Roosevelt and the new deal

Question 1

aim of FDR?

Answer 1

Recovery: End to crisis in industry(higher rates of production), banking and agricultural(increased income for farmers) sectors
Relief: Fulfill immediate need of food with short term projects, alleviate effects of unemployment by providing states with funding
Reform: reform US through Social Security and regulation of banks and businesses to protect its citizens, reorganization and expansion of the federal government, stimulation of the economy in order to restore jobs, thus consumer spending –> ‘priming the pump’

Question 2

1st 100 days of FDR?

Answer 2

‘Brains trust’ - group of specialists advising FDR
‘Fireside chats’ - evening radio addresses given by FDR to his listeners(52 million)
Emergency Banking Act - Banks forced to close for 4 days to be audited(financially inspected), and only stable ones to be reopened
Beer and Wine Revenue Act - alcoholic beverages below 3.2% to be taxed in order to raise money for New Deal

Question 3

AAA? ND

Answer 3

Offered subsidies to farmers to lower supply and prevent surplus; 11$ for each acre a farmer didn’t use –> demand staid just as low but supply decreased, thus prices rose again
Paid farmers to store products
FCA set up to improve mortgage contracting; helped 20% of farms
CCC was set up since AAA was not enough

Question 4

CCC? ND

Answer 4

Gave young men manual labor jobs for 30$/month on environmental projects
Only accepted 17-23 year old, so only employed 500 thousand by 1935, however over its entire course, it employed 3 million young unmarried men in total

Question 5

FERA? ND

Answer 5

Passed in the 1st 100 days

granted 500 million $ to states to spend on relief; was not to be redeemed

Question 6

NRA? ND

Answer 6

Set quotas on production, controlled prices
Imposed industry-wide codes of practice; banned child labor, limited working hours, eliminated unfair trade practice –> acted like a trade union
Blue NRA Eagle raised popularity among workers
2.3 million NRA businesses by 1933

Question 7

HORA? ND

Answer 7

Increased mortgage maturity term from 5 to 30 years –> 1 million were able to keep their homes

Question 8

TVA? ND

Answer 8

Southern states had hot helped citizens enough, so the Tennessee Valley Authority was set up to help 7 states recover and relieve immediate needs:
Provided work
extended electrical coverage to farms
controlled flooding and improved land productivity
1936 - Completed its first project, the Norris Dam
20 dams planned to be built
Educated farmers on safe farm practices to hedge against environmental disasters

Question 9

shortcomings of the ND?

Answer 9

After 2 years, income was still low + unemployment was high + workers continued to strike over poor conditions
Tenant farmers evicted from land and depended on grants
1929 –> 3% unemployed; 1939 –> 17% unemployed
reliance on government; FDR tried cutting federal spending dedicated to re-stimulate the economy –> unemployment rose to 5%
Only 40% of applicants accepted into WPA; 750 thousand left unemployed compared to only 250 thousand accepted in NY since quota was already reached
Many ND relief programs paid by workers’ wage rather than just taxation of rich
CCC –> 2.5 million jobs for men - only 5 thousand for women
AAA racism: black tenants thrown off farmlands
Indians heavily-dependent on WPA; left without income when closed

Question 10

Achievements of the ND?

Answer 10

Farm income increased from 2 –> 4 billion
RFC(gov agency to aid corporations, etc) helps 6000 banks become operational again
Unemployment: 1933 = 13 million –> 1939 = 9.5 million
WPA employed 8 million
people that received financial aid –> 35 %
Social Security: federal help for the 1st time
Electrification of farms
Recognition of unions
Banking reforms: Banking Act 1935
Women’s division in the WPA gave specific help: sewing classes, etc
30% –> black families received relief aid
Indian Reorganisation Act –> re-entitled 7.4 million acres of land to Indians