Relief, Recovery, Reform
"But while they prate of economic laws, men and women are starving, We must lay held of the fact that economic laws are not made by nature. They are made by human beings."
- Franklin Roosevelt, 1932
Franklin D. Roosevelt, "Address Accepting the Presidential Nomination" July 2, 1932
- Franklin Roosevelt, 1932
Franklin D. Roosevelt, "Address Accepting the Presidential Nomination" July 2, 1932
During the “1st 100 days” he worked with a special session of congress, creating multiple alphabet agencies which supported farmers and their income. They also assisted business and labor, ensured bank deposits, regulated the stock market, subsidized mortgage payments, and aided unemployment. With his new vision of how the relationship between state and federal government could be run, he changed the protocol changed how we see issues forever.
Relief
Roosevelt's first step was relief, or immediate action to halt and prevent any further deterioration in the economy. He decided take proactive steps by creating things such as the Bank Holiday, FERA(Federal Emergency Relief Act), and CCC (Civilian Conservation Corps.) The Bank Holiday allowed FDR to reopen bank that were solvent and assist those who were not through the Emergency Banking Act. The FERA gave aid in the form of money to states and states and localities for distribution to the needy. And Finally, the CCC provided jobs and relocation for young men along with infrastructure. Together they provided support and consolation to desperate citizens.
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"There are men regarded today as brilliant economists, who deprecate saving and recommend squandering on a national scale as the way of economic salvation; and when anyone points to what the consequences of these policies will be in the long run, they reply flippantly, as might the prodigal son of a warning father: 'In the long run we are all dead.' And such shallow wisecracks pass as devastating epigrams and the ripest wisdom." |
Recovery
The Second step was recovery, or the temporary programs to restart the flow of demand from consumers. This included alphabet agencies such as the NIRA(National Industrial Recovery Act) and the AAA( Agricultural Adjustment Act.) With these agencies along with others such as the Home Owners Corp and WPA(Works Progress Administration), Roosevelt was able to tackle issues in the short term like being able to investigate the stock market. These programs helped the economy recover by providing infrastructure, jobs to young men, and limited farm production to help raise prices.
"Thank heaven, then, for the advent of Franklin D. Roosevelt, who cast aside the narrow, liberty-obsessed liberalism of the past, and introduced a new liberalism, featuring a powerful national government dedicated to alleviating the plight of 'one-third of a nation ill housed, ill clad, and ill nourished,' and to providing the material conditions necessary for genuine equality of opportunity."
-William Schambra, 2007
The Claremont Institute,"Debating the New Deal; a Review of the Two Faces of Liberalism;How the Hoover-Roosevelt Debate shaoes the 21st Century" 2007 4/8/15
Reform
The Final step in Roosevelt's New Deal was Reform or a series of permanent programs designed to prevent and protect economic disasters from happening to citizens. These included countless programs we still have today such as;
- SEC(Securities and Exchange Commission)
- FDIC(Federal Deposit Insurance Corporation)
- Social Securities Administration
- SSB(Social Security Board)
- FHA(Federal Housing Administration)
- FCC(Federal Communications Commission)
- FCA(Farm Credit Administration)
- TVA(Tennessee Valley Authority)