HIS CH 15-5 FDR LEGACY

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Multiple Choice
Identify the choice that best completes the statement or answers the question.

The Impact of the New Deal

New Deal Reforms That Endure

During his second term in office, President Roosevelt hinted at plans to launch a Third New Deal to build on the achievements of his first four years in office . In his inaugural address, the president exclaimed, "I see millions of families trying to live on incomes so meager that the pall of family disaster hangs over them day by day. 1 see one-third of a nation ill-housed, ill-clad, ill-nourished.-

Nevertheless, by 1937, the economy had improved enough to convince many Americans that the Depression was finally ending . Industrial production had returned to 1929 levels, and unemployment had fallen to 14 percent-still high, but much lower than in the early 1930s . Although economic troubles still plagued the nation, President Roosevelt faced rising pressure from Congress to scale back on New Deal programs, and he did. As a result, industrial production dropped again, and the number of unemployed rose from about 7 million early in 1937 to 11 million early in 1938. FDR did not like deficit spending-spending more money than the government receives in revenue. Therefore, he never launched a third reform era. By 1939, the New Deal was effectively over and Roosevelt was increasingly concerned with events in Europe-particularly Hitler's rise to power in Germany.

In 1937 most Americans thought

the depression would never end

the depression was ending

What happened after FDR scaled back the New Deal programs

a.	production dropped	c.	both of these
b.	unemployment rose

FDR did not like deficit spending. What is deficit spending?

a.	Government spending the same amount of money as it takes in	c.	Government spending no more than it takes in in taxes
b.	none of these	d.	Government spending more money than it takes in

In 1939 the New Deal was

a.	over	c.	grinding out more and more programs
b.	starting on the third hundred days	d.	just starting

SUPPORTERS AND CRITICS OF THE NEW DEAL

Over time, opinions about the New Deal have ranged from harsh criticism to high praise . Most conservatives think President Roosevelt's policies made the federal government too large and too powerful by involving government agencies in the nation's finances, agriculture, industries, and housing. They believe that the government has stifled free enterprise and individual initiative. Liberal critics, in contrast, argue that PreRoosevelt didn't do enough to socialize the economy and to eliminate social and economic inequalities. The nation still had only a few very rich people and an enormous number of poor people . Supporters of the New Deal contend, however, that the president struck a reasonable balance between two extremes unregulated capitalism and overregulated socialism-and helped the country recover from its economic difficulties . .

Conservatives thought the New Deal

a.	made the government too big	c.	stifled free enterprise and made people weak
b.	got the government too involved in the economy	d.	all of these

Liberals believed that the New Deal

a.	made the government too big	c.	did not go far enough in helping the poor and solving social problems
b.	got too involved in peoples lives	d.	was anti-capitalistic

EXPANDING GOVERNMENT'S ROLE IN THE ECONOMY

The Roosevelt administration expanded the power of the federal government, giving it-and particularly the president-a more active role in shaping the economy. It did this by infusing the nation's economy with millions of dollars, by creating federal jobs, by attempting to regulate supply and demand, and by increasing the government's active participation in settling labor and management disputes . The federal government also established agencies, such as the Federal Deposit Insurance Corporation and the Securities and Exchange Commission, to regulate banking and investment activities . Although the New Deal did not end the Great Depression, it did help reduce the suffering of thousands of men, women, and children by providing them with jobs, food, and money. It also gave people hope and helped them to regain a sense of dignity.

The federal government had to go deeply in to debt to provide jobs and aid to the American people . The federal deficit increased to $3.3 billion in the fiscal year ending June 30, 1934. As a result of the cutbacks in federal spending made in 1937-1938, the deficit dropped to $100 million . The next year it rose again, to $2 .9 billion. What really ended the Depression was the massive amount of spending by the federal government for guns, tanks, ships, airplanes, and all the other equipment and supplies the country needed for the World War IT effort. During the war, the deficit reached a high of about $54 billion, in 1943.

The Federal Deposit Insurance Corporation and the Securities and Exchange Commission were started to

a.	control banking and the stock market	c.	pay off the national debt
b.	improve investment in the environment	d.	help the average family feel more secure

What ended the Great Depression

a.	the New Deal	c.	spending on war materials for the upcoming World War II
b.	the Democrat control of the Congress	d.	the Depression never did end

The New Deal put the American economy in debt

true

false

10.

The Roosevelt administration _____ the power of the federal government, giving it-and particularly the president-a more active role in shaping the economy.

a.	reduced	c.	destroyed
b.	expanded	d.	exposed

11.

The New Deal ended the Great Depression

true

false

THE LABOR FRONT

One of the areas in which New Deal policies have had a lasting effect is the protection of workers' rights . Before the New Deal, workers were typically on their own when seeking a fair contract from employers . Indeed, the government tended to side with the interests of business against the interests of labor. New Deal legislation, such as the Wagner Act and the Fair Labor Standards Act, changed that pattern by setting standards for wages and hours, banning child labor, and ensuring the right of workers to organize and bar gain collectively with employers. Today, the National Labor Relations Board, created under the Wagner Act, continues to act as a mediator in labor disputes between unions and employers

12.

Which statement is true?

a.	The New Deal did nothing to protect workers rights	c.	The New Deal was against the labor movement
b.	The New Deal had a lasting effect on the protection of workers rights	d.	The New Deal was Communist and therefore anti labor

THE RURAL SCENE

New Deal policies also had a significant impact on the nation's agriculture . New Deal farm legislation set quotas on the production of crops such as wheat to control surpluses . Under the second Agricultural Adjustment Act, passed in 1938, farmers stored their crops until prices reached parity-a price equal to what farmers had received in the years between 1910 and 1914. Establishing price supports for farmers set a precedent of federal aid to farmers that continued into the 1990s. Other government programs, such as electrification, helped to improve conditions in rural America .

By subsidizing farmers and setting minimum wages for workers, New Deal legislation had a very important effect on the nation's economy: more people had more money to spend, so the economy began to recover

13.

The New deal had the following lasting effect on farmers

a.	control surpluses and helped to keep farm prices high	c.	brought electricity to the rural areas
b.	the New Deal did all of these	d.	set minimum wages for farm workers

BANKING AND FINANCE

New Deal programs established new policies in the area of banking and finance . The Securities and Exchange Commission (SEC), created in 1934, continues to monitor the stock market and enforce laws regarding the sale of stocks and bonds . The Federal Deposit Insurance Corporation (FDIC), created by the Glass-Steagall Banking Act of 1933, has shored up the banking system by reassuring individual depositors that their savings are protected against loss in the event of a bank failure . Today, individual accounts in United States federal banks are insured by the Federal Deposit Insurance Corporation for up to $100,000

14.

Securities and Exchange Commission (SEC) has had a lasting effect on the American economy. What does it do?

a.	regulates the banking system	c.	regulates the stock market
b.	provides loans for small businesses	d.	provides military security for the U.S.

15.

What New Deal agency provides up to $100,000 insurance for your bank deposit in case the bank fails?

a.	FCC	c.	SEC
b.	CCC	d.	FDIC

Continuing Benefits

New Deal economic and financial reforms, including creation of the FDIC, the SEC, and Social Security, have helped to stabilize the nation's finances and economy. Although the nation still experiences economic downturns, known as recessions, people's savings are insured and they can receive unemployment compensation if they lose their jobs.

16.

What lasting effect did the New Deal banking and finance programs have on the U.S.?

a.	they helped the rich only	c.	they make the U.S. economically weaker
b.	they helped the poor only	d.	they help to stabilize the economy and banking

SOCIAL SECURITY

One of the most important legacies of the New Deal has been that the federal government has assumed some responsibility for the social welfare of its citizens. This philosophy represented a major departure from the traditional attitude that churches and private charities were the only institutions that should help care for the needy. Under President Roosevelt, the government undertook the creation of a Social Security system that would help a large number of needy Americans receive some assistance.

The Social Security Act provides an old-age insurance program, an unemployment compensation system, and aid to families with dependent children and the disabled . It has had a major impact on the lives of millions of Americans since its founding in 1935. Without this aid, many people would have experienced severe poverty or neglect . The payments to laid-off workers have helped to cushion individuals from the hardships of unemployment. For most Americans, the Social Security system is an important function of the federal government.

17.

As a result of the New Deal the federal government began to assume some responsibility for the welfare of the citizens

true

false

18.

Social Security is one of most important programs developed by the New Deal. What does Social Security do?

a.	retirement benefits	d.	all of these
b.	unemployment insurance	e.	help for people with disabilities
c.	aid to families with dependent children

THE ENVIRONMENT

Americans also continue to benefit from New Deal efforts to protect the environment. President Roosevelt was highly committed to conservation and promoted policies designed to protect the nation's natural resources. As a result, the Civilian Conservation Corps planted trees, created hiking trails, and built fire lookout towers. Also, the Soil Conservation Service taught farmers how to conserve the soil through contour plowing, terracing, and crop rotation . Congress also passed the Taylor Grazing Act in 1934 to help reduce grazing on public lands. Such grazing had contributed to the erosion that brought about the dust storms of the 1930s

The Tennessee Valley Authority harnessed water power to generate electricity and to help prevent disastrous floods in the Tennessee Valley During the New Deal, the government also added to the national park system . Olympic National Park in Washington and Shenandoah National Park in Virginia were added to the national park system during the 1930s, as were Carlsbad Caverns in New Mexico, Isle Royale in Michigan, and the Great Smoky Mountains in North Carolina and Tennessee. The New Deal also established new wildlife refuges and set aside large wilderness areas.

The New Deal, however, did not have a spotless record on the environment. The Roosevelt administration contributed to air, water, and land pollution. For example, the TVA polluted the Tennessee Valley region by engaging in strip mining to get coal for its coal-burning generators. The strip mining caused soil erosion, and the burning of the coal increased air pollution . The TVA also caused water pollution by dumping untreated sewage and toxic chemicals from its strip-mining operations into the region's rivers and streams.

The New Deal legacy has many dimensions. It has brought hope and gratitude from some people for the benefits they receive . It has also brought anger and criticism from those who believe that it has taken more of their money in taxes and curtailed their freedom through increased government regulations . The deficit spending necessary to fund New Deal programs grew immensely as the nation entered World War II.

19.

How did FDR and the New Deal help the environment?

a.	CCC planted trees and built fire lookout towers	c.	the Soil Conservation Service taught farmers how to conserve the soil
b.	all of these are ways the New Deal helped the environment	d.	the Taylor Grazing Act helped to reduce grazing on public lands

20.

Though many of the New Deal policies helped the environment, some of the policies hurt the environment.

true

false

21.

Which statement is true about the TVA?

a.	The Tennessee Valley Authority was beneficial to the environment	c.	both are true
b.	The Tennessee Valley Authority was harmful to the environment	d.	both are false - the TVA had nothing to do with the environment

Matching

a.	Social Security Act	e.	National Labor Relations Board
b.	Securities and Exchange Commission	f.	deficit spending
c.	Federal Deposit Insurance Corporation	g.	Tennessee Valley Authority
d.	parity

22.

This provides for an old-age insurance program

23.

This refers to farm prices that are considered fair

24.

This provides for an unemployment compensation program

25.

This provides programs that aid needy families with children and the
needy disabled

26.

Under the second Agricultural Act, farmers stored their crops until the
prices for those crops reached higher

27.

Created under the Wagner Act, this continues to act as a mediator in
disputes between unions and employers

28.

Created in 1934, this continues to monitor the stock market and
enforce laws regarding the sale of stocks and bonds

29.

Pollution was an unfortunate result of this program to promote flood
control and build hydroelectric power plants

30.

Although President Roosevelt did not like this, he used it to stimulate
the economy and put people back to work during the New Deal

31.

Created through the Glass-Steagall Banking Act, this has shored up
the banking system by protecting people’s savings against loss in the
event of a bank failure.