FDR's New Deal

FDR's New Deal - The New Deal When the stock market crashed...

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The New Deal When the stock market crashed on “Black Tuesday,” October 29, 1929, the nation began a rapid decline to a state of universal impoverishment. Within three years, national industrial production decreased by fifty percent and nearly 100,000 businesses fell into bankruptcy. The monetary amount of new investments fell from $16 billion to just $1 billion per year, and in 1931, alone, more than two hundred banks nationwide closed for good. These problems and a plethora of others faced the nation in the 1930’s and made a quick recovery all but impossible. However, one man attempted to achieve this impossibility and put America back on its feet. Through his New Deal, a combination of banking, industrial, agricultural, and economic and social reforms, Franklin Delano Roosevelt gave hope to the American people as he attempted, perhaps vainly, to help restore the nation to its former grandeur. In his first hundred days in office, Roosevelt took the bull by the horns and passed fifteen pieces of legislation aimed at putting the country on a track to recovery and inspiring hope in a nation of disillusioned Americans. He first approached the matter with a “brain trust.” By bringing together the country’s best minds and most knowledgeable experts, he stood a better chance of making the best decisions for the nation. His next move was to begin speaking candidly to the American public via radio, inspiring Americans with such phrases as “The only thing we have to fear is fear, itself.” In his fireside chats, it is estimated that twenty million Americans listened in to hear his optimistic and personal conversation with the people. Moreover, as a result of this personal touch, it is estimated that FDR received some 500,000 letters from listening fans who supported his efforts. However, the main focus of Roosevelt’s efforts lied in his political activities, primarily within his series of relief programs which he called the “New Deal.” This deal was comprised of
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many various components, and multiple programs which were often abbreviated to a few letters, and thus, were referred to as alphabet soup programs. However, these organizations generally fell into one of a few different categories. In order to recover the struggling economy, he believed that stronger government influence in economic affairs was necessary. Thus, throughout the 1930s’ the old laissez faire system began to disappear even more than in previous years, to be replaced by a system of regulated capitalism. The first of these areas to receive this enhanced governmental regulation was the banking system. To aid the struggling banks, in early 1933, FDR declared a holiday for all banks, during which, he developed the Emergency Bank Act, which provided federal loans to private banks, and the Economy Act, which was intended to balance the national budget through governmental regulation. Soon thereafter, the second Glass-Steagall Act was passed, which separated commercial banking from investment banking and established the Federal Deposit
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FDR's New Deal - The New Deal When the stock market crashed...

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