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Franklin d roosevelt and his war on great depression

The "Great Depression " was a severe, world -wide economic disintegration symbolized in the United States by the stock market crash on "Black Thursday", October 24, 1929. Reduced prices and reduced output resulted in lower incomes in wages, rents, dividends, and profits throughout the economy.

Factories were shut down, farms and homes were lost to foreclosure, mills and mines were abandoned, and people went hungry. The resulting lower incomes meant the further inability of the people to spend or to save their way out of the crisis, thus perpetuating the economic slowdown in a seemingly never-ending cycle.

Franklin D. Roosevelt

How high was unemployment during the Great Depression? At the height of the Depression in 1933, 24. Although farmers technically were not counted among the unemployed, drastic drops in farm commodity prices resulted in farmers losing their lands and homes to foreclosure. The displacement of the American work force and farming communities caused families to split up or to migrate from their homes in search of work. Residents of the Great Plains area, where the effects of the Depression were intensified by drought and dust storms, simply abandoned their farms and headed for California in hopes of finding the "land of milk and honey.

America 's unemployed citizens were on the move, but there was no place to go that offered relief from the Great Depression.

With the country sinking deeper into Depression, the American public looked for active assistance from the federal government and grew increasingly dissatisfied with the economic policies of President Herbert Hoover.

New Deal for the American People

In the First Hundred Days of his new administration, FDR pushed through Congress a package of legislation designed to lift the nation out of the Depression. FDR declared a "banking holiday" to end the runs on the banks and created new federal programs administered by so-called "alphabet agencies" For example, the AAA Agricultural Adjustment Administration stabilized farm prices and thus saved farms.

  1. Through employment and price stabilization and by making the government an active partner with the American people, the New Deal jump-started the economy towards recovery.
  2. Congress passed into law a package of legislation designed to help lift the troubled nation out of the Depression.
  3. On December 8, 1941, the day after Japan bombed the U. Roosevelt attended law school at Columbia University and worked for several years as a clerk in a Wall Street law firm.
  4. Based on the assumption that the power of the federal government was needed to get the country out of the depression, the first days of Roosevelt's administration saw the passage of banking reform laws, emergency relief programs, work relief programs, and agricultural programs.

Through employment and price stabilization and by making the government an active partner with the American people, the New Deal jump-started the economy towards recovery. What did the letters in all those "alphabet agencies" stand for?

The New deal "alphabet agencies": Roosevelt's New Deal recovery programs were based on various, not always consistent, theories on the causes of the Depression. They targeted certain sectors of the economy: Many of these programs contributed to recovery, but since there was no sustained macroeconomic theory John Maynard Keynes's General Theory was not even published until 1936total recovery did not result during the 1930s.

Following the 1937 recession, Roosevelt adopted Keynes' notion of expanded deficit spending to stimulate aggregate demand. In 1938 the Treasury Department designed programs for public housing, slum clearance, railroad construction, and other massive public works.

  • The Soviet leader kept that promise, but failed to honor his pledge to establish democratic governments in the eastern European nations then under Soviet control;
  • By 1937, to the dismay of most corporate leaders, some 8 million workers had joined unions and were loudly demanding their rights;
  • Following the 1937 recession, Roosevelt adopted Keynes' notion of expanded deficit spending to stimulate aggregate demand;
  • Business and labor alike were both in serious trouble;
  • Although farmers technically were not counted among the unemployed, drastic drops in farm commodity prices resulted in farmers losing their lands and homes to foreclosure.

But these were pushed off the board by the massive public spending stimulated by World War II. Even after 1938 private investment spending housing, non-residential construction, plant and equipment still lagged.

It was war-related export demands and expanded government spending that led the economy back to full employment capacity production by 1941.

Roosevelt And The Depression

More Information on the Great Depression: The beginning ofAmerica's "Great Depression" is often cited as the dramatic crash of the stock market on "Black Thursday," October 24, 1929 when 16 million shares of stock were quickly sold by panicking investors who had lost faith in the American economy.

But some sectors of the American economy, such as agriculture, had been in difficulty throughout the 1920s. Wage income for workers who were lucky enough to have kept their jobs fell 42. It was the worst economic disaster in American history. Farm prices fell so drastically that many farmers lost their homes and land. Faced with this disaster, families split up or migrated from their homes in search of work.

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Gangs of youths, whose families could no longer support them, rode the rails in boxcars like so many hoboes, hoping to find jobs. Industry was badly shaken by the Depression. Factories closed; mills and mines were abandoned; fortunes were lost. Business and labor alike were both in serious trouble.

Unable to help themselves the American people looked to the federal government. Roosevelt as their president in 1932 after a campaign that promised activism and "bold persistent experimentation. This group of men was known as the "Brains Trust. Congress passed into law a package of legislation designed to help lift the troubled nation out of the Depression.

Roosevelt's program was called the "New Deal.

  • By 1937, to the dismay of most corporate leaders, some 8 million workers had joined unions and were loudly demanding their rights;
  • In 1935, the Social Security Act was passed which provided some income for older workers which boosted consumer spending.

This new relationship included the creation of several new federal agencies, called "alphabet agencies. Later on came the creation of the Social Security System, unemployment insurance and more agencies and programs designed to help Americans during times of economic hardship.

Under President Roosevelt the federal government took on many new responsibilities for the welfare of the people. Although the New Deal was criticized by many both in and out of government, and seriously challenged by the U. Supreme Court, it received the overwhelming support of the people.

Roosevelt was the only president in U. Despite all the President's efforts and the courage of the American people, the Depression hung on until 1941, when America's involvement in the Second World War resulted in the drafting of young men into military service, and the creation of millions of jobs in defense and war industries. The Great Depression tested the fabric of American life as it has seldom been before or since.

It caused Americans to doubt their abilities and their values. It caused them to despair.

Great Depression Facts

But they weathered the test, and as a nation, emerged stronger than ever, prepared to take on the new challenges of a world at war. FDR Library Mission Statement The Library's mission is to foster research and education on the life and times of Franklin and Eleanor Roosevelt, and their continuing impact on contemporary life.

Our work is carried out by four major areas: Archives, Museum, Education and Public Programs.