Roosevelt's New Deal Flashcards by cammy mccready

What did FDR earn in 1920? What was a key contributor to this?

Vice Presidential candidate under Al Smith

popularity with Democratic politicians

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Who did FDR replace as governor of New York?

Al Smith

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When was FDR notably re-elected as governor of New York?

1930 - notable since was following the onset of Depression

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FDR won by a landslide in 1932. How many states did he not carry?

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How many states did FDR not carry in 1936?

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Why was FDR lucky to get the nomination within the Democratic party?

many thought he was too left wing

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What did Keynes describe FDR as?

an “economic illiterate”

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When did FDR wins first election?

November 1932

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When did FDR take over as President?

March 1933

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What was notable about FDR’s time as mayor of New York?

took Progressive action
introduced extensive policy for industrial welfare
was the first comprehensive system of unemployment relief in the USA

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What was FDR aided by in his manipulation of Congress?

had a democratic majority in both the Senate and House of Representatives

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In public how was Roosevelt presented, why was this important?

Always grinning

Large part of New Deal involved giving people not only the means but the confidence to spend

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An early example of how FDR had no fixed ideas for recovery

flexible approach to tariffs during his 1932 campaign (both pro and anti)

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What was a criticism of Roosevelt that may be seen as an attempt by him to inspire confidence?
What was different about Truman?

varied message according to whom / where he was speaking

so much so that people saw Truman as “refreshingly honest”

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FDR was not revolutionary. What was his fundamental objective?

Preservation of American society and capitalism

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What do a vast number of historians suggest the New Deal Programmes were secondary to?

giving hope and confidence in a time of despair

At the heart of the New deal there “was not a philosophy, but a temperament”

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What did FDR state in terms of the budget in his acceptance speech?

criticised Hoover for spending too much

- called for a balanced budget

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What did FDR suggest the government had the responsibility for in his acceptance speech?

Responsibility to guarantee every man a right to make a comfortable living

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What did FDR’s fiscal policy suggest about his economic principles?

that he was an economic conservative

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What were the X3 R’s of the New Deal?

Relief
Recovery
Reform

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What X4 categories can the New Deal be broken into?

Agriculture
Banking
Unemployment / Industry
Alphabet Industries

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What was the role of Congress vs FDR in the New Deal?

FDR didn’t necessarily create the new deal, it was passed by Congress

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What % of the vote did FDR win in 1932?

57%

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What was the ‘100 Days’

FDR asked Congress for 100 days of total cooperation

Period of Congress breaking from obstructionism

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When did the 100days last?

19th March - 16th June

How many significant measures passed through Congress during the 100days?

What was the 100days initially meant to deal with?

the banking / financial crisis

What did FDR do with the 100days

tackled other problems apart from banking e.g planting season approaching - increasing farmer militancy

How many days was the Emergency Banking Bill constructed in?

5 days

What bill notoriously involved cooperation between Roosevelt and Hoover's administrations?

Emergency Banking Bill

Where did FDR announce that the Emergency Banking Bill would allow banks in 12 cities to reopen?

In a fireside chat

Evidence that people had faith and increased confidence in Roosevelt's economic policy

Day after FDR announces 12 cities banks to reopen bank deposits > withdrawals

Roosevelt's reaction to the second round of Bonus Marchers

Mrs. Eleanor roosevelt greets warmly | but FDR still does not concede to providing bonus

FDR's statement on what the New Deal would be;

"it will be a well thought out blueprint for radical change"

DATE : Trading with the Enemy Act

5th March 1933

Purpose : Trading with the Enemy Act

recovery of banking system | stop run on the banks

Action : Trading with the Enemy Act

federal gov. took on increased powers to govern banking declaration of X4 day bank holiday to stop run on the banks

How many states had already shut their banks prior to the Trading with the Enemy Act?

Who first introduced the Trading with the Enemy Act?

Wilson

DATE : Emergency Banking Act

9th March 1933

Action : Emergency Banking Act

- authorised government to buy bank stock and assume bank debt - banned export of gold

Purpose : Emergency Banking Act

ensured banks soundness to encourage greater public confidence attempted to get people to deposit money again into banks

What legacy of Hoover's administration did the Emergency Banking Act ironically deploy?

Reconstruction Finance Corporation

By 1935 what fraction of American banks did the RFC own stock in?

1/3

What did the RFC (under the Emergency Banking Act) seek to do?

increase banks capital

What did Hoover do with the RFC which the RFC did not do under FDR?

Hoover leant money to banks (but this increased their debt) | FDR sought to increase banks capital

What did FDR announce in his fireside chat after the Emergency Banking Act

"together we cannot fail"

By the end of March 1933 what fraction of banks had reopened?

3/4

By beginning of April 1933 what amount had been registered in bank deposits? What did this show?

$1billion | showed increase in public confidence in the banking system only a month after FDR became President

What was the Emergency Banking Act entirely reliant on?

entirely reliant on public confidence and people putting deposits back into banks

DATE : Cuts in Civil Service Salaries & Veteran Benefits

March 1933

Purpose : Cuts in Civil Service Salaries & Veteran Benefits

show public FDR's willingness to save money hoped to encourage the rich to spend it part of method of reducing federal spending (one of Democrat's pledges)

What did Cuts in Civil Service Salaries & Veteran Benefits show about FDR's fiscal policy?

Despite deficit spending that would occur, there was never absolute abandonment of fiscal conservatism

What was a patriotic phrase to encourage the public to be active in fighting the depression?

"Roosevelt has done his part: now you do something"

DATE : Securities Act for Regulating Wall Street

May 1933

Action : Securities Act for Regulating Wall Street

- demanded full info to be made public whenever new securities issued - demanded companies make regular financial disclosures - directors who issue misleading prospectuses liable to prosecution as criminals

Purpose : Securities Act for Regulating Wall Street

Reform Banking and Wall Street

What publication revealed the majority of wealth was controlled by 200 corporations?

The Modern Corporation and Private Property by Meanes and Berle

What did the publication of "Modern Corporation and Private Property" increase the popularity of to the public?

the Securities Act for Regulating Wall Street

DATE : Securities and Exchange Commission

1934

Action : Securities and Exchange Commission

- oversee stock exchange + punish wrongdoers - prohibit buying of stock without funds to pay - limit speculation

Purpose : Securities and Exchange Commission

aimed to increase consumer confidence via reducing manipulation, insider trading + speculation

What was the result of the Securities and Exchange Commission?

created better conditions for American business made more equitable markets for American investors

DATE : US leaving gold standard

June 1933

Purpose : US leaving gold standard

hoped would counter deflationary effects of Depression

DATE : Glass-Steagall Act

June 1933

Action : Glass-Steagall Act

prohibited commercial banks from participating in the investment banking business decreased number of banks engaging in speculative activity

When was the Glass-Steagall Act first proposed?

In 1932 | Republicans too slow to pass it

Purpose : Glass-Steagall Act

attempted to sever linkages between commercial and investment banking wider hopes in restoring public confidence in US banking wanted to stop run on the banks

What Corporation was created under the Glass-Steagall Act?

Federal Deposit Insurance Corporation

What did the Federal Deposit Insurance Corporation guarantee?

guaranteed bank deposits to a specified limit

When did the Federal Deposit Insurance Corporation fund become permanent? What did it get raised to?

July 1934 | raised to $5000

The Federal Deposit Insurance Corporation was long term. When was the Federal Deposit Insurance Corporation repealed?

1999

Criticism of the Federal Deposit Insurance Corporation

arguably kept operation many smaller unit banks which should have been nationalised these small banks were part of the fundamental economic problem

DATE : London Economic Conference

July 1933

What did FDR reject at the London Economic Conference?

attempts by emissaries to achieve stabilisation of world currencies

DATE : Trade Agreements Act

1934

Action : Trade Agreements Act

allowed Roosevelt to revise tariffs by up to 50%

What was the passing of the Trade Agreements Act FDR acknowledging?

FDR had gone too far in rejecting international cooperation

What did the Trade Agreements Act show about the New Deal?

New Deal never developed coherent trade policy | = one of chief causes of Depression virtually untouched

Between when was the Gold Buying Act in place?

October to December 1933

Whose tactic was gold buying?

Warren-Pearson

What was the Gold Buying Act a method of doing?

Devaluing the dollar

What happened between November-December 1933 due to the Gold Buying Act?

Commodity prices actually decreased Farm prices fell (although not dramatically damaging)

What was the real damage of the Gold Buying Act?

FDR put valuable, critical time into a panacea economists warned him would not work

What did FDR's administration do in terms of protectionism?

saw no reason to modify high tariff barriers allowing cheap foreign goods onto American markets would destroy any hope of raising prices through controlling production

What was federal spending in 1931

$3.6billion

What was federal spending in 1936

$8.4billion

What was the budget deficit in 1936

$4.4billion

After when did Roosevelt begin to cut expenditure?

1936

What was federal spending in 1937?

$7.7billion

What was federal spending in 1937 compared to 1936?

$0.7billion less

What was the colloquial name for taxes put on tobacco and liquor?

"sin taxes"

In 1935 what was the colloquial name for the higher income tax on the rich?

"Soak the rich"

When was the Wealth Tax Act introduced?

1935

In what act was a tax on corporation profits not distributed to shareholders introduced?

Wealth Tax Act 1935

When was a tax on corporation profits not distributed to shareholders voted out?

1938

What % of federal expenditure was paid for using taxes in 1938?

82%

In what year was 82% of federal expenditure paid for using taxes?

1938

In the budget following 1938 what type of fiscal policy did FDR accept? What did he abandon?

accepted deficit financing abandoned progressive taxation

Inflationists wanted what to occur in terms of currency

pleased when Roosevelt brought USA off gold standard wants increase in silver in circulation + reduction of gold hoped would allow value of money to fall + prices rise

What did Progressives hoped would occur under the New Deal?

break up of corporations

Who on the Supreme Court was a notorious progressive

Brandeis

Example of advisor who sought government to take control over economic planning from corporations

Berle

What did economic planners e.g Berle oppose in terms of the budget?

idea of balanced budget | budget deficit to finance recovery e.g via public works

Money and Marcus described FDR as

"improvising all the time..very hit and miss"

Evidence that FDR was able to differentiate between 'emergency' and 'normal' government business

- spent government funds on 'emergency' measures e.g public works / RFC - reduced government expenditure on normal measures e. g cutting federal salaries

Insiders in government spoke of what? suggesting a new era of government had begun

'air of expectancy'

Why could Roosevelt not implement radical change (X4)

- structures / personnel not in place - needed farmer / business / bank cooperation - element of voluntarism needed in many (e.g NRA codes) - too radical = subject to supreme court (AAA / NRA)

What can the first New Deal be regarded as in conclusion?

a response to crises and an alleviation of suffering, rather than a solution to the Depression

By the end of 1932 how many self-help organisations were present? How many members?

330 300,000 members

FDR quote which shows there was no great plan behind the New Deal

stated he would promulgate | "bold persistent experimentation"