The First New Deal (1933-1935) Flashcards
What were the primary aims of the First New Deal (1933–1935)?
The primary aims were:
- Relief and Recovery: Immediate assistance to victims of the Great Depression and stimulating economic revival.
- Reform and Regulation: Addressing systemic issues that caused the Depression, such as financial instability and poor labor protections.
- Psychological Impact: Restored business confidence and provided hope and optimism to a demoralised population.
- Alphabet Agencies: Federal programs aimed at achieving these goals, nicknamed for their initials.
What was the goal of the AAA (Agricultural Adjustment Administration, 1933)?
The goal was to reduce overproduction in agriculture by paying subsidies to farmers to cut back on production of key crops and livestock (e.g., pork, wheat).
What was the impact of the AAA (Agricultural Adjustment Administration)?
It boosted prices for agricultural goods but faced criticism for waste, such as destroying surplus food.
What was the purpose of the CCC (Civilian Conservation Corps, 1933)?
The CCC aimed to provide employment for young men while conserving natural resources.
What types of projects did the CCC carry out?
The CCC planted trees, built windbreaks, and improved national parks.
What was the significance of the CCC?
The CCC combined unemployment relief with environmental sustainability.
What was the goal of the FCA (Farm Credit Administration, 1933)?
The goal of the FCA was to alleviate farmers’ debt crises by providing low-interest federal loans for seeds, equipment, and marketing.
What did the FERA (Federal Emergency Relief Administration, 1933) aim to do?
The FERA aimed to provide direct relief for the unemployed.
How much funding did the FERA provide to state and local agencies?
The FERA provided $500 million to state and local agencies to provide emergency payments.
What was the goal of the FHA (Federal Housing Administration, 1934)?
The FHA aimed to stabilise the housing market by offering government-backed loans to assist with mortgage payments.
What was the purpose of the PWA (Public Works Administration, 1933)?
The PWA aimed to create jobs through infrastructure projects such as building roads, bridges, and public buildings.
How much did the PWA spend on infrastructure projects?
The PWA spent over $3 billion on infrastructure projects.
What was the scope of the TVA (Tennessee Valley Authority, 1934)?
The TVA covered seven states, including Tennessee, Alabama, and Mississippi.
What projects did the TVA carry out?
The TVA built dams for hydroelectric power and flood control, and funded educational and conservation programs.
Why was the TVA significant?
The TVA was a model for regional development, showing how federal intervention could transform local economies.
What was the goal of the NRA (National Recovery Administration, 1933)?
The NRA aimed to establish “fair practices” in industry by coordinating industry, labor, and government to prevent wage cuts and job losses, and encouraging standardised pricing.
Why was the NRA declared unconstitutional in 1935?
The NRA was declared unconstitutional in the 1935 case Schechter Poultry Corp. v. United States.
What was the purpose of the ERTA (Emergency Railroad Transportation Act, 1934)?
The ERTA aimed to regulate struggling railroad companies to maintain critical transport infrastructure.
What was the role of the FCC (Federal Communications Commission, 1934)?
The FCC oversaw radio and telegraph services to ensure fair access and prevent monopolies.
What was the purpose of the SEC (Securities and Exchange Commission, 1934)?
The SEC aimed to reform the stock market by banning buying stocks on credit and strengthening the Federal Reserve’s role.
What impact did the SEC have on the stock market?
The SEC helped restore investor confidence and reduced market volatility.
What was the purpose of the Banking Act (1933)?
The Banking Act aimed to stabilise the banking system by introducing federal deposit insurance to protect savers and restricting risky speculative investments by banks (Glass-Steagall Act).
What was the goal of the Beer-Wine Revenue Act (1933)?
The Beer-Wine Revenue Act aimed to generate federal revenue and reduce Prohibition-related crime, and was a step toward ending Prohibition (repealed later in 1933 via the 21st Amendment).
What economic theory did the First New Deal reflect?
The First New Deal reflected Keynesian Economics, using federal spending to stimulate demand during economic downturns.
What ideological framework was the First New Deal built on?
The First New Deal was built on Progressive Ideology, emphasizing government responsibility for economic stability and social welfare.
How did critics from the Left view the First New Deal?
Left-wing critics argued that the reforms didn’t go far enough to redistribute wealth or challenge capitalist structures.
How did critics from the Right view the First New Deal?
Right-wing critics criticised the New Deal for overreaching federal power and increasing the national debt.
What were some key successes of the First New Deal?
Key successes included:
- Restoring confidence in banking and financial systems.
- Creating millions of jobs and improving infrastructure.
- Laying the groundwork for long-term reforms in labor, banking, and agriculture.
What were the limitations of the First New Deal?
Limitations included:
- Many programs faced opposition or limited implementation (e.g., NRA struck down).
- Relief efforts often excluded marginalized groups, such as African Americans and women.
- Recovery remained incomplete until WWII’s economic mobilisation.
How do optimists view the First New Deal?
Optimists view the First New Deal as a necessary and innovative response to an unprecedented crisis.
How do skeptics view the First New Deal?
Skeptics argue that the First New Deal lacked cohesive planning and relied too heavily on temporary fixes rather than systemic change.
What was the legacy of the First New Deal?
The First New Deal marked a shift towards greater federal involvement but its limitations highlighted the need for more comprehensive policies, leading to the Second New Deal (1935–1938).
