The New Deal

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The New Deal – Franklin D. Roosevelt Essay, Research Paper The New Deal, Franklin D. Roosevelt, AND The Future When the great depression hit America, the country was left in devastation. Due to the Hoover Administration’s slow reaction in responding to the depression, many had lost their hope for the future. Then Franklin Roosevelt came up during 1932 elections. During his campaign, Roosevelt found his slogan: “The New Deal,” a name that would become a symbol of one of his greatest achievements. Many people had asked, what caused the Great Depression? Some blamed on the Great Crash. Economists say that the Great Crash did damage the economic system in some ways, but it did not necessarily cause the depression. It was the weak economic structure at the time that may

have triggered the tumbling down of the economy. Other factors causing the Great Depression includes the over-expansion of businesses to gain more profit. In fact, as businesses over-extended themselves, produced too much products, customers could not keep up with the expansion, since their wages did not increase much. Many desperate customers, wanting to buy “on-time” with their limits income, plunged into the world of credit. Further, the whole economic system was dictated largely by jumbo corporations, the government, most of the time, stayed out of the system. Responding to the Great Depression, President Herbert, during 1931-32 believed that private charities had run out of all funds. Some went bankrupt shortly afterwards. Also, many major cities also went bankrupt. And

what they are thinking did not work. Hoover turned to businessmen for answers by promising that they will always maintain full employment, wages, and prices. He then tried lowering the income taxes. Hoover’s program to stabilize the agricultural industry, which prompted the sale of farm products through cooperatives. Despite of these programs, however, the people protested against Hoover. They argued that Hoover was too slow in response to the problems. The country was in a total mess when Franklin Roosevelt stepped into office. The new president took action quickly within the first Hundred Days. He created and have the Congress passed over 15 major laws. These 15 legislation would later be the “foundation” of the New Deal programs. The first step was to save the banks. On

March 9, President Roosevelt banks an emergency back legislation to repair the banking system: stable banks would reopen immediately after the bank holiday with government support. Weak banks would be closed and put into further investigations. Roosevelt’s second step was to reduce the unemployment and helping the needy and poor persons. To help people from having their homes foreclosed, FDR proposed the Home Owner’s Loan Act, which refinanced their mortgages. Federal Emergency Relief Administration (FERA) was next, to feed the poor. To employ the unemployed, Civil Works Administration (CWA) was created, which reduced the number of the unemployed by 4 million and his other programs like CCC, TVA, etc. In June 1933, the Public Works Administration (PWA) and the National

Recovery Administration (NRA) came to light. The PWA was created to stimulate industry and create employment in public works. The NRA worked to establish a closer an clearer relationship between government and business. At the same time, the NRA controlled productivity and competition while maintained prices, employment, and wages. For agriculture, the New Deal created the Agricultural Administration (AAA). Interestingly, the AAA enforced farmers not to plant crops, Further, farmers who did not farm and followed orders were paid by the AAA. Within just one year before the end of President Roosevelt’s first term, many new programs were still, including the Social Security, Works Progress Administration (WPA), National Labor Relations Act, and Public Utilities Holding Company