The stock market crash of 1929 helped launch the United States and many other nations into the worst economic depression in history. The severity of the Great Depression called for federal government programs to protect the general welfare of citizens. The New Deal programs created by Franklin D. Roosevelt provided the framework for the welfare state that still serves as a basis for American public policy.
All aspects of American society suffered during the Great Depression. By 1932, there were thirteen million people unemployed. There was no security for the millions who lost all of their savings in the bank failure or stock market crash. Volunteer organizations attempted to help the needy, but their resources were simply not adequate. Hope seemed non-existent. Americans had never seen such a severe depression. They could not look to history for guidance. The New Deal was Roosevelt’s attempt to restore the economy. His willingness to act decisively and experiment with new policies set him apart from previous presidents. He often said, “I have no expectation of making a hit every time I come to bat. What I seek is the highest possible batting average”.
In the first years of Roosevelt’s term he worked hard to empower the federa
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The inability of capitalism to stabilize the market and the failure of the private sector to restore prosperity enhanced the consideration of stronger executive leadership and centralized planning. The money was then handed out to relief clients in the form of direct cash payments. Roosevelt once remarked, “ The test of our progress is not whether we add to the abundance of those who have much. The Federal Emergency Relief Administration (FERA) gave money to states in the form of grants. By taking money from the workers the government slowed the increase in public consumption needed to restore the health of the economy. The NIRA did work for a short time, perhaps because a new air of confidence had overcome the depression blues and the downward spiral of wages and prices had subsided. These programs were managed by the Works Progress Administration (WPA). The CCC was designed to give work to unmarried young men aged eighteen to twenty-five. Roosevelt played a huge role in helping to restore the economy during the Great Depression. On his second day in office, Roosevelt called Congress to meet in a special session. The NIRA played a big role in restoring faith and confidence in the system and helped to increase demand and wages, but realistically it was impractical; it abandoned the American market system.
Capitalism is effective only if consumers and investors have confidence.
The Second New Deal focused on long-term maintenance whereas the original New Deal’s purpose was short-term relief. The AAA was set up to help farmers with the costs of harvesting their crops.
Approximate Word count =
952
Approximate Pages =
4 (250 words per page double spaced)
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