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Franklin Delano Roosevelt’s New Deal Policy

Franklin Delano Roosevelt was the only President of United States to be reelected continuously for three times. He ran a promising New Deal for the people of United States while he was a Governor of New York. Programs such as Relief Program worked well for people as it increased the level of employment and recovered agriculture plus industrial sector after the Great Depression. People especially those who had suffered from the Great Depression are extremely passionate for Franklin Delano Roosevelt. He is an idolized persona for both as a savior at national level and a vilified communist who craved for federal authorities.

Roosevelt work from 1930s was divided into two parts 1) The First New Deal which was introduced in 1933 and ended up in 1935. It was introduced to get relief from unemployment issue and 2) The Second New Deal, introduced in 1935 till 1937. It was developed due to the forceful members of Congress as they thought reorganizing the society is even more important rather then getting immediate relief from economic and social issues. (The Library of Congress, 2004) Historians named the era of The First New Deal as “Hundred Days”.

Franklin Delano Roosevelt launched the first new deal at the initial period of this administration where the president himself was the legislative leader excluding the congress members. The first new deal was introduced with a number of bills. Most of the bills were about to set up new government organizations that are known as “Alphabet Soup” due to their collection of acronyms. Major role played the first new deal are the following: – Development of Agriculture Adjustment Act (AAA) was introduced which helped farmers to stabilize costs and limited the over production of crops.

It also directed subsidies to the farmers who did not plant harvest. However, after some time the Supreme Court of the United Stated declared AAA to be unnecessary and unconstitutional incursion of the rights of private property. – One of the most ambitious part of the first new deal was Tennessee Valley Authority (TVA) which was launched to construct power plants and dams by the side of Tennessee River to provide electricity in rural areas of the seven states. Though, development of TVA project did provided electricity to a lot of American individuals but it also became a source of job for them.

Thus, the progress of this project infuriated a number of private sector power supply companies. – FDR came into political era of Roosevelt which helped to reduce budget most of all public trusted him. FDR knew about what public will accept and what not. For example, when FDR career started, about 5,000 banks failed as a result he introduced national bank holidays to stop all the activities performed in banks and to review their solvency. He declared that banks will good financial backbone can reopen and once the bank were reopened, American public entrusted them with their money which resulted into banks with solvency.

– A public project namely Civilian Conservation Corps (CCC) was introduced to be controlled by armed forces. It was designed to endorse men who are jobless from the corners of the street. Additionally, CCC was also introduced to construct shelters for wildlife, recruitment of planted trees, cleaning beaches and stock fishes into rivers and oceans. Civilian Conservation Corps used to keep young men into barracks plus three time meals per day with a small amount of pay.

According to armed forces, training and managing large number of individuals helped them a lot in World War II. – National Industrial Recovery Act (NIRA) was introduced which established National Recovery Administration (NRA) to stimulate competition and production by American industries to set of prices, practice of general trade and industrial output. Response from federal government for this project was to suspend all the industries that come under anti-trust legislation. In NIRA, section 7A was recognized for labor rights plus a collective bargaining with management.

Even though NIRA did not violate the private sector and was the most controversial section of legislation, it was charged by a number of times from opponents. The Second New Deal came due to the social concerns of Eleanor Roosevelt, the First Lady of the President, plus a large quantity of criticism took place for the First New Deal. The second stage of New Deal was somewhat of a more cautious step of the president. Laws that came under the second new deal were: – Works Progress Administration (WPA), was later changed to Works Projects Administration. WPA helped to promote economic reform and relief both.

This project concentrated on airfields, construction of bridges, restored forests, building post offices and providing electricity to the rural areas. According to the history of WPA, it helped to employ approximately 8. 5 million Americans and funded artists / authors to promote the culture of United States. WPA left a mark on federal government for the first time in American history that helped to support art and culture actively. – Wealth Tax Act increased the taxes paid by the businesses generating excess of profit, large gifts and profits from the sale of properly.

It also obliged a number of trusts and leading companies. However, development of the New Deal and World War II brought a major shift in United States regarding political, economic and psychological issues. Throughout the World War II, American citizens were concerned for three questions therefore economy, government and socialism both national and international ways. During World War II a number of opponents fought to eliminate most of agencies that were created according to the New Deal such as CCC, WPA and National Youth Administration (NYA).

These programs were built to help Americans specifically those who are poor even at the time of good economic conditions. In many ways the New Deal was not useful to help Americans during World War II such as labor force was needed in industries to work during war time. As a lot of New Deal laws were eliminated during World War II, wages were increased as well as rate of poverty also touched the sky. According to a report by general committee, about 20 million Americans were on starvation and twenty five percent were paid for less than sixty four cents even skilled workers were not paid more than $7 or $8 per hour.

The effects of World War II on New Deal were similar to the nation itself. In 1940 to 1945, employee’s work forces were increased from 1 million to 4 million as a result expenditures also grew to $98. 4 billion. Additionally, federal deficit took place when expenditures rose. Although, federal government chopped off the funding programs that made employees of Roosevelt’s “Brain Trust” to leave their jobs. This way executive’s, especially with good managerial skills, filled the political vacuum in Roosevelt’s organization.

World War II also helped to strengthen the organization of labors plus the relationship with big businesses and government with the intention of giving power to all three of them at corporate level. Production of agriculture was perked up in United States by adopting good fertilizers and modern machinery though in 1940 to 1945 the farm population declined up till 17%. New technologies were adopted by the federal government to the development of other projects for example manufacturing artificial rubber to build up atomic bombs.

The nation became even more urbanized as the inhabitants of rural areas moved towards the cities. Roosevelt had to spend deficit which occurs when the government spends more money than their budget. He was though inclined by John Maynard Keynes and John Stuart from whom Roosevelt adopted the philosophy of the New Deal. In some way Roosevelt was a hypocrite as when the economy was in good position he believed in the concept of “handing off” and when it came under bad circumstances he played a role by extending the government.

The New Deal played an active government role as it directly brought job opportunities and fixed the economy of the nation. As Roosevelt stated in a press conference, “I brought down several books by English economists and leading American economists, I suppose I must have read different articles by fifteen different experts. ” Franklin D. Roosevelt has a plan to expand the role of the government but the man behind this was John Maynard Keynes who was an active voice of the economy for many years. According to Keynes, he believed in supply and demand which indirectly led towards a balanced economy.

He also believed that chopping off unemployment can increase the aggregate demand and government can do this by generating new opportunities for jobs. However, Keynes theories were not agreed by FDR but the New Deal was almost the just the right example for his theories. (American History – 20th Century, 2008) During Roosevelt’s administration, he built “Roosevelt Coalition” which helped to remake modern politics. Democrats expanded their list of voters by offering innovative policies to the farmers of Midwest, ethnic blue collared workers, Jews and African Americans.

The shift of African Americans supported the Democratic Party in 1936 by changing their political adherence and giving votes to Roosevelt. This was the biggest shift in elections of 1936 which left a spot in American history. However, in 1937, Roosevelt thought the economy and federal budget are in balance by cutting few programs of New Deal but it turned out to be a disaster. For example, Roosevelt decreased funding for WPA program which resulted into increased unemployment rate. The economy therefore was recovered after the World War II.

The lasting impact of Roosevelt’s New Deal did brought a change in relationship amid business and government though it did not ended the Great Depression. Thus, now people trusted the federal government which played an important role for the social welfare of the country. Another enduring legacy was the rise of corporate state. Due to the regulation of New Deal, two new groups were created in politics hence the big government and big labor. World War II and New Deal legislation did brought the labor, government and business even more close to each other.

Government promised to implant inevitability for work to stay away from dramatic changes in United States economy while labor provided a stable workforce. (Denis William Brogan, 1952) Roosevelt died in April, 1945 just before Germany surrendered. After World War II, America was a known to be a transformed nation. Significant changes in America were economic recovery, atomic bomb power and rest for American society after the second war. (Cyber Essay) Bibliography The Library of Congress (2004), Great Depression and World War II, 1929 – 1945, President Franklin Delano Roosevelt and the New Deal, 1033 – 1945.

Accessed on November 23, 2008 from http://lcweb2. loc. gov/learn/features/timeline/depwwii/newdeal/newdeal. html Cyber Essay, Analysis of Roosevelt’s “New Deal”. Accessed on November 23, 2008 from http://www. cyberessays. com/History/84. htm Denis William Brogan (1952), Roosevelt and the New Deal, Published by Oxford University Press American History – 20th Century, (2008), Franklin D. Roosevelt’s New Deal, Accessed on November 27, 2008 from http://www. studyworld. com/Franklin_D_Roosevelt’s_New_Deal. htm

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