Anda di halaman 1dari 16

Byram 1 Gabriel Byram Ms.

Connie Wyma Junior English Honors 17 April 2014 Franklin Delano Roosevelt and the New Deal Franklin Delano Roosevelt swiftly responded to the plight of The Great Depression by implementing a series of socioeconomic programs and policies coined the New Deal. Roosevelts New Deal brought relief, recovery, and reform, providing much needed social support and economic change. As a hero to many and a dictator to some, Roosevelt had an undoubtedly resounding impact. He not only eased the United States out from the harshest economic depression in history, but also transformed the role of the federal government. The Great Depression shocked the United States; it started as a typical recession in the summer of 1929 and quickly became a severe economic crash that was not fully recovered from until over a decade later (Great Depression 1). The heart of The Great Depression brought notable devastation to the United States, lasting from the stock market crash of 1929 to the beginning of recovery in the spring of 1933 (Great Depression 1). From the time of the stock market crash until December of 1932, the unemployment rate rose from 3.1% to 26% (Steele 6). Gross national product fell 30.5% from the summer of 1929 to the spring of 1933 (Smiley). From crest to trough, American industrial production fell 46.8% (Great Depression 1). The economy was in despair, and the sitting president, Herbert Hoover, was not able to lift it from ruins. Herbert Hoovers inability to secure the economy set the stage for Franklin Roosevelts election. Hoover attempted to convince the public that if they have confidence in the economic future, then all will be well, for economic depression cannot be cured by legislative action or

Byram 2 executive pronouncement (Oh Yeah). However, the economic depression was not being cured by confidence alone, as over one fourth of the workforce was unemployed (Steele 6). The eight years preceding The Great Depression were under Republican administrations. (The Presidents). As such, Republicans took much blame for The Great Depression and suffered from decreasing public approval leading into the presidential election of 1932 (Election Statistics). Hoover had also contributed to the anti-Republican sentiment by passing faulty legislation such as the Hawley-Smoot tariff; it astronomically raised duties on foreign goods to unprecedented rates, spurring foreign retaliation and worsening the depression (SmootHawley). Roosevelt distanced himself from Hoover, denouncing Hoovers detrimental policy during the presidential campaign of 1932 (The Battle of Smoot-Hawley). Hoover promised that the worst would have passed by 1930, but he was wrong; it was yet to come (Oh Yeah). Hoover had failed not only the economy, but also the American people, smoothing the path for Roosevelts upcoming political triumph. Roosevelts past further contributed to his success. First, his character was shaped and exemplified through personal struggles. Diagnosed from the waste down and paralyzed by polio in 1921, Roosevelt resolved to overcome his disability (Biography of Franklin). Roosevelt established a polio treatment center and taught himself to walk short distances with crutches (Rowley 120-125). Despite an arduous attempt at rehabilitation, Roosevelt never regained the use of his legs (Biography of Franklin). Regardless, he demonstrated a key leadership aspect: determination. Second, Roosevelts political career prepared him for presidency. Roosevelt was elected to Governor of New York in 1928 (Franklin D. Roosevelt). As Governor, he instituted a number of socioeconomic programs that acted as prototypes for New-Deal programs such as Social Security and the Federal Economic Relief Administration (Franklin D. Roosevelt).

Byram 3 Furthermore, Roosevelt assembled a close council of economic and social relief advisors in Albany, a number of which would advise him during his presidential tenure (Franklin D. Roosevelt). Roosevelts past furnished him with political success, character definition, and experience in establishing socioeconomic programs. The New Deals fruition was multifactorial; the path to its attainment can be seen as sequence of events. After three unpopular Republican administrations, a desperate nation sought economic and social aide. Roosevelt, a determined Democratic candidate with a history of institutionalizing social relief programs, bid for presidency and promised immediate action (FDRs First). Ergo, Roosevelt won all but two states in the Election of 1932. In addition, both the House of Representatives and Congress were won by Democrats, facilitating the process of legislation (Election Statistics). The New Deal could be enacted because Roosevelt had the support of the forgotten man at the bottom of the economic pyramid, for that is who he advocated for (Franklin D. Roosevelt Speeches). The commencement of Roosevelts presidency was marked by crucial and immediate action. Banks were failing at dangerously high rates, with over 40% of American banks declared bankrupt by 1933, so the day after his inauguration, Roosevelt declared a four day bank holiday during which all banking transfers would be halted (Chronology). On the same day, Roosevelt also summoned a 100 day congress session from March 9th June 16th, 1933, intended to hasten the legislative process (Chronology). During the 100 day special session, Roosevelt passed a number of acts. First, he passed the Emergency Banking Act, which expanded federal jurisdiction of banking regulation and foreign trade. This act allowed the federal government to allocate additional required capital to banks and then declare banks solvent or insolvent based on inspection (Chronology). Second, Roosevelt dissolved the national gold standard through the

Byram 4 Emergency Banking Relief Act of 1933 (New Deal Programs). The lack of restrain that the gold standard applied allowed for the much needed inflation of the dollar. Third, Roosevelt provided information and security to the public through his famous fireside chats, which were nationally radio-broadcasted sessions during which the President would have a casual talk with the listeners (Chronology; Transcript). The immediate actions taken by the President allowed for public understanding and confidence, bank solvency, and inflation of the dollar, all of which are necessary to provide before further relief, reform, and recovery can be made. Roosevelt continued his New Deal throughout his 12-year tenure. The vast majority of his New Deal programs can be arranged into three main categories: financial regulations reform, job creation and stabilization, and relief and welfare. All three categories chronologically overlapped; however, financial regulations received the most immediate transformation. First, the Securities and Exchange Acts of 1933 and 1934 created the Security Exchange Commission, which regulated public stock trading to prevent manipulation and fraud (New Deal Programs). Second, the Glass-Steagall Act split commercial and personal banking and created the Federal Deposit Insurance Corporation (Chronology). The act provided insurance on personal bank transactions and prevented wall-street failures to affect every-day personal saving accounts (New Deal Programs). Third, the Gold Reserve Act and the Federal Reserve Bank Upgrade Act prohibited gold from all banking transactions, established the U.S Treasury as solely responsible for the gold depository, and increased the value of gold (1934). The acts partially prevented international depressions from affecting the U.S because of the common economic linkage of gold and increased the value of the U.S gold reserve by $2.81 billion (New Deal Programs; 1934). As Roosevelt said, regulations permit the economy to function properly and are therefore necessary (Transcript).

Byram 5 The second major focus of Roosevelts New Deal was job creation and stabilization. A majority of the unemployed, 26% of the workforce, were unskilled or semi-skilled workers (Levine; Steele 6). Thus, Roosevelt saw it fit to create labor jobs. The Civil Conservation Corps was established in 1933 (Feldmeth). The program employed 300,000 men a year for a number of public works such as reforestation, flood control, landscape renovation, and wildlife preservation (Levine). However, the most extensive job creation programs were the Public Works Administration and the Works Progress Administration of 1935. The programs quickly put well over three million workers, the majority of whom were unskilled or semi-skilled workers, on public renovation, construction, conservation, restoration, and service jobs (Kelber). Six years after inauguration of the programs, over eight million workers had found employment (Kelber). An example of both job creation and stabilization is the Tennessee Valley Authority. The program brought not only employment, but also electricity and dam construction to a large area spanning seven southeastern states (Levine). The Tennessee Valley was a farming region that was underproducing in 1933 due in part to flooding and a lack of widespread electricity (Levine). Roosevelt proclaimed agriculture to be a staple of economy, but the farming industry was failing. Overproduction and underconsumption had led to crops becoming worthless, so Roosevelt attempted to stabilize the industry (Statement). The Agricultural Adjustment Act of 1933, enacted a week before the Tennessee Valley Authoritys inauguration, subsidized the downsizing of farmers (Agricultural). The federal government paid farmers to produce less in an effort to raise yield profits and therefore wages (Agricultural). Roosevelt supported and introduced legislation that both created jobs and stabilized jobs already in existence. The New Deals third main focus was welfare and relief. On January 1st, 1935, Roosevelt delivered his congressional speech, essentially beginning the second stage of the New Deal

Byram 6 (Chronology). The second stage introduced aide to the unemployed. The salient welfare and relief legislation consists two acts: the Federal Emergency Relief Act and the Social Security Act. The Federal Emergency Relief Act, passed in 1935, provided periodic payments to the still unemployed (Feldmeth). Two months later, Roosevelt signed the Social Security Act, providing pensions to retirees and financial aid to dependent children, single mothers, and the disabled (Chronology). Already having reformed financial policy and partially recovered from economic collapse, Roosevelt provided relief from the Great Depressions troubles through programs such as Social Security and the Federal Emergency Relief Administration. The New Deal did not completely restore the United States to economic stability, but it certainly brought a positive impact. By the end of the decade, unemployment rates decreased to 14% (Romer). Between 1933 and 1937, gross domestic product rose an average of 9% annually (Romer). Excluding a short downturn in 1938, American economy grew during every year of Roosevelts tenure (Romer). Although it was World War II that brought complete recovery, the legislation supported and promoted by Roosevelt provided substantial aid to the economy and national moral and comfort (Romer). Although significant in their own right, the economic effects of the New Deal pale when juxtaposed with the New Deals long-term effects. A number of New-Deal programs exist today. Social Security is the largest federal program, as over 21% of the gross domestic product is spent on it alone (Policy Basics). Roosevelts departure from a gold standard is central to the American economy. Commercial banking is still separated from personal accounts, and the Federal Deposit Insurance Commission is a program that all bank-account-owning Americans are secured by. However, the foremost result of the New Deal was its keynote: strong governments are beneficial. That idea resounds today as the Affordable Care Act was enacted in

Byram 7 2010 and provided federal healthcare to millions. (Key Features). Roosevelt and his New Deal affected not only New-Deal era economics and welfare, but also the overall federal power and role of the government.

Byram 8 Works Cited 1934 January 30. Iastate.edu. Iowa State University, n.d. Web. 17 Apr. 2014. "Agricultural Adjustment Administration (AAA). Encyclopdia Britannica. Encyclopdia Britannica Online. Encyclopdia Britannica Inc., 2014. Web. 16 Apr. 2014 Biography of Franklin D. Roosevelt. Franklin D. Roosevelt Presidential Library and Museum. National Archives, n.d. Web. 15 Apr. 2014. Chronology: The Making of The New Deal. Virginia.edu. University of Virginia, n.d. Web. 16 Apr. 2014. Election Statistics. Office of the Clerk. [Federal Government], n.d. Web. 14 Apr. 2014. FDRs First Inaugural Address. History Matters. American Social History Productions, Inc., n.d. Web.14 Apr. 2014. Feldmeth, Greg. U.S History Resources. faculty.polytechnic.org. Britannica Internet Guide Selection, 31 Mar. 1998. Web. 16 Apr. 2014. Franklin D. Roosevelt Speeches. Pepperdine University School of Public Policy. Pepperdine University, 2014. Web. 14 Apr. 2014. From the New Deal to the New Century. tva.com. Tennessee Valley Authority, n.d. Web. 16 Apr. 2014. "Great Depression." Encyclopdia Britannica. Encyclopdia Britannica Online. Encyclopdia Britannica Inc., 2014. Web. 13 Apr. 2014 Kelber, Harry. How the New Deal Created Millions of Jobs to Lift the American People from Depression. laboreducator.org. The Labor Educator, 9 May 2008. Web. 16 Apr. 2014 Key Features of the Affordable Care Act. hhs.gov. U.S Department of Health and Human Services, n.d. Web. 16 Apr. 2014.

Byram 9 Levine, Linda. Job Creation Programs of the Great Depression: the WPA and the CCC. umaryland.edu. University of Maryland, 14 Jan. 2010. Web. 16 Apr. 2014. New Deal Programs and Timeline. The Living New Deal. University of California Berkely, 2012. Web. 16 Apr. 2014. Oh Yeah?: Herbert Hoover Predicts Prosperity. History Matters. American Social History Productions, Inc., n.d. Web.14 Apr. 2014. Policy Basics: Where Do Our Federal Tax Dollars Go?. Center on Budget and Policy Priorities. Center on Budget and Priorities, 31 Mar. 2014. Web. 16 Apr. 2014. Romer, Christina. Great Depression. berkeley.edu. University of California Berkeley, 20 Dec. 2003. Web. 16 Apr. 2014. Rowley, Hazel. Franklin and Eleanor: An Extraordinary Marriage. New York: Farrar, Straus and Giroux, 2010. Print. Smiley, Gene. Great Depression. The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Web. 12 Apr. 2014. Smoot-Hawley Tariff Act. Encyclopdia Britannica. Encyclopdia Britannica Online. Encyclopdia Britannica Inc., 2014. Web. 13 Apr. 2014 Statement on Signing the Agricultural Adjustment Act of 1938. The American Presidency Project. University of California Santa Barbara, n.d. Web. 16 Apr. 2014. Steele, Gordon. 10 Moments That Made American Business. American Heritage. Feb. 2007: 6-7. American Heritage Publishing Company. Web. 13 Apr. 2014. The Battle of Smoot-Hawley. The Economist. The Economist Newspaper, 18 Dec. 2008. Web. 14 Apr. 2014. The White House: The Presidents. usa.gov. [Federal Government], n.d. Web. 14 Apr. 2014.

Byram 10 Transcript of a Speech by President Franklin D. Roosevelt Regarding the Banking Crisis. Fdic.gov. [Federal Government], 17 Apr. 2008. Web. 16. Apr. 2014. Wilson, John. The Hoover Presidency. Stanford University School of Medicine and the Predecessor Schools: Historical Perspective. Stanford University, 1998. Web. 14 Apr. 2014.

Byram 11 Gabriel Byram Per. 6 Wyma Research Paper Sources

Source 1: "Great Depression. Encyclopdia Britannica. Encyclopdia Britannica Online. Encyclopdia Britannica Inc., 2014. Web. 13 Apr. 2014 <http://www.britannica.com/EBchecked/topic/243118/Great-Depression>. Source 2: Steele, Gordon. 10 Moments That Made American Business. American Heritage. Feb. 2007: 6-7. American Heritage Publishing Company. Web. 13 Apr. 2014. <http://www.americanheritage.com/content/10-moments-made-american-business>. Source 3: Smiley, Gene. Great Depression. The Concise Encyclopdia of Economics. 2008. Library of Economics and Liberty. 13 April 2014. <http://www.econlib.org/libary/Enc/GreatDepression.html>. Source 4: Wilson, John. The Hoover Presidency. stanford.edu. Stanford University, 1998. Web. 14 Apr. 2014. <http://elane.stanford.edu/wilson/html/chap35/chap35-sect5.html.> Source 5: The Presidents. The White House. [Federal Government], 2014. Web. 14 Apr. 2014. <http://www.whitehouse.gov/about/presidents/>. Source 6:

Byram 12 Election Statistics. Office of the Clerk. [Federal Government], n.d. Web. 14 Apr. 2014. < http://clerk.house.gov/member_info/electioninfo/index.aspx>. Source 7: Leip, David. 1932 Presidential General Election Data National. Usaelectionatlas.org. David Leip, 2012. Web. 14 Apr. 2014. <http://uselectionatlas.org/RESULTS/data.php?year=1932&datatype=national&def=1&f=0&off =>. Source 8: Oh Yeah?: Herbert Hoover Predicts Prosperity. History Matters. American Social History Productions, Inc., n.d. 14 Apr. 2014. < http://historymatters.gmu.edu/d/5063/>. Source 9: Smoot-Hawley Tariff Act. Encyclopdia Britannica. Encyclopdia Britannica Online. Encyclopdia Britannica Inc., 2014. Web. 13 Apr. 2014 <http://www.britannica.com/EBchecked/topic/550096/Smoot-Hawley-Tariff-Act>. Source 10: The Battle of Smoot-Hawley. The Economist. The Economist Newspaper, 18 Dec. 2008. Web. 14 Apr. 2014. < http://www.economist.com/node/12798595>. Source 11: Rowley, Hazel. Franklin and Eleanor: An Extraordinary Marriage. New York: Farrar, Straus and Giroux, 2010. Print. Source 12:

Byram 13 Biography of Franklin D. Roosevelt. Franklin D. Roosevelt Presidential Library and Museum. National Archives, n.d. Web. 15 Apr. 2014. <http://www.fdrlibrary.marist.edu/education/resources/bio_fdr.html>. Source 13: Franklin D. Roosevelt. Hall of Governors. Syracuse University Press, 2005. Web. 15 Apr. 2014. < http://hallofgovernors.ny.gov/FranklinRoosevelt>. Source 14: FDRs First Inaugural Address. History Matters. American Social History Productions, Inc., n.d. Web.14 Apr. 2014. <http://historymatters.gmu.edu/d/5057/>. Source 15: Franklin D. Roosevelt Speeches. pepperdine.edu. Pepperdine University, 2014. 14 Apr. 2014. <https://publicpolicy.pepperdine.edu/faculty-research/new-deal/rooseveltspeeches/fr040732.htm>. Source 16: New Deal Programs and Timeline. berkely.edu. University of California Berkely, 2012. Web. 16 Apr. 2014. <https://livingnewdeal.berkeley.edu/resources/timeline/#timeline>. Source 17: Chronology: The Making of the New Deal. virginia.edu. University of Virginia, n.d. Web. 16 Apr. 2014. <http://xroads.virginia.edu/~ma02/volpe/newdeal/timeline_text.html>. Source 18: 1934 January 30. iastate.edu. Iowa State University, n.d. Web. 16 Apr. 2014. <http://www2.econ.iastate.edu/classes/econ355/choi/1934jan30.html>.

Byram 14 Source 19: Transcript of a Speech by President Franklin D. Roosevelt Regarding the Banking Crisis. Fdic.gov. [Federal Government], 17 Apr. 2008. Web. 16. Apr. 2014. <http://www.fdic.gov/about/history/3-12-33transcript.html>. Source 20: Feldmeth, Greg. U.S History Resources. faculty.polytechnic.org. Britannica Internet Guide Selection, 31 Mar. 1998. Web. 16 Apr. 2014. <http://faculty.polytechnic.org/gfeldmeth/chart.newdeal.html>. Source 21: Levine, Linda. Job Creation Programs of the Great Depression: the WPA and the CCC. umaryland.edu. University of Maryland, 14 Jan. 2010. Web. 16 Apr. 2014. < http://www.law.umaryland.edu/marshall/crsreports/crsdocuments/r41017_01142010.pdf>. Source 22: Kelber, Harry. How the New Deal Created Millions of Jobs to Lift the American People from Depression. laboreducator.org. The Labor Educator, 9 May 2008. Web. 16 Apr. 2014. < http://www.laboreducator.org/newdeal2.htm>. Source 23: Statement on Signing the Agricultural Adjustment Act of 1938. ucsb.edu. University of California Santa Barbara, n.d. Web. 16 Apr. 2014. <http://www.presidency.ucsb.edu/ws/?pid=15599>. Source 24:

Byram 15 "Agricultural Adjustment Administration (AAA)". Encyclopdia Britannica. Encyclopdia Britannica Online. Encyclopdia Britannica Inc., 2014. Web. 16 Apr. 2014 <http://www.britannica.com/EBchecked/topic/9551/Agricultural-Adjustment-AdministrationAAA>. Source 25: Romer, Christina. Great Depression. berkeley.edu. University of California Berkeley, 20 Dec. 2003. Web. 16 Apr. 2014. <http://elsa.berkeley.edu/users/cromer/great_depression.pdf>. Source 26: Policy Basics: Where Do Our Federal Tax Dollars Go?. Center on Budget and Policy Priorities. Center on Budget and Priorities, 31 Mar. 2014. Web. 16 Apr. 2014. <http://www.cbpp.org/cms/?fa=view&id=1258>. Source 27: Key Features of the Affordable Care Act. hhs.gov. U.S Department of Health and Human Services, n.d. Web. 16 Apr. 2014. <http://www.hhs.gov/healthcare/facts/timeline/index.html>.

Byram 16