Analysis of Roosevelt's "New Deal"
Analysis of Roosevelt's "New Deal"During the 1930's, America witnessed a breakdown of the
Democratic and free enterprise system as the US fell into the worst
depression in history. The economic depression that beset the United
States and other countries was unique in its severity and its
consequences. At the depth of the depression, in 1933, one American
worker in every four was out of a job. The great industrial slump
continued throughout the 1930's, shaking the foundations of Western
capitalism.
The New Deal describes the program of US president Franklin D.
Roosevelt from 1933 to 1939 of relief, recovery, and reform. These new
policies aimed to solve the economic problems created by the
depression of the 1930's. When Roosevelt was nominated, he said, "I
pledge you, I pledge myself, to a new deal for the American people."
The New Deal included federal action of unprecedented scope to
stimulate industrial recovery, assist victims of the Depression,
guarantee minimum living standards, and prevent future economic
crises. Many economic, political, and social factors lead up to the
New Deal. Staggering statistics, like a 25% unemployment rate, and the
fact that 20% of NYC school children were under weight and
malnourished, made it clear immediate action was necessary.
In the first two years, the New Deal was concerned mainly with
relief, setting up shelters and soup kitchens to feed the millions of
unemployed. However as time progressed, the focus shifted towards
recovery. In order to accomplish this monumental task, several
agencies were created. The National Recovery Administration (NRA) was
the keystone of the early new deal program launched by Roosevelt. It
was created in June 1933 under the terms of the National Industrial
Recovery Act. The NRA permitted businesses to draft "codes of fair
competition," with presidential approval, that regulated prices,
wages, working conditions, and credit terms. Businesses that complied
with the codes were exempted from antitrust laws, and workers were
given the right to organize unions and bargain collectively. After
that, the government set up long-range goals which included permanent
recovery, and a reform of current abuses. Particularly those that
produced the boom-or-bust catastrophe. The NRA gave the President
power to regulate interstate commerce. This power was originally given
to Congress. While the NRA was effective, it was bringing America
closer to socialism by giving the President unconstitutional powers.
In May 1935 the US Supreme Court, in Schechter Poultry Corporation
V. United States, unanimously declared the NRA unconstitutional on the
grounds that the code-drafting process was unconstitutional.
Another New Deal measure under Title II of the National...
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