FEATURED ESSAYS 1. Dealing With Death 2. The Member Of The Wedding: Summar... 3. Chevron 4. Rainforest Proposal 5. Sorrow 6. Let's Really Reform Our Schools 7. Sorrow 8. The Great Depression And The "New... 9. The Controversial New Deal 10. How I Deal With A Loved One Who H... 11. Evaluation Of The New Deal 12. The Great Depression 13. An Analysis Of Irving's "Rip Van ... 14. Stereotyping In Mona And The P

The 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
Industrial Recovery Act of June 1933, the Public Works Administration
(PWA), was designed to stimulate US industrial recovery by pumping federal
funds into large-scale construction projects. The head of the PWA
exercised extreme caution in allocating funds, and this did not stimulate
the rapid revival of US industry that New Dealers had hoped  for. The PWA
spent $6 billion enabling building contractors to employ approximately
650,000 workers who might otherwise have been jobless. The PWA built
everything from schools and libraries to roads and highways. The agency
also financed the construction of cruisers, aircraft carriers, and
destroyers for the navy.

	In addition, the New Deal program founded the Works Projects
Administration in 1939. It was the most important New Deal work-relief
agency. The WPA developed relief programs to preserve peoples skills and
self-respect by providing useful work during a period of massive
unemployment. From 1935 to 1943 the WPA provided approximately 8 million
jobs at a cost of more than $11 billion. This funded the construction of
thousands of public buildings and facilities. In addition, the WPA
sponsored the Federal Theater Project, Federal Art Project, and Federal
Writers' Project providing work for people in the arts. In 1943, after the
onset of wartime prosperity, Roosevelt terminated the WPA. One of the most
well known, The Social Security Act, created a system of old-age pensions
and unemployment insurance, which is still around today. Social security
consists of public programs to protect workers and their families from
income losses associated with old age, illness, unemployment, or death.
The Fair Labor Standards Act (1938) established a federal Minimum Wage and
maximum-hours policy. The minimum wage, 25 cents per hour, applied to many
workers engaged in interstate commerce. The law was intended to prevent
competitive wage cutting by employers during the Depression. After the law
was passed, wages began to rise as the economy turned to war production.
Wages and prices continued to rise, and the original minimum wage ceased
to be relevant. However, this new law still excluded millions of working
people, as did social security. However, a severe recession led many
people to turn against New Deal policies. In addition, World War II
erupted in September 1939. Causing an enormous growth in the economy as
war goods were once again in great demand. No major New Deal legislation
was enacted after 1938.

	The Depression was a devastating event in America, and by
regulating banks and the stock market the New Deal eliminated the dubious
financial practices that had helped precipitate the Great Depression.
However, Roosevelt's chief fiscal tool, deficit spending, proved to be
ineffective in averting downturns in the economy.