1929 saw the Stock Market crash, triggering panic in America. Franklin Delano Roosevelt was elected president in 1932. With his New Deal promise to end Great Depression, people were restored to faith. FDR’s New Deal programs did not end the Great Depression. Instead, they caused American debt.
In 1933, Congress passed the National Industrial Recovery Act (NIRA). This Act allowed the President to make changes to the industries to help accelerate the recovery. Document D reveals that Franklin Roosevelt’s 1933 inaugural speech stated that fear was the only thing to be afraid. The government and he were determined to resolve all problems with the New Deal, of which NIRA was a part. In May 1935, the NIRA was declared unconstitutional. This furthered the failure of the project. FDR signed The Tennessee Valey Authority Act, May 18, 1933. This new organization solved many problems, including flooding and electricity for homes and businesses. The New Deal’s morale was upheld by the addition of immediate assistance. TVA today is the world’s largest public power company. Its success continues to provide for Americans today. On June 13, 1933, the Homeowners Loan Cooperation was established. It was a mortgage assistance program that provided money to homeowners or refinance mortgages. The Corporation provided money loans to homeowners who were about to lose their homes. This was another method of instant relief, preventing millions from being homeless. After about 800,000. people were able repayment their debts, HOLC ended in 1951. In exchange for limiting certain crops’ production, the law provided subsidies to farmers. Clifford K. Berryman produced a comic called “New Deal Remedies” that was published January 5, 1934. Subsidies were created to curb overproduction and allow crop prices to rise. Although the New Deal was a good idea, it didn’t solve the actual problems and turmoil in the farm industry.
FDR’s New Deal included the Civilian Conservation Corps, which created millions of jobs by building roads, tree planting, and paving roads. Raymond Kraus was a CCC worker in 1934 and wrote a poem called “What Might Have Been”. Americans thrived in the CCC and received self-accomplishment as well as hope. Despite 3 million men being employed, the organization didn’t end unemployment. The Works Progress Administration (WPA), which was established in 1935, was designed to provide employment for men and women through the execution of public projects. Document A is a photograph of a Migrant Mom taken in 1936 by Dorothea Lang. WPA allowed people to do what was most satisfying, creating thousands of new jobs. This didn’t end severe unemployment. WPA ended its support on June 30, 1943 because of a drop in unemployment.
Social Security Act created a system that provides benefits to workers, accident victims, mothers, children, the disabled, and blind on August 14, 1935. This act gave rise to economic security and provided steady income to those who were losing their jobs. Social Security has been one of America’s most successful programs since the Great Depression. FDR created the Federal Deposit insurance Corporation Act of 1933 in an effort to end the Great Depression. FDIC covered money from their clients up to $5000. They would also take money from other banks. FDIC works to prevent bank panics in the future and preserve public confidence and trust in America’s financial system. This program protects as much as $250,000 and is still available today. 1963 saw the creation of the Social Security Board, which is responsible for overseeing administration of the new program. Photograph by “A monthly Check to You-“, taken at the Library of Congress’ Print and Photograph Division in 1935 (DocumentF). Through careful observation of social safety activity, the SSB maintained stability in the economy. This is one the long-lasting reforms that was most successful in the Great Depression.
The United States has suffered from both good and bad relief programs. Today, the TVA is still a popular form of relief. The NIRA was not constitutional and did more harm than good for Americans. Although temporary, the HOLC proved to be a useful tool. However, it was not sustainable for long. Even though they are still helping us today, the CCC and AAA failed to eliminate unemployment. Document H shows that the employment rate continued to fall between 1933 and 1937. The New Deal did not cause WWII to spike employment rates. Roosevelt’s reform plan was implemented by the SSA, FDIC and SSB. These three institutions are all long-lasting achievements of the Great Depression.
The New Deal was temporary relief. However, it didn’t have any positive effects on America. The United State incurred $22 trillion in debt. People did not recover and 15 million Americans were still without work despite the futile attempts to improve the economy or morale. Social Security Act was a key success of the Great Depression. It helped millions of people balance their income and provided a boost to the economy.
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