the new deal




Franklin Delano Roosevelt\'s
New Deal







Michael T Lyle
12/7/99
History 340
Dr






Outline

I. Introduction
II. Onset Of the Great Depression
III. The Stock Market Crash
IV. Franklin D. Roosevelt
A. Early Years
B. Political Background
C. Election of 1932
V. The New Deal
A. Federal Deposit Insurance Group (FDIC)
B. Securities and Exchange Commissions (SEC)
C. Harry Hopkins
D. A Civilian Conservation Corporation (CCC)
E. Tennessee Valley Authority (TVA)
F. National Industrial Recover Act (NIRA)
G. Public Works Administration
VI. Second New Deal
A. Rural Electrification Administration
B. National Labor Relations Act 1935
C. Fair Labor Standards ACT 1938
D. Works Projects Administration Act
E. Social Security Act
VII. Conclusion






In choosing a topic I wanted to pick something that was interesting to me, educational to the readers, and important to the development of America today. The beginning of the thirties was a time of social, economic, and political turmoil. The policies enacted by Roosevelt\'s New Deal may be some of the most progressive governmental policies enacted by any president. The effects of the policies of the New Deal can still be felt today. The New Deal may not have ended the depression of the thirties but they were the foundation for many of the policies in place today that help Americans survive during tough times.
The twenties had been characterized as the prosperous twenties, a time when employment trade and family income were at all time highs. America had made the transition from an agricultural state to a industrial state. Mass production and the assembly line had revolutionized production and there was plenty for all. Big business not only boomed in America but also abroad. Government had started to play a role in peoples lives as never before. There were however problems, even though Americans prospered as never before there was still a division of wealth that government refused to deal with. It was said that one percent of the population owned over 60 percent of the countries wealth.(1) Employees wages rose slower than profits from the goods they produced, and owners continued to produce more goods ignoring this fact. Farmers who had never recovered from the war time recession continued to have little purchasing power, and their annual income continued to fall. Although factory workers income rose during the twenties unemployment continued to be high, mass production allowed employers to produce more with fewer workers. There were no federal programs like unemployment or welfare assistance to aid unemployed workers therefor poverty rose and peoples purchasing power fell. Another problem was foreign economic lending that had taken place during W.W.I America had become the primary lender to the allies, and after the war many were unable to pay their debts especially Germany. In order for nations in debt to profit they had to export more than they were importing, and the creditor had to import more than they were exporting, this was not the case with America. They continually had trade surpluses with their European allies. They also imposed high tariffs to protect their industry and make it impossible to have equal exchange with its allies.(2) The other thing the government did was continue to make loans, and encourage private lenders to make loans to foreign businesses so they could pay their debts, and buy American goods. This didn\'t make sense to me, it seemed that we would be getting paid with our own money. As times got hard lenders refused to make loans, and demanded payment on loans they had already made. This forced many foreign companies to go into default. The purchase of American goods stopped, causing many American businesses that relied on foreign purchases to suffer. Farmers suffered the most.
As things continued to decline in America and over seas it was evident that the time of prosperity was over. Economic instability had started to affect the stock market. The market continued to ignore the failing economy. Stock prices continued to soar, and business leaders forecast a rapid recovery. On October 2, 1929 millions of shares of common stock went up for sale this made brokers nervous, the market lost over four billion that day. No one knows what sparked this mass sell of stock the economy seemed stable and there was no shortage of investment funds. The market continued to go up and down until October 24 "black Thursday" prices fell and didn\'t recover. This would prove fatal. The stock market crash in October 1929 marked the beginning of The Great Depression, a difficult economic period for