U.S. History Chapter 10

WPA

One of the Second New Deal programs, called the Works Progress Administration (WPA), the New Deal's largest public works program. Between 1935 and 1941, the WPA employed 8.5 million workers and spent $11 billion to construct about 650,000 miles of roadways, 125,000 public buildings, 853 airports, more than 124,000 bridges, and more than 8,000 parks. One WPA program, called Federal Project Number One, financed artists, musicians, theater people, and writers.

Welfare Capitalism

An approach to labor relations in which companies meet some of their workers' needs without prompting by unions, thus preventing strikes and keeping productivity high.

Huey Long's Criticism

An outspoken critic. As governor of Louisiana, Long had championed the poor. He believed and criticized that Roosevelt's plan to help the American economy after the Great Depression did not adequately help citizens living in poverty. Rather he established the Share Our Wealth Society to "pull down these huge piles of gold until there shall be a real job, not a little old sow-belly, black-eyed pea job but a real spending money, beef-steak and gravy. . . Ford in the garage . . . red, white, and blue job for every man."

Glass-Steagall Act

AKA The Securities Act of 1933 and the Banking Act of 1933, which separated commercial banking from investment banking. Commercial banks that handled everyday transactions could no longer risk depositors' money through stock speculation. The act also created the Federal Deposit Insurance Corporation (FDIC) to provide government insurance for bank deposits. The creation of the FDIC increased public confidence in the banking system.

Wagner Act

AKA the National Labor Relations Act, which guaranteed workers the right to unionize and bargain collectively. It also established the National Labor Relations Board (NLRB), which organized factory elections by secret ballot to determine whether workers wanted a union.

Public Works Admin

Another relief agency, the Public Works Administration (PWA). One-third of the nation's unemployed were in the construction industry. To put them back to work, the PWA began building highways, dams, schools, and other government facilities. The PWA awarded contracts to construction companies. By insisting that contractors not discriminate against African Americans, the agency broke down some of the racial barriers in the construction trades.

FDIC

Created by the Glass-Steagall Act, the Federal Deposit Insurance Corporation (FDIC) provided government insurance for bank deposits. The creation of the FDIC increased public confidence in the banking system. The FDIC still exists today. It guarantees bank deposits up to $250,000 for all member banks and is funded by insurance premiums paid by the banks, not by taxpayer money. The FDIC supervises the operations of over 4,500 banks nationwide making sure they are sound, and comply with all financial regulations and consumer protection laws.

Civil Works Admin

Hiring workers directly, the CWA employed 4 million people, including 300,000 women. The agency built or improved 1,000 airports, 500,000 miles of roads, 40,000 school buildings, and 3,500 playgrounds and parks. The program spent nearly $1 billion in just five months. Although the CWA helped many people get through the winter, President Roosevelt was alarmed by how quickly the agency was spending money, and did not want Americans to get used to the federal government providing them with jobs. Warning that the Civil Works Administration would "become a habit with the country," Roosevelt insisted that it be shut down the following spring.

New voters to FDR and Democrats

In 1936, millions of voters owed their jobs, mortgages, and bank accounts to the New Deal. Many African Americans, who had reliably voted Republican since Reconstruction, switched their allegiance to the Democratic Party. Women and African Americans had made modest gains, thanks to the support of Eleanor Roosevelt, who toured the country and recounted her experiences to her husband. She persuaded him to address some of their problems in his New Deal programs. A Democratic Party coalition emerged, including not just the white South, but also African Americans, farmers, workers, immigrants, women, progressives, and intellectuals. People liked the New Deals and switched to voting for FDR and for other Democrats in the future.

National Recovery Admin

the National Recovery Administration (NRA) to suspend antitrust laws and allowed business, labor, and government to cooperate with rules, or codes of fair competition, for each industry. Codes set prices, established minimum wages, shortened workers' hours to create more jobs, permitted unionization, and helped businesses develop industry-wide rules of fair competition. The NRA revived a few industries, but the codes were difficult to administer. Employers disliked that the NRA allowed workers to form unions. They also argued that paying minimum wages forced them to raise prices. After the NRA was instituted, industrial production fell. The NRA was declared unconstitutional in 1935.

Second New Deal

In 1935 Roosevelt launched a series of programs, now known as the Second New Deal, to generate greater economic recovery. Among these new programs was the Works Progress Administration (WPA), the New Deal's largest public works program.

CCC

The Civilian Conservation Corps (CCC). The CCC offered unemployed young men, 18-25 years old the opportunity to work under the direction of the forestry service planting trees, fighting forest fires, and building reservoirs.

New Deal

A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression.

National Labor Relations Board

Established by the National Labor Relations Act, the National Labor Relations Board (NLRB), which organized factory elections by secret ballot to determine whether workers wanted a union. The NLRB could also investigate employers' actions and stop unfair practices.

FDR intervention into economy

FDR intervened in the economy a lot to try and end the great depression and believed a lot in the government intervening in business and the economy, unlike previous President Hoover. FDR signed the New Deal into law in his first 100 days. It was an unprecedented government intervention. It created 42 new agencies, including Social Security, the Securities and Exchange Commission, and the Federal Deposit Insurance Corporation. Their purpose was to create jobs, safeguard investments, and allow unionization.

Social Security Act

Provided some financial security for older Americans, unemployed workers, and others. Roosevelt and his advisers viewed the bill primarily as an insurance measure. Workers earned the right to receive benefits because they paid special taxes to the federal government, just as they paid premiums in buying a life insurance policy. The legislation also provided modest welfare payments to others in need, including people with disabilities and poor mothers with dependent children.

Court packing

The act of changing the political balance of power in a nation's judiciary system whereby a national leader, such as the president of the United States, appoints judges who will rule in favor of his or her policies. Was attempted to be done by FDR.

Securities Act of 1933

The first major law regarding the sale of securities. It required that companies register their securities sold to the public with the SEC and that investment bankers must provide full and accurate information related to new securities issues to potential investors. The Securities Act required companies that sold stocks and bonds to provide complete and truthful information to investors.