Describe the cycle of the Great Depression?
*What was the New Deal(1st and 2nd) and it's goals(3 R's)?
*1st: response to depression, dealt with banks, railroads, and industrial
*The Brain Trust was the group that came up with the new deal
*Bank Holiday to help them recover
*2nd: Wagner act promoted labor unions, WPA relief programs, Social Security Act
*First focused on economic recovery
*2nd focused on social justice
*1st was more to get out of depression
*2nd was to stay out of depression
Why did people criticize the New Deal?
Failed to end the Great Depression. FDR allowed budget
Why was FDR upset with the US Supreme Court and what did he do to try to solve this issue?
Because they said his plans were unconstitutional. FDR proposed 6 more judges to the Supreme Courts. All new judges would be in favor of the New Deal.
How did the New Deal help:
Unemployed: Civil Works Administration was established on November 8th 1933. Created under FERA. Built buildings, bridges, and playgrounds. Built 12 million feet of sewer pipes, 255,000 miles of road, 40,000 schools, 3,700 playgrounds, 1,000 airports, 250,000 outhouses. Ended on March 31, 1934. Spent $200 million per month and created over 4 million jobs.
Works Progress Administration was established in 1935. Biggest and most ambitious. Helped built public buildings and roads, operated arts, drama, media, and literacy projects. Closed on June 30th 1943 due to low employment. Original budget $1.4 billion dollars and over the course of 8 years spent $13.6 billion dollars.
Tennessee Valley Authority Act was one of the first federal hyropower agencies. Was created to provide navigation, flood control, electricity generation, fertilizer manuracturing, and economic development in the Tennessee Valley. FDR signed the Act on May 1933. Inclused most of Tennessee, portions of Alabama, Mississippi, Kentucky, and some of Georgia, North Carolina, and Virgina. Provides electric power to over nine million customers in the Tennessee Valley. Power comes from dams, fossil fuel plants, nuclear power plants, combustion turbines, wind turbines, and solar panels.
Farmers: Farm Security Administration formed to help poor rural Americans become more self sufficient during the depression. It created programs such as farm loans, rural hehailitation and homestead programs. Farm Loan Purchases: land, equipment, seed and livestock.
Rural Electricification Administration created in 1935 to bring electricity to rural areas. Served 288,000 households. The actions of the REA pushed privite utilities to stretch electric lines to the countryside as well. By 1939 rural households with electricity had risen to 25%. Farmers needed electricity more than city people. REA was abolished in 1994. The Rural Utilites took over.
Factory workers/labor: National Relief Administration was to bring industry, labor and government together to make rules and set prices. Created by the National Industry Recovery Act. It reduced destructive competition, set minimum wages and weekly work hours. 40 hour work week, 36 hour work week for industrial workers. Affected over 22 million workers in the United States. It abolished child labor, trade unions could organize, exercise the right of collective bargaining. It was declared unconstitutional.
National Labor Relation Act was sponsored by Robert F Wagner. It is a federal law that limits how employees can react to labor unions, engage in collective bargaining, and particicate in strikes (allowed the government to intervene in more labor relations). It encourages and promotes collective bargaining. Protects groups of employees. Gives employees the rights to bargain with their employees. Prohibits discriminating employees who files charges or support a labor union.
Fair Labor Standards Act was established a national minimum wage., “time and a half.” Minimum wage started at $.025 in 1938 across the nation. Limits the hours in a day or week for anyone under 16 years of age. When working overtime, a worker would get paid their regular rate plus half or it.
Young People: Civilian Conservation Corporation was a public work program that gave jobs to men for relief families that were 18-25 years old. Provided unskilld manual labor jobs related to the conservation and developlement of natural resources in rural lands owned by federal, state, and local governments. Preformed to supply a possible 300 jobs. Structural improvments such as bridges and service buildings. Transportation like truck trails, minor roads and foot trails. Erosion Control, Flood Control, Forest Control, Forest Protection, Forest Culture, Landscape adn Recreation, and Range which is elimination of predatory animals and Wildlife and Miscellaneous. Most successful program in the New Deal. It provided financial relief, provided conservation projects. Families were grateful for the CCC. CCC folded in July 1942.
National Youth Administration provided work training based on citizenship and financial need for youth between ages 16 and 25. Offered courses in reading, writing, and arithmetic. Operated 2 programs, Works Project Program and Student Aid Program. It first lessened the unemployment rate greatly. With war approaching, jobs were switched to war work. All work not contributed to war was ceased in 1943.
Banks/business: Glass-Steagall Act(prohibits commerical banks from investing money in the stocks)
Emergency Banking Relief Act was established in 1933. It was the first act passed in Roosevelt’s “New Deal.” EBRA allows president to take over non financially stable banks and direct the Federal Reserve to make unsecure loans to them and reopen when he wants. It allowed banks to stay open and do business as normal. Banks would have shut down. Could loan money to customers who normally would have been denied loans. It made lower income people happy and able to receive loans and banks were still running and not shut down.
Banking Act of 1935 was established the FDIC as a permanent government corporation. It gave the FDIC the authority to regulate and supervise state non-member banks. Separated commercial and investment banking. Prohibited banks from paying interest on checking accounts. Allowed national banks to branch statewide, if allowed by the state law.
Stock Market: The Federal Securities Act was passed in May 1933. Securities is a fungible, negociable financial instrument representing financial value. Example, stocks, bonds, and futures. The primary purpose was to ensure that buyers of securities receive complete and accurate information before they invest. Prospecus is where a company tells an investor their plans for the future and sidcuss their financial statements.
Home Owners: RFC was established in desire to lend money to banks, railroads, and other key economic institutions to make sure these institutions would remain in business. In order to lend money, RFC had to borrow money from Treasury funds. Congress provided a starting amount of $500 million. Allowed to borrow up to $2 million. Bankers became reluctant to borrow money from the RFC in fear that depositors would panic in fear that their bank was failing. Was abolished as an independent agency by the act of congress in 1953. Disbanded in 1957.
Home Owner Loan Corporation was pased in 1933 and was created to assist in the refinancing of homes. Helped people by buying up mortgages from banks. Refinanced them up to 80% assessed value at a lower interest rate. Exteneded loans from shorter to longer terms so homeowners would be able to make payments.
Elderly: Social Security Administration(SSA):
Native Americans: The Indian Reorganization Act also know as the Wheeler-Howard Act. It secured the new rights of native americans by gibing them the right to manage their land and resources. It helped them get a good economic foundation. It replaced the Dawes Act- It authorized the PResident of the US to surbey tribal land and divide it up for individual Indians.
Consumers: FD&C is the Food, Drugs, and Cosmetics Act it gave the FDA the authority to oversee the safety of food, drugs and cosmetics. Food coloring is any chemicals that didn’t already come from a natural substance have to go through a series of tests to make sure that they are safe for consumtion. Bottled water is regulated by FDA as a food. This Act defines cosmetics as products for cleansing or beautifying.
Housing: United States Housing Authority Act would help people who don’t have enough money to buy houses. Is a United States government agency created as part of the Nation Housing Act of 1934. Insured loans made by banks and other private lenders for home building and home buyings. It provided a adequate house financing. FHA insures mortgages on single family homes and hospitals. Largest insure of mortgages in the world insuring ove 34 million properties.
Describe the culture of the 1930's.
Key terms:
Hundred Days: concept by FDR that was that he'd do all he could during the first hundred days and he dealt with congress theses first 100 days. He had 15 major bills passed in his first 100 days
Fireside chats: Series of radio broadcasts from the Roosevelt to talk to the people. (First on in 1929)
Priming the pump: you have to prime the pump before you get the water. Get the gas flowing. And thats how you keep the cycle going.
Deficit spending: is spending money that you dont have. Gets governement into a bigger debt than they already are. Example was the Hoover Dam
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