The Impact of New Deal on the Great Depression Essay Example

and criticism were highly regarded. The state of banks paralyzed immediately when Roosevelt became president and re-opened after they were fully solved. Their administration used the moderate currency policy and upward movement to afford relief to debtors and commodity prices. Generous credit resources were brought by new government agencies to the industries and agriculture as a result of the New Deal. Severe regulations were also imposed on the stock exchange sale of securities (Stonechild 80).

Farmers were encouraged to make use of land out of production displacing Sharecroppers and tenants. During the same year a great drought hit the Great state plains causing a significant reduction in production ((Temin 150). This caused farmers and even professionals and retailers to migrate towards California causing the residents at the visited places not to live to the expected standard. Majority of the migrants ended up in seasonal jobs which offered extremely low wages. Thing worsened later and the conditions became harsh to the people who had migrated and even the residents.

The second New Deal was implemented by Roosevelt for new social and economic measures (Stonechild 61-62).This was majorly to cater for the unemployment and to provide a social safety net. Works progress Administration (WPA) agency was also introduced to help in providing work in addition providing welfare to the people.

It helped in the construction of schools, buildings, roads and airports creating around three million jobs though it was later abandoned. It had helped nine million people before it was terminated. The cornerstone of the New Deal according to Roosevelt was social security. Roosevelt signed the social security act into law which created a social insurance program designed for workers

to cater for them after retirement, in addition to provision of social welfare. This social security catered insurance for unemployed, disabled and the aged (Stonechild 71).

The Historical Causes and Effect of New Deal and Great Depression

Roosevelt came into power when the stock market had completely collapsed (Fishback 81). Majority of the Americans were jobless. The bank system in the country had also failed and the nation was faced with a lot of hardship which led to its citizen being hopeless. The state was in financial collapse and it was also suggested by some section of economists that the president should inflates the money value (Fishback 74). The move was to help in curbing the falling prices of products. President Roosevelt declined to the idea opting to apply the basic economics strategies as it led to a balanced budget and government became economical.

President Roosevelt further issued a directive on the pay cut for the veteran’s pension and the pay for the federal employees. Hoovers programs and economic system did not seem to reduce the inflation rates as compared to huge actions taken by Roosevelt government (Hoover 1929).

Unlike Hoover, Roosevelt measures ensured that the state succumb deep to the depression created. The too much involvement of the government also led to the creation of economic depression. This was through the formation of government agency to handle the bank panics. It resulted to lose of money value since the stock market depreciated (Hoover 1933). The agriculture section was also damaged as the government could not provide subsidies to farm inputs and machineries. The access to loans was also very strict as the government could not fund the associated

sectors. The government was unable to respond to the economic crises and ensure food security to its people during drought and famine (Hoover 1934).

The revolution from the depression began once President Roosevelt ascended to power. He instituted adjustments to the agriculture act that enabled farmers to access loans more easily. The act also provided collective bargain when it came to selling and marketing of their agricultural produce (Hoover 1939). There was a lot of exploitation to the homes acquired through montage.

The Roosevelt government intervened to help prevent immature foreclosure of their homes. There was also a revolution to the industrial sector, whereby the working hours were reduced as minimum wages was increased (Hoover 1940). His main idea was to amend the social acts rather than seeing unrest through unions. The strikes could occur due to radical influence of his rival thus tried to prevent the labour unrest. The Roosevelt government brought stability to the banking sector which brought conflict between his government and the rich conservatives. His major projects were the rural electrification and he also gave his support to the labour movements.

The most successful policies he ever implemented were the agricultural adjustment also creating an executive power and concentration to the president’s office. The project did not experience much of resistance thus its success. The new deal was not good as he tried to be mischief when the judges ruled as unconstitutional he further went to sacking the judge and appoint new bench after they had over stayed past the retirement age (Fishback 82). He claimed that he was seeking to bring reforms to the judiciary n increase efficiency in the system, but the

move failed at the end. His view was that justice could be achieved through promoting a communist structure in a capitalistic foundation.

References

1. Fishback, Price V. "OF THE NEW DEAL DURING THE GREAT DEPRESSION." Routledge Handbook of Major Events in Economic History (2013): 151.
2. Hoover, Herbert. The Memoirs of Herbert Hoover-The Great Depression, 1929-1941. Read Books Ltd, 2013.
3. Stonechild, Blair. "A New Deal."Approaches to Aboriginal Education in Canada: Searching for Solutions (2013): 81.
4. Temin, Peter. "Great Depression."Banking Crises. Palgrave Macmillan UK, 2016. 144-153.