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The New Deal constituted a series of comprehensive economic, social, and political policies enacted in the United States primarily between 1933 and 1938, in response to the Great Depression.
Answer: True
The New Deal represented a transformative series of economic, social, and political reforms implemented by President Franklin D. Roosevelt in the United States between 1933 and 1938. Its enactment was a direct response to the profound economic crisis of the Great Depression, which commenced in 1929.
Franklin D. Roosevelt posited that the Great Depression stemmed not from excessive government intervention, but rather from inherent market instability and insufficient aggregate demand, necessitating robust governmental action.
Answer: True
Contrary to the assertion, Franklin D. Roosevelt believed the Great Depression was caused by inherent market instability and insufficient demand, which necessitated extensive government intervention to rectify.
Before the New Deal, the United States lacked a national system of unemployment insurance and social security, with relief primarily handled by families and charities.
Answer: True
Before the New Deal, the United States lacked a national safety net, including public unemployment insurance or Social Security. Relief for the poor was primarily the responsibility of families, private charities, and local governments, which proved insufficient as the depression worsened.
The "Brain Trust" was a group of advisors to Roosevelt who favored pragmatic government intervention in the economy.
Answer: True
The "Brain Trust" was an informal group of advisors to President Roosevelt who tended to favor pragmatic government intervention in the economy. Their ideas significantly influenced the New Deal's initiatives.
What was the New Deal, and during what approximate period was it enacted in the United States?
Answer: A series of economic, social, and political reforms enacted between 1933 and 1938.
The New Deal represented a transformative series of economic, social, and political reforms implemented by President Franklin D. Roosevelt in the United States between 1933 and 1938. Its enactment was a direct response to the profound economic crisis of the Great Depression, which commenced in 1929.
According to the source, what did Franklin D. Roosevelt believe was the primary cause of the Great Depression?
Answer: Inherent market instability and insufficient demand.
Franklin D. Roosevelt posited that the Great Depression stemmed not from excessive government intervention, but rather from inherent market instability and insufficient aggregate demand, necessitating robust governmental action.
Before the New Deal, social safety nets like unemployment insurance and Social Security were:
Answer: Primarily the responsibility of families, private charities, and local governments.
Before the New Deal, the United States lacked a national safety net, including public unemployment insurance or Social Security. Relief for the poor was primarily the responsibility of families, private charities, and local governments, which proved insufficient as the depression worsened.
The "First New Deal" primarily emphasized immediate relief efforts, alongside long-term economic recovery and reform.
Answer: True
The "First New Deal," enacted from Roosevelt's first hundred days in office in 1933 until 1935, focused on the "3 R's": relief for the unemployed and the poor, recovery of the economy to normal levels, and reforms of the financial system to prevent a recurrence of the depression.
President Roosevelt utilized "fireside chats" to communicate directly with the public, explaining New Deal policies and fostering confidence, particularly during the banking crisis.
Answer: True
President Roosevelt addressed the banking crisis by delivering "fireside chats" on the radio to explain the situation and government actions to the public. He then closed all banks temporarily and passed the Emergency Banking Act, which allowed sound banks to reopen under Treasury supervision with federal loans, helping to stabilize the system.
President Roosevelt's "fireside chats" were highly effective in building public trust and support for his administration's initiatives.
Answer: True
Roosevelt's "fireside chats" were informal radio addresses where he explained complex New Deal policies and government actions in simple terms directly to the American people. This communication strategy was highly effective in building public trust, confidence, and support for his administration's initiatives.
Which set of objectives best characterizes the "3 R's" of Roosevelt's "First New Deal"?
Answer: Relief, Recovery, and Reform.
The "First New Deal," enacted from Roosevelt's first hundred days in office in 1933 until 1935, focused on the "3 R's": relief for the unemployed and the poor, recovery of the economy to normal levels, and reforms of the financial system to prevent a recurrence of the depression.
What was the primary purpose of President Roosevelt's "fireside chats" regarding the banking crisis?
Answer: To explain the situation and government actions to the public to build confidence.
President Roosevelt addressed the banking crisis by delivering "fireside chats" on the radio to explain the situation and government actions to the public. This communication strategy was highly effective in building public trust, confidence, and support for his administration's initiatives.
The "Second New Deal" primarily focused on social welfare, labor rights, and job creation, rather than solely on stabilizing the banking system.
Answer: True
The "Second New Deal" focused on job creation and improving the conditions for the elderly, workers, and the poor. Key initiatives included the Works Progress Administration (WPA) for public works and arts, the National Labor Relations Act to protect union rights, and the Social Security Act to provide pensions and benefits.
The Works Progress Administration (WPA) provided employment on a wide range of projects, including infrastructure, arts, and cultural initiatives, not solely roads and bridges.
Answer: True
The WPA, created in 1935, aimed to return the unemployed to the workforce, employing over 8.5 million people who built extensive infrastructure like highways, public buildings, and bridges. It also supported arts programs, employing writers, musicians, artists, and actors.
New Deal arts programs, particularly under the WPA, supported a diverse range of artistic expressions, not exclusively abstract expressionism.
Answer: True
The New Deal, particularly through the WPA's Federal One projects, subsidized artists, musicians, painters, and writers. These programs supported public murals, theater productions, and documentation of folklore, emphasizing themes of regionalism and social realism.
What was the primary focus of the "Second New Deal" (1935-1938)?
Answer: Creating jobs and improving conditions for the elderly, workers, and the poor.
The "Second New Deal" focused on job creation and improving the conditions for the elderly, workers, and the poor. Key initiatives included the Works Progress Administration (WPA) for public works and arts, the National Labor Relations Act to protect union rights, and the Social Security Act to provide pensions and benefits.
Besides building infrastructure like highways and bridges, what other significant area did the WPA support?
Answer: Arts programs for writers, musicians, and artists.
The WPA, created in 1935, aimed to return the unemployed to the workforce, employing over 8.5 million people who built extensive infrastructure like highways, public buildings, and bridges. It also supported arts programs, employing writers, musicians, artists, and actors.
The Emergency Banking Act of 1933 provided for the temporary closure of banks and allowed sound institutions to reopen under federal supervision, while the Banking Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) to insure deposits.
Answer: True
The Emergency Banking Act authorized the Federal Reserve to insure deposits, and the 1933 Banking Act made this permanent by establishing the Federal Deposit Insurance Corporation (FDIC). These measures aimed to restore public confidence in banks.
The Fair Labor Standards Act of 1938 established a national 40-hour work week and prohibited oppressive child labor.
Answer: True
The Fair Labor Standards Act of 1938 prohibited oppressive child labor and established a national 40-hour work week and a minimum wage, aiming to improve working conditions and worker purchasing power.
The Glass-Steagall Act aimed to increase banking stability by limiting commercial banks' involvement in securities activities and establishing the FDIC.
Answer: True
The Glass-Steagall Act aimed to regulate banking by limiting commercial bank securities activities and affiliations between commercial banks and securities firms. It also established the Federal Deposit Insurance Corporation (FDIC), which insured deposits up to $2,500, significantly increasing banking stability and reducing bank runs.
The New Deal reformed monetary policy by suspending the gold standard to allow for an increase in the money supply and stimulate the economy.
Answer: True
The New Deal reformed monetary policy by suspending the gold standard. This involved forbidding gold exports, mandating the exchange of gold coinage for dollars, and changing the nominal price of gold, which allowed the Federal Reserve to increase the money supply and stimulate the economy.
The Securities Act of 1933 required companies to disclose financial information to protect investors and prevent corporate abuses.
Answer: True
The Securities Act of 1933 required companies to disclose balance sheets, profit and loss statements, and officer compensation for firms whose securities were publicly traded. The subsequent establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 aimed to regulate the stock market and prevent corporate abuses related to securities sales and reporting.
The Agricultural Adjustment Administration (AAA) aimed to raise farm prices by paying farmers subsidies to reduce crop output.
Answer: True
The AAA aimed to create artificial scarcity by paying farmers subsidies for reducing output. This was intended to drive up prices, providing farmers with a "fair exchange value" for their products relative to other goods and services.
The Rural Electrification Administration (REA) significantly increased the percentage of rural homes with electricity between 1935 and 1940.
Answer: True
The Rural Electrification Administration (REA) used cooperatives to bring electricity to rural areas. Between 1935 and 1940, the percentage of rural homes without electricity dropped significantly, from 90% to 40%, transforming rural life and economies.
The National Labor Relations Act of 1935 (Wagner Act) guaranteed workers the right to organize collective bargaining units and form trade unions.
Answer: True
The National Labor Relations Act of 1935, also known as the Wagner Act, guaranteed workers the right to organize collective bargaining units, or trade unions, of their own choice. It also established the National Labor Relations Board (NLRB) to oversee labor-management relations.
The Home Owners' Loan Corporation (HOLC) and the Federal Housing Administration (FHA) were established to stimulate homeownership and mortgage lending.
Answer: True
The New Deal aimed to stimulate private home building and increase homeownership. The HOLC helped finance mortgages, and the FHA set national standards for home construction, simplifying the mortgage process and making credit more available for home repairs and purchases.
The Agricultural Adjustment Administration (AAA) was declared unconstitutional by the Supreme Court in 1936.
Answer: True
The AAA was declared unconstitutional by the Supreme Court in 1936, though a similar program was later enacted and upheld.
The New Deal era saw a significant increase, not decline, in the power and membership of labor unions in the United States.
Answer: True
The New Deal significantly boosted the power of labor unions. The National Labor Relations Act of 1935 guaranteed workers the right to organize and bargain collectively, leading to a dramatic increase in union membership.
The New Deal introduced the Food, Drug, and Cosmetic Act of 1938 to ensure product safety, not to regulate the stock market.
Answer: True
The New Deal enacted laws like the Food, Drug, and Cosmetic Act of 1938 to ensure product safety and prohibit deceptive business practices, distinct from stock market regulation.
The New Deal's approach to rural electrification, via the REA, significantly improved living standards and spurred economic development in rural communities.
Answer: True
The Rural Electrification Administration (REA) brought electricity to vast areas of rural America that previously lacked it, significantly improving living standards and spurring economic development.
The Social Security Act of 1935 was insisted upon by Roosevelt to be funded by payroll taxes to give contributors a legal right to benefits.
Answer: True
The Social Security Act established a permanent system of universal retirement pensions, unemployment insurance, and welfare benefits. Roosevelt insisted it be funded by payroll taxes to give contributors a "legal, moral, and political right" to the benefits.
The National Labor Relations Act of 1935 (Wagner Act) guaranteed workers the right to organize collective bargaining units.
Answer: True
The National Labor Relations Act of 1935, also known as the Wagner Act, guaranteed workers the right to organize collective bargaining units, or trade unions, of their own choice.
The New Deal's approach to labor relations evolved significantly, guaranteeing workers the right to organize and bargain collectively through the National Labor Relations Act.
Answer: True
The New Deal significantly strengthened labor relations by guaranteeing workers the right to organize and bargain collectively through unions via the National Labor Relations Act of 1935. This led to substantial growth in union membership.
The Securities Act of 1933 required companies to disclose financial information to protect investors and prevent corporate abuses.
Answer: True
The Securities Act of 1933 required companies to disclose balance sheets, profit and loss statements, and officer compensation for firms whose securities were publicly traded. The subsequent establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 aimed to regulate the stock market and prevent corporate abuses related to securities sales and reporting.
Which New Deal measure was established to permanently insure bank deposits and restore public confidence in the banking system?
Answer: The Federal Deposit Insurance Corporation (FDIC).
The Banking Act of 1933 made permanent the insurance of bank deposits by establishing the Federal Deposit Insurance Corporation (FDIC), a measure aimed at restoring public confidence in the banking system.
Which of the following agencies was created during the First New Deal primarily to protect investors and regulate the stock market?
Answer: Securities and Exchange Commission (SEC).
The U.S. Securities and Exchange Commission (SEC) was established in 1934, following the Securities Act of 1933, to regulate the stock market and protect investors from corporate abuses.
What was a key provision of the Fair Labor Standards Act of 1938?
Answer: Established a national 40-hour work week.
The Fair Labor Standards Act of 1938 prohibited oppressive child labor and established a national 40-hour work week and a minimum wage, aiming to improve working conditions and worker purchasing power.
How did the Glass-Steagall Act contribute to banking stability?
Answer: By limiting commercial bank involvement in securities activities and establishing the FDIC.
The Glass-Steagall Act aimed to regulate banking by limiting commercial bank securities activities and affiliations between commercial banks and securities firms. It also established the Federal Deposit Insurance Corporation (FDIC), which insured deposits up to $2,500, significantly increasing banking stability and reducing bank runs.
What significant change did the New Deal enact regarding the gold standard?
Answer: It suspended the gold standard to allow for an increase in the money supply.
The New Deal reformed monetary policy by suspending the gold standard. This involved forbidding gold exports, mandating the exchange of gold coinage for dollars, and changing the nominal price of gold, which allowed the Federal Reserve to increase the money supply and stimulate the economy.
What was a key requirement of the Securities Act of 1933?
Answer: Companies had to disclose balance sheets and profit/loss statements for publicly traded securities.
The Securities Act of 1933 required companies to disclose balance sheets, profit and loss statements, and officer compensation for firms whose securities were publicly traded. The subsequent establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 aimed to regulate the stock market and prevent corporate abuses related to securities sales and reporting.
The Public Works Administration (PWA), created under the NIRA, primarily funded:
Answer: The construction of government buildings, airports, schools, and dams.
New Deal programs, particularly the Public Works Administration (PWA) created by the NIRA, funded the construction of numerous public works, including government buildings, airports, hospitals, schools, roads, bridges, and dams, significantly shaping the American landscape and creating jobs.
How did the Agricultural Adjustment Administration (AAA) attempt to raise farm prices?
Answer: By paying farmers subsidies to reduce crop output, creating artificial scarcity.
The AAA aimed to create artificial scarcity by paying farmers subsidies for reducing output. This was intended to drive up prices, providing farmers with a "fair exchange value" for their products relative to other goods and services.
What was a major impact of the Rural Electrification Administration (REA) between 1935 and 1940?
Answer: It reduced the percentage of unpowered rural homes from 90% to 40%.
The Rural Electrification Administration (REA) brought electricity to vast areas of rural America that previously lacked it. Between 1935 and 1940, the percentage of rural homes without electricity dropped significantly, from 90% to 40%, transforming rural life and economies.
How did President Roosevelt insist the Social Security Act of 1935 be funded?
Answer: Through payroll taxes, ensuring a sense of entitlement for contributors.
The Social Security Act established a permanent system of universal retirement pensions, unemployment insurance, and welfare benefits. Roosevelt insisted it be funded by payroll taxes to give contributors a "legal, moral, and political right" to the benefits.
The National Labor Relations Act (Wagner Act) of 1935 primarily guaranteed workers the right to:
Answer: Organize collective bargaining units and form trade unions.
The National Labor Relations Act of 1935, also known as the Wagner Act, guaranteed workers the right to organize collective bargaining units, or trade unions, of their own choice. It also established the National Labor Relations Board (NLRB) to oversee labor-management relations.
Which New Deal agencies aimed to stimulate the housing sector by helping finance mortgages and setting construction standards?
Answer: The Home Owners' Loan Corporation (HOLC) and the Federal Housing Administration (FHA).
The New Deal aimed to stimulate private home building and increase homeownership. The HOLC helped finance mortgages, and the FHA set national standards for home construction, simplifying the mortgage process and making credit more available for home repairs and purchases.
What happened to the Agricultural Adjustment Administration (AAA) in 1936?
Answer: It was declared unconstitutional by the Supreme Court.
The AAA was declared unconstitutional by the Supreme Court in 1936, though a similar program was later enacted and upheld.
Which of the following acts, passed during the New Deal, aimed to ensure the safety of consumer products?
Answer: The Food, Drug, and Cosmetic Act of 1938.
The New Deal enacted laws like the Food, Drug, and Cosmetic Act of 1938 to ensure product safety and prohibit deceptive business practices, distinct from stock market regulation.
By 1935, the First New Deal had not fully restored economic prosperity, as stock prices remained depressed and unemployment persisted at high levels.
Answer: True
Although the First New Deal helped many find work and restored confidence in the financial system, by 1935, stock prices were still below pre-Depression levels, and unemployment remained high, exceeding 20 percent of the workforce.
The period from 1929 to 1933, referred to as the "Great Contraction," was characterized by a significant decrease in manufacturing output and a sharp rise in unemployment.
Answer: True
From 1929 to 1933, the U.S. experienced severe economic collapse: manufacturing output fell by one-third, prices dropped by 20% causing deflation, unemployment surged from 4% to 25%, and nearly half of the nation's work-power was unused. This period is also referred to as the "Great Contraction."
Redlining, a discriminatory practice limiting housing loans, was based primarily on the racial composition of a neighborhood's inhabitants, not the age of housing stock.
Answer: True
Discriminatory redlining emerged from HOLC maps used to determine federal housing loan backing. The most significant criterion was race; neighborhoods with "inharmonious racial groups" were often marked red or yellow, explicitly limiting access to housing loans based on race.
Full employment in the United States was ultimately achieved through the massive economic mobilization required for World War II, not solely through domestic New Deal programs.
Answer: True
The U.S. achieved full employment after entering World War II in December 1941. Massive war spending doubled the Gross National Product (GNP), and "military Keynesianism" led factories to hire extensively, absorbing the slack in the labor force.
The "Great Compression" during the New Deal and WWII era was characterized by a significant decrease, not increase, in income inequality.
Answer: True
The "Great Compression" refers to the significant decrease in income inequality that occurred due to full employment and high wages during the New Deal and World War II. The gap between the rich and the poor narrowed.
The "Black Cabinet" was a group of African Americans appointed to advisory roles, but they did not hold significant decision-making power within Roosevelt's administration.
Answer: True
The "Black Cabinet" was a group of African Americans appointed to second-level positions in Roosevelt's administration. While these programs allocated funds to Black citizens, they often operated separately and faced limitations due to prevailing segregation and discrimination.
New Deal programs primarily focused on men, assuming the husband was the breadwinner, rather than focusing on women as primary earners.
Answer: True
Initially, New Deal programs primarily focused on men, assuming the husband was the breadwinner. However, programs like the WPA later hired women, often in lower-paying roles.
New Deal housing policies, such as those of the FHA, often incorporated racial criteria that limited access for Black communities and reinforced segregation.
Answer: True
The New Deal's housing policies, particularly through HOLC maps and FHA underwriting manuals, explicitly incorporated racial criteria. Neighborhoods with "inharmonious racial groups" were often marked red or yellow, limiting federal backing for loans in Black communities and reinforcing segregation.
The Indian Reorganization Act of 1934 represented a shift away from forced assimilation towards recognizing tribal sovereignty and self-government.
Answer: True
The Indian Reorganization Act of 1934 marked a shift away from assimilation policies towards recognizing tribal sovereignty and self-government. It aimed to reverse the assimilationist policies of the Dawes Act and promote cultural preservation.
The "Great Compression" refers to the significant decrease in income inequality that occurred during the New Deal and World War II era.
Answer: True
The "Great Compression" refers to the significant decrease in income inequality that occurred due to full employment and high wages during the New Deal and World War II. The gap between the rich and the poor narrowed.
Despite initial New Deal successes, what was the state of the U.S. economy by 1935, according to the source?
Answer: Stock prices remained low, and unemployment exceeded 20%.
Although the First New Deal helped many find work and restored confidence in the financial system, by 1935, stock prices were still below pre-Depression levels, and unemployment remained high, exceeding 20 percent of the workforce.
The period from 1929 to 1933, known as the "Great Contraction," was characterized by:
Answer: Falling prices (deflation), a sharp decline in manufacturing, and soaring unemployment.
From 1929 to 1933, the U.S. experienced severe economic collapse: manufacturing output fell by one-third, prices dropped by 20% causing deflation, unemployment surged from 4% to 25%, and nearly half of the nation's work-power was unused. This period is also referred to as the "Great Contraction."
What was the primary criterion used in HOLC maps that led to the discriminatory practice known as redlining?
Answer: The racial composition of the neighborhood's inhabitants.
Discriminatory redlining emerged from HOLC maps used to determine federal housing loan backing. The most significant criterion was race; neighborhoods with "inharmonious racial groups" were often marked red or yellow, explicitly limiting access to housing loans based on race.
According to the source, what ultimately led to the achievement of full employment in the United States?
Answer: The massive economic mobilization required for World War II.
The U.S. achieved full employment after entering World War II in December 1941. Massive war spending doubled the Gross National Product (GNP), and "military Keynesianism" led factories to hire extensively, absorbing the slack in the labor force.
The term "Great Compression" refers to what economic phenomenon during the New Deal and WWII era?
Answer: A substantial decrease in income inequality.
The "Great Compression" refers to the significant decrease in income inequality that occurred due to full employment and high wages during the New Deal and World War II. The gap between the rich and the poor narrowed.
What was the initial focus of New Deal programs regarding gender roles in the workforce?
Answer: They primarily focused on men, assuming the husband was the breadwinner.
Initially, New Deal programs primarily focused on men, assuming the husband was the breadwinner. However, programs like the WPA later hired women, often in lower-paying roles.
How did New Deal housing policies contribute to racial segregation?
Answer: By incorporating racial criteria into loan backing decisions, limiting access for Black communities.
The New Deal's housing policies, particularly through HOLC maps and FHA underwriting manuals, explicitly incorporated racial criteria. Neighborhoods with "inharmonious racial groups" were often marked red or yellow, limiting federal backing for loans in Black communities and reinforcing segregation.
What shift in policy did the Indian Reorganization Act of 1934 represent?
Answer: A move towards recognizing tribal sovereignty and self-government.
The Indian Reorganization Act of 1934 marked a shift away from assimilation policies towards recognizing tribal sovereignty and self-government. It aimed to reverse the assimilationist policies of the Dawes Act and promote cultural preservation.
What did the "Arsenal of Democracy" concept refer to during the New Deal era and World War II?
Answer: The U.S. role in supplying war materials to Allied nations.
The "Arsenal of Democracy" concept, articulated by President Roosevelt, positioned the U.S. as a supplier of war materials to Allied nations. This mobilization effort significantly boosted the American economy and contributed to the eventual achievement of full employment.
The decline of New Deal legislative momentum in 1938 was influenced by a coalition of conservative Democrats and Republicans in Congress, alongside Supreme Court rulings.
Answer: True
In 1938, the Republican Party gained seats in Congress, forming a coalition with conservative Democrats who opposed further New Deal legislation. Some New Deal programs were also declared unconstitutional by the Supreme Court, contributing to the shift.
The "New Deal coalition" primarily comprised labor unions, racial minorities, white Southerners, and intellectuals, not wealthy industrialists.
Answer: True
The New Deal created a political realignment, reorienting the Democratic Party's base into the "New Deal coalition." This coalition included labor unions, blue-collar workers, racial minorities, white Southerners, and intellectuals, forming a powerful liberal bloc that dominated presidential elections for decades.
Roosevelt's "court-packing plan" in 1937 faced significant opposition and ultimately failed to pass Congress.
Answer: True
When the Supreme Court began striking down New Deal programs, Roosevelt proposed adding new justices to the Court. This plan faced significant opposition from conservative Democrats and ultimately failed to pass, though retirements allowed Roosevelt to appoint supportive justices.
Historians generally agree that the New Deal led to a significant increase, not decrease, in the power and scope of the federal government.
Answer: True
Historians generally agree that the New Deal led to a dramatic increase in the power and scope of the federal government, establishing the presidency as a central authority and creating numerous agencies to protect various citizen groups.
A primary criticism of the New Deal was that it significantly increased federal debt and bureaucracy, contrary to the assertion that it did not.
Answer: True
Criticisms of the New Deal include claims that it vastly increased the federal debt and fostered bureaucracy and inefficiency.
Mainstream economic interpretations suggest the New Deal ameliorated the crisis but did not fully end the Great Depression; full employment was achieved later.
Answer: True
Mainstream economic interpretations, particularly Keynesian ones, suggest the New Deal halted the economic collapse and ameliorated the worst of the crisis. However, they often note that full employment was not achieved until World War II.
Monetarists like Milton Friedman argued that the New Deal's "reform" policies, such as price controls, were harmful and prolonged the depression, while supporting its monetary policy.
Answer: True
Monetarists like Milton Friedman argue that the New Deal's "reform" policies (like price controls and industrial codes) were harmful and prolonged the depression. However, they generally supported the "relief and recovery" aspects, particularly the expansive monetary policy that helped end deflation.
The New Deal significantly increased the power of the federal government relative to individual states.
Answer: True
The New Deal significantly expanded federal power, often providing funds to states for programs. This led to increased federal authority and debates about states' rights regarding policy implementation.
Many major institutions created during the New Deal, such as the FDIC and SEC, remain active and influential today.
Answer: True
Several New Deal organizations remain active, including the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC), among others.
The New Deal's fiscal policy often prioritized economic stimulation through deficit spending over consistently balancing the federal budget.
Answer: True
The New Deal exhibited a tension between fiscal conservatism and the need for government spending to combat the Depression. While Roosevelt initially aimed to balance the budget, deficit spending became necessary to fund numerous programs.
The "Franksgiving" controversy involved President Roosevelt moving Thanksgiving Day earlier in November to extend the Christmas shopping season, not to shorten it.
Answer: True
The "Franksgiving" controversy refers to President Roosevelt's decision to move Thanksgiving Day forward by one week in 1939, from the last Thursday in November to the second-to-last Thursday. This was done to extend the Christmas shopping season, drawing criticism.
The "New Deal coalition" included labor unions, blue-collar workers, racial minorities, white Southerners, and intellectuals.
Answer: True
The New Deal coalition was a diverse group of voters, including labor unions, minorities, and Southerners, who supported FDR and the Democratic Party, forming a powerful liberal bloc.
Historians generally agree that the New Deal led to a dramatic increase in the power and scope of the federal government.
Answer: True
Historians generally agree that the New Deal led to a dramatic increase in the power and scope of the federal government, establishing the presidency as a central authority and creating numerous agencies to protect various citizen groups.
The New Deal's fiscal policy demonstrated a tension between balancing the budget and the necessity of deficit spending to fund numerous programs.
Answer: True
The New Deal exhibited a tension between fiscal conservatism and the need for government spending to combat the Depression. While Roosevelt initially aimed to balance the budget, deficit spending became necessary to fund numerous programs, leading to debates about fiscal responsibility.
Critics from the New Left argued that the New Deal rescued capitalism when nationalization might have been an alternative.
Answer: True
Critics from the New Left argued that the New Deal's interventions, while aimed at recovery, ultimately served to rescue capitalism from potential collapse or fundamental restructuring, such as nationalization, thereby preserving the existing economic system rather than transforming it.
The New Deal significantly expanded the role and power of the federal government, establishing it as a key player in economic regulation and social welfare.
Answer: True
The New Deal significantly expanded the role and power of the federal government, establishing it as a key player in economic regulation, social welfare, and disaster relief. It created a lasting framework for government intervention aimed at stabilizing the economy and providing a safety net for citizens.
What factors contributed to the decline of New Deal legislative momentum in 1938?
Answer: A coalition of conservative Democrats and Republicans in Congress and Supreme Court rulings against programs.
In 1938, the Republican Party gained seats in Congress, forming a coalition with conservative Democrats who opposed further New Deal legislation. Some New Deal programs were also declared unconstitutional by the Supreme Court, contributing to the shift.
Which group was NOT typically considered a core component of the "New Deal coalition"?
Answer: Wealthy industrialists.
The New Deal coalition was a diverse group of voters, including labor unions, minorities, and Southerners, who supported FDR and the Democratic Party. Wealthy industrialists were generally not part of this coalition.
What was the main effect of the Reciprocal Tariff Act of 1934?
Answer: It granted the president power to negotiate bilateral trade agreements, liberalizing trade.
The Reciprocal Tariff Act, drafted by Cordell Hull, gave the president power to negotiate bilateral trade agreements. This policy liberalized American trade and is widely credited with ushering in the era of liberal trade policy that continues to influence global commerce.
What was the outcome of President Roosevelt's 1937 "court-packing plan"?
Answer: It failed to pass Congress, though Roosevelt later appointed justices due to retirements.
When the Supreme Court began striking down New Deal programs, Roosevelt proposed adding new justices to the Court. This plan faced significant opposition from conservative Democrats and ultimately failed to pass, though retirements allowed Roosevelt to appoint supportive justices.
Which of the following was cited as a criticism of the New Deal programs?
Answer: They infringed upon free enterprise and fostered bureaucracy.
Criticisms of the New Deal include claims that it vastly increased the federal debt, fostered bureaucracy and inefficiency, and infringed upon free enterprise.
Which of the following is an example of a lasting institution created by the New Deal that continues to operate today?
Answer: The Federal Deposit Insurance Corporation (FDIC).
Several New Deal organizations remain active, including the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC), among others.
According to the monetarist interpretation by Milton Friedman mentioned in the source, what aspect of the New Deal was harmful?
Answer: The "reform" policies like price controls and industrial codes.
Monetarists like Milton Friedman argue that the New Deal's "reform" policies (like price controls and industrial codes) were harmful and prolonged the depression. However, they generally supported the "relief and recovery" aspects, particularly the expansive monetary policy that helped end deflation.
How did the New Deal impact the relationship between the federal government and state governments?
Answer: It led to increased federal power and created debates about states' rights regarding policy implementation.
The New Deal significantly expanded federal power, often providing funds to states for programs. This led to increased federal authority and debates about states' rights regarding policy implementation.
According to certain critical perspectives, such as those from the New Left, what fundamental critique was leveled against the New Deal's approach to capitalism?
Answer: It rescued capitalism when nationalization might have been an alternative.
Critics from the New Left argued that the New Deal's interventions, while aimed at recovery, ultimately served to rescue capitalism from potential collapse or fundamental restructuring, such as nationalization, thereby preserving the existing economic system rather than transforming it.