Other programs established because of the New Deal, were aimed for many unemployed Americans. Roosevelt in May of 1933 encouraged Congress to establish the Federal Emergency Relief Administration, with half a billion dollars for relief aid to be given directly to state and local agencies. Nearly 8 billion people were surviving on public assistance. However, many disliked the idea of aid. Seeing this, Harry L. Hopkins organized the Civil Works Administration. This organization provided jobs to many. Jobs included, raking leaves, and picking up litter. To aid unemployed men between the ages of 18-25, Congress established the Conservation Corps in 1933. Many men left their homes to be trained at these army camps. Once they were trained, they planted trees, cleared underbrush, created park trials, and made campgrounds and beaches. Their wage was a dollar a day. Although the diverse jobs were not suited for many, but at least now people were earning their money and helping the nation, instead of just watching the days pass by.
Although to an extent, some of the ideas that were proposed to improve the nation were indeed excellent. However, some, unfortunately, turned out to be unconstitutional. For example, the National Industrial Recovery Act. Passed by Congress in June 1933, its purpose was to thrust the economy. It was designed to stimulate industrial and business activity and reduce unemployment by stabilizing prices, raising wages, limiting workers’ hours and providing jobs. Two new federal agencies, the Public Works Administration and the National Recovery Administration were created. The Public Works Administration, supplied jobs, and dealt with private businesses to construct roads and public buildings. On the other hand, National Recovery Administration, encouraged businesses to have fair competition between their rivals. In other words, businesses would agree to work together to stabilize prices, wages, and hours. The thought of fair competition grew immensely popular amongst many. But enthusiasm soon faded, because businesses would not obey the various rules. Workers complained the codes held their wages down while consumers complained that the codes pushed prices up. People soon began to mock the National Recovery Administration by calling it ‘National Run Around’. Pretty soon a question arose, whether or not the National Industrial Recovery Act was reasonable. In 1935, this question reached the Supreme Court and the National Industrial Recovery Act was found unconstitutional.
Another issue that the New Deal tired to improve during the Great Depression but turned out to be unconstitutional was agricultural. To raise farm prices and thus increase farmer’s purchasing power, Roosevelt proposed that farmers cut production. This idea or Agricultural Adjustment Act was approved and passed by Congress in May 1933. The Agricultural Adjustment Administration was established and they paid farmers to reduce their output of cotton, wheat, corn, hogs, rice, tobacco, dairy products, and other substances. The money for these payments came from taxes on food processors that included meat packers, canners, and flour millers. In about a year, the production of many agricultural products reduced and thus the price for each item increased. Agricultural growers now had more money to spend and because of this, economy recovery occurred. Critics however, saw the negative side of this program. They pointed out that the taxes on food processors were passed along to consumers, in the form of higher prices. While farmers’ income rose, the purchasing powers of city dwellers declined. Critics also pointed out that a farmer with large land holding benefited from the Agricultural Adjustment Administration more than small farmers. When large landowners cut production, sharecroppers were forced off their land and kept all of the government payments for themselves. As a consequence, poorest farmers were pushed deeper into poverty. In 1936, the Supreme Court stopped Agricultural Adjustment Administration taxes’ and stated that it was unconstitutional to process tax.
All in all, the numerous aspects of the New Deal impacted various features of the United States. Some had a positive whereas some had a negative impact upon the country. However, the overall theory of the New Deal met the challenges of the Great Depression. Firstly, the New Deal brought the Emergency Banking Act and for that reason, people embraced banks with trust once again. Secondly, through the New Deal, Federal Emergency Relief Administration, Civil Works Administration, and Conservation Corps provided the unemployed with some sort of occupation. Regardless of its pay, the job helped not only a particular individual, but it also helped the country. Although, some branches of the New Deal may have been unconstitutional, it is clear that they still helped the country. Given, the current situation, some sacrifices were needed in order to thrive the country once more. Paying cotton growers to not produce surplus amounts of cotton was unconstitutional. However, the economy was boosted greatly, because of this. Also unconstitutional was the National Industrial Recovery Act. Its purpose was to boost industrial and business activity and reduce unemployment by stabilizing prices, raising wages, limiting workers’ hours and providing jobs. However, it proved to be unconstitutional for asking companies to not compete was out of the question. But, when the idea of having no competition was functioning, the reasons behind the formation of the National Industrial Recovery Act could be seen. Generally speaking, the creation of the New Deal was to salvage the country from completely declining. Ideas of the Constitution that are so greatly protected needed to be ignored to a certain extent for the benefit of the country. Therefore, the New Deal, regardless of the fact that some characteristics of the theory were unjust and unconstitutional, it faced the challenges of the Great Depression and facilitated the rise of the country.
Omar Tariq
History Block F
4/24/2004
Outline
Introduction:
- During the Great Depression
- FDR became president- he offered a solution and hope: The new deal-15 ways
- Some had positive effect some had negative.
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Thesis: However, during the New Deal reign, it stood strong and helped the country of America, more than it didn’t.
Support 1: (+ outcome) Emergency Banking Act/Loans
- Banks were not trusted and were financially in trouble
- Bank holiday was established and banks were observed. The ones that were okay were reopened
- Banks gained 1 billion and insurance was established.
- Now that banks were trusted loans were given in a better method. Longer time periods and low interest rate for farmers and pretty soon homeowners.
Support 2: (+ outcome) Federal Emergency Relief Administration/
- Roosevelt that billions of dollar be given to local agencies so people can get some sort of money and thus survive
- 8 billion people surviving with program. Many disliked it so Harry L. Hopkins organized the Civil Works Administration
- Provided jobs such as raking, picking up trash
- Men 18-24 were given jobs as army men. They were trained to perform certain tasks
Support 3: (- outcome) National Industrial Recovery Act
- Passed by Congress in June 1933: pump the economy
- Stimulate industrial and business activity and reduce unemployment by stabilizing prices, raising wages, limiting workers’ hours and providing jobs
- The Public Works Administration provided jobs. Encouraged companies to build public areas
- National Recovery Administration asked competition to be fair
- Supreme Court found this unconstitutional
Support 4: (- outcome) Agricultural Adjustment
- Passed by Congress in 1933. Purpose was to improve farmer’s purchasing power.
- Agricultural Adjustment Administration paid farmers reduce cotton, wheat, corn, hogs, rice, tobacco, dairy products, and other substances.
- The money for payments came from taxes- processors- meat packers, canners, and flour millers.
- Was found unconstitutional for farmers gained more power. Civil people lost purchasing power.
Conclusion:
- All in all New Deal had + and – features
- +Banks, loans, and jobs were created
- -Unconstitutional aspects
- Over all impact was + due to the reason that it helped the country
