Bell Quiz
1) List the 3 major parts of the social security act
(page 501).
2) What percentage of U.S. farms and homes had
electricity by 1949 thanks to the REA? (page
501)
3) The TVA supplies electricity and water to how
many states (page 520-21)? And list the states.
4) Using the two graphs on page 517 what
relationship does there seem to be between
deficit spending and unemployment?
5) What criticism did FDR get from conservatives
in regards to the New Deal programs? (page
516)
Bell Quiz Answers
1) retirement, unemployment, disabled
2) 90%
3) 7 states: Alabama, Georgia, Kentucky, Mississippi,
North Carolina, Tennessee, Virginia. (33 dams)
4) Unemployment increases when there is less
deficit spending and decreases when there is
more deficit spending. Deficit spending
stimulates the creation of jobs.
5) FDR’s policies made the federal government too
large and too powerful, stifled free enterprise.
Bell Quiz
1. What is the Wagner Act AND why was it
significant? (Page 499)
2. Explain FDR’s “Court-packing bill.” (Page
493)
Bell Quiz Answers
1. The Wagner Act gave the federal
government power to protect and aid
workers. Significance=allowed workers to
unionize and engage in collective bargaining.
2. FDR’s “Court-packing bill” would have
allowed him to add 6 judges to the Supreme
Court. Adding judges who supported FDR’s
New Deal programs would allow the
programs to not be voted as
unconstitutional.
Bell Quiz: Use Pages 515-519
1. What was the amount of the federal deficit
in 1934 and why was it so high?
2. What benefits did the TVA provide?
3. What negative impact did the TVA have?
Use the map on page 520-521:
4. List the 7 states that the TVA served.
5. How many TVA dams were built?
Bell Quiz Answers
1. $2.9 Billion. (Increased to $54.3 billion in 1943).
Federal government borrowed money to pay
for the many FDR New Deal programs.
2. Provided flood control, hydroelectric power,
conservation, recreational facilities, and
wildlife refuges.
3. Government sponsored stripmining and coal
burning caused air, land, and water pollution.
4. Alabama, Georgia, Kentucky, Mississippi, North
Carolina, Tennessee, Virginia.
5. 33 Dams
The New Deal in Three Minutes
• http://www.youtube.com/watch?v=WvcWeNf
9g6A (Next Slide)
President Hoover’s Programs
• Federal Home Loan Bank Act (1932): Lowered
mortgage rates for homeowners and allowed
farmers to refinance their farms loans to avoid
foreclosure.
• Reconstruction Finance Corporation (1932):
Congress provided $2 million for emergency
financing for banks and large businesses. Today
we would call this a bail out.
• Trickle Down Economics: Give tax breaks or
money to big businesses or the rich. The “bail
out” $ will trickle down to the average citizens
through job growth and an improved economy.
Hoover Dam
• Employed out of work
citizens, skilled and
unskilled laborers, to
build.
• Cost $165 million.
• Real name is the
Boulder Dam.
• Constructed from 19311935 on the Colorado
River.
FDR
New Deal=Government programs created by FDR
to provide direct and indirect relief to the citizens.
• New Deal would be a series of “trial and error”
actions.
• “Take a method and try it. If it fails, admit it
frankly and try another.”
• FDR compared himself to a QB. He could not call
the next play until he knew the results of the
previous one.
• “All there is to fear is fear itself.”
3 Goals of the New Deal
New Deal=Government programs created to provide direct
and indirect relief to the citizens.
1. Relief for the needy: Immediate action taken to halt the
economies deterioration.
2. Economic recovery: "Pump - Priming" Temporary
programs to restart the flow of consumer demand.
3. Financial Reform: Permanent programs to avoid another
depression and insure citizens against economic disasters.
*FDR and Congress passed 15 major pieces of legislation in
the first 100 days. No president has ever been close to
breaking that record.
DEFICIT SPENDING
• Government spends
more money than they
collected in taxes.
• Government then
borrows money at low
interest rate to pay for
their programs.
• “Living outside your
means.”
• Why? Prime the pump!
Prime the Pump=Dump $
into the economy to
stimulate the economy.
Emergency Banking Relief Act
• 1st day in office FDR declares a national banking
holiday.
• Every bank in the country is closed. Permitted
financially sound banks to reopen 4 days later.
Unsound banks were not allowed to reopen until
they were fixed.
• FDIC: insured personal accounts in banks up to
$5,000.
• Fireside Chats: FDR convinces the American people
their money is safe in the banks. Result=the next day
the number of deposits exceeds withdrawals.
The Social Security Act, 1935
• Supplemental income and retirement system.
• Employee contributes to the SS fund as does
the employer.
• SS pays for:
1) Supplemental retirement: $10-85 month in
1935.
2) Unemployment
3) Aid to families with dependent children and
aid to people with disabilities.
Securities and Exchange Commission:
SEC
• SEC regulated the stock market.
• Stock no longer is allowed to be sold “on
margin”.
• Stock prices are based on profit-loss margin
rather than speculation.
• Companies must now open their financial
records to the public.
Rural Electrification Administration:
REA
• In 1935, only 12.6 percent of American farms
had electricity.
• FDR created the REA to create and finance
electricity to rural areas of the country.
• 90% of American homes and farms had
electricity by 1951.
Agricultural Adjustment Act: AAA
Purpose: Raise crop prices by lowering
production.
Paid farmers to NOT plant crops even though
people are starving.
Result: Helps raise crop prices and puts $ into
the hands of farmers.
CIVILIAN CONSERVATION CORPS:CCC
• Designed to employ men between the ages
of 18-25.
• Built state and national parks, recreational
areas, soil conservation, forestry.
• Pay was $30/month.
• Directed by army officers and the forest
service.
PUBLIC WORKS
ADMINISTRATION:PWA
• Government spent $3.3 billion for public
buildings, highways, bridges, flood control,
and other improvements.
CIVIL WORKS ADMINISTRATION: CWA
• Provided jobs and wages to those able to
work.
• “make work” jobs like leaf raking, ditch
digging, highway building, etc.
• $900 million spent in the winter of 1933-34.
FEDERAL HOUSING AUTHORITY: FHA
• Agency established to furnish loans for home
mortgages and home repairs.
• Still in existence today.
Tennessee Valley Authority: TVA
• Established in 1933 to construct dams and
power plants along the Tennessee River and
its tributaries.
• Employed out of work Americans and
supplied electricity to citizens in 7 southern
states.
• Song of the South
WORKS PROGRESS ADMINISTRATION:
WPA
• Spent $5 billion to employ 8 million people
with no skills.
• Built 850 airports; built or repaired 651,000
miles of roads and streets; built 110,000
libraries, schools, and hospitals.
• Also hired professionals to work in their field.
Teachers, writers, artists, actors, and
musicians.
NATIONAL YOUTH ADMINISTRATION:
NYA
• Provided job training to unemployed youth
and part-time jobs for needy students.
• 2 million high school and college age students
were employed.
FAIR LABOR STANDARDS ACT
• Set the maximum hour work week at 44
hours. 40 hours by 1940.
• Minimum wage set at .25/hr. .40/hr by 1945.
• No hazardous jobs for workers under the age
of 18.
• Set rules on employing children under the
age of 16.
Federal Emergency Relief
Administration: FERA
• Provided $500 million for direct relief for the
needy.
• Furnished food and clothing to the
unemployed, the elderly, and the sick.
Instructions: Place all 14 New Deal
Programs into the appropriate column:
EBRA-FERA on the study guide
Economic Relief:
Immediate action taken to
halt the economies
deterioration.
Economic Recovery:
"Pump - Priming"
Temporary programs to
restart the flow of
consumer demand.
Financial Reform:
Permanent programs to
avoid another depression
and insure citizens against
economic disasters.
The 3 R’s
Economic Relief:
Immediate action taken to
halt the economies
deterioration.
EBRA
FERA
CWA
CCC
Economic Recovery:
"Pump - Priming"
Temporary programs to
restart the flow of
consumer demand.
AAA
WPA
TVA
FHA
NYA
REA
Financial Reform:
Permanent programs to
avoid another depression
and insure citizens against
economic disasters.
SEC
FDIC
Social Security
Fair Labor Standard Act
http://www.youtube.com/watch?v
=7EPTCm9RVRM&safe=active
(The Crash of 1929)