Franklin D. Roosevelt and the New Deal Essay

990 Words4 Pages
Following the First World War, another cataclysmic event occurred in the form of a depression. When the stock Market crashed on “Black Tuesday” in 1929 along with various alternate causes such as the installment buying of the 1920s, the United States became encapsulated within a massive economic depression known as “The Great Depression.” After the Election of 1932, the new president, Franklin D. Roosevelt, was elected. Franklin D. Roosevelt along with his advisor group called the “Brain Trust” proposed the revolutionary policy known as the New Deal which drastically changed the basics of American society by distributing wealth as well as giving rights to the disadvantaged. First off, the primary goal of the New Deal was to recover and…show more content…
They treated him as their hero and pictures of him were posted everywhere from people’s houses to barber shops. Later during the first hundred days, the government passed the Banking Act of 1933 creating the FDIC to guarantee bank deposits, which prevented people from losing all of the money in their accounts if a bank went bankrupt. Moreover, Roosevelt set out to provide relief for the rural poor. At the time, farmers were overproducing. They hoped that by growing more they could make up for falling produce prices, but their efforts were futile since the more they produced further prices fell. Roosevelt's solution was the Agricultural Adjustment Act. The AAA provided payments to farmers in return for their agreement to cut production by up to one-half, the money to cover this program came from increased taxes on meat packers, millers, and other food processors. A month later, Congress passed the Farm Credit Act, which provided loans to those farmers in danger of foreclosure. Several other New Deal programs established government control over industry. The National Industrial Recovery Act consolidated businesses and coordinated their activities with the aim of eliminating overproduction and, by so doing, stabilizing prices. The NIRA also established the Public Works Administration, which set aside $3 billion to create jobs
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