Show MoreWhen Franklin D. Roosevelt accepted the Democratic nomination for presidency in 1932, he promised the American people a “New Deal.” The New Deal was President Roosevelt’s program to deal with the deepening Great Depression. On March 9, 1933, exactly five days after his inauguration, FDR kept his promise he made to the people and began implementing his New Deal. The purpose of the New Deal was to relieve the economic hardship, to help millions of Americans, and to solve the unemployment problem. However, after the New Deal was implemented, the economic system worsened through increased inflation and heavy deficit. Millions of farmers were left destitute, businesses failed, and the unemployment rate rose drastically. As a result, FDR’s…show more content…
Approximately six million pigs were killed in 1933. When farmers took their land out of production according to government regulation, thousands of black sharecroppers and tenant farmers were thrown off their land. As a result of AAA, farm production declined and many more people were hungry, jobless, and homeless. Another New Deal program was the National Recovery Act (NRA). Its stated purpose was to regulate business, develop price codes, set wages and manage working condition and schedules. The result was that the shorter hours and higher wages increased business costs and forced businesses to reduce staff. After the NRA was implemented, unemployment rose to thirteen million. In order to finance all of Roosevelt’s government projects, the federal government resorted to heavy deficit financing. In 1934, Roosevelt’s budget projected an income of three billion and an expense of ten billion. The national debt grew from $22 ½ billion in 1933 to $40 ½ billion in 1939. To deal with the growing government need of money, taxes were raised in 1933, 1934, and again in 1935. The restricted economic growth lengthened the depression. All FDR’s plans failed, and there were more American people unemployed in 1940 than in 1932. During FDR’s twelve year term, he implemented numerous government policies and programs, the purpose of which was to benefit and aid the American people and the economy. The Emergency Banking Relief Act was
The New Deal
The American Depression years
After the calamitous Wall Street Crash in 1929, America plunged into a severe economic crisis. The 1930s would come to be referred to as the Great Depression.
Industries and businesses faced low demand for their products as people tried to save what little money they had. Banks collapsed as loan repayments went unpaid and unemployment reached unprecedented levels. All over America people were living in poverty.
The laissez-faire politics of the Republican Party that had helped create the economic boom of the 1920s no longer seemed relevant. In 1932, the American people elected the Democrat, Franklin D. Roosevelt, because he promised to tackle America's many problems.
A New Deal for America
I pledge you, I pledge myself, to a new deal for the American people
Franklin D. Roosevelt
This statement by Roosevelt during the election campaign of 1932 caught the attention of the American public. The "New Deal" has become the accepted name for the policies followed by the Roosevelt administrations during the 1930s.
What was Roosevelt trying to achieve?
Roosevelt had three basic aims which directed his actions:
- Help the victims of the Depression. Millions of ordinary Americans faced unemployment, hunger, and poverty. Roosevelt was determined to help them.
- Encourage economic recovery. The Depression was a disaster for America. Roosevelt knew that he had to take action to encourage recovery, to get the nation back to work.
- Reform the economic system. The whole economic system would have to be altered so that there would never again be a Depression as bad as the 1930s.
To achieve these objectives, Roosevelt decided that direct action and intervention by the federal government would be necessary. The days of laissez-faire, of the government doing as little as possible, were over.