The New Deal TheNew Deal was established in 1933, by President Franklin Roosevelt, in order tofight against The Great Depression. Roosevelt basic philosophy was usingrelief, recovery, and reform commonly known as the three r’s. The main ideabehind this philosophy is to provide financial relief to Americans, let theeconomy stabilize, and then fine tune the acts’ created. Numerous agenciesknown as the Alphabet Agencies were created in order to assist the generalpopulation through financial and work support. The New Deal began whenRoosevelt declared a “bank holiday”, closing all bank for four days until Congresscan pass a bank reform declaration (New Deal, 1999). The First Alphabet Agency Thefirst agency formed was the Agriculture Adjustment Agency.
The agency providedfarmers with subsidies to reduce their crop production and leave some of theland unused. Later the Supreme Court found this unconstitutional, Congress soonpassed the Soil Conservation and Domestic Allotment Act which allowed thegovernment to pay farmers to reduce their production. The Farm SecurityAdministration was soon formed to give farmers loans to help move to betterland. The FSA crucially helped famers whose land was destroyed by the dustbowl. Who the Alphabet Agencies Left Out TheSocial Security Act was set up to help the elderly who were in poverty survive.
The act started a pension system, in which workers and their employers wouldpay a payroll tax, beginning in 1940, to provide an old age pension of $10 to$85 a month for many workers, though it excluded domestic servants andagricultural workers (New Deal, 1999). This act left farmers out in which whenthey become elderly, they will have to continue to work regardless of thehealth condition to have an income. TheRural Electrification Administration was created to allow farmers to take outlow cost government loans in order to sponsor low profit electric cooperatives.In 1935 one out of ten farmers had electricity and in 1950, nine out of ten farmershad electricity (The Second New Deal, 1999). In the same year of 1935,Roosevelt’s tax code hurt the upper-class the most. It was taxing the rich atalmost 75% (Rauchway, 2008). First Step to Equality in the Work Place TheNational Recovery Administration was created to ensure businesses were treatingtheir employees fairly.
The New Deal (1999) says that this is what the NRA did,”This administration called for a “blanket code” where businesses had to have aminimum wage of 30-40 cents an hour, a maximum work week of 35-40 hours, andgetting rid of child labor”. This is the first step that allowed the governmentto make sure employees were being treated fairly in their wages. The governmentknowing how much employees are getting paid allows them to have a picture onthe average cost of living. Twoagencies that worked well together was the Federal Emergency ReliefAdministration, which gave states money who ran out of the relief funds, andthe Civil Works Administration, which provided work relief for more than fourmillion citizens (New Deal, 1999). These two agencies were made as a temporarysolution and not a long-term solution. The biggest issue of The GreatDepression was Americans without work. In order to get money flowing throughthe economy, Roosevelt need to get Americans in jobs. Roosevelt gave statesmore money to create jobs.
Conclusion The Great Depression is an event that shouldn’t betaken lightly. Americans needed a President that would fix the issue in a fastmanner. A high priority of the New Deal was to ensure farmers can grow crops,so Americans can eat. The NRA was established to create the first steps toequality in the work place. The biggest act that was passed that still works today is the Social Security Act.
The combination of The New Deal and The SecondNew Deal got us out of the worse state the economy of the United States hasbeen in.