The New Deal

 The New Deal was President Franklin D. Roosevelt’s platform, and included a plan to restore the economic woes of the Great Depression. The New Deal had an enormous impact on the government, with the establishment of reform initiatives, and on the lives of Americans, by restoring hope. The New Deal continued some of Hoover’s efforts, but focused more on relief to the people, jobs, and reform.

Hoover had “rejected proposals for bold government action and relied instead on voluntary cooperation within business to halt the slide” (Divine, 754) during the beginning of the depression. He hoped that businesses and charities would take care of the citizens, and denied federal funding for as long as he could. When the depression worsened, he finally established the Federal Farm Board, the Reconstruction Finance Corporation, cut taxes, and invested in public works projects. Hoover’s stubbornness prevailed even after the Republicans lost control of Congress (Divine, 754).

Roosevelt’s New Deal spoke to the people, rather than the corporations. FDR quickly established a system of oversight for the failing banking industry. While Hoover’s Reconstruction Finance Corporation loaned money to the banks so they could prevent bankruptcy, that did not stop them from closing and did little to diffuse the panic of the people. Roosevelt’s legislation allowed loans from the government for banks that needed them, but also provided much needed reform.

Fifteen other legislative acts were enacted in Roosevelt’s first hundred days, some of which “have become a part of American life” (Divine, 757). Roosevelt’s initiatives created jobs by investing in public works, as did Hoover’s, however, Roosevelt’s plans were more numerous and widespread. Like Hoover’s projects, Roosevelt’s had little impact on the depression at first. Unlike Hoover, Roosevelt had the support of the people who were able “to look to the future with hope” (757).

While Hoover looked to the businesses to maintain prices and wages, Roosevelt established the National Recovery Administration to encourage cooperation among government, businesses, and the labor force. Labor union memberships grew in numbers and gained political clout during the Roosevelt Administration.

The New Deal’s biggest and most immediate contribution was the relief to the people who were unemployed, and “enabled millions to avoid starvation”. One example was the Civilian Conservation Corps, which provided jobs and improved the nation’s infrastructure (Divine, 759). Roosevelt also directly provided aid to the people through relief payments, which Hoover had adamantly opposed.

Race relations improved somewhat, with Roosevelt’s appointment of several African Americans to government positions, however economically, blacks, Mexican Americans and immigrants were not treated fairly in federal relief payments. The Indian Bureau employed Native Americans and provided educational opportunities on their reservations. Despite these gains, minority groups continued to be treated poorly compared to white men.

While the New Deal may not have substantially influenced the overall economy, as the depression continued, the reliefs and jobs available to the people were an improvement to the near economic collapse at the end of the Hoover administration.

References

Divine, Robert A., Breen, T.H., Frederickson, George M., Williams, R. Hal, Gross, Ariela J., & Brands, H.W. America: Past & Present. Vol. 2. 8th ed. New York: Pearson/Longman, 2007.