From 1929 to 1941, the Great Depression saw many US economies crash. Many of America’s richest people lost their wealth as the economy was based on only the top 5 percent. Millions of workers became unemployed, and many businesses went under. People who were unable to pay their monthly installments on time cut back on credit purchases. Comparing to the eight previous years, suicide rates have increased by 50%. The stock market plunged by $30 billion within the first week. That’s roughly 406 billions at today’s price. Many banks shut down, while other banks struggled for survival. Federal reserve increased interest rates to discourage borrowing. Many Americans have stopped investing in stocks, no matter how much money is available.
American exports had fallen to the lowest prices since 1905. This was after nearly 90 thousand failed businesses and a 60% drop in corporate profits. Roosevelt also declared the New Deal in that year. Roosevelt declared a national Bank day to close all banks. Three days later, Roosevelt declared a national Bank holiday to close all banks. FDR received nothing from Democrats or Republicans unless he had a written copy of the bill in less than four hours. This was an important change in the New Deal’s banking component. FDR was given the first relief program, Civilian Conservation Corps. (CCC), on March 31st. The Act established many thousand camps in the army format to provide housing, employment and health care for men aged 18-25. In just a few months, over 350,000 men received $30 per month and $25 was sent home to their families. The Civilian Conservation Corps had provided employment for more than 3,000,000 men by 1941. CCC only reached very few people who needed relief. Therefore, the Roosevelt administration established Federal Emergency Relief Administration(FERA) in order to provide more assistance. In its first year, the Act provided shelter, meals and health care for nearly 5 million people across the country. To provide immediate unemployment relief in winter 1933-1934, a temporary Act was created called Civil Work Administration (CWA). This program was created to help as many people as possible find work during winter. It employed 4 million people to work on federal and local projects that took place during winter.
Roosevelt administration announced the Agricultural Adjustment Act to aid agriculture in recovering from surplus production. This would help to lower the price of farm products. The Agricultural Adjustment Act helped farmers solve their problems. The Roosevelt administration then turned to the Industrial and Labor part of the New Deal to help recover the industrial. The National Industry Recovery Act (NIRA), a compromise between Roosevelt’s advisors, was approved in June 1933. Two new agencies, National Recovery Administration (NRA), as well as Public Works Administrations (PWA), were created to merge both approaches. Hugh Johnson, an ex army general, led the National Recovery Administration. This agency reorganized national economic planning. Because price fixing allows for both higher profits and lower prices, businesses supported the NRA. Many industries had 2.5 million workers and displayed posters with the blue eagle symbolizing that they were covered under the National Recovery Administrations codes. PWA, on the other hand, provided jobs directly for construction workers. These jobs help to stimulate consumer demand and create new jobs. PWA became the federal largest public works program. It spent $6 million over six years to work with local and state governments to complete thirty-four thousand projects. These include roads, bridges and huge electricity dams. They also built new schools, hospitals, and aircraft carriers. The Tennessee Valley Authority ( TVA), which developed a regional approach for rural development in an area of forty thousand miles, was the most popular. This program benefits from flood control improvements and dam repairs.
The New Deal Roosevelt administration was designed to improve the country’s current areas such as agriculture, banking and industry. It also gave a lot more people jobs and income when needed. It helped the citizens and country to grow and to have a stable income so that they can live comfortably without relying on jobs. In addition to ensuring more regulation for business, Social Security and the Wagner Act, the New Deal created a legacy of more activist federal governments. The New Deal changed American thinking and expectations about government. It was able to help prevent depression, decrease unemployment and provide assistance for those who are in most need. The Americans prefer Roosevelt’s presidency to Congress as their chief policymaker.
