New Deal Essay 2018
New Deal Essay
Terms in this set (35)
WPA (Works Progress Adminsitration)(Unemployment)
Massive work relief program funded projects ranging from construction to acting
CCC (Civilian Conservation Corps) (Unemployment)
Civilian Conservation Corps. It was Relief that provided work for young men 18-25 years old in food control, planting, flood work, etc.
NYA (National Youth Administration) (Unemployment)
National Youth Administration: established by WPA to reduce competition for jobs by supporting education and training of youth
AAA (low farm prices)
Agriculture Adjustment Act: reduce crop production to raise farm prices; government pays farmers not to plant crops; tax on food processing; helped whole but not individuals; Supreme c)ourt struck it down (US v. Butler), hurt sharecroppers and tenant farmers(likely African American)
US v. Butler
ruled that the processing taxes instituted under the 1933 Agricultural Adjustment Act were unconstitutional. J
Emergency Banking Act of 1933 (closed banks, lack of faith in financial system)
gave the President power over the banking system and set up a system by which banks would be reorganized or reopened
Bank Holiday (closed banks, lack of faith in financial system)
All the banks were ordered to close until new laws could be passed. An emergency banking law was rushed through Congress.
FDIC (closed banks, lack of faith in financial system)
Federal Deposit Insurance Corporation: A federal guarantee of savings bank deposits initially of up to $2500, raised to $5000 in 1934, and frequently thereafter; continues today with a limit of $100,000
Securities and Exchange Commission (lack of trust in stocks and financiers and bankers)
an independent agency of the government that regulates financial markets and investment companies
Glass-Stegal (lack of trust in stocks and financiers and bankers)
forbade commercial banks from engaging in excessive speculation, added $1 billion in gold to the economy, establish FDIC (guaranteed bank deposits up to $5,000) REFORM AND RECOVERY
buying on margin
Allowed people to borrow most of the cost of the stock, making down payments as low as 10 percent. Led to inflation and when the stock prices dropped, the market collapsed and many lost everything they had borrowed and invetsted
run on banks (lack of trust in stocks and financiers and bankers)
when people suspect their banks are in trouble, they may run to the bank to withdraw their funds, holding more currency and less deposits.
dust bowl (low farm prices)
Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages.
The Grapes of Wrath (low farm prices)
1939; John Steinbeck; Describes the plight of "Okies" forced to leave Dust Bowl-stricken Oklahoma in a futile attempt to find work in California.
Shanty towns that the unemployed built in the cities during the early years of the Depression; the name given to them shows that thte people blamed Hoover directly for the Depression.
Bonus Marchers (Unemployment)
veterans who went to Washington demanding promised payment
NIRA (National Industrial Recoevry Act) (Unemployment) (restructure the economy) (1933)
Recovery. Created NRA to enforce codes of fair competition, minimum wages, and to permit collective bargaining of workers.
Attempted to combat the Depression through national economic planning by establishing and administering a system of industrial codes to control production, prices, labor relations, and trade practices among leading business interests; ruled unconstitutional by the Supreme Court in 1935 (US v. Schecter Poultry)
Section 7a (Economic - structure)
Section of the National Industrial Recovery Act that demanded in every industry code a statement of the workers' right to organize.
Rural Electrification Administration
( change in standard of living, economic development)
affordable electricity would improve the standard of living and the economic competitiveness of the family farm; created to bring electricity to rural areas like the Tennessee Valley
TVA ( change in standard of living, economic development)
The Tennessee Valley Authority federation was created in 1933 in order to provide navigation, flood control, electricity generation, fertilizer manufacturing, controversial because government went in to direct competition with private business
Wagner Act (1935)(economic - change in structure)
established National Labor Relations Board; protected the rights of most workers in the private sector to organize labor unions, to engage in collective bargaining
CIO (growth made possible by Wagner Act)
Congress of Industrial Organizations. proposed by John L. Lewis in 1932. a federation of unions that organized workers in industrial unions
Fair Labor Standards Act (1938) (economic - restructure)
applies to employees engaged in and producing goods for interstate commerce. The FLSA established a national minimum wage, guaranteed time and a half for overtime in certain jobs, and prohibited most employment of minors in "oppressive child labor,"
court packing plan (FDR response to Schecter Poultry case)
Because the Supreme Court was striking down New Deal legislation, Roosevelt decided to curb the power of the Court by proposing a bill to allow the president to name a new federal judge for each who did not retire by age 70 and 1/2.
Townshend Plan (opposition to FDR)
said the government should give a monthly pension of $200 for anyone over 60 who is unemployed to spend as they choose as long as they use all of it within the month (Congress shoots this down but FDR takes it as inspiration for the Social Security Act) (1933)
Social Security (1935) (FDR response to Townshend Plan)
guaranteed retirement payments for enrolled workers beginning at age 65;
social welfare state (structural changes)
a society with a set of government programs that protect the minimum standards of living of families and individuals
safety net (structural changes)
government programs that protect people experiencing unfavorable economic conditions
pump priming (FDR spending programs)
Government action taken to stimulate the economy, as spending money in the commercial sector, cutting taxes, or reducing interest rates
Keynesian Economics (FDR spending programs)
Theory based on the principles of John Maynard Keynes, stating that government spending should increase during business slumps and be curbed during booms.
lassiez faire (Hoover and pre-FDR)
idea that government should stay out of business and economic affairs as much as possible
Rugged Individualism (Hoover)
Herbert Hoover's belief that people must be self-reliant and not depend upon the federal government for assistance.
trickle down theory
decreased income taxes for the wealthy would promote business and therefore the whole economy (Sec of Treasury Andrew Mellon and President Coolidge)
US Stock Market Crash, October 29, 1929
Beginning of US Great Depression