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18 Cards in this Set

  • Front
  • Back
What was Rooselvelt's plan for fixing the economy
The New Deal
What did Phase I (first part) of the New Deal try to fix?
Make jobs (government did this) for people to get money for food and living
Create programs to help the economy get better
What did Phase II (second part) of the New Deal do?
Gave money (welfacre benefit) to people
Control business to help stop the same thing happening again
Form unions to help workers
Make the rich people pay higher taxes
What problems did the depression cause for banks?
Banks had to close because they didn't have money because: people took out their money out of the bank
people had no money to pay back their loans from the banks
Banks had no money to invest to make money
Banks had to close
What problems did the depression cause for farmers?
The prices for food dropped and nobody had money to buy food. So farmers had no money to plant seeds and grow food.
They couldn't pay their loans or bills
They lost their farms because they didn't have money to keep them operating
What problems did the depression cause for businesses or industry?
The businesses couldn't sell things because nobody had money to buy them, so they had to fire their workers and had no money to keep the business open, so they closed
What problems did the depression cause for the workers?
The workers lost their jobs and had no money to pay their bills and they lost their homes because they couldn't pay for them and were homeless
They were hungry because they couldn't buy food
How did the New Deal affect the banks?
They were closed (a bank holiday) so the government could check their records.
The government formed the Federal Deposit Insurance Corporation which insured people's money in the bank for up to $5000 so people would begin to trust banks again and they could reopen and grow PHASE 1
PHASE 2-Goverment worked closely with banks to stop them from having to close again
How did the New Deal affect business and industry?
The government for the National Industrial Recovery Act (1933) to help businesses get started. They did this by setting prices for things, setting how much workers got paid, letting unions (groups of people working in the same place) work with the boss of the business to make the working place safe, to make sure workers got paid enough, and that things were fair for each worker. PHASE 1

PHASE 2-government had more control over business so it treated workers fairly and helped protect the business and workers from losing money and jobs
How did the New Deal affect workers?
The New Deal let the government create jobs for workers so they could make money through programs like the Tennessee Valley Authority
Government also made social programs to help workers get money to live on
Government also formed the Homeowners Loan Corporation so people could borrow money to buy a house or to keep their house or farm PHASE 1

PHASE 2-developed Social security to help people, made unions ok in businesses, and provided welfare for people
More work programs for people to earn money Works Progress Administration (WPA)
Wagner Act that made unions legal
National Labor Relations Board to make sure businesses were following the laws
How did the New Deal help farmers?
The forming of the Agricultural Adjustment Administration paid the farmers not to grow certain things. Then the price of these things went up because only a few grew them and more people wanted them. This raise in the cost meant the farmers got more money so they could buy seeds and things they needed to keep their farms operating PHASE 1

PHASE 2- helped people get land to farm Resettlement Administration helped small farmers and other people to get land where they could grow food and give some to the owner of the land and keep some for themselves to use or sell
What did the Social Security Act of 1935 help?
It gave money for people who were too old to work (retired), those who were too sick to work (disabled) and those who were hurt at work (accidents), for those who couldn't get a job, and for the families of those who died and couldn't work
Where does the money for Social Security come from?
Employers put money in for each employee
Money also comes out of the employees pay and it all goes to Social Security
What problems could Social Security have in the future and why?
Social Security could run out of money because there were fewer babies being born to grow up and be workers who put money in and also there are more people that are older and need money from Social Security, so more money is taken out than is going in.
Wagner Act provided for what?
This was during the New Deal.
It made unions legal so union members could work together to make things better at work.
It started the National Labor (work) Relations Board (a group of people) who set the lowest amount workers could be paid, how many hours workers could work and safety rules for businesses.
How did the Wagner Act change the government's attitude about workers?
The government was helping the workers by improving where and how they worked. The government was now a friend of the workers.
What do people who study history think really made the unemployment problem of the 1930s better instead of the New Deal?
World War 2 is what made things better because people were needed in factories to make things for the war, soldiers were needed and women had to work the men's jobs because they were off fighting the war. This is what people who study history believed helped get rid of the unemployment of the 1930s.
What are the some solutions to the problem with Social Security?
Making more money for Social Security by:
Raising taxes
Taking money from other government programs
Giving people less Social Security money
Raising the age that people can retire and get Social Security
Getting private companies for people to invest money in for retirement along with Social Security