The New Deal Flashcards
What was the public perception of President Herbert Hoover?
❑ President Hoover did little to help the American people
❑ Believed the American Government shouldn’t interfere in the economy
❑ American people shouldn’t rely on Government handouts Showed very little sympathy for the American people
When exactly did a change in presidency occur in the 1920-30s? Who became president?
• Franklin D. Roosevelt elected President in 1932
❑ Promised American’s a ‘New Deal’
❑ Fight and recover from the Great Depression
❑ Inaugurated on the 4 March 1933
What was the new deal? When was it implemented?
The new deal was a series of programs, public work projects, financial reforms, and regulations enacted by president Franklin D Roosevelt. It was implemented 1933 to 1938.
What did the new deal aim to do?
Provide:
• Relief: immediate relief for those worst affected
• Recovery: promote recovery of the economy by getting people jobs
• Reform: reform economic policies to avoid a similar event
What methods did the new deal use to achieve their aims?
• ‘Fireside chats’, used radio to address the American people
• ‘Brains trust’ – educated specialists to aid him
• ‘Alphabet Agencies’ – New Government Agencies
• First 100 days (March-June 1933)
• Initially focused on Relief and Recovery - First New Deal, 1933-1935
• Then Reform – Second New Deal, 1935-1939
Discuss the first New Deal.
The First New Deal (1933-1935)
•Main Focus was Relief and Recovery
•Focused on four key areas:
❑ The Financial Crisis
❑ Unemployment
❑ Agriculture
❑ Industrial Collapse
Expand on the financial crisis as a key area of focus in the first new deal.
• First problem Roosevelt faced
• Closed all banks
• EMERGENCY BANKING RELIEF ACT passed on 9 March 1933
• Only allowed financially sound banks (banks that had capital) to re-open with Federal support
• First “fireside chat” broadcast on radio reassuring the American people that all reopened banks were safe
• The Economy Act 15 March 1933
❑ Government and armed forces pay cut by 15%
❑ Government departmental spending cut 25%
❑ Saved money ($1 billion) went to financing New Deal
• The Federal Emergency Relief Administration (FERA)
❑ Relief given to states to help unemployed and homeless people
Expand on the unemployment crisis as a key area of focus in the first new deal.
• Various projects to employ people – built schools, flood control projects, built bridges, hospitals, etc. Done by money borrowed from the government
• The Civilian Conservation Corps (CCC)
❑ gave work and taught skills to 3 million unemployed young men
❑ Provided conservation work (erosion control, tree planting, forest fighting and flood control projects)
• The Public Works Administration (PWA)
❑ Government funding to build schools, hospitals, bridges, and
other public buildings
❑ Roads, Dams, Sewerage systems etc. also included
• The Civil Works Administration (CWA)
❑ Provided work for the unemployed
❑ Built roads, airports etc. built
❑ Actors and writers employed on creative projects
Expand on the agricultural crisis as a key area of focus in the first new deal.
• The Agricultural Adjustment Administration (AAA)
❑ Paid farmers subsidies to reduce production and destroy crops
and livestock
❑ Reduce surpluses and stabilise prices
• The Tennessee Valley Authority (TVA)
❑ Built dams to control flooding and provide hydro-electricity for
industries
❑ Power stations built to provide cheap electricity ❑ Planted trees to stop erosion
❑ Create jobs
Expand on the industrial collapse crisis as a key area of focus in the first new deal.
• Promote RECOVERY by increasing wages – making it possible for workers to buy more
• National Recovery Administration (NRA)
❑ created codes for industries that regulated competition (fixed prices), set minimum wage, limit working hours and ban child labour
❑ Federal government controlled industry and stabilised production
Discuss the second new deal.
Second New Deal (1935-1939)
• Main aim during this period was REFORM
• Renewed and intensified efforts begun under the first
New Deal
❑ enlarged unemployment relief program
❑ Assistance to rural poor
❑ Support for organised labour
❑ Social welfare benefits for elderly and disadvantaged
❑ Strict regulation of business and finance
❑ Heavier taxes on wealthy
What legislations did the second New Deal implement?
Social Security Act
❑ Old-age pensions, health benefits, unemployment insurance, child welfare, and poor relief
Works Progress Administration (WPA)
❑ construction and conservation programmes
❑ gave work to unemployed actors, writers, musicians, teachers, artists etc.
What were the ‘Alphabet Agencies?’
The Alphabet Agencies were set up to help reverse the ‘Spiral of Depression.’
The main aim was to pump money back into the economy by giving the unemployed people jobs.
Not everyone within the Democratic Party agreed exactly how this should be done.
What was the plan to reverse the spiral of depression?
Govt spending $ —> Alphabet Agencies providing jobs —> more jobs —> more spending —> demands for goods increases —> more goods have to be produced —> more people with jobs = more disposable income = more $ —> more spending —> Demand for goods increases —> More goods have to be produced —> more jobs —> more pay = more taxes —> cycle starts again
Discuss the opposition to the New Deal.
• Capitalists saw the New Deal as a move to Communism
• Factory owners resented the new minimum wages and
maximum working hours – affected their profits
• Resented having to pay social security contributions for their
employees
• Republicans thought FDR was too revolutionary and a
dictator who was taking power from individual states
• Wealthy didn’t like being taxed more
• Blamed FDR for ignoring the concerns of the rich
• Conservative Supreme Court Judges declared many New Deal acts unconstitutional
• Some people felt the New Deal did not do enough to end social inequalities and economic problems
