Franklin Delano Roosevelt's New Economic Recovery

Words: 876
Pages: 4
Open Document
Elected in November 1932, the new president of the United States, Franklin Delano Roosevelt, officially takes office. In his inauguration speech, he presented his new economic recovery program: the "New Deal" to reduce the substantial effects of the financial crisis of 1929. The concept of "New Deal" comes from the title of a book written by American economist Stuart Chase in 1932. The New Deal should help people affected mainly by the crisis and unemployment and put upward the economy that had fallen sharply because of the crash of Wall Street, which created an increase in the rate of unemployment and bankruptcy of many companies and other banks. There have been a series of acts created because of the New Deal like The Emerging Banking Acts, …show more content…
At the end of 1932, 5,200 commercial banks were bankrupt. Bank loans were not reimbursed, and the banks were no longer able to provide credit. Almost all banks were closed in the spring of 1933. The banking system as a whole was almost frozen. Roosevelt's emergency banking legislation extended the state's financial assistance to private banks that they can open again. The law allowed for the reconstruction of financial Company (RFC established by Hoover) to redeem preferred bank shares, it extended the monetary transmission capacity of the Federal Reserve and allowed the reopening of banks under the strict control of the State. Three months later, Congress passed a law to holders of a mortgage, the Home Owners Loan Act (HOLA), which organized the rescue of real estate and financial sector rather than the homeowners. Without changing some their debts, banks could exchange their bad mortgages against Treasury bonds guaranteed by the State. The law did not grant any assistance to smallholders who were unemployed and allowed to enter more than mortgaged …show more content…
A framework law for resolving the crisis in agriculture (Agricultural Adjustment Act or AAA) was to push up agricultural prices by limiting production and pay farmers not to produce. As these subsidies directly dependent on the number of acres, the largest farmers benefited most from this legislation. Small and obtained very few farmers who did not own land were not entitled to anything. To cope with the crisis of the private industrial sector, Roosevelt passed a law of National Industrial Recovery (National Industrial Recovery Act, or NIRA). This law was written under the influence of business leaders like Gerard Swope of General Electric and Henry I. Harriman of the US Chamber of Commerce. The antitrust laws were suspended. The largest companies shared the sectors and markets. They fixed the prices and wages, and they eliminated the smallest companies. These two laws, the AAA and the NIRA, aimed to increase the profits of the agricultural and industrial bourgeoisie. The largest companies were encouraged to negotiate some non-aggression pact in which they agreed on the fact not to compete by lowering prices, while they reduced production and increased
Show More

Related Documents: Franklin Delano Roosevelt's New Economic Recovery

Franklin Delano Roosevelt Outline

Franklin Delano Roosevelt Franklin Delano Roosevelt was born January 30, 1882, in Hyde Park, New York.On April 12,1945, Roosevelt died while resting at his cottage in Warm Springs, Georgia.In 1910 Roosevelt was elected as a Democrat to the New York Senate.By the time Roosevelt was sworn in as a president in March1933, about 13 million people were unemployed in the United States.During World War 1 (1914-18) Roosevelt helped lead the navy to victory over German sea forces.He won by a popular vote of…

Words 1692 - Pages 7

Franklin D Roosevelt's Accomplishments

has and his name is Franklin Delano Roosevelt and he served as the thirty second president of the United States. He led the country through difficult times, such as the Great Depression, and World War II. Roosevelt is most remembered for his “New Deal” program which saved the country from economic failure. President Franklin D. Roosevelt was born on January 30, 1882 and lived in New York for most of his childhood. His family made most of their money from estate and trade. Franklin studied in Harvard…

Words 1472 - Pages 6

Essay about Franklin Delano Roosevelt

Americans who at one point had no hopes, and a future seemed unclear. His name was Franklin D. Roosevelt, a man whose willingness to build the economy of his country as the most powerful nation, brought admiration not only among his fellow American citizens, but the rest of the world. Franklin Roosevelt was born on January 30, 1882 in Hyde Park, New York. Franklin's father, James Roosevelt, married Sara Delano (Franklin's mother) in 1880 several years after his first wife had died. Sara had been…

Words 1706 - Pages 7

term paper for history

with the lack of trade, and weather conditions. Roosevelt claimed that he would come up with “new deals” that would bring the depression to an end. Personally, Roosevelt came to power and gave us hope but his “new deals” didn’t take us out of the Great Depression. There are many factors that contributed to the development of many jobs, schools, roads, rivers, damns, parks and car manufacturing but the new deals were just a spark of hope. Yes, that encouraged their spirits and the citizens tried as…

Words 1682 - Pages 7

FDR's New Deal: A Sign of Hope and Recovery Essay

U.S History ll/ American literature Thesis Paper 4/23/13 The New Deal The “roaring twenties” was known for prohibition, speakeasies and short hair, however the footprint it left behind was an economic crisis. Bank failure, installment plans, and the crashing of the Stock Market all led to the Great Depression. In 1932, Franklin D. Roosevelt was elected president of the United Sates during one of the hardest economic struggles in history. Herbert Hoover, the previous president to Roosevelt…

Words 1302 - Pages 6

Essay about Theodore Roosevelt

farmers and those who didn’t have a hand in the big business. This desperate time in American history called for a strong leader to guide the country out of its impoverished state, but was unable to find it in Herbert Hoover. It was not until Franklin Delano Roosevelt came to power that the country began to turn itself around. Roosevelt was the strong leader that America needed. He was the man need to able to help America come out of its Great Depression. He came into his presidency with the full…

Words 2125 - Pages 9

Review Sheet: Depression To WWII

Review Sheet: Depression to WWII Key terms FDR Franklin Delano Roosevelt was the president of the US from 1933–1945. He instituted the New Deal in order to get the country out of the Depression and . Dorothea Lange She was an influential American documentary photographer and photojournalist, best known for her Depression-era work for the Farm Security Administration (FSA). Lange's photographs humanized the consequences of the Great Depression and influenced the development of documentary photography…

Words 1314 - Pages 6

Essay on Great Depression

The Stock Market Crash of 1929 led the United States into one of the most unforgettable time periods in history- the Great Depression. During this economic disaster, political, economic, and social institutions were in turmoil. In attempt to solve the corruptions brought about by the Great Depression, actions were taken by the government, various groups, and subtly by individuals. Unemployment levels in the United States reached as staggering 25%. This rate was so high due to the decrease in consumer…

Words 631 - Pages 3

The Great Depression: Changing The Family

9,000 banks fizzled. Bank deposits were uninsured and accordingly as banks fizzled individuals just lost their funds. Surviving banks, uncertain of the monetary circumstance and worried for their own particular survival, quit being as eager to make new credits. This exacerbated the circumstance prompting less and less consumptions. With the share trading system crash and the fears of further monetary burdens, people from all classes quit obtaining things. This then prompted a diminishment in the quantity…

Words 1929 - Pages 8

The New Deal: Was It Successful Essay

The New Deal The great depression began on October 29th, 1929 and put the country into the most severe economic downturn. President Hoover was in office during that time and tried many propositions to avoid the depression from getting worse but it all failed miserably. When president Franklin Delano Roosevelt entered the White House in 1932 he promised a new deal for the American people. There were many New Deal measures that did make a significance to America but they are questioned whether they…

Words 991 - Pages 4