When Franklin Roosevelt became president, he offered a “New Deal” for the American
people.
What was the New Deal?
How was it put in place?
One of the primary reasons Roosevelt won the presidency in 1932 was because he promised
to try and do something to end the economic crisis the country was facing.
As he entered the office, Roosevelt hoped to do three things.
First, he hoped to provide relief for the poor and the unemployed.
Next, he wanted the economy to recover to its normal levels.
Finally, he wished to reform the financial systems so that an economic depression would
not happen again.
Relief, recovery, and reform became known as the three R’s.
To accomplish these goals, Roosevelt implemented a series of government programs in between
1933 and 1938.
Some of these programs were approved by Congress, while others he enforced through executive
order.
Collectively, these programs became known as “The New Deal”.
The New Deal is frequently referred to in two different parts.
The “First New Deal” (1933-1934) was largely concerned with restructuring the nation’s
economy and offering relief to the banking industry.
The “Second New Deal” (1935-1938) sought to improve the use of the nation’s resources,
provided relief for farmers, and created various government work programs.
There were many different types of programs that were a part of the New Deal.
These programs had a variety of different intended purposes.
Programs such as the Works Progress Administration (WPA) and the Civilian Conservation Corps
(CCC) were designed to put unemployed people to work.
The Social Security Act was created to provide financial relief to the elderly.
Meanwhile, the Tennessee Valley Authority brought much needed electricity to rural areas
in the South.
The Federal Deposit Insurance Corporation (FDIC) was another important agency created
by the New Deal.
The FDIC guaranteed the safety of money in banks.
Citizens no longer had to fear losing their money if their bank closed (this scenario
was quite common in the early stages of the Depression).
The FDIC is still in operation today to insure money deposited in banks.
Aside from the FDIC, there are many government agencies that were created by the New Deal
which still exist.
Amongst them are the Federal Housing Administration (FHA), the Federal Crop Insurance Corporation
(FCIC), and the Securities Exchange Commission (SEC).
Not everyone was a fan of the New Deal.
Many felt that Roosevelt was leading the United States down the path of socialism.
Others saw the New Deal projects as a waste of money and resources.
Today, some economists and historians believe that Roosevelt’s adherence to New Deal policies
actually prolonged the Great Depression.
However, New Deal programs did put millions of people to work, providing economic relief
for struggling families.
The New Deal initiatives also allowed for the construction of roads, schools, parks,
hospitals, and many other facilities that were needed throughout the nation.