In 1932, as nominated leader of the Democratic Party, Roosevelt told his supporters, ‘I pledge you, I pledge myself to a New Deal for the American people’. He took over the administration, becoming President in 1933. He was confronted by a serious situation that Herbert Hoover, at the end of his Presidency admitted, the Republicans had failed to improve stating, ‘We are at the end of our rope. There is nothing more we can do’. Depending on the voluntary services to provide for those in greatest need, Hoover was unsuccessful with dealing with the escalating problems. With one fourth of the work force unemployed and the economy near to collapse, Roosevelt was faced with the challenge of pulling the United States out of the Great Depression. With immediate action required, Roosevelt had the ‘power to wage war against the emergency’. He had gained the support and confidence of the American people, approaching the crisis with enthusiasm; he was to apply his ‘New Deal’ policies on a ‘trial-and-error’ basis.
Priority was to be given to the financial situation, and over the first ‘Hundred Days’, Roosevelt called for the closure of banks and introduced one of fifteen acts of legislation, The Emergency Banking Relief Act. This provided support for the strongest banks, loans for those that were in trouble and closed those that were beyond help. The banks were re-opened the following day with support from the Government bringing a halt to the monetary crisis. Keeping the banking system in the hands of private owners rather than opting for nationalisation, Roosevelt was congratulated for the way in which he dealt with the problem, one of his advisors claiming, ‘Capitalism was saved in eight days’.
The first few years of Roosevelt’s administration concentrated on measures to reduce the widespread unemployment and poverty, establishing numerous agencies to combat the problems. The Civilian Conservation Corps (CCC) provided placements on a voluntary basis for male aged between eighteen and twenty-five, and Civil Works Administration (CWA) that provided relief work for the unemployed. The Federal Emergency Relief Administration (FERA) provided money to those with work relief. The later National Youth Administration (NYA) created by the CWA in 1935, aimed to reduce competition for employment, provided support to education and training.
Blacks and immigrants already being in the poorer minorities, were severely affected by the depression. The price of cotton fell resulting in the destitution of sharecroppers and tenant farmers, fifty percent of blacks were unemployed in the urban areas and there was an increase in racist attitudes. The Agriculture Adjustment Act (AAA) helped farmers raise prices by controlling the production of agriculture the Government reimbursed farmers for reducing their stock resulting in a fifty-eight percent increase in farm income. In 1937, the Farm Security Administration provided loans small and tenant farmers allowing them to restore and purchase small farms.
Despite the improvements and reforms that took place, there was opposing opinion to Roosevelt’s New Deal. The people had seen Roosevelt as a solution to the problems within society and the economy allowing him to take advantage of the situation, ‘the President probably could have done anything he wanted to’. The measures that he took at the time were aimed at producing immediate results, however, long-term recovery was slow. In 1937, there was yet again another recession when industrial production declined by one third and was quickly as termed as, ‘the Roosevelt recession’. This was the consequence of Government cut backs on several funded agencies. These included the WPA that was established in 1935 to provide work-relief programmes for the unemployed, which led to a reduction in spending. This caused a fall in demand of goods; there was a reduction in income by thirteen percent, and production by fifty percent, profits falling by a massive seventy-eight percent.
Although Roosevelt was committed to improving social conditions, this only was to the advantage of the few. Blacks and ethnic groups were still discriminated against and much of the New Deal legislation excluded the minority. The issues of racism and segregation still existed, several of the Government funded agencies such as the Civilian Blacks could not be guaranteed mortgages and the agricultural programmes had an adverse affect on the on ethnic groups. The support form the Government was in return for reducing agricultural production in the areas worked sharecroppers and tenant farmers. As a result of the Agricultural Adjustment Administration and policy, two hundred thousand of black tenant farmers had no other alternative other than that of leaving their land. Sixty percent of farmers and domestic servants were black and the Government agencies paid no attention to their needs. Neither were they to be included in the Social Security Act of 1935 that provided guaranteed income and security in old age.
Another issue of concern was that of Government intervention within business and banking sectors. This went against the American Capitalist ideology it was considered a step closer to Socialism. The social revolution experienced the massive changes within the work force including the introduction of organised labour and unions, legislation to pay minimum wage and work set hours. The Government felt that it had an obligation to ensure ‘the economic and social health of the nation’. Both Left and Right wing opinions were very much the same in that a; mixed economy was unacceptable in the eyes of many, either it was Capitalist or Socialist, there was no in between.
To conclude, Roosevelt’s ‘New Deal’ was an instant solution to solving the problems that arose as a result of the Great Depression. The major successes were that of solving the banking crisis and giving instant relief for many poor and poverty stricken Americans. These measure were less successful on a long-term basis, economic recovery was slow and with no major changes being made to the system, it was in a fragile state. Unemployment remained high; the agencies that provided work relief did not provide permanent, stable employment opportunities. Despite being concerned with the welfare of the people, many of Roosevelt’s policies still left sections of society unequal to others. Although the ‘New Deal’ was not a total failure, it was not successful in every aspect.
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