The Great Depression and Franklin D. Roosevelt's New Deal Essay
858 Words4 Pages
The Great Depression and Franklin D. Roosevelt's New Deal
During the 1930's, America witnessed a breakdown of the Democratic and free enterprise system as the US fell into the worst depression in history. The economic depression that beset the United States and other countries was unique in its severity and its consequences. At the depth of the depression, in 1933, one American worker in every four was out of a job. The great industrial slump continued throughout the 1930's, shaking the foundations of Western capitalism.
The New Deal describes the program of US president Franklin D.
Roosevelt from 1933 to 1939 of relief, recovery, and reform. These new policies aimed to solve the economic problems created by the…show more content…
Businesses that complied with the codes were exempted from antitrust laws, and workers were given the right to organize unions and bargain collectively. After that, the government set up long-range goals which included permanent recovery, and a reform of current abuses.
Particularly those that produced the boom-or-bust catastrophe. The NRA gave the President power to regulate interstate commerce. This power was originally given to Congress. While the NRA was effective, it was bringing
America closer to socialism by giving the President unconstitutional powers. In May 1935 the US Supreme Court, in Schechter Poultry
Corporation V. United States, unanimously declared the NRA unconstitutional on the grounds that the code-drafting process was unconstitutional. Another New Deal measure under Title II of the National
Industrial Recovery Act of June 1933, the Public Works Administration
(PWA), was designed to stimulate US industrial recovery by pumping federal funds into large-scale construction projects. The head of the PWA exercised extreme caution in allocating funds, and this did not stimulate the rapid revival of US industry that New Dealers had hoped for. The PWA spent $6 billion enabling building contractors to employ approximately
650,000 workers who might otherwise have been jobless. The PWA built everything from
Franklin Roosevelt's New Deal Essay
503 Words3 Pages
Franklin Roosevelt's New Deal When President took office in March of 1932 he had an idea of a plan, which would have to develop over time, which was the "New Deal for the American People". He believed that if this plan went through, it would solve the problem of the Great Depression and restore the American economy. President Roosevelt's New Deal that took time to develop included programs that would help the unemployed get jobs, social security issues such as welfare, and housing and agricultural recovery. Roosevelt also included programs to help the banking system. President Roosevelt's New Deal failed to restore the economy as Roosevelt had hoped it would, but in turn it helped the people that suffered the most from the Great…show more content…
The Glass-Stbagall Banking Reform Act, which forbade banks to invest customers' money into the stock market. President Roosevelt also tried to better the economy by causing inflation. Inflation would cause an increase in prices and businesses would make more profit and the economy would boom.
The new production caused an increase in the need of workers, thus causing the unemployment rate to decrease. One way the New Deal was able to give jobs to the jobless was via the Civilian Conservation Corps. This program gave jobs to civilians between the ages of eighteen and twenty-five; they were planting trees, building dams, and stopping the erosion of the soil. By August of 1933, 300,000 men were at work. Roosevelt also aided the farmers through the Agricultural Adjustment Act. This act helped farmers meet their mortgages, which went hand in hand with the Home Owners' Loan Corporation. Through these acts the government used millions of dollars to try to relieve farmers' economic crises. But by doing this, Roosevelt caused an increase in the national debt.
President Roosevelt also helped strengthen the policies for the building of houses. Roosevelt set up the Federal Housing Administration in hopes that he would stimulate the housing industry, which went in conjunction with the United States Housing Authority, which gave government loans for low-cost construction. But the New Deal