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22 Cards in this Set

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New deal

-Aimed to solve the problems of the great depression by providing relief for unemployment and efforts to stimulate economic recovery

-it was built on the reforms of the progressive era to expand greatly an American style welfare state.

Short term and long term goals of the new deal

Short term- relief and immediate recovery; first two years

long-term- Permanent recovery and reform of current abuses, particularly those who produced the boom or bust catastrophe.

The 3 R’s

Relief, Recovery, Reform

Roosevelt promised a balanced budget and denounced deficits for the new deal.

Hundred days (1933)

Period when a unprecedented number of reform bills were passed by a Democratic Congress to launch the new deal.

New dealers embraced progressive ideas like unemployment insurance, old age insurance, minimum wage regulations, conservation and development of natural resources and restriction on child labor.

Glass Steagall Banking Reform Act

This law created Federal deposit insurance Corporation which insured individual bank deposit up to $5000

It ended a century-long tradition of on stable banking that reached a crisis in the great depression

NB: The goals of Roosevelts “managed currency” was inflation. He ordered all private holdings of gold to be surrendered to the treasury in exchange for paper currency then took the nation off the gold standard. He believed this would relieve debtors’ burdens and stimulate new production.

Emergency banking relief act of 1933

Because of banking chaos Congress pulled itself together and he created this act.

The new law invested the president with power to regulate banking transactions and foreign exchange and to re-open solvent banks.

Civilian conservation corps (CCC)

This was created by Congress to improve outdoor environment.

This agency provided employment in fresh air government cams for about 3 million uniformed young man

Jobs/work included reforestation, fire fighting, flood control and swamp drainage.

Federal emergency Relief administration

The first major effort of the new Congress so fakes millions of adult unemployed was the federal emergency relief act. It’s aim was for immediate relief rather than long-term range recovery.

The resulting federal emergency relief administration (FERA) was handed over to Harry Hopkins who became Roosevelts closest friend and influential advisor.

Agricultural Adjustment Act(AAA)

Made millions of dollars to help farmers meet their mortgage

Purpose: Designed to raise agricultural prices by paying farmers not to farm. Based on the assumption that higher prices would increase farmers purchasing power and thereby help alleviate the great depression.

Civil Works administration(CWA)1933

Designed to provide temporary jobs during the cruel winter emergency, it employed 10s of thousands of jobless people in leaf raking and other make work tasks

Works Progress Administration(WPA) 1933

Objective was employment on useful products.

Launch under the supervision of energetic Hopkins this agency ultimately spent $11 billion on thousands of public buildings bridges and hard surface roads. The best program was the federal art project which hired artists to create posters and murals.

Also created part time occupations for needy high school and college students.

National recovery administration(NRA)

Designed to assist industry, labor and unemployed.

Public Works administration(PWA)

Intended for industrial recovery and for unemployment relief.

In time over $4 billion to spend in some 30,000 projects which included public buildings, highways and parkways.

One spectacular achievement of PWA was the Grand Coulee Dam.

Federal securities act

“truth in securities”

Required promoters to transmit to the investor sworn information regarding the soundness of their stocks and bonds.

Securities and Exchange Commission(SEC)

Designed as a watchdog administrative agency.

Stock markets were to operate more as trading marts, and not gambling casinos.

Tennessee Valley Authority(TVA)

This act was passed by the hundred days of Congress in 1933. The TVA was the most revolutionary of all new deal schemes

brought cheap electric power, full employment, low-cost housing, and environmental improvements to America is in the Tennessee Valley.

Wanted some in valleys of Columbia, Colorado and Missouri Rivers.

Conservative reactions against the “socialistic” new deal guided the development.

The Tennessee River provided new dealers with a rare opportunity. (Drained a badly eroded area)

By developing Hydro electric potential of the river, Washington could come combine immediate advantage of putting thousands of people to work with a long-term project for reforming the power monopoly.

Federal housing administration(FHA) 1934

The building industry was to be stimulated by small loans householders.

It was one of the few “alphabetical agencies to outlast Roosevelt.

United states housing authority(USHA)

Congress Strengthened The FHA in 1937 by authorizing the US housing authority.

It was designed to lend money to states or communities for low cost construction but fell tragically short of needs.

New deal Efforts to expand the project collided with opposition from real estate promoters, builders and slumlords/landlord. For the first time slum areas in America ceased growing and even shrank.

Social Security act(1935)

Passed by Congress to cushion future depression.

Provided unemployment insurance , security for old age (retired workers were to recieve $10-$85 a month) and was financed by payroll tax on both employers and employees

Provision was also made for the blind, the physically handicapped and dependent children.

American workers had to be employed and in certain kinds of jobs to get coverage, unlike Europe (universal)

New deal had success in employment insurance and old age pensions.

Wagner act(1935)

Was created because Congress was sympathetic to labor unions. Sponsor was New York senator Robert Wagner.

The law created a powerful new labor relations board and reasserted the right of labor to organize and bargain collectively thru representatives of its own choice ( employers)

National Labour relations Board created by John Lewis, monitored unfair labor practices on the part of employers.

He also created the CIO(Committee for Industrial Organization). Organized unskilled industrial workers, despite economic sector. Gave a great boost in GD and WWII. Merged with AFL in 1955.

Major milestone for American workers.

Fair labor standards act(1938)

Regulated minimum wage is an maximum hours for workers involved in interstate commerce.

Outlawed labor by children under 16.

The Exclusion of agricultural service and domestic workers meant that many blacks, Mexican Americans and women did not benefit from this protection.

Rural Electrification Act

The Rural Electrification Act of 1936, enacted on May 20, 1936, provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the US.

These member-owned cooperatives purchased power on a wholesale basis and distributed it using their own network of transmission and distribution lines. The Rural Electrification Act was also an attempt made by FDR's New Deal to deal with high unemployment.