Food Drug and Cosmetic Act: The government gave the authority to oversee food, drugs, and cosmetics. FDA (food and drug administration). Still in place today. Inspired by an accident that killed people. Made sure people labeled items and were safe. Started in 1938.
Banking act of 1935- The FDIC was originally created in 1933. In 1935 it created a board to regulate the nation's money supply and the interest rates on loans. By 1935, 26 banks that were FDIC insured failed. The amount of money that a bank could insure was up to 250,000.
The FDIC- Insures people's money in banks.
Agricultural Adjustment Act (AAA)- It was an act the government passed to pay farmers to not plant some crops and kill extra livestock. 1st act in 1933, 2nd act in 1938 (100 days). It was created to balance out supply and demand. Farmers got this money by putting tax on comapanies that produced farm goods. Left some tenant farmers without jobs and homes. Act was declared unconstitutional in 1936. Put it back in place in 1938 but was more complex and didn't require a social tax (raxes everybody). Still around.
Deficit Spending- when the government spends more money than what they can make in a certain period of time. Roosevelt thought it would be needed in hard times. Didn't want to go further in debt, but felt like we had to keep spending more. We start to gain more money in 1938, when the new deal stopped. Some people thought it was unnecessary.
Priming the Pump- A term used for the process of the government spending deficits during the recession to burst the economy up to a better state which helped business. The method is still used today when the economy goes down.
FDR vs. The Supreme Court- When Roosevelt was elected, ha saw a chance to confront the Supreme court because they invalidated the NIRA (National Industrial Recovery Act) and in 1936, the AAA (Agricultural Adjustment Administration).They deemed them unconstitutional for taxing one group of citizens. Roosevelt didn't want them to do that to the Social Security act. He resolved to reorganize the court to stop them from denying anything els. He said that for every justice over 70 years old, he wanted to add a new justice (9ppl to 15ppl). The new people were to help sway votes to Roosevelt. The votes use to be a 5-4 vote. It still didn't help him, because ppl questioned that he was trying to get too powerful.
- Describe the cycle of the Great Depression:
- Why did people criticize the New Deal?
I had this topic.
- Why was FDR upset with the US Supreme Court and what did he do to try to solve this issue?
- How did the New Deal help:
unemployed (also C.C.C.) - Public Works Administration- Spent money to reate jobs, and funded construction of more than 34,000 projects. Funded building airports, dams, hospitals, and schools. Beiggest failure was only building 25,000 homes in four and a half years. Still around today.
- TVA- (also under farmers)Created by congress, made to develop the Tennessee River System. It helped National Defense, used to generate surplus electicity to avert the waste of water power, and help flood control. It helped replant forests, provide electricity, and stopped floods. Created on May 18th, 1933. Still around today, largest public power company in U.S. Provided recreation and protects water quality.
- Federal Emergency relief Act- provided relief for people. Gave states 3 billion to help relief. One of the first relief programs. Reconstructed parks and recreational facilities.
farmers: - R.E.A.- I had this topic.
- Soil COnservation and Domestic Allotment Act- Made government pay farmers to reduce over production of crops resulting in erosion. Was put in place to help end dust bowl when intese soil erosion allowed wind to lift soil from the earth. This act helpeed the rivers, and the land.
- The Farm Security Administration- Originated as and assortment fo projects combined in 1935. Goal was to encourage farmers to farm less. It helped tenatn farmers purchse farms by providing loans. Some of the loans went to new equipment to help make farms more efficient. Helped teach women to cook and raise kids. Established a health orginization.Thought tennant farmers were the cause of rural poverty.
factory workers/labor
young people - C.C.C.- Civilian Cnservation Corps-promised to survive meals, housing, uniforms, and small wages to 250,000 young mans. The were 300 possible lines of work in the CCC. It had a seperate division for indians. It was the most popular of the division, but disbanded in 1942 (mainly for war). Ages 18-25 went into the CCC. Paid about 30 dollars a month.
banks/business (stock market) - Securities Exchange Commission- protects investors and maintians fair, orderly, and well established markets. Helps regulate the market so people have a higher chance at their investments paying off. Helped restore peoples confidence to put their money back into the stock market. They watch over the stock market and get rid of corruption, making people's money safer. Gives you an idea of how the companie you invested in is doing.
- homeowners
- Works Progress Administration- Largest New Deal Agency helped citizens that were suffering from the Depression by providing relief, constructing schools, parks, bridges, and giving citizens clothes, food, and places to live. Tried to employee as many unemployed people on relieve until they could recover. THis also helped many people in the arts such as arts, drama, media, andliteracy. Helped give them jobs by painting mierals, and putting on shows. This organization was a heavy tax burden. Trained women for demostic employment, built libraries, bridges, hospitals, and hundreds of thousands of jobs. Went a lot further than other orginizations. Ended in 1946 to prepare for WW2.
- Home Owner's Loan Corporation- Tried to refinance home mortgages to prevent foreclosure. Granted long term mortgages to over a million people. Sold bonds to lenders in exchange for mortgages to back up this fund. Huge for Amerian home owner's. Would stretch loans to up to twenty years. Was one of the most successful operations.
elderly- Social Security Act- Labor Relations
- National Labor Relations Act- Created to protect the rights of employees and employers. Made to stop specific labor and managment practices that are able to harm welfare of th workers, the U.S. economy, and businesses. Unions eventually became very powerful, and if you weren't in a labor union, you didn't get treated well. Helped prevent unfair business practices, organized labor unions, makes sure provisions are being followed properly. Still around today. Helped employers and emplees get along better.
Native Americans- Describe the culture of the 1930's.
- Key terms:
Hundred Days-
fireside chats- FDR started the first one as the government of New York to reach out to the people. Using the radio to communicate with the people to explain the economy. called fireside chats because he'd talk to them casually at nights. Ment to calm down the country, ment to gain support from country. He often would try to talk with the kids also. First one as in 1933, explaining why the banks failed, and many people put their money back into the banks. It helped to calm the country.
priming the pump-
deficit spending-
What was the New Deal(1st and 2nd) and it's goals(3 R's)?
The First Deal- Based on the the 3 R's Relief, Recovery, and Reform. It Consisted of several economic programs that would help America get back on its feet. Put in effect after the Great depression. America needed confidence and Economic Stability.
The Second New Deal- 1934- 1936. More of a second stage, called for differedt objectives than the first deal. Including improve use of natural resources.
Differences:
They called for different objectives to what they needed at the time. FIrst deal helped bankers, railroad, business industry, and farmers.
The Second New Deal created Acts and administrations like the Social Security Act and the works Progess Administration. Theese helped make our economy better and safer by making laws such as labor laws.
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