The New Deal :: essays research papers

During the 1930's, America witnessed a breakdown of the Democratic and free enterprise system as the United States fell into the worst Depression in history. The effects of the depression were being felt everywhere in the United States. In 1933, sixteen million people were unemployed. Americans wanted and needed a change. They proved this by electing Franklin D. Roosevelt in 1932. This was the beginning of a new period in time for Americans, as Roosevelt would introduce his course of action with the New Deal. Would Roosevelt’s New Deal be what Americans needed to counteract the effects of the depression? In Roosevelt’s first inaugural address he declared, â€Å"†¦In the event that Congress hall fail to take these courses and in the event that the national emergency is still critical I shall not evade the clear course or duty that will then confront me.† Roosevelt’s course of action came to be known as the New Deal. The New Deal describes the innovative measures that President Roosevelt took to try to restore the American economy, give Americans pride again, and have faith in the government. The New Deal started in 1933 and lasted until 1938. The New Deal was based on relief, recovery, and reform. The New Deal included federal action of unprecedented scope to stimulate industrial recovery, assist victims of the Depression, guarantee minimum living standards, and prevent future economic crises. Many economic, political, and social factors lead up to the implementation of the New Deal. In the first two years, the New Deal was concerned mainly with relief, setting up shelters and soup kitchens to feed the millions of unemployed. On March 6, 1933 Roosevelt called a nationwide bank holiday, and on March 9 Congress passed the Emergency Banking Act, which provided for federal bank inspections. In the summer of 1933, the Glass-Steagall Act set much more stringent rules for banks and provided insurance for depositors through the newly formed Federal Deposit Insurance Corporation (FDIC). These acts helped to restore the confidence in the wake of widespread bank failures. Two acts, one in 1933 and one in 1934, required detailed regulations for the securities market, enforced by the new Securities and Exchange Commission (SEC). Several bills provided mortgage relief for farmers and homeowners and offered loan guarantees for home purchasers through the Federal Housing Administration, or FHA. The Federal Emergency Relief Administration expanded existing relief grants to the states and resulted in assistance for more than 20 million people. The Civilian Conservation Corps (CCC) provided work relief for thousands of young men under a type of military discipline. The CCC emphasized reforestation, among