Roosevelt’s new deals Essay
Roosevelt’s new deals
Were Roosevelt’s new deals responsible for getting the United States out of the Great Depression? If so to what extent
Franklin D Roosevelt was elected as President of the United States in 1932 and he was dealt a very large task. He was elected during the time period of the great depression and the United States economy was very bad. Many believe it was Roosevelt who got the United States out of the great depression with his first and second new deals. The new deals had three goals which were to reform, recover, and relieve the population of the heavy burden placed. While many people also believe that World War II was the main reason that got the United States out of the great depression, it was more so the new deals that Roosevelt introduced. His new deals helped get the United States out of the depression to a great extent because he managed to fix the banking issues and create a system that worked and would help the United States in the future.
President Roosevelt created many acts that would help the nation recover. On March 6th, 1933 Roosevelt ordered for banks to close for a few days and to have people keep their money in the bank during the time. He did this as a start to getting the country out of the depression. He passed the Emergency Banking Relief Act. It restricted banks from reopening from the “bank holiday” unless they had enough funds to meet their depositor’s demands. It was a way of relief as it only opened “solvent” banks.
This act would expand his presidential powers because it gave him “absolute control” over the national finances and foreign exchange of the United States and would regulate the banks to help prevent another crisis later on. Later on Roosevelt would create the FDIC (Federal Deposit Insurance Corporation) in order to reform the banks as it insured depositors’ money. Roosevelt had a large impact with these acts introduced in the first new deal and his impact on helping to recover from the great depression is seen to a great extent.
Roosevelt also had the second new deal which would further help the United States in getting out of the depression. The second new deal was based more on reform and the legislation of the Second New Deal “relied more heavily on the Keynesian style of deficit spending than the First New Deal did. ” Roosevelt created the Works Progress Administration (WPA) and it was a big step in helping many Americans recover because it hired 10 million Americans to do civil work and it gave them jobs to help make money. This was very important step in helping end the great depression to the extent that it gave Americans jobs that they desperately needed. Roosevelt also passed the Social Security Act and it created federal retiree pension system for many workers, but it was funded by a tax increase on American workers. However, it also provided an unemployment insurance plan to temporarily help those American’s who were out of a job which ultimately helped the country and economy as a whole.
The three goals of the new deal all had an impact on helping the nation recover the depression, and while they can all be argued for being successful it was ultimately the recovery goal that had the most success in helping to get the United States out of the depression. Recovery was the most successful because it helped the most people in the long run. Even though relief was able to provide short term good feelings, and reform would rearrange and fix things up, it was not as successful in fixing the issue. Recovery helped the United States as it was a goal aimed to help the citizens and the economy, such as the Tennessee Valley Authority Act which would provide jobs for people and help fight unemployment.
In 1933 Roosevelt would launch the Emergency banking relief act and its goals was to help recover the economy by regulating bank transactions and foreign exchange, which was ultimately successful and would help the nation. It can be seen especially in 1934 when only 57 bank failures occurred, versus the 4,004 bank failures the year before. Then in 1945, 12 years after the act was passed, there was 0 bank failures and it goes to show how recovery ended up being the most successful. So clearly, of the three goals, recovery was the most successful in helping to get the country out of the depression because it stopped many of the bank closures and the country eventually returned to a stable economy after World War 2.