Roosevelt achieved his status by setting up the New Deal. A main aim of the New deal was to get the Economic Circle going the right way again. Before 1929 America was a super power they had a massive Economic Circle, but when the Wall Street Crash happened they Economic Circle started to go the other way. The Economic Circle works when businesses need raw materials to make their goods to sell, they then need workers to create the products. This then means that the workers have wages so they can buy goods, made by a factory. This then gives the business more money to buy more materials; this creates more jobs giving wages, so people can buy more things from shops and so on.
Roosevelt also decided to bring back alcohol and to stop Prohibition. This would create more jobs and also hopefully stop the widespread crime. More jobs would create more wages and as before this would hep the Economic Circle.
Roosevelt needed to get the trust of the country back; a vast amount of people’s money had been lost in the Wall Street Crash and thought they couldn’t trust banks or buy shares anymore, it would be too risky. At that time there were no televisions, but nearly every family in America would have a radio which they would all sit around and listen to. Roosevelt decided to set up fireside chats in hope to regain the countries trust. In the fireside chats Roosevelt would discuss the national problems with the nation; people trusted him and listened to him lots. Now Roosevelt most of the country listening to him he told people to trust the banks again and slowly people started putting their money back into banks. This would help the economy get itself back up and running again. If the banks had stayed closed economy would cease to function. Roosevelt gave the banks support from the government and the people.
Previous taxes that the government had collected were put into businesses and industries. This helped the economic circle move again, therefore regaining the countries prosperity. He also took another step to rebuild the confidence in American businesses. This was by making sure that people couldn’t be swindled out of their money again. Roosevelt set up a Security Act. This made sure that no false businesses could be created. Each business had to provide full information and if they failed to do this the company could be prosecuted. This was followed up in 1934 with the establishment of Securities and Exchange Commission.
Roosevelt set up the Alphabet Agencies as part of the New Deal. The Alphabet Agencies were Agencies that helped different things. They were named the Alphabet Agencies as their names were shortened to just the initials (letters of the Alphabet), for example the AAA stood for the Agricultural Adjustment Administration. The AAA was set up to help farmers; Roosevelt would buy the farmers crops in large quantities and then burn it. This then meant what the farmers had left could be sold for more as it was rarer because there was much less of it. Also he asked if farmers would grow different things instead of all growing large amounts of the same thing. For example instead of a farmer growing loads of carrots and potatoes he asked if they could change their crop to swedes and parsnips instead. This meant the farmers were able to raise their prices because there was less produce of the same crop which means prices are higher, so the farmers have more money and can buy more things which will then help the Economic Circle again, which was a main aim of the New Deal.
Five different Alphabet Agencies were also set up to help the unemployed. (CCC, PWA, CWA, WPA and FERA) The CWA, PWA and WPA all did similar things. They were the Civil Works Administration, the Public Works Administration and the Works Progress Administration. These provided unemployment schemes for hundreds of areas: hospitals, schools, bridges and cultural projects. This meant that many more jobs could be created in the production of building the schools and hospitals etc. Nearly $11 billion was put into the economy to boost these agencies as they were helping towards the regain of the super power and helping the Economic Circle rebuild. The FERA, meaning Federal Emergency Relief Act, meant that $500 million of government money was made available to cities to give relief to the unemployed. This gave aid to needy as quickly as it could to stop as much suffering as possible. As more people had jobs, they had more money and could buy more things, which was also helping rebuild the Economic Circle.
There were many more Alphabet Agencies to help the industry, depressed areas and home and farm owners. They all worked on helping Roosevelt achieve his aims.
