The New Deal Flashcards
1
Q
What were the 3 R’s?
A
- relief
- reform
- recovery
2
Q
What was relief?
A
- financial aid for the poor
3
Q
What was reform?
A
- making a change to ensure the GD never happens again
4
Q
What was recovery?
A
- jobs for the 13 million unemployed
5
Q
What was Roosevelt’s first change?
A
- The Emergency Banking Act
↳ closed all banks for 4 days
↳ only allowed trustworthy banks and banks with enough money to reopen
6
Q
What was the impact of the Emergency Banking Act?
A
- people put $1 billion back into banks
7
Q
What was Roosevelt’s second change? How much did this save?
A
- The Economy Act
↳ cut the pay of everyone working for the government and armed forces by 15%
↳ saved $1 bn
8
Q
What was Roosevelt’s third change?
A
- the Beer Act
↳ made it legal to sell and produce alcohol again
9
Q
What was the impact of the Beer Act?
A
- government made money by taxing alcohol
- put gangsters out of business
10
Q
What was Roosevelt’s ‘Brain Trust’?
A
- a group of highly intelligent people, who came up with ideas to deal with the Great Depression, for Roosevelt.
11
Q
What was Roosevelt’s theory behind his Alphabet Agencies?
A
- ‘Priming the Pump’
↳ government spends money to create jobs, more people earn wages & pay taxes etc.
12
Q
What was FERA?
A
- Federal Emergency Relief Administration
↳ $500 million was given to the poor,
↳ spent on blankets, clothes, soup kitchens etc.
13
Q
What was AAA?
A
- Agricultural Adjustment Agency
↳ paid farmers to produce less food and destroy crops
14
Q
What was the impact of the AAA on farmers?
A
between 1933 and 1939, farmers’ income doubled
15
Q
Why was the AAA controversial?
A
food was being destroyed while millions were starving
