When Roosevelt entered office, the first thing he did was confront the banking sector’s developing problems. His government launched new legislation, like the New Deal, which resulted in the development of numerous new statutes and institutions to improve the ailing economy. The government implemented this legislative proposal four years after the October 1929 market crash, which pushed the United States into the great Economic Crisis (Greco 5).
Roosevelt’s measure was designed to help the 15 million laid-off workers and reopen broken institutions (Greco 7). Therefore, this paper discusses why the US economy was in such disarray when Franklin D. Roosevelt took office in 1933. It examines Franklin D. Roosevelt’s approach to the Great Depression and offers a succinct assessment of the New Deal’s long-term impact on American culture.
Although Roosevelt’s government and proposed laws contributed to alleviating some of the jobless, poverty, and farming concerns, it was post-World War II legislation and increased government spending that truly re-started the economy. The causes of this economic crisis were the stock market fall, reduced foreign finance and customs, the gold standard, and banking panics. Unemployment was at an all-time peak, banking organizations were worried and went insolvent, and destitution levels in the United States were skyrocketing. Hence, because of the vulnerability, citizens starved or perished, and parents strained to sustain their households.
Besides, only a few had sufficient resources to consult a physician when ill (Greco 9). Therefore, President Roosevelt sought to aid the United States in recovering from the impacts of the economic crisis and establishing a more sustainable economy.
Franklin Roosevelt’s response to the Great Depression’s fiscal difficulties proved to be beneficial in reducing the suffering of American citizens (Greco 7). The state underwent a makeover because of FDR’s efforts, creating jobs and aiding the nation and local towns. Massive funds were put aside for public-work initiatives to give a plethora of new prospects for the unemployed. Besides, at the height of the recession, there were 12,830,000 unemployed non-farmers (Greco 10). However, by 1940, that figure had dropped by roughly 5 million. That is 5 million people who believe Roosevelt’s initiatives were a success (Greco 10). Therefore, under Roosevelt, the government assumed several additional responsibilities for the benefit of its citizens.
The New Deal was a collection of national initiatives propelled by President FDR to address the Great Depression that significantly extended the national administration’s involvement in the economy. The first New Deal focused on relief and recovery, whereas the second focused on change. From 1933 to 1944, the First New Deal included the Civilian Conservation Corps Act, the Federal Emergency Relief Administration Act, and the Agricultural Adjustment Administration Act (Greco 10). It also helped stabilize the financial sector and saw the United States forsake the gold standard to handle the volatility of the US economy (Greco 6). Therefore, these regulatory and administrative efforts lead to relief and recovery, but not much of either.
Moreover, FDR established his vision for the future of the United States from 1934 to 1935, but the second New Deal of 1935 to 1938 was more comprehensive in its emphasis on reform (Greco 10). The Social Security Act, which guaranteed old-age benefits, was the most profound social reform. Similarly, the Wealth Tax Legislation and the Wagner Act built a revolutionary platform for labor engagement. The Emergency Assistance Appropriations Law of the late 1930s did a lot to provide significant job relief (Greco 9). Even throughout the second New Deal, relief and rehabilitation were not overlooked. Hence, The New Deal established a previously unseen collaboration between citizens and the national government.
In conclusion, Roosevelt’s approach to the Economic Crisis was highly fruitful, as seen by the positive impact his initiatives had on American residents and the long-term influence of his efforts. Furthermore, the Second New Deal of 1935 offered a variety of more significant advances than the New Deal of 1933 to 1934, including State Pensions, Labor Relations, and direct unemployment compensation (Greco 9). Therefore, the Second New Deal was more progressive than the First, culminating in an economic recovery.
Work Cited
Greco, Albert N. “The US Confronts the Great Depression and World War II: 1929–1941.” The Marketing of World War II in the US, 1939-1946, 2020, pp. 1–12. Web.