The New Deal

During the 1930's, America witnessed a breakdown of the Democratic and free enterprise system as the

United States fell into the worst Depression in history. The effects of the depression were being felt

everywhere in the United States. In 1933, sixteen million people were unemployed. Americans wanted and

needed a change. They proved this by electing Franklin D. Roosevelt in 1932. This was the beginning of a

new period in time for Americans, as Roosevelt would introduce his course of action with the New Deal.

Would Roosevelt’s New Deal be what Americans needed to counteract the effects of the depression? In

Roosevelt’s first inaugural address he declared, “…In the event that Congress hall fail to take these courses

and in the event that the national emergency is still critical I shall not evade the clear course or duty that will

then confront me.” Roosevelt’s course of action came to be known as the New Deal. The New Deal

describes the innovative measures that President Roosevelt took to try to restore the American economy,

give Americans pride again, and have faith in the government. The New Deal started in 1933 and lasted until

1938. The New Deal was based on relief, recovery, and reform. The New Deal included f

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These acts helped to restore the confidence in the wake of widespread bank

failures. The PWA spent $6 billion enabling building contractors to employ approximately 650,000 workers

who might otherwise have been jobless. Although in itself the New Deal failed to

stimulate full economic recovery, it provided the federal government not only with increased controls over

money supply and Federal Reserve policies. From 1935 to 1943 the WPA provided

approximately nine million people with jobs at a cost of more than $11 billion. In the first two years, the New Deal was concerned mainly with relief,

setting up shelters and soup kitchens to feed the millions of unemployed. Businesses that

complied with the codes were exempted from antitrust laws, and workers were given the right to organize

unions and bargain collectively. The law was

intended to prevent competitive wage cutting by employers during the Depression. In May 1935 the US

Supreme Court unanimously declared the NRA unconstitutional on the grounds that the code-drafting

process was unconstitutional. It had also provided

approximately four million students. 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. In addition, World War II erupted in September 1939. Wages and prices continued to rise,

and the original minimum wage ceased to be relevant. It also with increased understanding of the economic

consequences of its own taxing, borrowing, and spending, helping the government to limit the impact of later

recessions. The National Recovery Administration (NRA) was the

keystone of the early New Deal program launched by Roosevelt. It was created in June 1933 under the

terms of the National Industrial Recovery Act.

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