe FDR’s risk-free campaign
A
- Wide expectation he would win - aimed to avoid any criticism
- Was not associated with clear ideology, unlike Bryan
- Few, vague policies and even self-contradictory platform
6
Q
1
Describe FDR’s support of interventionist policy in 1932
A
- In Georgia, promised ‘bold experimentation’ to beat Depression and initiate economic redistribution
7
Q
3
Describe FDR’s criticism of interventionist policy in 1932
A
- attacked Hoover’s ‘extravagant’ spending
- pledged a 25% cut in federal budget
- in SF, made a speech advocating economic regulation as last resort
8
Q
5
Describe the New Deal Coalition
A
- Northern support for Dems
- urban Catholic voters
- blue-collar workers
- racial and religious minorities
- powerful interest groups: city machines, universities, labour unions, etc
9
Q
4
Describe the results of the 1932 election
A
- Dominated electoral college, winning 472 votes
- Won 57% of the popular vote the highest ever for Democrat Presidents
- New Deal Coalition reflected voter shift to North
- Arguably, nomination of North-eastern reformer Al Smith in 1928 started this shift
10
Q
3
List the different stages of the New Deal
A
- 1st - 1933-34
- 2nd - 1935-37
- 3rd - 1938-40
11
Q
1
How many Alphabet Agencies were there?
A
59 new agencies were set up between 1933 to 1938
12
Q
4 - (3) (4) (2) (2)
Describe the Acts/agencies of the 1st ND
A
-
Agriculture
- AAA 1933
- TVA 1933
- Farm Credit Act 1933
-
Banking
- Emergency Banking Relief Act 1933
- Glass-Steagal Act 1933
- Truth-in Securities Act 1933
- Securities Act (SEC) 1934
-
Industry
- National Industrial Recovery Act (NIRA) 1933 - NRA and PWA
- Civil Works Administration (CWA) 1933
-
Relief
- Federal Emergency Relief Act 1933 (FERA)
- Civilian Conservation Corps 1933 (CCC)
13
Q
6
Describe the Acts/agencies of the 2nd New Deal
A
- Works Progress Administration (WPA)
- Wagner Act 1935
- Social Security Act 1935
- Banking Act 1935
- Rural Electrification Administration 1935
- Farm Security Administration (FSA) 1937
14
Q
6
Describe the first 100 days
A
- Set presidential convention
- 15 Acts in first 100 days
- Not fully cohesive plan - often even contradictory
- FDR wanted to allow for econ recovery + reform banking and finance infrastructure
- thus could better address any downturn in future
- Spoke to electorate with fireside chats’ on radio to explain policies
15
Q
4
Describe the problems in agriculture by 1933
A
- Mechanisation, fertiliser and pesticides led to overproduction and low prices
- Prohibition reduced demand for grain
- 25% land lost between 1929-33
- Floods had washed away crops and topsoil in Tenesee Valley
16
Q
2
Describe the problems in cotton by 1933
A
- 1933, unsold cotton in the US exceeded the annual world consumption of American cotton
- 1933, farmers had planted 400k acres more than in 1932
17
Q
3
Describe how agriculture was valued in the New Deal
A
- Given higher priority than industrial recovery:
- 30% of labour force worked in agriculture
- If agricultural workers could afford more, industry would be stimulated
18
Q
4
Describe the Agricultural Adjustment Act 1933 (1ND)
A
- Government would subsidise farmers to reduce production of staple items of corn, tobacco, rice
- By producing less, prices and farmers incomes would increase
- Set up Agricultural Adjustment Agency (AAA)
- Programme meant to be self-financing - tax imposed on food processing companies
19
Q
2
Describe how the Agricultural Adjustment Act 1933 reduced overproduction of cotton
A
- 10.5m acres destroyed by AAA
- Price of cotton (bale?) rose from 6.5c (1932) to 10c (1933)
20
Q
3
Describe how the agricultural Adjustment Act reduced overproduction of meat (beef)
A
- Western ranchers sought to bring beef cattle under the production of the AAA in 1934
- By 1935, the Government had purchased 8.3 million cattle
- In return, ranchers agreed to reduce breeding cows by 20% in 1937
21
Q
2
Describe how the agricultural Adjustment Act reduced overproduction of meat (pork)
A
- 6 million piglets were bought and slaughtered
- Many carcasses were processed and fed to the unemployed
22
Q
4
How effective was the Agricultural Adjustment Act 1933?
A
- Drought helped make the 1933 wheat crop the poorest since 1896 and agreements were reached to limit the acreage in subsequent years
- Total farm income rose from $4.5bn in 1932 to $6.9bn in 1935
- Popularity of the AAA was high among farmers - 95% of tobacco growers signed up
- SC ruled AAA unconstituional in 1936 - though achieved signficant progress before this
23
Q
3
Describe the Tennessee Valley Authority 1933 (1ND)
A
- Set up to deal with underdevelopment and poverty in the Tennessee Valley
- Most grandiose project of ND
- TVA effectively became central planning authority for region
24
Q
6
Describe the tasks of the TVA
A
- construct 20 huge dams to control floods
- create hydroelectricity for region (existing supplies limited to 2% farms)
- control soil erosion through forest restoration
- provide jobs by setting up fertiliser factories
- to develop welfare and edu programmes
- teach farmers in ways of modern methods e.g. crop rotation
25
# 4
Describe the success of the TVA
* built 16 hydroelectric dams between 1933-44
* By 1934, more than 9k people found employment with the TVA
* Residents saw increase in average earnings by 200% from 1929-49
* modernisation can be largely credited to TVA
26
# 3
Describe the failures of the TVA
* roughly 3.5k families in eastern Tennessee lost their homes when the Norris Dam was built
* project flooded an area of roughly 239 square acres in the Norris Basin
* federal govt offered little help in resettling displaced families
27
# 2
Describe the Farm Credit Act 1933
- Enabled farmers to keep homes and land
- gave security to farmers
28
# 6
Describe the situation in banking at the time of F Roosevelt's election
- 1932, banks were closing at the rate of 40 per day
- Oct 1932, Governor of Nevada declared bank holiday and closed every bank in state
- By inauguration, banks fully closed in many states
- 5500 banks failed by 1933 (1 in 5)
- Local banks held limtied physical cash
- Money supply had fallen by 30% by 1933 due to little confidence
29
# 5
Describe how FDR dealed with banking upon inaugaration
* At inauguration stated: ‘the only thing to fear is fear itself’
* 6th March 1933 - FDR closed all banks for 4 days to allow treasury officials to draft emergency legislation
* RFC authorised to buy stock to support banks and take on their debts - in doing so effectively became largest bank in world
* FDR used ‘fireside chats’ to encourage the public to refill bank deposits
- By April 1933, $1bn returned to bank deposits , ending crisis
30
# 2
Describe the Emergency Banking Relief Act 1933
* gave Treasury power to investigate all banks threatened with collapse (‘stress-test’)
* passed by Congress after only 40 mins of debate
31
# 5
Describe the Glass-Steagall Act 1933 (1ND)
* Individual bank deposits insured up to $2500
* insurance fund would be administered by FDIC (Federal Deposit Insurance Corporation)
* Bank officials not allowed to take personal loans from own banks
* Government authority over purchase of governmentt securities centralised from Fed Reserve Banks to Fed Reserve Board in Washington
* Commercial banks relying on small-scale deposits banned from type of investment banking that fuelled 1920s speculation
32
# 1
Describe the Truth-in-Securities Act 1933 (1ND)
* Required brokers to offer clients realistic info about the securities they were selling
33
# 2
Describe the Securities Act 1934 (1ND)
- Set up a new agency, the Securities Exchange Commission (SEC)
- Would oversee stock market activities to prevent fraudulent activities such as insider dealing
34
# 2
Describe the two bodies of the National Industry Recovery Act (NIRA), June 1933 (1ND)
* National Recovery Administration (NRA)
* Public Works Administration (PWA)
35
# 6
Describe the NRA (1ND)
- Headed by General Hugh Johnson
- Aimed to offer something to all groups
- Suspension of anti-trust legislation for 2 years benefitted businessmen
- set wage and price controls via codes
- codes agreed between management, labour and government
- codes included 40hr working week, minimum weekly wage, ban on u16 working
36
# 4
Describe the failures of the NRA
* Johnson attempted ‘Buy Now’ campaign in Oct 1933 to encourage spending and thus stimulate production
* Unsuccessfully advocated for 10% wage increase and 10 hour cut in the working week
* Arguably only served to legalise worker exploitation - opposite of intention
* SC deemed it unconstitutional in 1935
37
# 3
Describe the Public Works Administration (1ND)
* Headed by Sec of Interior, Harold Ickes
* Given **$3.3bn** to ‘pump-prime’
* Would build roads, dams, hospitals, schools, etc to stimulate econ growth through multipliers
38
# 3
Describe the successes of the PWA
* 13k schools built
* 50k miles roads built
* 4 vast National Parks, dams, electricity created in West
39
# 3
Describe the failures of the PWA
* Discontinued in 1939
* Did not provide ‘going rate’
* ‘Crowded out’ private investment - jobs dependent on govt spending
40
# 4
Describe the Civil Works Administration 1933 (1ND)
- **$400 million** grant from the PWA to provide emergency relief to the unemployed in the **winter of 1933-34**
- Put **4 million people** to work on public works projects
- Closed down in March 1934
- Though FERA agreed to fund more public works programmes itself
41
# 3
Describe industrial recovery in the 1st New Deal
* Economy grew 10% from 1933-36 (still did not match output of 1929)
* Unemployment left at 14%
* success limited due to scale of industrial decline
42
# 5
Describe the Federal Emergency Relief Act, May 1933 (1ND)
- Established Federal Emergency Relief Administration (FERA)
- Run by Harry Hopkins, who had administered relief programmes in NY during FDR Governorship
- Was given $500m to be divided equally among the states to help provide for the unemployed
- Act stated that each state should set up FERA office and organise relief programmes
- Set important precedent of direct stimulus for relief
43
# 2
Describe how relief worked in the FERA
* half of total spent on outright relief
* other half dependent on state spending on relief (govt paid state $1 for every $3 it spent on relief)
44
# 4
Describe limitations of the Federal Emergency Relief Act 1933 (1ND)
- Caseworkers refused office space in some states
- caseloads often bloated
- By **1935**, paying $25 per month on average to family for relief
- below average monthly minimum wage of subsistence at $100
45
# 2
Describe opposition to FERA
- States such as Kentucky and Ohio refused to comply
- Hopkins threatened to deny them any funds
46
# 6
Describe the Civilian Conservation Corps 1933 (1ND)
* CCC set up by Department of Labor in 1933
* Targetd acute unemployment for men aged 17-24
* Would offer training in community service, co-operation, etc
* Many had not held proper job due to GD
* Corps organised by military - tasks set by Interior and Agriculture Departments
* Originally set up for 2 years, extended for further 7 years in 1935
47
# 3
Describe the success of the CCC
* 1935 - increased recruits to 500k
* CCC installed 65k miles of telephone lines in inaccessible areas
* Percentage of unemployed fell from 25% (1933) to 20% (1935)
48
# 4
Why did FDR create the Second New Deal?
- Democrats increased by 9 seats in both House and Senate in 1934 mid-terms, creating congressional mood for action
- Political pressure from Huey Long
- FDR increasingly frustrated by big business and SC opposition
- Angered by US Chamber of Commerce attack on policies in May 1935
49
# 6
Describe the Work Progress Administration (2ND)
* Recruited for public works programmes
* Consistently had 2m workers
* By 1941, 20% of workforce had found employment within it
* Wages approx $52 per month (higher than relief, though less than industrial going rate)
* Built 1k airport landing fields, 8k schools and hospitals
* Engaged in large-scale projects against initial aims (e.g. Lincoln Tunnel from Manhattan to NJ)
50
# 2
Describe a limit of the WPA
* WPA not allowed to compete for private contracts or build private houses
* to prevent crowding out
51
# 2
Why was Roosevelt hesitant to get involved in labour relations legislation?
- Mistrust of labour unions, particularly among the conservative Southern Democrats whose support he needed
- He did not want to further upset big business
52
# 4
Describe the Wagner Act 1935 (2ND)
* Guaranteed workers rights to collective bargaining through unions of their choice
* Could choose union through secret ballot
* Formalised 3-man National Labor Relations Board to ensure fair play
* Employers forbidden from resorting to unfair practices e.g. discrim against unionists
53
# 3
Describe the significance of the Wagner Act 1935
* First Act to effectively give unions rights in law
* Effectively committed federal government to long-term role in labour relations,
* though FDR continued to take a back seat in labour negotiations
54
# 1
Describe social security by 1935
* Only Wisconsin provided unemployment benefit
55
# 3
Describe the Social Security Act 1935 (2ND)
* Provided for old-age pensions scheme funded by employer and employee contributions
* Unemployment insurance to be paid for by payroll taxes levied on both employers and employees
* Fed Govt would control pensions scheme; states would control unemployment insurance (thus could vary in adequacy)
56
# 4
Describe the limitations of the Social Security Act 1935
* pensions paid at min of $10 and max of $85 a month depending on past contributions of recipient
* not payable until 1940
* unemployment benefit set at max of $18 for 16 weeks
* did not cover farmers or domestic servants
57
# 4
Describe the Banking Act 1935 (2ND)
- Intended to centralise banking under Federal Government control
- Marriner Eccles, Chairman of Fed Reserve, sought to repeal Federal Reserve Act 1913 to reduce Wall St power
- Centre of financial management shifted from NY to Washington DC
- Control of banking transferred from private banks to central govt
58
# 2
Describe agricultural measures of the 2nd New Deal
* Rural Electrification Administration 1935
* Farm Security Administration (FSA) 1937
59
# 2
Describe the Rural Electrification Administration 1935
* Provided loans for cheap rural electricity
* Farms with electricity increased 10% in 1935 to 40% in 1940
60
# 1
Describe the Farm Security Administration (FSA) 1937
* Gave guaranteed loans to small farmers to buy property or to improve farms
61
# 3
Describe the limitations of agricultural measures in the 2nd New Deal
* Did little to help those struggling due to dust bowl
* Over 1/3 of 80k Okies returned to Eastern plains
* 'Cash and carry' of WW2 needed to increase demand for surplus grain
62
# 3
Describe the 'Roosevelt Recession'
* 1937
* ND projects cut to balance budget and offset reduction in private sector spending
* Ran deficit of $89m in 1938 compared with $2.2bn in 1937
63
# 2
Describe the 3rd New Deal
* Focussed on deficit spending to stimulate economy
* Fair Labor Standards Act 1938
64
# 5
Describe the Fair Labor Standards Act 1938
* introduced minimum wage of 40c an hour
* ‘Time and a half’ (1.5x) overtime pay
* Prohibited oppressive child labour employment
* Raised wages of 12m workers by 1940
* Applied to only interstate commerce
65
# 4
List opposition from the left to the ND
* EPIC (End Poverty in California)
* 'Share our Wealth' - Huey Long
* Old Age Revolving Pensions - Dr Francis Townsend
* The ‘Radio Priest’: Father Charles Coughlin
66
# 4
Describe 'End Poverty in California'
- Headed by novelist Upton Sinclair
- unemployed would be put to work in state-run co-operatives
- Paid in currency which they could spend in other co-operatives
- Sinclairs 'ideas gained credibility and proved useful recruitment for more serious alternative movements
67
# 5
Describe 'Share our Wealth'
- In February 1934 senator Huey Long from Louissiana moved onto the national scene with his ‘share our wealth’ programme
- He advocated that all private fortunes over $3 million should be confiscated and every family should be given enough money to buy a house, a car and a radio
- There should also be old-age pensions, minimum wages so that every family would be guaranteed $2000-3000 per year and free college education for all suitable candidates
- 27k share share wealth clubs
- 4.6m members spread across the states.
68
# 3
Describe the political opposition of Huey Long
* held strong local political machine through social policy, patronage and intimidation
* posed presidential challenge for 1936
* assassinated 1935
69
# 5
Describe Townsend's 'Old Age Revolving Pensions Incorporated'
- Francis Townsend was a retired doctor who advocated old-age pensions with a difference
- Over 60s not in paid employment should be given $200 per month on the understanding that every cent of it was spent and none saved
- Idea that it would boost consumption and production and pull the US out of depression
- Encouraging people to retire at 60 would provide more jobs for the young
- Soon Townsend Clubs had **500k** members and Congress was being lobbied to put the plan into operation
70
# 2
Describe the problems with Townsend's Old Age Revolving Pensions scheme
* Payments to recipients would have amounted to 50% of national income
* Huge numbers of bureaucrats needed to ensure pensioners were spending all their money
71
# 4
Describe the 'radio priest'
- Father Charles Coughlin hosted the influential 1930’s radio show ‘The Golden Hour of the Little Flower’
- Had an audience of **30-40**m
- Listeners contributed more than $5m a year to his parish in Detroit
- In 1934, Coughlin founded the **National Union for Social Justice** with the aim of monetary reform and redistribution of wealth
72
# 2
Describe the threat Father Charles Coughlin posed to FDR?
* FDR wary of Coughlin influence, esp when alliance with Huey Long was mooted
* Coughlin’s credibility and support damaged as he became increasingly anti-semitic - accused Jews of controlling Wall St
73
# 2
List opposition from the right to the ND
* Liberty League
* 1937 Special Congressional Session
74
# 2
Describe how the right-wing opposed the New Deal
- The rich began to turn against Roosevelt once economic situation stabilised
- Felt increased taxes were levied too hardly on them (E.g. AAA) and that intervention was too extensive
75
# 5
Describe the Liberty League
- Founded April 1934 by various Republicans and Conservative Democrats
* Promoted private property and enterprise unregulated by law
* Attacked FDR throughout ND for inc govt involvement
* Formed basis of RW opp to ND
- By July 1936, it had **125k** members
76
# 4
Describe the 1937 Special Congressional Session
* Republicans opposed Revenue Acts which raised taxes and furthered growing govt interference
* Nov 1937, FDR called a special congressional session to pass various measures that had been delayed due to debates on judicial procedures reform bill
* included anti-lynching legislation
* not one passed (fillibustered?)
77
# 3
Describe the failure of right-wing opposition to the ND
* Still associated with failures during early 1930s
* Failed to field strong candidate in 1936 - **Alf Landon**
* 1936 elec, FDR won highest share of electoral vote and popular vote since 1920
78
# 2
Describe the SC opposition to the New Deal
- In 140 years to 1935, the SC had only found 60 federal laws to be unconstitutional
- In first 18 months after 1935, it found 11 laws to be unconstitutional
79
# 5
Describe 'Black Monday'
- 27th May 1935
- The SC attacked the New Deal
- Fund the **Farm Mortgage Act** unconstitutional
- It argued that the removal of a trade commissioner, which Roosevelt sought, was not the job of the President but of Congress
- It also found the **NRA** to be unconstitutional through the ‘sick chicken’ case
80
# 5
Describe the 'sick chicken' case, 1935
* Case involved Schechter Brothers, a firm of butchers in NY who were selling chickens unfit for human consumption
* NIRA prosecuted for breaking its code of practice
* SC decided prosecution should be matter for NY courts, not Fed Govt
* Declared NRA poultry code illegal
81
# 2
Describe the signficance of the sick chicken case 1935
* Recognised Fed Govt had right to interfere in inter-state commerce - but not to internal commerce
* Though Act set to expire one month later
82
# 3
Describe the terms of the Judiciary Reform Bill 1937
- None of 9 justices were FDR appointments
- Proposed that the president could appoint a new justice whenever an existing judge reached 70 and failed to retire within 6 months
- He also wanted to appoint up to 6 new justices, increasing the total to 15
83
# 3
Describe opposition to the Judiciary Reform Bill 1937
- Many congressmen feared he may next want them to retire at 70
- Roosevelt also underestimated the popular support and respect for the SC and was viewed as dictatorial
- In July the Senate rejected the bill by 70 votes to 20
84
# 2
Describe the economic positives of the ND
* Unemployment halved from 18m in 1933 to 9m in 1939
* 1932 - GDP shrank by 14.7%; 1934 - GDP grew by 11%
85
# 3
Describe the economic negatives of the ND
* National total income declined by $13bn (1933-1939) despite population increase of 9m
* ‘Roosevelt Recession’ 1937 saw unemployment climb to 19% by 1938
* Eventual recovery arguably due to 1935 Neutrality Act to allow cash and carry
86
# 1
Describe the economic impact of the 1936 Neutrality Act
* Within year there were orders for 10.8k aircraft and 13k aeroplane engines
87
# 4
Describe the political effects of the ND
* Huge change in government intervention unlike 1920s
* Expansion in state and local govts in welfare provision (local FERAs)
* Labour unions strengthened - previously lacked legal voice
* Presidential-SC tension
88
# 3
Describe the effects of the ND on welfare
* Most signifcant change
* Creation of relief agencies like WPA and FERA
* Social Security Act 1935 created first system of old-age pensions and unemployment insurance
89
# 2
Describe limits of the ND welfare provision
* Roosevelt saw it as temporary measure and cut in 1937
* Righ-wing argued it prolonged depression
90
# 3
Describe the positives of the ND for women
* Eleanor Roosevelt very politically active as First Lady
* Frances Perkins became first female cabinet minister (Sec of Labor 1933-45)
* Ruth Bryan Owen became first female ambassador to Denmark
91
# 5
Describe the negatives of the ND for women
* Did note vote as electoral bloc, unlike AA - so politicians did not cater programmes towards them
* Economy Act 1933
* NRA codes allowed for unequal wages on basis of gender
* Some agencies, such as the CCC, barred women entirely
* During 1930s earned $525 per annum on average - less than half of men's
92
# 2
Describe the Economy Act 1933
* forbade members from same family from working for federal govt
* 75% of those who lost job due to this measure were women
93
# 3
Describe the positives of the ND for AAs
* Civil service’s black employment tripled from 50k in 1932 to 150k in 1941 - more than ever before
* Mary McLeod Bethune served as president of ‘negro division’ of National Youth Administration (NYA)
* AAA ended sharecropping
94
# 6
Describe the economic negatives of the ND for AAs
* AAA ended sharecropping, plunging many AAs into deeper poverty
* First to be let go and last to be taken up
* Menial jobs previously reserved for them now given to white
* NRA codes allowed racial disparity in wages
* NRA dubbed the ‘Negro-run-around’
* CCC director Robert Fencher a prominent Southern racist who enforced strict segregation
95
# 3
Describe the political negatives of the ND for AAs
* No civil rights legislation (e.g. 1937 Congressional special session) due to Southern Democrat opposition
* FDR did little to support anti-lynching bills of 1934 and 1937
* Talk of ‘African-American Cabinet’ a clear exaggeration - no black cabinet ministers until LBJ
96
# 2
Describe the positives of the ND for Native Americans
* Commissioner for Bureau of Indian Affairs, John Collier, determined to abolish assimilation
* Indian Reorganisation Act 1934
97
# 4
Describe the Indian Reorganisation Act 1934
* tribes reorganised into self-governing bodies
* could vote to adopt constitutions and have own police and legal system
* new tribal corporations established to manage tribal resources
* abandoned assmiliation and recognised NA culture
98
# 3
Describe the negatives of the ND for Native Americans
* 75/245 tribes vetoed measures of Indian Reorganisation Act 1934 when voting for them
* Could not take advantage of agencies such as PWA or CCC
* Senate inquiry in 1943 found widespread poverty among NAs on reservations
