apsuki-2006

The New Deal

During the Great Depression, Franklin Delano Roosevelt was elected as president in 1932. To handle the problems of the Great Depression, he established many federal programs and agencies, which can be divided into three phases, the Hundred Days, the First New Deal, and the Second New Deal. The goals of the New Deal were relief, to provide assistance to business and individuals, recovery, to recover the economy, and reform, to address the causes of the depression. Although many believed that the New Deal was a major manifestation of liberalism, it was actually a conservative effort to maintain capitalism.

The New Deal tried to support the economic status by passing Acts and programs, but it did not do much. Acts and Programs such as Civilian Conservation Corps (CCC), National Bank Holiday (Emergency Banking Relief Act), and the Agricultural Adjustment Act (AAA) were passed. The CCC employed thousands of young men in conservation work, which resulted in much needed money into the economy. The National Bank Holiday unabled paper currency to redeem in gold, which made people more poor, and it also closed many banks and so the nation was taken off the gold standard. The AAA reduced crop production by lowering the production and yield, and increased the need of farmers even more.

The vocal critics, such as Francis Townsend, Charles Coughlin, and Huey Long, threatened to cut off support for FDR's reelection in 1936 because they thought the New Deal programs were inaffective and did not address specific needs. Farmers and laborers were also vocal in their discontent, as well as conservative business leaders were starting to oppose the New Deal.

The Second New Deal passed acts that helped some of the problems, such as Social Security Act and Tax Restructuring, and Works Progress Administration (WPA). The Social Security Act abled people over 65 to retire and collect monthly payments. This act also included to handicapped, mothers and children, and unemployed people. The WPA employed actors, musicians, artists, and writers, with wages higher than state relief rates, but not to compete with the free-market system, they were lower than what business offered. The Tax Restructuring set a higher income tax on the wealthy and capital gains.

The New Deal, overall, just wanted to conserve capitalism, rather than to help the social problems. Although it didn't do much, it helped get out of the depression and a little with the economy. Like the Civil Works Administration (CWA), the federal government employed workers for construction. Also The Securities and Exchange Commission (SEC), which regulated the stock market and reduced wild speculation.

posted by Yoshimi Nomura @ 2:02 PM