Chapter 23 Section 3
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Transcript of Chapter 23 Section 3
Chapter 23 Section 3
The Last days of the New Deal
Recession
• A period of slow business activity
• The U.S. entered a recession in 1937 when the economy collapsed again
Why did the U.S. slide back into a recession in 1937?
• Social security taxes meant workers had less money to spend and bought fewer goods
• Consumers had less money because programs such as the WPA had been reduced in size
National Debt
• The total amount of money the federal government borrows, and has to pay back
• The government has to borrow whenever the amount of money it brings in is less than the amount it spends
• The New Deal increased the national debt by $22billion
Why did FDR become concerned about the national debt?
• New Deal programs had required borrowing massive amounts of money, causing the national debt to rise dramatically
Revenue
• Income• Due to the New Deal,
American spending surpassed its revenue
From reading section 3, explain why unemployment rose during 1937?
• New Deal jobs programs provided initial relief, but only for certain segments of society.
• Critics charged that government spending on jobs programs and public works projects wasted resources, interfered with free market economics, and expanded government bureaucracy
Coalition
• An alliance of groups with similar goals– The CIO (Congress of
Industrial Organizations) was a coalition of la or unions representing unskilled labor
– The aim of this coalition was to challenge conditions in industry
Sit-down strike
• A strike in which laborers stop working but refuse to leave the building.
• Supporters outside would set up a picket line
• Together, sit-down strikers and picket line protesters would prevent companies from bringing in replacement workers
What made sit-down strikes effective to some extent?
What gains and setbacks did unions experience during the New Deal Era?
• Wagner Act protections and activism by union leaders allowed unions to grow dramatically.
• Strikes were used as a tool, sometimes successfully. But sometimes leading to violent opposition
• Eventually sit-down strikes were outlawed by the Supreme Court
What impact did the Congress of Industrial Organizations (CIO) have on union strategies?
• The CIO helped to unite and organize the nation’s unskilled workers in mass-production industries, using the strike as the main tool in the quest for better wages and working conditions
Why did the federal government fund new arts programs during the Depression?
• FDR believed that the arts were necessities, not luxuries.
• Art and theater could create awareness of social problems, while employing many and fostering hope.
What did critics dislike about the Social Security System?
• The payments were low• Women were
discriminated against• It took from the
paychecks of some, that had worked for it, in order to give to others