The New Deal

• What are the three R’s of Roosevelt and his basic aims which directed his actions?

  o Relief: Help the victims of the Depression. Millions of ordinary Americans faced unemployment, hunger, and poverty. Roosevelt was determined to help them.

  o Recovery: Encourage economic recovery. The Depression was a disaster for America. Roosevelt knew that he had to take action to encourage recovery, to get the nation back to work.

  o Reform: Reform the economic system. The whole economic system would have to be altered so that there would never again be a Depression as bad as the 1930s.
• How did Roosevelt try and achieve the three R’s?

  To achieve these objectives, Roosevelt decided that direct action and intervention by the federal government would be necessary. The days of laissez-faire, of the government doing as little as possible, were over.
• Emergency Banking Act


  FDR introduced the Emergency Banking Act, which closed banks for a four-day bank holiday. Every bank was inspected and only honest, well-run banks could re-open. When the banks re-opned people put money back in their accounts. Well-run banks could now lend money to well-run businesses – this would create jobs as businesses expanded.
• Economy Act


  FDR introduced the Economy Act, this cut the pay of everyone working for the government and the armed forces by 15%. This saved nearly $1 billion.
• Beer Act


  FDR introduced the Beer Act, this made it legal to produce and sell alcohol again. Legalising alcohol put the gangsters out of business and the government could also raise money by taxing alcohol.
• What were the ‘Alphabet’ agencies?

  Federal Emergency Relief Administration (FERA), agricultural adjustment act (AAA), national recovery administration (NRA), public works administration (PWA), civilian conservation corps (CCC), Tennessee valley authority (TVA)
• Federal Emergency Relief Administration (FERA)


  This helped the poor in a number of basic ways, such as giving clothing grants and setting up soup kitchens for the poor. $500 million was given to the homeless and starving.
• Agricultural Adjustment Act (AAA)


  This tried to help farmers by controlling farm production and stabilising prices. It was an attempt to end the over-production and falling agricultural prices that had crippled American farmers. Farmers were paid to destroy food.
• National Recovery Administration (NRA)

  This tried to help industry and factory workers by increasing wages and improving hours and conditions. In total, 2.5 million firms, employing 22 million workers joined the scheme.
• Public Works Administration (PWA’

  This created jobs by paying unemployed people to build schools, bridges and dams. This was replaced by the Works Progress Administration in 1935.
• Civilian Conservation Corps (CCC)

  Similar to the PWA, this department provided jobs to large numbers of young men in conservation schemes in the countryside. The CCC created jobs for 2.5 million men.
• Tennessee Valley Authority (TVA)


  This scheme brought hydro-electric power to seven states in the Tennessee Valley, one of the worst affected areas of the country. Dams and power-plants were built, creating many jobs.
• What program created jobs for 2.5 million 18-25 year-olds during the New Deal?

  The Civilian Conservation Corps (CCC)
• How did the number of bank failures change from 1932 to 1933 under FDR's presidency?

  The number of bank failures dropped from 4000 in 1932 to well below 250 in 1933
• What significant legislation was introduced during the Second New Deal from 1935 to 1938?

  The Social Security Act (SSA)
• What does Gross National Product (GNP) measure?

  It measures the total value of all goods and services produced within a country, plus income earned by citizens
• Which groups of people found work in the Alphabet Agencies during the New Deal?

  Many women
• What measures did FDR introduce to assist farmers during the New Deal?

  He raised crop prices and made loans available to farmers to prevent eviction
• How many African-Americans gained jobs in the CCC?

  200,000
• How many days were lost to strikes in 1930?

  3 million days
• Who was Mary McLeod Bethune and what was her significance during the New Deal?

  She was an African-American woman appointed to an important post in the government
• What actions did FDR take regarding land ownership for Native Americans?

  He increased the amount of land owned by Native Americans and provided loans for land purchases and businesses
• How many days were lost to strikes by 1934?

  20 million days
• What did the Indian Reserve Act of 1934 allow Native Americans to do?

  It gave them the right to manage their own affairs, including setting up their own law courts
• What do the figures of lost days to strikes indicate about worker satisfaction?

  Less strikes indicate happier workers
• What was the unemployment rate in the USA throughout the 1930s?

  At least one in ten people were unemployed
• What was the role of the Alphabet Agencies regarding workers' wages?

  They provided workers with a basic wage
• What did the Supreme Court rule about the NRA’s wage codes?

  Many of the NRA’s wage codes were illegal
• What did FDR introduce to support workers' rights?

  The Wagner Act, which gave workers the right to join a trade union
• What was the average yearly wage for a woman in 1937?

  $525
• What was the average yearly wage for a man in 1937?

  $1000
• How did the New Deal affect small farmers compared to large-scale farmers?

  Most help went to large-scale farmers, leaving small farmers with little benefit
• What regions were affected by severe poverty and poor farmland during the Dust Bowl?

  Kansas, Oklahoma, Texas, and Colorado
• What discrimination did African-Americans face in the Alphabet Agencies?


  Many agencies, like CCC campsites, were segregated
• What did Roosevelt refuse to do regarding discrimination against African-Americans?

  He refused to take steps to end discrimination
• What concern did FDR have after his re-election in 1936?

  He was worried about the increasing cost of job creation schemes
• What was the unemployment rate after FDR cut down spending?

  Unemployment jumped to 3 million
• In 1936, which industries saw thousands of workers go on strike?

  The car and steel industries
• What were workers campaigning for during the strikes in 1936?

  Better wages and conditions
• What was the public sentiment regarding the economy by 1938?

  Some people felt America was sliding backwards towards Depression again