The Great Depression was the crash of the stock markets, economy, and a mass crisis of almost all social classes. Most of this was due to the overproduction of single-use products and the practice of ‘buy now, pay later’, which caused many citizens to go in excessive debt. Roosevelt came into the presidency in the middle of the Depression and promised a ‘New Deal’ to help solve the problems Americans were facing. FDR planned to create more jobs and help stabilize the economy.
FDR did his best to solve the Great Depression by implementing banking and worker’s reform and new government programs to help to economy recover.
Roosevelt created new laws and regulations for the banking and economic systems to help maintain their credibility and protect citizen’s money. Once the stock market crashed, the banks ran out of money causing people to lose all of their money as well. This led to a mistrust in the banking system and many people withdrew their leftover money creating a bigger economic drain.
FDR constructed the ‘Federal Deposit Insurance Corporations to insure deposits up to $2, 500’ (Class Notes). This new regulation put trust back into the community which helped in the recovery banks and security of money. Roosevelt also created the Emergency Banking Relief Act which allowed banks to close for a week to help ease the panic of lost money (Shi 869). Once this was in place, people felt comfortable putting their money back into the bank, helping the economy. One of Roosevelts advisors said ‘Capitalism was saved in eight days’ (Shi 8690).
Although FDR did not completely solve the banking crisis, he helped recover people’s trust in the system and restored banks’ usefulness.
Roosevelt designed new jobs and projects to provide Americans the opportunity to work when there wasn’t much available during the Great Depression. Many people were laid off and lost their property during the Great Depression causing homelessness and hunger. FDR helped combat this problem by creating jobs in construction, government programs, and working camps. Roosevelt put over 8.5 unemployed men and women back to work helping to save their families and the economy (Class Notes). FDR also established laws for workers’ rights and unions to support job security and safe environments. The Federal Emergency Relief Administration (FERA) was organized to ‘send money to the states to spend on the unemployed and homeless’ (Shi 871). This project helped people get back to work and implied that the government would now be more involved in working regulations and job programs. FDR pushed to solve joblessness in America buy creating new government jobs and programs which put people back to work.
Some of the programs Roosevelt implemented were, Social Security, Works Progress Administration, and the abolition of the twenty-first amendment. FDR said The Social Security Act was ‘the cornerstone and supreme achievement of the New Deal’ (Shi 882). Social Security helped older and disabled people without jobs or homes to get monthly checks from the government. Congress also passed the Works Progress Administration, which ‘managed several federal job programs created under the New Deal and became the largest employer in the nation’ (Shi 881). This administration put millions of people back to work and was supported by many Americans and Congress. Another thing that Roosevelt did to help solve the Great Depression was abolishing the twenty-first amendment. This made alcohol legal again and added money back into the economy from the alcohol purchased. All of these programs that Roosevelt carried out, helped stabilize the economy and give paychecks to families.
Roosevelt was the first president to help push America out of a major Depression and stabilize the economy. He did this by enforcing the New Deal which dealt with banking recovery, creating new jobs and new government programs to help those in need. FDR put millions of people back to work and recovered the banking system by constructing government run projects that many are still in place today.