The Roosevelt Recession 1937-8

Question 1

What arguably caused the Roosevelt Recession?

Answer 1

Fed expenditure cut June 1937 in an attempt to reduce deficit spending

Question 2

How much did unemployment rise?

Answer 2

7.5 million in 11 months

Question 3

How much did social security benefits subsequently cost?

Answer 3

$2 billion

Question 4

How much did employment drop by?

Answer 4

23%

Question 5

How much did the production of luxury goods reduce?

Answer 5

50%

Question 6

What did the overall national income fall by?

Answer 6

13%

Question 7

Which % of the New Deal gains were lost?

Answer 7

66%

Question 8

How much did farm prices fall?

Answer 8

20%

Question 9

What was significant about the fall in index?

Answer 9

It was faster than in the initial Depression

Question 10

What was the Temporary National Economic Committee

Answer 10

Set up to investigate business fixing prices (big business was made a scapegoat for the R Recession)
However did not report until the recession was over - in reality FDR did not want to take on big corporations although it verbally attacked them

Question 11

How did FDR attempt to end the Roosevelt Recession?

Answer 11

Returned to deficit spending, $3.8 million relief budget (most to WPA and PWA)

Question 12

What was unemployment by 1939?

Answer 12

Still 9 million

Question 13

What ended the R Recession?

Answer 13

WW2