The New Deal: The Rise Of The United States During The Great Depression

The United States was facing a great controversy with the depression going on in the late 1920’s. It was the most devastating economic downturn that the western industrialized world had ever faced. It caused nearly half of America’s banks to fail, and over 13 million people were unemployed by 1933. In order to combat these tremendous issues, President Franklin Roosevelt would have to create a set of programs impactful enough to face it. When the New Deal was active in the fall of 1932, it would be the start of the return of the United States’ economy. Roosevelt acted quickly to provide support and stability to those in distress. The New Deal was arguably one of the best set of economic and social reforms ever made in U.S. Presidential history. On March 4, 1933, Franklin assured the U.S. in his inaugural address that he would face these epidemics as if “we were in fact invaded by a foreign foe.” His speech gave the citizens of America trust that the newly elected president would be able to handle the recession. On March 5, 1933, Roosevelt issued a bank holiday for four days, and did so in order to deal with the large withdrawals from the worried people. After the holiday, on March 9, 1933, Roosevelt’s Banking Act was passed by Congress. He overhauled the banks and closed the ones that were bankrupt and ruined. He then made an informal conversation with all of America over the television and told them banks were fixed now, and urged Americans to deposit their money back in banks. By the end of March, over three fourths of banks were reopened. The First Hundred Days was the time allotment Roosevelt had to prove to America they made the right choice by voting him for president. One of the first acts proposed by Roosevelt was the Tennessee Valley Act. It was passed in May of 1933, in order to face the problems Tennessee faced, an area especially affected by the Great Depression. It created 29 hydro-powered facilities mainly in Tennessee, but also bordered Kentucky, Mississippi, Alabama, North Carolina, Georgia, and Virginia. Roosevelt believed that private power companies had “selfish purposes” and did not charge a fair price or have decent employment policies. The Tennessee Valley Act provided stabilization of flooding, and an inexpensive power generation for people in that region. The Agriculture Adjustment Act was also passed in May of 1933, and it paid farmers to kill off their excess livestock and not to grow crops on a portion of their land. It reduced the surplus of crops flowing through trades and exchanges, and eventually raised the value of crops. On June 16(th?), Congress passed the Banking Act of 1933, also passed on the same day as the Glass-Steagall Act. The Banking Act established the Federal Deposit Insurance Corporations, which guaranteed a depositor’s account up to $2,500(?) during that time. The FDIC also supervises financial establishments for safety solidity. There are now signs at every bank that say "deposits are backed by the full faith and credit of the United States Government." (1) The Glass-Steagall Act separated commercial and investment banking. It prohibited commercial banks from interacting with the investment business. The Civilian Conservation Corps was also part of Roosevelt’s First Hundred Days. It was a work relief program that would provide jobs to young unemployed, and unmarried men. It provided unskilled, manual jobs to these …show more content…
During his first hundred days, he proved to be effective at improving the nation. The president had four priorities for America. They were getting America back to work, protecting their savings, provide relief for the old and elderly, and to industry and agriculture back to where they were before the Great Depression. Roosevelt knew that this was only the beginning of the United States’ rebirth. More changes would have to be made in order to fully recover and get on with development of America. In 1935, President Franklin Roosevelt would launch a second set of programs, ones that would be even more effective than the First New Deal. Roosevelt now knew how he could improve this new set of programs by looking upon the mistakes of the First Hundred Days. With careful analysis, he would be able to employ millions of people and provide upkeep for