Franklin Delano Roosevelt's New Deal and Its Effectiveness

Franklin Delano Roosevelt's New Deal and Its Effectiveness 

 

    Franklin Delano Roosevelt was born in 1882, on his family’s estate in Hyde Park, New York. Spending his early years at his family home, he was tutored and traveled extensively with his family, which really prevented him from spending time with friends his age. As a studious and diligent student, Roosevelt went to a prestigious preparatory boarding school and further continued his education in Harvard University. Carrying on his interests in politics, he entered the Columbia Law School, but left school after passing the New York State Bar exam in 1907. As time went on, Roosevelt found himself beginning to feel weak. His fever got worse and caused great weakness especially in his legs. Despite this paralysis, Roosevelt did not give up and continued pursuing his dream to run as the governor of New York. His misfortune had led him to become stronger and work even harder towards his goals. From an assistant secretary of the navy to governor of New York, Roosevelt then transitioned as the president of the United States, leading the United States during the Great Depression in 1932. 

 

Franklin D. Roosevelt in a wheelchair due to Polio

    Having a responsibility and duty to lead a nation at the darkest hour of the Great Depression, Franklin Delano Roosevelt entered the White House in 1932, promising a new deal for the American people. The new deal came to include a wide range of measures aimed at accomplishing three main goals for the Americans. The first goal was provide relief for those suffering the effects of the Great Depression, recovery of the depressed economy, and reforms that would help prevent any more serious economic crises in the future. In order to achieve these three goals, a combination of legislative reforms and acts were introduced during the first Hundred Days and the Second Hundred Days to permanently and dramatically transform the United States economically, politically, and socially. 

Franklin D. Roosevelt's New Deal Pin

 As unemployment was a major problem in the United States during the Great Depression, one of the many programs that focused on decreasing unemployment rates was the Civilian Conservation Corps. This agency was created in 1933 by Franklin D. Roosevelt mainly to solve unemployment problems by employing jobless single men between the ages of 18 and 25. These men employed in the Civilian Conservation Corps worked in mountains and forests, learning about forestry, flood control and fire preventions for approximately 6 months. This agency efficiently provided job opportunities for 3 million men between the years of 1933 to 1941, and relieved families by providing jobs on conservation projects to young men.

The Logo of the Civilian Conservation Corps

Young Men in the Civilian Conservation Corps taking a break

    Another New Deal Program that successfully contributed to the improvement of the living conditions of the Americans was the Tennessee Valley Authority. This act was passed in 1933 in order to develop the resources of the entire Tennessee River Valley. This valley encompassed 7 states and 40,000 square miles. The Tennessee Valley Authority built dams along the Tennessee River to control floods, aid navigation and shipping, and provide hydroelectric power for industries. Through this act, not only was the valley was successfully regenerated, but it also provided affordable electricity to thousands of rural citizens. Electricity provided then covered 80,000 square miles and was served to more than 9 million people. Electric lights made the lives of the people easier and farms more productive. Therefore, this recovery program effectively modernized and promoted changes in the region.
    

Supporting the Tennessee Valley Authority for Electricity

Dams built due to Tennessee Valley Authority

    One other New Deal Program that also was vital during the period was the Social Security Act of 1935. This act set up the first and great national old age pensions scheme to absolve the widespread poverty among the senior citizens. With the funds the workers, employers, and each state were expected to pay, the act established pensions for retirees, unemployment insurance, and aid for certain groups of low income or disabled people. The creation of the Social Security Act now allowed retired workers to no longer fear hunger and homelessness once they became too old to work. Also, as the program provided payments to workers who lost their jobs, it encouraged many to continue searching for new works. The relief program proficiently covered 35 million people despite opposition from the Republicans who thought the act rejected the ideas of socialism. In fact, this act is still in action until today for American citizens.
    

Poster supporting the Social Security Act

 

Another poster supporting the Social Security Act

  
    Again dealing with the problems of unemployment and lacking a job during the Great Depression, the Works Progress Administration was established. It was established in 1935 with the goal of providing numerous public-works jobs on a wide range of projects for many of those needing relief. The Works Progress Administration was responsible for coordinating all public works schemes. The agency spent more than $10.5 billion dollars of the Federal money and employed 3.8 million men, which was 1/4 of the population of the unemployed Americans during that time period. Adding onto the numerous infrastructures built by the Works Progress Administration, the Works Progress Administration brought culture and arts back to America by numerous funding numerous artists and writers to paint and produce works.The relief agency was effective as it not only created a great number of bridges, sewers, roads, airports, schools, and other public buildings, but also created jobs for the unemployed people who were desperately in need of jobs.
    

A poster of the Works Progress Administration

Works Progress Association workers building a government storage facility

   With the creation of many acts and agencies throughout Franklin D. Roosevelt’s presidency, the New Deal had both its goods and bads. However, it is clear that the benefits of the New Deal outweigh the costs. In terms of relief, the New Deal definitely proved to be successful. As millions of Americans lost their jobs due to the Stock Market Crash and the Great Depression, most of the Americans were unable to find jobs that they could earn money from and sustain their lives with. However, as new agencies, such as the Civilian Conservation Corps and Works Progress Administration, provided numerous job opportunities and learning opportunities, many people did not have to starve to death, which they would have without the creation of new job opportunities.
   
    In terms of reform, the New Deal did dramatically change the relationship between the capitalist market, the government, and the people. The New Deal programs provided Americans, the citizens, with security against the unpredictable market, creating an activist state for the first time in United States’ history. Whether this great alteration of the government’s responsibilities and roles had actually improved or worsened the United States’ conditions after the Great Depression, the New Deal actually has been a controversial topic even until today. Therefore, the New Deal was successful at making at least some kind of reform whether it was supported or not by the people.
    
    There can be no denying to the fact that the many acts and agencies of the New Deal provided job opportunities, funds, aids, and the creation of new infrastructures. Although these all lead to a decrease in the unemployment rate to a certain point and economic growth, throughout the decade of the 1930s, unemployment still remained extremely high and economic growth was very slight and gradual. However, the fact that there was even a slight improvement in the situations economically and socially accounts for why I believe that the New Deal was an efficient and a successful program. 

Citations

http://www.youtube.com/watch?v=6bMq9Ek6jnA

http://en.wikipedia.org/wiki/File:Rooseveltinwheelchair.jpg

http://www.britannica.com/EBchecked/media/72254/Franklin-D-Roosevelt-New-Deal-pin-1932 

https://www.alapark.com/desotoresort/CivilianConservationCorpsMuseum/

http://www.nps.gov/prwi/historyculture/ccc.htm

http://newdeal.feri.org/tva/ 

http://tva.com/75th/timeline.htm

http://www2.ucsc.edu/whorulesamerica/power/social_security.html

http://fdrlibrary.wordpress.com/tag/social-security/

http://kapachino.info/2009/10/currently-in-october/

http://money.howstuffworks.com/recession10.htm

The Causes of the Great Depression and President Hoover’s Responses to the Great Depression

The Causes of the Great Depression and President Hoover’s Responses to the Great Depression

    The Great Depression was a period of deep and long-lasting tragedy that placed millions of Americans out of work during the years of 1929 to 1939. This period also marked the beginning of government involvement in the economy, in the society, and in America as a whole. As the Americans were enjoying a decade of prosperity and wealth, also known as the Roaring Twenties, the nation's total wealth was also more than doubled, manufactured goods expanded the economy, there was a low unemployment rate, and shorter hour works which provided more leisure time for the Americans. Americans were also very busy investing in the stock market and being satisfied with the steady increase of the prices of the investments that they ignored and were unaware of the warning signs of a possible fall in the prices of the investments leading to a plunge in the economy. On October 29th, 1929, well known as the Black Tuesday, the stock market crash marked the start of the Great Depression. 

Extravagant parties were held, which showed proliferation of wealth during the 1920s.

   Although there were various causes that contributed to the Great Depression, one of the most important and main cause of such devastating period would be the stock market crash of 1929. Not expecting the prices of the stock to fluctuate and plummet greatly, the Americans were hit with a surprising news that the value of the stocks traded on the New York Stock Exchange had plunged by 9%. Due to the hopeless and sudden plunge in the prices of the stocks, many Americans tried to sell the stocks that nobody was willing to buy. Thousands of Americans who had invested in companies and bought stocks were then left virtually broke. They had lost their entire savings and profit in a short period of time due to the Stock market crash.

The Milwaukee Leader Newspaper that kept people updated on the Stock Market Crash

People gathered up after the Stock Market Crash

   Another cause that greatly affected the Great Depression would be bank runs. As nervous depositors suspected a bank to be in danger of failing and watched the prices of the stocks continuously decrease, they ran to banks and rushed to withdraw all their money. Due to everyone taking out money from the banks, banks experienced a banking crisis and soon went bankrupt as almost every single individual was asking to take out their money, and the banks could not pay everyone who wanted to withdraw their money. In the months following October 1929, bank runs struck across the country. Adding onto the great losses of the individuals, hundreds of banks failed and approximately 350 banks, including big and small banks, closed. These bank failures caused individuals to further lose more money as they were not able to take out their money from the bank and caused banks to wipe out billions of dollars in savings. Therefore,
the bank runs of the people added even more negative consequences to
their existing effects of the Great Depression.

Hundreds of People lined up in front of the bank to withdraw their money.

   One other factor that caused the Great Depression and made it worse was the concept of credits. The installment of credit allowed Americans to purchase stocks more easily, by involving loans from stockbrokers and buying on margins. With the concept of credits, stockbrokers then required lower and lower margins for stock purchases by giving out bigger and bigger loans to the investors. This made it easier for the investors to purchase stocks with paying less money with loans borrowed from the stockbrokers. Because the stockbrokers had margin calls, which was a demand of the stockbrokers to the investors to repay their loans if the stock’s value fell below a certain point, when there was the stock market crash, many stockbrokers had forced the investors to pay for their loans. However, not having been expecting the crash, Americans
also lost most of their money, which led to not being able to repay for their loans to the stockbrokers, which in turn led to the stockbrokers also being broke. Therefore, buying stocks with credits and loans not only caused tragedy amongst the investors, but also the stockbrokers who were not able to receive back their money.

    Moving on from the financial and economical causes of the Great Depression, there was also a weather condition that added onto the causes of the Great Depression. In 1931, the Great Plains entered a long, severe dry spell. Although drought is a part of a weather cycle and is naturally occurring on the Great Plains every few decades, careless agricultural practices had left the region vulnerable by the 1930s. When the wind storms came, they stripped away the topsoil and blew it hundreds of miles away, choking crops and burying farm equipments. These wind dusts blew into homes through windows and under doors, and made living conditions of the Americans worse. People were already  living in hard conditions due to the stock market crash, and the drought and dust storms caused some to move and migrate to other states, even in devastating conditions. 

Dust storms in the Dust Bowl Regions

Dust storms covering up and destroying cars and houses

   The stock market crash, bank runs which then led to bank failures, credits and loans, and the drought all were significant and destructive causes of the Great Depression which initiated and worsened the situations of the Americans during the Great Depression. 

A woman and her children on the streets during the Great Depression

   While the Americans were suffering through the Great Depression, president Hoover, who was the president of America during the time period, was at first strict with his beliefs and perspectives. At first, President Hoover simply refused to accept that the economic crisis was so widespread and so grave, that people could not help themselves, no matter how much they wanted to. Also, he strictly believed that the government should not support the people, favored the federal government that played as little role as possible in the affairs of business, and strongly supported “rugged individualism” which meant people rescuing themselves by their own efforts. Due to his beliefs, President Hoover did not take too many actions, which caused the citizens to blame him as the cause of the Great Depression because of his lack of involvement with the issue.

    However, as time passed and President Hoover recognized how merely sticking to his beliefs was not working and benefitting the people, he introduced a vision of associative states, which was incorporating partnerships between business associations and government. Focusing on associative states, President Hoover carried out his plans for constructing the Hoover Dam, a dam that harnessed the Colorado River to provide electricity and a safe water supply to parts of seven states. The construction of the Hoover Dam was successful as it provided new and more jobs to the people who were jobless and in need of money. Moreover, President Hoover thought that if he called together many of the nation’s top businesses and government leaders to urge them not to lay off any workers or cut wages, the workers would have money to buy goods, and the worst of the Great Depression would pass. Nonetheless, businesses were focused on satisfying their individual goals, they cut jobs and wages, which once again caused the economy to plunge.

    Realizing his mistakes, President Hoover created the Reconstruction Finance Corporation, which provided aid to struggling banks and other institutions during the Great Depression. The Reconstruction Finance Corporation was very beneficial as the loans helped many of the citizens to restart their lives and live in better conditions. Although this program improved the living conditions of many Americans, one of Hoover’s major effort to address the economic crisis backfired badly. Hoping that the high tariff on imported goods make Americans purchase the cheaper American goods, President Hoover created the Smoot-Hawley Tariff Act which raised the cost of imported goods for American consumers. Instead of his intentions and goals, The exceptionally high tariff rates caused other countries to also raise their tariffs, which then caused trade to plunge, and cause less profit made for America. This once again brought America back to poor living conditions and made the citizens view President Hoover as ineffective and not beneficial.

    At first President Hoover did not respond appropriately as he did not believe and provide direct action tothe people. However, after realizing the need for direct action, Hoover did try to create new programs that provided aid to the people. Therefore, although President Hoover had tried to make improvements to the country’s situations, the efforts did not work out, causing citizens
to blame him for not taking action and his failures. 

A picture of President Herbert Hoover

Citations

http://chapter6economictimeline.wikispaces.com/The+Roaring+Twenties

content.time.com/time/nation/article/0,8599,1854569,00.html

http://rowellsapushistory.wikispaces.com/The+Stock+Market+Crash+-+Roaring+20%27s

http://www.thedailysheeple.com/sorry-your-money-is-now-frozen-bank-runs-have-become-illegal_072012

http://www.weru.ksu.edu/new_weru/multimedia/dustbowl/dustbowlpics.html

http://en.wikipedia.org/wiki/File:Dust_Bowl_-_Dallas,_South_Dakota_1936.jpg

http://southcarolina1670.wordpress.com/2011/10/18/how-hoover-caused-the-great-depression/ 

http://www.thisblogrules.com/2012/05/5-us-presidents-dropped-into-sticky-situations-after-being-inaugurated.html

https://www.youtube.com/watch?v=ND0UndNXM8E#action=share