The New Deal During the Depression
President Franklin Roosevelt's legacy is best known for his "New Deal" reform during the Great Depression. His policies revolutionized the capitalist system in America, and many of his policies, such as Social Security, are still in effect today.
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The Great Depression
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The Great Depression started in 1929 when stock prices plummeted, resulting in nearly 13 million Americans being unemployed. Home and farm foreclosures skyrocketed. President Roosevelt promised a "New Deal" for Americans through enactment of legislation to regulate and attempt to stimulate the economy.
Features of the New Deal
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FDR's New Deal created numerous public works and social welfare programs. The Tennessee Valley Authority (TVA), Social Security Administration (SSA), Civilian Conservation Corps (CCC), Federal Deposit Insurance Corporation (FDIC), National Recovery Administration (NRA), National Labor Relations Board (NLRB), Securities and Exchange Commission (SEC) and the Federal Housing Administration (FHA) all were enacted during Roosevelt's presidency.
Some New Deal legislation, including establishment of the NRA and the Soil Conservation and Domestic Allotment Act, was eventually ruled unconstitutional by the United States Supreme Court.
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Controversial Policies
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The New Deal policies that Roosevelt championed were not and are not favored by all economists or the entire public. Critics include the Cato Institute, which asserts that New Deal policies were actually counterproductive, harmed the poor and that his policies have outlived their usefulness.
Historical Significance
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Although economists still debate whether Roosevelt's policies helped or hurt the economy in the long term, his policies had a significant historical effect on the role that government plays in administering public policy.
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References
- Photo Credit roosevelt memorial image by Ritu Jethani from Fotolia.com
