On October 29, 1929, the crash of the U,. S. stock market – known as Black Tuesday – set off a world wide spiral in every part of the globe. In 1929-1933, unemployment in the U. S. increased from the original 4 per cent to 25 per cent. …
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On October 29, 1929, the crash of the U,. S. stock market – known as Black Tuesday – set off a world wide spiral in every part of the globe. In 1929-1933, unemployment in the U. S. increased from the original 4 per cent to 25 per cent. Manufacturing output plunged by approximately one third. Prices everywhere fell, making the burden of the repayments of debts much harder. Heavy industry, mining, lumbering, and agriculture were hard hit. The impact was much less severe in white collar and service sectors, but every city and state was hit hard. Upon accepting the democratic nomination for president, Roosevelt promised a new deal for the American people. 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 (1933-34) virtually every organized group ( except socialists and communists) gained much of what they demanded. This first new deal was self-contradictory, pragmatic, and experimental. Relief was the immediate effort to help the one-third of the population hardest hit by the depression. Roosevelt expanded Hoover’s Federal Emergency Relief Administration (FERA) work relief program and added the Civilian Conservation Corps (CCC) Public Works Administration (PWA), and (starting in 1935) the Works Progress Administration (WPA). In 1935 the Social Security and unemployment insurance programs were also added. Separate programs were set up for relief in rural America, such as the Resettlement Administration (RA) and Farm security Administration (FSA).
These work relief programs have been praised by most economists in retrospect.(Parker)
Besides programs for immediate 'relief' the New Deal embarked quickly on an
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In effect, the New Deal was about increased federal control over the national economy, greater powers for trade unions, and a wider network of social welfare measures (Edsforth). It was President Franklin Roosevelt after accepting the president ship in 1932, first used the term, ‘New Deal’, in its contextual sense, and promised new welfare measures for the people of the United States (Edsforth, 1).
The Great Society programs of President Lyndon Johnson are similar to the New Deal programs of Franklin Roosevelt, because they both aimed to help the poorest Americans and elevate the quality of their living, through changing the role of national government versus state governments; nevertheless, the New Deal represented a response to the Depression,while the Great Society responded to the prosperity of the U.S.
This is evident with Franklin D. Roosevelt’s address to the commonwealth club in 1932 preceding the ongoing presidential battle that actually not only highlighted his move towards the establishment of an activist form of government but also very subtly made derisive remarks at the incompetency of Republican government in making equitable distribution of wealth.
Some of these policies fell under the New Deal which was challenged for not being effective. As a result of this, Franklin Roosevelt came up with a number of new policies that came to be known as the Second New Deal and various issues as pertains to the new deal will be the focus of discussion in this paper.
There is no denying the fact that President Roosevelt lost no time in fulfilling his promise of the New Deal, once he got elected. New Deal primarily signified a series of reforms initiated by President Franklin D Roosevelt aimed at ameliorating the diabolical impact of the Great Depression on the American economy.
The New Deal has often been viewed as one of the most dramatic set of programs ever to restructure the American political landscape. The initial programs that were created to alleviate the suffering of poverty were largely temporary and were disbanded after their purpose had been served.
Admittedly, liberal historians argue that Roosevelt restored hope and self-respect to tens of millions of desperate people, built labor unions, upgraded the national infrastructure and saved capitalism in his first term when he could have destroyed it and easily nationalized the banks and rail roads
Roosevelts New Deal of the 1930s stressed economic opportunity during a period of the great economic hardships of the Great Depression. In 1964, Lyndon Johnson launched his Great Society program during a speech at the University of Michigan (Johnson ch. 28). While both