- Ch. 15 Test Topics
**My daily blog posts were not online, but I completed them.
Describe the cycle of the Great Depression?
What was the New Deal(1st and 2nd) and it's goals(3 R's)?
1st- 3R's, dealt with banking, railroads and farming, Brain Trust thought of it, there was a bank holiday to help the banks recover. 1933-1934, helped the banks and big businesses- trickle down theory.
2nd- Wagner Act- promoted labor unions, WPA relief program, SSA, fair labor unions. 1935-1936, helped the poor, get money and buy products- trickle up.
Differences- 1st economic recovery, get out of the depression.
2nd- social justice, stay out of the depression.
3R's- Relief- immediate action taken to stop the economy crashing, Rcovery- temporary programs to restart the flow of consumer demand, Reform- programs to avoid another depression and insure citezens against economic disasters.
Why did people criticize the New Deal?
Too much gov. regulations, FDR removed the gold standard, people disagreed with the social welfare programs.
Huey Long- thought New Deal was too generous to the corporate instrests.
Charles Coughlin- FDR failed to use additional radical reforms.
Francis Townsend- his plan was to open up postitions to younger workers so elders would retire, he thought FDR wasn't helping the poor or the elders.
Why was FDR upset with the US Supreme Court and what did he do to try to solve this issue?
The supreme Court thought many of the large organizations of the New Deal were unconstitutional.
It upsetted FDR because the New Deal might not be passed and it was his program to make the economy better.
How did the New Deal help:
Unemployed- - CIvil Works Administration- Created under Federal Emergency Relief Fund. It built looks buildings, bridges, and playgrounds. It was mostly manual work. 12 million feet of sewer pipe, 255,000 miles of road, 40,000 schools, 3,700 playgrounds, 1,000 airports, 250,000 outhouses. Spent $200 million per month and created 4 million jobs?
- The Works Projects Administration- Biggest and most ambitious New Deal projects
- RFC- created jobs.
- CCC- created jobs.
- CWA- Civil Works Administration-built buildings, bridges, playgrounds, created over 4 million jobs, ended on March 31, 1934.
- WPA- Works Progress Administration- biggest and most ambitions New Deal project. established in 1935. Built public buildings and roads. Closed june 30 1933 due to low unemployment.
- FERA-Federal emergency relief act-created construction jobs-set up direct relief measures—started welfare
- PWA-Public Works Administration-designed to open up construction jobs. 70% of schools about 30% of hospitals
Farmers - Agricultural Adjustment Act-AAA- may 12, 1933,A US federal law of the New Deal era which restricted agriculture production by paying farmers subsides not to pant part of their land Subsidies-finacial assistance, reduced crop surplus, raise value of crops, first modern US farm bill, money for subsidies came from taxes, ruled unconstitutional-levying a tax on the processors only to have it paid back to the farmers
- AAA-1938-a legislation in the us enacted for the alternative and replacment for the farm subsidy policies-changed how they taxed-only paid farmers who produced less. –made price support mandatory for corn, cotton, and wheat-empowered the AAA with good crops-rneamed Agriculture Adjustment Act
- Soil conservation and domestic allotment act- allowed the gov’t to pay farmers to decrease production so as to conserve soil, prevent erosion.- corrected problems from the previous acts-educated farmers how to use their land without damaging them-contained dust bowls effects. –was successful soil erosion dropped 65%-this law is still around today
- Farm Security Administration (FSA)- to help poor rural americans become more self sufficient during the depression-created farm loans they would get turned down from regular loans) for llivestock, equipment, land and, seed, Homestead Programs-government buyout of unproductive land, and rural rehabilitation-particpate in health plans, take advantage of education training, use loans money for home. –critics said it was wasteful-unamerican (very socialistic), by 1943 it lost all of its fundings-later bacame farmers home administration
Consumers
- The FD&C (Food Drug and Cosmetics Act- gave the FDA- Food and Drug Administration authority to oversee the safety of food, drugs, and cosmetics, bottled water is one example, the FDA can classify cosmetics without having to regulate them, still around today, dangerous-red.
Factory workers/labor - NRA-National Recovery Administration- part of National Industrial Recovery Act (NIRA) bring industry, labor, and government together to make rules and set prices, created by the NIRA, meant to reduce 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 U.S., abolished child labor, exercise the right of collective bargaining, companies would place banners (the blue eagle) in window if they represented the NRA, the other companies were considered selfish, did not help small businesses, but improved labor conditions, aided the ununionized movement, invalidated in 1935 the supreme court declared it unconstitutional (it was and illegal delegation of legislative authority) violated Laizze Faire
- National Labor Relations Act-AKA Wagner Act-july 19-1935- limitsw how employees can reactr to labor unions and engage in collective bargaining, and participating in strikes-allowed gov’t to intervene in the labor relations- does NOT apply to domestic employees,-encourages and promotes collective bargaining, protect group of employees, gives employees the right to bargain with their employers-prohibits discriminating employees-National labor relations board investigate unfair labor acts.-july 1935-Many people thought it was a threat to democracy because of the government intervention-still around
- Fair Labor Standards Act- Established a minimum wage “time and a Half” banned child labor-limits the hours in a day or week for anyone under age 16.-sucessful-still around after many changes min. wage is 7.29, pay can’t be based on gender.
Young people- - CCC- Civilian Conservation Corporation- A public work releif program for unemployed men who were 18-25 years old, provided unskilled manual labor jobs relatedt to the conservation and development of natural resources in rural lands owned by federal, state, and local gov., working on bridges, irrigation, truck trails, planting trees amd shrubs, fire fighting, public camp ground development, elimination of predatory animals, food stocking, surveys. Most successful program of New Deal, ended in July 1942.
- NYA-National Youth Administration-1935-transferred in 1939 to the federal security agency-provided work training based on citizenship and financial need for youth between ages 16 and 25.-offered courses in reading, writing, and arithmetic. At first it lessend the unemployment rate. -jobs were switched with war work- NYA was abandoned in 1943 when war came-was found as useless, unimportant, and expensive
Banks/business- - Glass-Steagall Act, RFC-Reconstrution Finance Corporation- lend money to banks, railroads, and other key economic institutions to make sure they would stay in business, borrowed money from treasury fund. Banks didn't want to take loans because they didn't want people thinking that they were going out of business. Ended in 1957.
- EBRA-Emergency Banking Relief Act-1933-The First act passed in the New Deal-Allowed the president to take over NON-financially stable banks and direct loans to them and reopen when he wants.-allowed banks to stay open and do business as normal.- loaned money to costomers who normally would have been denied loans.-successful-banks were still running and not shut down-was only a temporary act,when problems were fixed, it was no longer needed.
- FDIC-Federal Insuarnce Deposit Corporation-created by the Glass-Steagall Act, since 1934 no depositor has lost any money of insured funds,
- NRA-National Recovery Administration- part of National Industrial Recovery Act (NIRA) bring industry, labor, and government together to make rules and set prices, created by the NIRA, meant to reduce 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 U.S., abolished child labor, exercise the right of collective bargaining, companies would place banners (the blue eagle) in window if they represented the NRA, the other companies were considered selfish, did not help small businesses, but improved labor conditions, aided the ununionized movement, invalidated in 1935 the supreme court declared it unconstitutional (it was and illegal delegation of legislative authority) violated Laizze Faire
- Banking Act of 1935-established the FDIC as a permanent gov’t organization allowed the FDIC to regulate state and non-member banks, funded the FDIC with initial loans of $289 million, separated cammercial and investment banking through the glass-steagall Act, prohibited banks to pay interest on checking accounts,
stock market
- The Federal Securities Act-may 1933-Security-fungible, negociable financial instrument representing financial value Ex. Stocks, Bonds, Future-ensure that buyers of securities recieve complete and accurate information before they invest-prospentus-company tells an investor their plans for the future and discuss their financial situation
- SEC securities Exchange Commision-regulated the stock market-prevented corporations and investors to play the market. The SEC was very successful-now businesses are more honest-stock market became a safer place-didn’t have to worry about exaggerations and overinflated stock.-still around today.
Home owners - Home Owners Loan Corporation (HOLC)-was created to assist in the refinancing of homes-bought up morgages from banks.-refinanced them up to 80% of assessed value at a lower interest rate.-strech out the # of years you have to pay the loan back.-saved homes from foreclosures-stop lending in 1935- 2 milion dollars that was available ran out.
Elderly- SSA- Social Security Administration
Native Americans- IRA- Indian Reorganization Act-Wheeler-Howard Act- It secured the new rights of Native Americans by giving them the right ot manage their land and resources, helped them get a good economic foundation. Indians could have their own separate government and not need to have the same laws.
It replaced the Dawes Act- it authorized the president of the U.S. to sirvey tribal land and divide it up for individual indians.
Describe the culture of the 1930's.
Sports - Football, baseball, basketball, boxing were big sports.
- Baseball- Negro league and Major league.
- Soccer- first World Cup was held in Uruguay in 1934.
- Olymipcs were in Germany in 1936. America had it's biggest team ever, Jesse Owens, African-American track runner, won and Hitler turned his back to him.
Fashion - Guys- business suit, old clothes, trenchcoats.
- Girls-vintage hats with matching purses, fur, take money and bought clothes instead of food.
Movies
Wizard of Oz, many horror movies- Dracula, King Kong, Frankenstein.
Music
"hillbilly"- country, western swing, beginings of blue grass. Jitterbug and swing dancing. Over the Rainbow, Silent Night Holy Night, God Bless America.
Key terms:
- Hundred Days- FDR's concept, 1st hundred days in office, called congress to special session for 3 months, made series of social, economic, and job-creating bills, 15 major bills passed in 100 days.
- Fireside chats- series of radio broadcasts from Roosevelt, first one in 1929, people sent letter of what they wanted hinm to talk about.
- Priming the pump-got more people jobs, they had to spend a lot of money, lead to more debt-3.3 billion through the public work administration.
- Deficit spending- spending money you don't have, FDR wanted us to get out of the depression, to support relief programs we needed to spend more money.
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