Friday, February 3rd

[6Kenzie]

Chapter 15

Describe the cycle of the Great Depression?

What was the New Deal(1st and 2nd) and it's goals(3 R's)?

---1st:

• Roosevelt's response to the depression
• Brain trust was who came up with the new deal
• Bank holiday- help recover

---2nd:

• Promoted labor unions
• WPA relief programs
• Social security acts
• CCC
• HOLC

---3 R'S:

• Reform - programs to avoid another depression and insure citizens against economic disasters
• Recovery - temporary programs to restart the flow of consumer demand
• Relief - immediate action taken to stop the economy crashing

Why did people criticize the New Deal?

• Failed to end the Great Depression

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 -

---TVA: Tennessee Valley Authority

• Created to provide navigation, flood control, electricity generation, fertilizer manufacturing and economic development
• provides electric power to over nine million customers in the Tennessee Valey
• Primary electric power
• comes from dams, fossil fuel plants and nuclear power plants

---RFC:

• --established in desire to lend money to banks, railroadss and other key economic insitutions to make sure these instiutions would remain in business.
• --The RFC would borrow money from Treasury funds to make money
• --Congress provided the agency with a starting amount of $500 million
• --Allowed to borrow up to 32 million dollars
• --Emergency Relief and Construction Act -power or loans
• --designed for helping banks but sometimes people would panic

---CWA:

• --established on November 8th, 1933
• --Created under FERA
• --Built buildings, bridges and playgrounds (manual labor work)
• --Ended on March 31st, 1934
• --12 million feet of swer pipe, 155,000 miles of raod, 50,000 schools, 3,700 playgrounds, 1,000 airports, 250,000 outhouses
• --Got paid average & not minimum
• --Spent $200 million per month, created over 4 million jobs

WPA: Works Progress Administration

• --biggest and most ambitious New Deal project
• --established in 1935
• --biggest of New Deal
• --operated arts, drama, media and literacy projects (helped run them)
• --successful

farmers

---REA

• Thought farmers couldn't afford it 
• Created to bring electricity to rural area
• Pushed more private utilities to stretch electric lines to countryside as well
• Rural Utilities Services took over

---Agricultural Adjustment Act of 1933

• a united states federal law of the New Deal era which restricted agricultural production by paying farmers subsidies not to plant part of their land and to kill of excess livestock
• subsidies 
• reduce crop surplus
• raise value of the crops
• created a new agency to oversee the distribution of the subsides (AAA)
• money for the subsides was generated through a tax
• ruled unconstitutional 

---Agricultural Adjustment Act of 1938

• was legislation in the United States that was enacted as an alternative and replacement for the farm subsidies policies; in previous New Deal farm legislation had been found unconsitunial
• make price support mandatory for corn, cotton and wheat

---Soil Conservation and Domestic Allotment Act of 1936

• allowed the government to pay farmers to decrease production so as to conserve soil, prevent erosion and achieve other minor goals
• corrected problems from the previous act
• gave directives to conserve the soil in "high plains"
• immediate actions to contain the dust bowl effects (teach farmers how to take care of their land)

factory workers/labor

--Farm Security Administration (FSA)

• Formed to help poor rural Americans become more self sufficient during the depression
• Created programs such as Farm Loans, Rural Rehabilitation
• Homestead Programs
• Farmers couldn't get credit else where
• Participate in Health Plans
• Take advantage of Educational Training
• Use loan money for home, and sanitary improvements
• Government buyout of unproductive land
• setting up of homestead communities with government supervision (homestead program)
• Critics call FSA wasteful and un-American
• By 1943 the program had lost most of its funding
• Became the Farmer's Home Administration in 1946

---Home Owners Loan Corporation

• Passed in 1933 and was created to assist in the refinancing of homes
• Helped people by buying up mortgage from banks
• Refinanced them up to 80% of assessed value at a lower interest rate
• Extended loans from shorter to longer terms so homeowners would be able to make payments
• Stopped lending in 1935

young people

NYA: National Youth Administration:

• to provide work training based on citizenship and financial need for youth between ages 16 and 25
• offered courses in reading, writing, and arithmetic
• operated in 2 programs; Works Project Program, Student Aid Program
• Successful for a little bit; lessened the unemployment rate
• With war approaching,  jobs were switched to war work
• All work not contributed to war was ceased in 1943
• Was abandoned in 1943 when war came 

CCC:
--public work relief program for unemployed men from relief families aging from 18-25
--provided unskilled manual labor jobs related to the conservation and development of natural resources in rural lands owned by federal, state and local governments
--possible 300 jobs supplied
--structural improvements, transportation, erosion control, flood control, forest culture, forest protection
--one of the most successful programs of the New Deal
--provided financial relief
--provided conservation projects


banks/business/stock market

---SEC

• regulation of the stock market
• prevented corporations and big investors from abusing and playing stock market
• companies submitting a quarterly and annuel reports 
• very successful; financial world safer place

---NRA

• bring industry, labor and government together to make rules and set prices
• created by the National Industry Recovery Act
• reduce destructive competition
• set minimum wages and weekly work hours
• 40 hour work week
• 36 hour work week for industrial workers
• abolished child labor
• trade unions could organize
• exercise the right of collective bargaining
• didn't really help small businesses or consumers but did improve labor conditions

---Banking Act of 1935

• permitted the FDIC authority to provide deposit insurance to banks
• permanent government organization
• gave the FDIC authority to regulate and supervise state non - member banks
• FDIC: Federal Deposit Insurance Corp: still around and operating today

---Glass-Steagall Act / Banking Act of 1933

• prohibits commercial banks from engaging in the investment business
• Not around anymore
• home owners

---EBRA: Emergency Banking Relief Act of 1933

• Allow president to take over non financially stable banks and direct the Federal Reserve to make unsecure loans to them and reopen when he wants
• Allow banks to stay open
• Banks would have to shut down; could loan money to customers
• Made lower income people happy; be able to receive loans
• Not still around; banks were better

---FSA: Federal Securities Act (1933)

• securities- a fungible neogciable financial instrument representing financial value (ex: stocks, bonds, futures)
• the primary purpose was to ensure that buyers of securities receive complete and accurate info before they invest
• prospectus- where a company tells an investor their plans for the future and discuss their financial statements

elderly

---SSA

• pay taxes; and when retire get money back
• was successful
• now it's having trouble finding money
• Native Americans

Indian Reorganization Act

•  secured the new rights of native americans by giving them rights to manage their land and resources

Dawes Act

• authorized the President of the US to survey tribal land and divide it up for individuals
• Indians could have their own separate government and not need to have the same laws
• Their court is almost like ours but penalties were different
• Indians were given their own land and could split it up with they wanted

Describe the culture of the 1930's.

consumers- 

---FD&C (Food, Drug and Cosmetics) Act

• gave the FDA the authority to oversee the safety of food, drugs and cosmetics
• food coloring; any chemicals that didn't already come from a natural substance have to go through a series of tests to make sure that they're safe for consumption

Key Terms:

Hundred Days -

• concept by Roosevelt
• he was very optiomistic
• created bills
• 15 major bills passed in first hundred days

Fireside chats -

• Roosevelt would have a little "news" via radio and people would listen to it

Priming the Pump -

• had to get our economy jump started; get our economy up & going again; spend money

Deficit Spending -

• the amount by which a government, private company, or individual's spending exceeds income over a particular period of time

Music & Movies -

• wizards of oz
• horror movies were reborn in 1930's; gothic movies
• country music

---FERA

• direct relief measures
• gave clothes/food out
• money directly to people

---PWA (public works administration)

• make jobs for people; construction
• hospitals, roads, etc
• 34,000 projects (airports, dams, bridges)
• 70% of new schools built
• 33% of all hospitals

---United States Housing Authority

• help people without much money buy houses

---Federal Housing Administration

• improve housing conditions
• extend mortgage loans to help people keep their homes

-----Blog Discussion

• Rhianna - Francis Perkins (first women cabinet)
• Logan - FDR's election of 1932/campaign - Al Smith
• Jordan - helping young people so they can stay in school but still have money/part time job
• Morgan - Adventures of Robin Hood  & Snow White
• Dalton - Architecture and Assassination