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)?

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, disabled2) 90%3) 7 states4) 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 Answers1. 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 515-5191. 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 Answers1. $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

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.

FDRNew 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.2. Economic recovery.3. Financial Reform.

*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

• Spending more money than the government receives in revenue (go into debt).

• “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) Unemployment3) 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.

http://www.youtube.com/watch?v=7EPTCm9RVRM&safe=active

(The Crash of 1929)