New Deal Legislation .docx - The New Deal Solving the...

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The New Deal: Solving the Problems of the Great Depression Saddleback Community College History 17 Summer 2017 August 10, 2017
Running Head: SOLVING THE PROBLEMS OF THE GREAT RECESSION The New Deal legislation did not immediately solve the problems of the Great Depression, in fact throughout much of the 1930s, economic growth remained low and unemployment high until roughly World War II (Kennedy, 2009) . What the New Deal legislation did do was lay the groundwork for future economic growth and much needed protections for the public . Led by newly elected Franklin D. Roosevelt in 1933, “a new deal” was promised by President Roosevelt to the American public during the worst economic recession in U.S. history (U.S. History 49, n.d.) . His election success came several years after the stock market crash on October 29, 1929 (U.S. History 48b, n.d.) . The stock market crash created a domino effect of events that led to a decade long recession, many of these events were caused largely by lax or no regulations within the banking and financial sectors. After the stock market crash, many traders who had borrowed funds using margin accounts, loaned to them from banks, were unable to repay their debts (U.S. History 48b, n.d.) . This led to multiple bank failures and a run on banks as people ran to withdraw funds as quickly as possible before they went under (U.S. History 49a, n.d.) . From 1929 to 1932, 5,761 banks went out of businesses (U.S. History 49a, n.d.) . Not only did the employees of banks lose their jobs, but many of their customers lost their entire life savings. Shortly after entering office, President Roosevelt declared a “Bank Holiday” in which banking transactions were suspended, and with the help of Congress passed the Emergency Banking Act to financially assist distressed banks and allow those that were solvent to reopen (U.S. History 49a, n.d.) . Thus, began President Roosevelt’s New Deal legislations. The New Deal was not one particular bill, but a series of legislations that were passed throughout the 1930s and 1940s in hopes of stimulating the economy, establishing workers’ rights, and regulating the financial sector to prevent another Great Depression. The New Deal programs and legislation efforts did 2
Running Head: SOLVING THE PROBLEMS OF THE GREAT RECESSION more for the Progressivism movement than all three decades prior, combined. In fact, many of the agencies created, worker’s rights and protections established, as well as banking regulations and insurance protections are still in place to this day. Some Americans felt that the amount of change Roosevelt was embarking on was too much, too fast. In fact, within the first 100 days in office Roosevelt was able to pass fifteen bills through Congress (Kenneth, 2009) . Not only was he able to work with fellow Democrats to craft and pass legislation, but he was able to establish working relationships with the Congressional Republican members as well (Kenneth, 2009) . Since Roosevelt was able to pass so many pieces of legislation through in such a short period of time, his presidency established the 100-day

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