Theme 2: Depression and New Deal

Question 1

how did unemployment change throughout 1929-33?

Answer 1

1929: 3.14% of workforce
1933: 24.75% of workforce

Question 2

what was the national wage bill in 1932?

Answer 2

40% of the 1929 figure

Question 3

what was the GDP in 1929 and 1933?

Answer 3

1929: $103.8 billion
1933: $56.2 billion

Question 4

how many migrant workers were there by 1932?

Answer 4

1 million

Question 5

what was homelessness and hoovervilles?

Answer 5

Many lost their homes as a result of becoming unemployed and moved to the outskirts of urban areas. Shanty towns, sometimes homing thousands of people, grew as a result. Hoover was blamed for the lack of relief and support

Question 6

how did the depression impact families?

Answer 6

Huge strain. Suicide rates increased from 14 per 10,000 in 1929 to 17.4 by 1932.

Question 7

how did the depression impact black americans?

Answer 7

4 - 6 times more likely to lose their jobs than white people.
Most sharecroppers were black Americans in the rural South.

Question 8

how did the depression impact native americans?

Answer 8

already living in poverty on their reservations due to the Dawes Severalty Act 1887.

Question 9

how did the depression impact hispanic americans?

Answer 9

400,000 Hispanic Americans were deported to Latin America despite living in the USA their whole lives.

Question 10

how did the depression impact women?

Answer 10

More likely to lose jobs than men.
48 states banned the employment of married women.
In 1931, there were 3.8 million one parent families headed by women and only 19,280 in receipt of any aid.

Question 11

how did the depression affect gangsterism?

Answer 11

Huge increase in violent crime. FBI Public Enemy Number One, Clyde Barrow, of the Bonnie and Clyde gang, rose to fame for their Robin Hood status.

Question 12

what were the effects of the smoot-hawley tariff?

Answer 12

July 1930, highest tariff in US history. 40% tax on both industrial and agricultural imports. Led to a devastating fall in international trade, harming industry and agriculture further.

Question 13

what was the reconstruction finance corporation? 1932

Answer 13

set up to lend up to $2 billion to banks and financial institutions. In reality, the RFC helped the largest institutions: 50% of loans went to the 7 largest banks.

Question 14

what was the Emergency Relief Construction Act 1932?

Answer 14

Set up to authorise the RFC to lend up to $1.5 billion to states to finance public works, which would provide employment. But states had to be bankrupt to qualify.

Question 15

relief: what was the Federal Emergency Relief Administration (FERA)?

Answer 15

• Given $500 million to divide equally among states to provide unemployment relief
• Half given by FERA to the states
  -Other half kept back, to give states $1 for every $3 of their own funds they spent on relief
  -Some states refused to comply
  -Insufficient for scale of problem but set precedent for direct government relief

Question 16

what was the Public works admin (PWA)?

Answer 16

funded with $3.3 billion with the aim of pump priming (pumping government money in to get things working again)

Question 17

what was hoped for in spending money on public work plans?

Answer 17

The hope was that spending on public works such as road building would stimulate the economy and create permanent jobs.

Question 18

what were 2 drawback of these public work projects?

Answer 18

Many workers ended up unemployed again after contracts ended
Offered temporary relief but less successful in long term recovery

Question 19

what was the CCC?

Answer 19

This was one of Roosevelt’s proudest agencies. By 1935, 500,000 young people (mainly men) were given useful jobs such as tree conservation in national parks.

Question 20

what was the emergency banking relief act of march 1933?

Answer 20

-6th March 1933, all banks closed for 4 days
-He gave the first fireside chat aiming to restore confidence in the banks again by explaining the situation in simple terms
-EBRA gave the Treasury authority to investigate any bank, and Reconstruction Finance Corporation was authorised to buy up their debts
-By 1st April, $1 billion had been redeposited in banks

Question 21

what was the glass steagall act?

Answer 21

Longer term measure that aimed to reform banking system to prevent another collapse.

Question 22

what were the features to the glass steagall act?

Answer 22

-Banned savings banks from speculative investment
-Gave Federal Reserve Board more ability to supervise and regulate
-Set up Federal Deposit Insurance Corporation which insured individual bank deposits of up to $2,500. State banks had to join the Federal Reserve system to qualify

Question 23

what were criticisms of the glass steagall act?

Answer 23

• Criticisms: Some wanted more direct government control; some felt banks were being subsidised to stay open as a reward for their inefficiency; Federal Reserve given too much control.

Question 24

what was the truth in securities act?

Answer 24

brokers had to be honest about securities they were selling

Question 25

what was the securities act 1934?

Answer 25

set up the Securities Exchange Commission (SEC) to oversee the stock market and prevent fraudulent activities such as insider dealing

Question 26

opposition from the right (new deal was too radical)

Answer 26

-Government involvement too direct, taxes too high to pay for ND
-Liberty League formed April 1934 with some Democrats and -Republicans who believed free market economy should be left alone. Fell away after Roosevelt’s 1936 Presidential victory

Question 27

opposition from the left (new deal was not doing enough)

Answer 27

End Poverty in California (EPIC) idea of Upton Sinclair which attracted initial popularity. Unemployed people would work in state-run cooperatives and be paid in a currency to spend in other cooperatives.
- thunder on the left

Question 28

Huey long

Answer 28

‘share our wealth’
Confiscate all private fortunes over $3 million; Government fund old age pensions and introduce minimum wage; guarantee every family income of $2,000 - $3,000 a year.
Roosevelt worried Long would stand against him in 1936 election, but he was assassinated in 1935

Question 29

what was the 1935 Wagner act?

Answer 29

-First time ever that Labour Unions were given legal rights
Set up National Labour Relations Board to ensure fair play between employers and workforce in disputes
-Initiated in Congress but backed by Roosevelt
-Labour Unions in the USA had often been treated with hostility by employers, who adopted ‘yellow dog clauses’ preventing employees from joining unions. The NRA outlawed this. However big employers like Henry Ford still intimidated workers.

Question 30

what was the social security act 1935?

Answer 30

First ever direct measure of government welfare, major break break from traditional role of federal gov.
Set up Old Age Pension, although small, set the way for future
Unemployment benefit given for up to 16 weeks
Had to be self financing, people paid into the pension scheme
Significant omissions, such as domestic and agricultural workers

Question 31

what was the 1935 revenue act?

Answer 31

The ‘Soak the Rich’ Act, which increased taxes. Max tax on incomes over $50,000 went from 50% to 75%. But only 1% of population earned over $10,000

Question 32

what was opposition from the supreme court like?

Answer 32

As the New Deal developed in the 1930s the SC increasingly declared legislation unconstitutional
‘Black Monday’ 27th May 1935, found several pieces of legislation unconstitutional including NIRA and AAA.
The Sick Chicken case: NIRA prosecuted New York butchers, resulting in Supreme Court declaring NIRA codes unconstitutional
The Judiciary Reform Bill: Roosevelt’s attempt to stop SC opposition was to increase it from 9 to 15 judges, and force them to retire at 70, thus filling the court with Presidential appointments (his choices!). Did not go through and increased opposition.

Question 33

what was opposition from the wealthy cons like?

Answer 33

Not just Republicans, but more conservative Democrats began to think Roosevelt had too much power
December 1937 Conservative Manifesto issued calling for lower taxes
Mid-term elections 1938 Roosevelt supported liberal rather than conservative Democrats - achieved little