Evaluate the approach of Franklin Roosevelt in dealing with the problems of the great depression. The Great Depression came in the world at the time before World War II starting from the late 1920’s and ending until the early 1940’s…
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A large chunk of population was using credit to buy the necessities of life and the consumers were losing their buying power. The production levels fell and the businesses failed. The farmers also suffered as a result of this as the food prices fell (Burgan 9) and the primary industries like mining suffered the most. The USA economy also saw the “Black Tuesday” in this time when the stock market crashed. Other problems associated with the Great Depression were that a lot of banks had to close down as they had invested large part of the people. When this started happening, a panic was seen throughout the entire country as people started withdrawing their own cash from the banks, resulting in turmoil and more bank closure. Since the banks did not have that much money on hands with them, the people who did not reach the banks in time became bankrupt. In this great depression even farmers were not safe because during this time there were severe droughts as the Great Plains were hit by dust storms. These storms destroyed everything in their path, the farmer’s crops so that they were not even able to feed themselves in addition of being in debt. The Great Depression started in the United States in the presidency of Herbert Hoover who often gave the hopes for a bright future for the USA but majority of people blamed him for the economic crisis that the USA faced and hence his reelection was out of question (Marsh 8). Therefore in 1932 Franklin Roosevelt was elected as the President of the country with the people banking him on hopes to get them out the disastrous situation. As soon as Roosevelt assumed the office he closed down all banks and ordered them to open when the conditions had stabilized. He then initiated the New Deal. He took a series of decisions and the legislations were passed which the historians see as the 3 R’s. They are recovery, relief and reform. The relief part tended to introduce short term programs that were aimed at finishing the immediate sufferings of the poor, recovery aimed at the long term programs to bring the economy back at its pre depression level and reform was aimed at bringing in laws and changes that will prevent future depression like these. The ‘new deal’ was broken down into many parts. The first part consisted of policies of the trickledown effect. The programs pointed towards the Keynesian set of economic policies. The first new deal aimed which was a series of acts in 1933 included the agricultural adjustment act which accepted that low prices resulted from an overproduction of crops therefore the government gave subsidies to farmers so that they produce lesser so that the crop prices can go up again. However some people said that this contradicted with the fact that so many people were going hungry in the country. It also failed to deal with the primary problem of the great depression which was the falling consumer demand due to unemployment and continuously decreasing wages. Then again there was a National Industrial Recovery Act (NIRA) in 1933 which said centralized planning to combat this crisis (Ruggiero 41). Industries were advised to (The New Deal or Radical Change) avoid the cut throat competition and that they would not be broken up but instead would work in collaboration with each other and be controlled by organizing the labor and the governmental activities. They will plan out the activities of the
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He also is credited with establishing the United Nations implemented to become an organization of peace throughout the world in concordance with his vision of how the world should function. Roosevelt had a strong sense of purpose. ““Deep down he possessed serene confidence in the divine purpose of the universe.” (Smith, 56).
He recognized the problems the country was facing and showed great optimism in providing a solution to resolve the problems. Franklin believed that there was need to resolve the problems that had resulted from the depression, which included unemployment, hiked taxes, large government debts, curtailment of income, failing exchange trade systems, and failed export market systems.
The measure of trend of these periodic fluctuations is measured in terms of the levels of employment and production. When the measure indicates a down trend, then it is referred to as recession. This downward trend causes a decline in the spending of households.
Although it had its origin in the United States of America, it spread to the other parts of the globe. It began in the month of September 1929 in the US, after a devastating fall in the stock market prices. In the first six months of 1930, government and businesses spent more than they had in the previous six months.
Franklin Roosevelt is considered one of the most influential figures of the 20th century, owing to his popular reforms and measures, to counter the Great Depression and to provide relief to the citizens. Some of the policies were the Federal Deposit Insurance Corporation, United States Securities and Exchange Commission, and the like.
Fondly known as FDR to the public, Roosevelt strived hard to bring about stability to the nation by introducing innovative reforms and programs. However, his leadership philosophy came in for a lot of criticisms by many historians.
is tenures serves as one which involved the hardest decision making, as well as giving the nation the hope that it had lost through the numerous challenges the country was undergoing. Nevertheless, his confidence and optimism amidst all these challenges helped to guide the
The lingering ravages of Great Depression are still visible in terms of the economic crises it created to successive generation of families. According to economists, this damaging phenomenon was directly
FDR possessed many gifts and skills that he comprehensively utilized in his political life. FDR possessed an insatiable curiosity and a thirst about knowledge that combined his capacity in absorbing facts
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