The New Deal and Opposition

A set of vocabulary flashcards from the lecture notes on the New Deal, its components, critics, and impacts.

New Deal

designed by FDR to address the Great Depression's economic challenges through relief, recovery, and reform.

‘Action, and action now’

heightened authority hundred days

end prohibition and help people

15 proposals to congress, all passed.

Three R's

Relief of extreme poverty by feeding and helping the poor

Recovery of the economy by restarting industry and more work

Reform by making the USA a better place for working people

Brains Trust

A group of advisors that helped FDR formulate the New Deal.

Emergency Banking Act

The day after inauguration, FDR ordered all banks to close.

After being checked, 500 banks reopened after 4 days.

$1bn was redeposited shortly after reopening and confidence was restored.

Civilian Conservation Corps (CCC)

Helped unemployed young men (U25) through manual labour in national parks.

Small wage of $1 a day, but food, accommodation and clothes provided.

Helped 2.3 million people who could sign up in 6 month periods.

However, only 200,000 black Americans were helped and were in segregated camps.

Only a small group of people, not including women, benefitted.

Federal Emergency Relief Agency (FERA)

Set up to tackle the urgent needs of the poor.

$500 million spent on soup kitchens, blankets, employment and nurseries.

Provided 20 million jobs 1933-35.

However still lots of poverty and 30% of black people still relied on charity.

Agricultural Adjustment Agency (AAA)

Tackled problems facing farmers due to overproduction.

Increased prices by paying farmers to produce less.

preserve and protect soil and helped provide mortgages.

By 1936 farmers were 50% better off, and by 1939 income had doubled.

Did not help sharecroppers, tenants or labourers who were out of work.

Criticised as a lot of food was wasted. (9/10ths of 6 million killed piglets wasted)

Overturned in 1936 (unconstitutional)

Huey P. Long

-Thought the New Deal was complicated and not enough.

Louisiana governor 1928, senator 1932.

Not racist, employed African Americans

Sounded communist

All personal fortunes capped at $3 million and $1 million per year.

                             -Wanted to tax big cooperations and businesses.

                             -Built schools, roads and hospitals.

              -FDR named Long the most dangerous man in America due to his communist views.

-Long was aggressive and forceful, but also a democrat, so FDR did not want to be associated with him. He was eventually assassinated in 1935.

Dr. Francis Townsend

Thought New Deal was not enough

Campaigned for a $200 a month pension that had to be spent that month.

7000 Townsend Clubs by 1935, with 5 million members.

However, after the 1936 election support declined rapidly.

Father Coughlin

Thought New Deal was not enough

A popular catholic priest who set up a radio program to attack FDR.

Set up national union for social injustice.

Had 40 million listeners by 1930s

Millions of members but not well organised locally.

Lost support in 1939 after sympathising with Hitler.

The Republicans

Thought the New Deal was too much with too much interference.

Felt FDR was acting as a dictator, and accused him of communism.

Thought high tax discourages hard work.

Social security for people doing nothing

New Deal was too costly.

Business Leaders

Thought the New Deal was too much, and opposed government interference.

Trade Unions were not supported by top company leaders.

Dislike having to pay social security.

Claimed the TVA is unfair competition.

In 1934 the Liberty League was formed- a group of top business leaders.

Used a smear campaign against FDR, saying he was disabled.

However, in 1936 FDR won by 27 million votes, the highest ever.

The Supreme Court

Highest court in the USA, made up of 9 judges.

Had the power to overturn laws thought to be unconstitutional.

Opposition (Republican) majority had power to overturn New Deal.

By 1935, 5 of 9 judges were voting against New Deal measures.

FDR tried to appoint 6 more judges which would rule in his favour.

The public were outraged and accused him of being a dictator. He backed down.

Schechter case

May 1935, Schechter case found 2 men guilty of breaking NRA regulations.

They appealed to the court, which found the NRA unconstitutional.

The next year the AAA was found unconstitutional as it was deemed the federal government was undermining state power.

National Industrial Recovery Act (NIRA)

Public Works Administration (PWA) and National Recovery Administration (NRA)

Public Works Administration (PWA)

Built schools, roads, dams, airports, and hospitals.

$7bn spent on employing skilled workers.

1933-1939 built 70% of schools and 35% of hospitals.

 

National Recovery Administration (NRA)

Improved working conditions and outlawed child labour.

Introduced fair wages by increasing them.

Voluntarily followed by businesses and factories (not all).

Scheme joined by 2 million employers, but overturned in 1935.

Tennessee Valley Authority (TVA)

Area cutting across 7 states which suffered from flooding, drought, the dust bowl, poverty and no electricity. Area was too big to be dealt with by states.

Built 33 dams on the Tennessee river, making irrigation possible.

TVA became the biggest American producer of electricity.

Created 9000 jobs, but displaced 1500 families.

Works Progress Administration (WPA)

2nd New Deal

Aimed to relieve unemployment through creating work.

Paid $24 a week to artists, actors and photographers.

$11bn spent employing 8 million men and women.

2 million people given work per year.

 Social Security Act

Aimed to give social security to sick and elderly.

State Pensions for over 65s and widows.

Support for disabled, sick and mothers with dependent children.

Set up unemployment insurance- workers could receive money if unemployed.

Contributed to a decline in poverty for elderly

However, in the 1950s over 65s still had the highest unemployment rate.

Social security benefits rose from $35 million in 1940, to $961 million in 1950, to $11.1 billion in 1960.

Wagner Act

Aimed to deal with the issue of trade unions and help them gain power.

Forced employers to allow trade unions by making it illegal to sack someone for being in one.

Union membership rose from 3 million in 1933 to 8.7 million in 1940.

American Federation of Labour grew from 2.1 million in 1933 to 3.4 million in 1936

Not popular amongst businessmen.

Resettlement Administration (RA)

Aimed to help all farmers not helped by the AA.

Helped sharecroppers, tenant farmers, and farm workers who may have lost jobs.

Moved over 500,000 families to better land.

Farm Security Administration (FSA)

Aimed to help small farmers and migrant farmers.

Gave small loans to help them buy land.

Built labour camps with good conditions for migrant famers.

Despite this, poverty amongst farmers still remained a problem.

Successes of New Deal

The first New Deal was implemented in 1933, when unemployment was at 24.9%

This gradually dropped to 14.3% in 1936, proving success.       

However, then FDR cut New Deal budgets, as republicans had demanded.

By 1938, unemployment had risen to 19%.

In 1938, the republicans did well in congress elections and middle class voters lost confidence in FDR.

However, he was still hugely popular with ordinary people, getting voted in for a third time with a big majority in 1940.

As the New Deals came to an end, the public was no longer behind him.