The first New deal

Question 1

What was the AAA in 1933?

Answer 1

• to stop overproduction
• 10.5 million acres of crops plowed over
• 6 million piglets bought and killed
• farm income rose from 4.5 million in 1932 to 6.9 million in 1935

Question 2

What was the TVA in 1933?

Answer 2

• to deal with poverty in 7 poor states with the river Tennessee
• built 20 dams

Question 3

What was the emergency banking relief act in 1933?

Answer 3

• gave treasury the power to investigate banks

- intended to restore confidence

Question 4

what was the 1933 glass Steagall act?

Answer 4

• increased regulation of the banks (insurance of $2500 and only certain banks could invest in stocks)
• strengthened emergency banking relief act

Question 5

What was the NRA?

Answer 5

• to help with industrial recovery
• temporarily lifted anti-trust measures
• introduce codes of practice like higher minimum wage but most ineffective

Question 6

What was the PWA?

Answer 6

• “pump priming” into public works to boost the economy
• $3.3 billion invested
• built 13,000 schools and 50,000 miles of road

Question 7

What was the 1933 Federal emergency relief act?

Answer 7

• Gave $500 million to states to provide welfare for unemployed (many states reluctant)
  (first, act to do so … unusual for Republicans)

Question 8

What was the CCC in 1933?

Answer 8

• to get unemployed men (17-24) working

- worked in national parks and planted 1.3 billion trees

Question 9

what was the federal home loan bank act by Hoover in 1932?

Answer 9

stop evictions by making the credit for mortgages easier (loans couldn’t be more than 50% of mortgage)

Question 10

what was the reconstruction finance corporation (RFC) set up by Hoover in 1932?

Answer 10

• lend up to 2 billion to institutes like banks

- 50% went to 7 largest banks as the government wanted them to stay solvent

Question 11

what was the emergency relief construction act by Hoover in 1932?

Answer 11

• allowed RFC to lend 1.5 billion for state public works to increase employment
• (states had to be couldn’t and pay off the loan)

Question 12

what was hoovers approach to dealing with the depression?

Answer 12

• people should help themselves
  loans for state and industry to boost the economy
• increase tariffs to 40% to stop competition (lost 1.2 billion in foreign trade by 1931)
• try to help unemployment with relief and charities

Question 13

why did hoovers policies fail?

Answer 13

• tied to laissez-faire
• the government thought he did too much but the public not enough
• refused direct government intervention