New Deal ProgramEssay Preview: New Deal ProgramReport this essayThe New Deal is the title President Franklin D. Roosevelt gave to a sequence of programs and promises he initiated between 1933 and 1938 with the goal of giving relief, reform and recovery to the people and economy of the United States during the Great Depression. Dozens of government agencies were created as a result of the New Deal. Opponents of the New Deal, complaining of the cost and increase in federal power, ended its expansion by 1937 and abolished many of its programs by 1943. The Supreme Court of the United States ruled several programs unconstitutional. There are several New Deal programs still in operation, some of which still exist under their original names, including the FDIC, the FHA, and the TVA. The largest programs still in existence today are Social Security and the Securities and Exchange Commission.
Reasons for the New Deal programs.On October 24, 1929, the initial crash of the U.S. stock market, known as Wall Street Crash of 1929, set off a worldwide downward spiral in every part of the globe. Then, on Tuesday October 29, the stock market fell even more than it had on October 24. This day is known as Black Tuesday. Roosevelt entered office with no single ideology or plan for dealing with the depression. He was willing to try anything, and, indeed, in the First New Deal virtually every organized gained much of what they demanded. This First New Deal thus was self-contradictory, pragmatic, and experimental. The economy eventually recovered from the deep pit of 1932, and started heading upward again until 1937, when the Recession of 1937 sent the economy back to 1934 levels of unemployment. Whether the New Deal was responsible for the recovery, or whether it even slowed the recovery, is a subject of debate.
- On September 1, 1941, the President of the United States proposed a four-year moratorium on the Federal Reserve credit rating. Despite the “surge” of 1929 and the failure of the Federal Reserve to reach this goal, the U.S. government cut interest rates, resulting in increased revenues. There was no attempt on the part of Congress to stabilize the creditworthiness of American corporations, to reduce the Federal Reserve’s role in our national economy, or to extend credit to a large segment of the nation. At the same time, it became clear that a great deal did happen, and that, if any, could be done to help the economy. This did not, however, stop a Congress of three million people from continuing to try some other means to keep down the interest rates of the national banks. The Democrats took the opportunity to create the Great Depression for the first time with the passage of two of the most popular and most popular labor laws in American history, introduced by President Franklin D. Roosevelt in 1933, which gave the labor force more choice, fewer worries, and to reduce wage and quality increases and unemployment to the point where it was virtually impossible to keep the system up to this level during the most dangerous times of the postwar time.
The Congressional Progressive Revolution in 1935 also included the establishment of the Federal Reserve System. During the first six years after the Depression, and during its first three months following the Great Depression, Congress passed over 100 bills, legislation, and treaties, which increased the federal minimum wage to $9.25 an hour for six months beginning after World War II, increased the tax exemption for all employers with over $1 million in net income, increased the minimum wage to $11 an hour for workers with less than $1 million in net income, and repealed the Glass-Steagall Act with a series of changes that were passed almost exclusively by a large number of Senators in 1935, while in the United States Congress did not pass anything. Over the three years after the Depression, the Federal Reserve Board of Governors established a new Federal Reserve Chair, David Yellen, who, when removed from the Federal Reserve Board, was replaced by a new Federal Reserve Vice President, John P. Smith Jr., by an interim President, and an independent Deputy Fed Vice President, Janet Yellen, who presided over the last three years of the Bankruptcy and Deposits Reform Administration (CDSRE). In the four years since the CDSRE Act passed, the Fed has been running at a steady steady rate of 6 percent a month: the Fed’s interest rate was set at 3.6 percent. During the first five years of the CDSRE Act, the FED increased the debt limit, the amount of loans to $250 billion increased from 2.4 percent of GDP to 2.6 percent of GDP, and the dollar value of loans to $1 per loan decreased by about $400 million. In addition to the two big increases of interest rates the FED did in 1934 and 1935, each one of these increases produced a further $300 billion in short-term interest rates, along with what were, in the terms of a Treasury Department estimate, “two consecutive inflationary spikes” in this period.[ii]
The Federal Reserve Board of Governors was formed in late 1943 by President Woodrow Wilson to replace the existing board of directors. Wilson wanted Congress to take over the Federal Reserve System. The F.B.I. (Federal Reserve Board of Governors) determined that the system was “too complicated to make any useful policy [and] not sufficiently