The New Deal
President Franklin D. Roosevelt (FDR) was elected president in 1932 and created a "New Deal" in his first 100 days of office. The "New Deal" was organized to help America recover from the depression. The "New Deal" consisted of the 3 R's which were Relief, Recovery, and Reform.
The New Deal stimulated the economy in many ways. First it employed Americans, giving them jobs and increasing businesses. People were now able to spend and make money. Also, companies were making more money too because of all the government assistance. They could now distribute goods. The New Deal helped banks and because of all the government spending (Due to WWII), unemployment rates decreased.
People during the 1930's had very different views about the New Deal. People that were against the New Deal believed that the government was too powerful and interfered in the economy too much. They believed that American citizens relied on the government too much and disrupted Hoovers idea of rugged individualism. Other people believed that FDR was successful in gaining a healthy balance between capitalism (unregulated Lassiez Faire) and socialism. Also, cities believed that the New Deal was unsuccessful because unemployment rates remained high through the 1930's but supporters argued that unemployment rates always take a while to decrease after a recession. Eventually, the New Deal stopped the suffering of millions of Americans by giving them financial help during such a big economic crisis.
The New Deal stimulated the economy in many ways. First it employed Americans, giving them jobs and increasing businesses. People were now able to spend and make money. Also, companies were making more money too because of all the government assistance. They could now distribute goods. The New Deal helped banks and because of all the government spending (Due to WWII), unemployment rates decreased.
People during the 1930's had very different views about the New Deal. People that were against the New Deal believed that the government was too powerful and interfered in the economy too much. They believed that American citizens relied on the government too much and disrupted Hoovers idea of rugged individualism. Other people believed that FDR was successful in gaining a healthy balance between capitalism (unregulated Lassiez Faire) and socialism. Also, cities believed that the New Deal was unsuccessful because unemployment rates remained high through the 1930's but supporters argued that unemployment rates always take a while to decrease after a recession. Eventually, the New Deal stopped the suffering of millions of Americans by giving them financial help during such a big economic crisis.
Unemployment Rate During the New Deal
3 R's and Examples:
Relief - The point of relief was to lift a weight off of the shoulders of hurting, and unemployed Americans by providing temporary financial help. In this "R", money was used to help citizens.
Examples:
1) SSA - Social Security Act: Social Security is used to provide financial security to the elderly, unemployed, people with causalities, and single mothers. During the GD, nearly 50% of the elderly were poor. People were sickened that their older generation was living in poverty and FDR believed that it was pretty sad that in a nation as great and prosperous as America should leave their former hard working citizens without a comfortable last years. The SSA was established to provide temporary relief to laid off citizens and families who are struggling.
2) CCC & WPA: Civilian Conservative Corps (CCC) and the Works Progress Administration (WPA) were set up to provide jobs to unemployed Americans. The CCC and WPA was used to build new roads and thousands of schools, hospitals, airports, same, parks and many other buildings.
Relief - The point of relief was to lift a weight off of the shoulders of hurting, and unemployed Americans by providing temporary financial help. In this "R", money was used to help citizens.
Examples:
1) SSA - Social Security Act: Social Security is used to provide financial security to the elderly, unemployed, people with causalities, and single mothers. During the GD, nearly 50% of the elderly were poor. People were sickened that their older generation was living in poverty and FDR believed that it was pretty sad that in a nation as great and prosperous as America should leave their former hard working citizens without a comfortable last years. The SSA was established to provide temporary relief to laid off citizens and families who are struggling.
2) CCC & WPA: Civilian Conservative Corps (CCC) and the Works Progress Administration (WPA) were set up to provide jobs to unemployed Americans. The CCC and WPA was used to build new roads and thousands of schools, hospitals, airports, same, parks and many other buildings.
The elderly receiving monthly benefits to help with their struggles. Citizens working on new roads and buildings.
Recovery - Instead, of money, programs were established in order to put Americans to work and improve their financial statuses and American economy as a whole. During this "R", the WPA (Works Progress Association) was established to put people to work.
Examples:
FERA: The Federal Emergency Administration (FERA) temporarily supported nearly 5 million households each month with financial aid, and funded thousands of work projects for the unemployed.
Agricultural Adjustment Act: The Agricultural Adjustment Act (AAA) of 1933 reduced crop surplus. It paid farmers to reduce their crop area and by doing so it raised the value of the crops.
Examples:
FERA: The Federal Emergency Administration (FERA) temporarily supported nearly 5 million households each month with financial aid, and funded thousands of work projects for the unemployed.
Agricultural Adjustment Act: The Agricultural Adjustment Act (AAA) of 1933 reduced crop surplus. It paid farmers to reduce their crop area and by doing so it raised the value of the crops.
FERA supporting households each month with financial aid. The reducing of crop surplus's to raise the value of crops.
Reform - This is a legislation to reform the economy. At this time, Social Security was established to support the elderly with retirement money as well as the FDIC which based up banks so if they fall, citizens wont loose savings.
Examples:
1) FDIC & Bank Reform: The New Deal provided banks with a back up plan called FDIC (Federal Deposit Insurance Corporation) so all Americans were guaranteed savings deposits. Also, FDR closed all of the nations banks so Federal Reserve could strengthen and help them regain confidence.
2) SEC- Stock Market Reform: The New Deal established the SEC (Securities and Exchange Commission) to regulate Wall Street and Stock Exchanges. It was established so people couldn't commit fraud and abuse the stock markets. It protects investors from legal causalities by banks and corporations.
Examples:
1) FDIC & Bank Reform: The New Deal provided banks with a back up plan called FDIC (Federal Deposit Insurance Corporation) so all Americans were guaranteed savings deposits. Also, FDR closed all of the nations banks so Federal Reserve could strengthen and help them regain confidence.
2) SEC- Stock Market Reform: The New Deal established the SEC (Securities and Exchange Commission) to regulate Wall Street and Stock Exchanges. It was established so people couldn't commit fraud and abuse the stock markets. It protects investors from legal causalities by banks and corporations.
A symbol of the FDIC. The stock market was established so people couldn't commit fraud.