UNIT 7, CH 23

During the New Deal, the American government took on a much larger role in the economy and in people’s daily lives. Under Franklin D. Roosevelt, the federal government began regulating banks and the stock market (through agencies like the SEC), providing direct relief and jobs through programs like the CCC and WPA, supporting farmers, protecting workers’ rights with laws like the Wagner Act, and creating long-term safety nets through the Social Security Act. These actions expanded federal responsibility for economic stability and citizens’ welfare, laying the foundation for the modern welfare state and permanently increasing government involvement in economic and social issues.

Herbert Hoover

31st U.S. president whose response to the Great Depression relied on limited government intervention and voluntary cooperation

Smoot-Hawley Tariff

1930 law that raised tariffs on imported goods, worsening the Great Depression by reducing international trade

Bonus Army

WWI veterans who marched on Washington in 1932 demanding early payment of promised bonuses

Franklin D. Roosevelt

32nd U.S. president who created the New Deal to combat the Great Depression

Fireside Chats

Radio broadcasts by Roosevelt that reassured Americans and explained his policies directly to the public

Hundred Days

The first three months of Roosevelt’s presidency in 1933 when many New Deal programs were passed

Glass-Steagall Act

1933 law that separated commercial and investment banking and created federal deposit insurance (FDIC)

Agricultural Adjustment Act (AAA)

New Deal program that paid farmers to reduce crop production to raise prices

National Recovery Administration (NRA)

New Deal agency that set fair competition codes, wages, and hours for businesses

Public Works Administration (PWA)

New Deal program that funded large public construction projects to create jobs

Civilian Conservation Corps (CCC)

Program that employed young men in environmental conservation projects

Federal Housing Administration (FHA)

Government agency that insured home loans to encourage homeownership

Securities and Exchange Commission (SEC)

Federal agency that regulates the stock market to prevent fraud

Liberty League

Group of conservative Democrats and business leaders who opposed the New Deal

National Association of Manufacturers (NAM)

Business organization that often opposed New Deal regulations

Townsend Plan

Proposal to give monthly pensions to elderly Americans, funded by a national sales tax

Huey Long

Louisiana senator who proposed the “Share Our Wealth” program to redistribute wealth

Father Charles Coughlin

Catholic priest who used radio broadcasts to criticize Roosevelt and promote populist ideas

Welfare State

Government system that provides social and economic support to citizens (such as unemployment benefits and pensions)

Wagner Act

1935 law that protected workers’ rights to join unions and bargain collectively

Social Security Act

1935 law that created pensions for the elderly, unemployment insurance, and aid to disabled individuals

Classical Liberalism

Economic belief favoring limited government involvement in business and free markets

Works Progress Administration (WPA)

New Deal agency that created millions of jobs through public works and arts projects

Roosevelt Recession

Economic downturn in 1937–1938 during Roosevelt’s presidency

Keynesian Economics

Theory that government spending and deficits can help stimulate the economy during recessions

Frances Perkins

Secretary of Labor under Roosevelt and the first female cabinet member; helped shape labor and Social Security policies

Eleanor Roosevelt

First Lady who advocated for civil rights, women’s rights, and New Deal reforms

Mary McLeod Bethune

African American educator and advisor to Roosevelt who promoted opportunities for Black Americans

John Collier

Commissioner of Indian Affairs who helped create reforms for Native Americans under the New Deal

Indian Reorganization Act

1934 law that restored some tribal self-government and land to Native American tribes

Dust Bowl

Severe drought and dust storms in the Great Plains during the 1930s that devastated farms

Tennessee Valley Authority (TVA)

New Deal agency that built dams to provide electricity and control flooding in the South

Rural Electrification Administration (REA)

New Deal agency that expanded electricity to rural areas