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
Essay about President Franklin D. Roosevelt's New Deal
1531 Words7 Pages
On October 24, 1929, a day historically known as “Black Thursday”, the United States stock market crashed due to investors in the market starting to “sell off their shares, which resulted in a decline in stock prices.” (Dau-Schmidt, pg 60) This economic downturn in the market gave birth to financial ambivalence in the country, increasing unemployment, as well as other consequences on the landscape of international economics. When President Franklin D. Roosevelt took over as president in the year of 1933, “The country was in its depth of the Great Depression.” (Neal, 2010) Roosevelt’s New Deal consisted of implementing relief programs such as the Work Progress Administration and the Civil Works Administration, which aimed at revitalizing…show more content…
They write, “In response to the massive unemployment of the 1930’s, Roosevelt’s New Deal in 1933 introduced the first federal relief programs targeted at the poor and unemployed… he anticipated that the work relief jobs would boost consumer spending and thus increase demand for labor, which would then raise private employment and earnings.” (Neuman, Fishback, Kanton, pg 4) This quotes illustrates that programs such as these relief jobs, would not only be able to get the people back to work, but also get the economy up and running again. Moreover, another method in which Roosevelt used to revitalize the labor market was through the Civil Works Administration also known as the CWA. Similar to the Works Progress Administration, the CWA was introduced in 1933. This relief program also allowed for the construction of bridges, roads, but mostly focused on inner city projects. Nonetheless like the WPA, the CWA only “ employed up to 4 million people per week through March 1934.” This goes to show that there was only a number amount of people to get jobs, this was determined by the “Household budget deficit principle of the CWA.” Furthermore, to put this in simpler terms, the CWA was given certain amount of money in order to have unemployed people working, therefore