Depression-era America and the New Deal

Depression-eraAmerica and the New Deal

TheGreat Depression and the New Deal

TheGreat depression that started around the 1930s and lasted for about10 years to about 1940s affected the economies of majority ofcountries. Characterized by consistent riots, increased number ofunpaid workers and unemployment, the great depression brought theeconomy of most countries to their knees in all dimensions. Underthis economic depression, the American community among other nationsexperienced harsh conditions of living (Foner, 2013). Not only thegreat depression caused a change in the standards of life in variousnations, but also the rise of different laws and by-law programs.

Withthe vision to bring up a New Deal for the citizens of America,Franklin Roosevelt was nominated for president. Characterized by anincrease in public works, restoring international trade and repealingprohibition, the newly appointed U.S president considered theintroduction of the New Deal programs in order to help the peopleduring this trying period. The New Deal was about embracing theeconomic refuge as a novel constituent of the American liberty. TheGreat Depression raised the issue of the economic stability as anagenda of the public. The Great Depression made numerous people losetheir work, life savings and plunged them into poverty. However, theNew Deal sought to ensure that people were entitled to at leastminimum living standards assured by the administration. Rooseveltregarded the New Deal as the epithet of liberty, which impliedeconomic security and not the old free trade. Nearly one decade inservice, President Franklin was able to establish New Deal programsthat had evolved to cover social insurance against old age,unemployment and people with disability.

Duringthe 1920’s America had maintained a stable economy. At the end ofthe World War 1, America grew to become a major lender of differentnations. However, with one of the highest drop of the nation’scurrency (Black Tuesday), the globe experienced circulating debtsthat tied nations together into depression. After a decade ofeconomic prosperity, America decided to focus on the economy back athome after the war. Since America could no longer fund the othercountries, a great sweep of recession covered the neighboringnations.

UnderPresident Franklin, the New Deal programs were established in theAmerican community. These programs were considered the earliestattempt to change the constitution of the United States sinceindependence. The programs were formulated to improve production inAmerica. Through these programs, the government would be able toensure that employee’s needs were met in order to facilitate betterproduction in America. The New Deal programs focused on developingthe organization of the social institution of America as a way ofimproving the economy and ensuring that the nation maintains itsproduction capacity. As American struggled to move the economy out ofthe depression, different political parties advocated for a change inthe social organization of America. People migrated towards the westin an attempt to start a single family based farming culture. Onewould argue that the greatest factor that propelled the New Dealprograms in the U.S was unemployment during the depression era.

Discussingthe benefits of the New Deal, Eric Foner (2013) argues that theseincluded the economic respite, public occupation, as well as effortsto recover the economy. The benefits of the New Deal to the workers,elderly, and the poor included social security, old age insurance, aswell as unemployment insurance, which excluded the agricultural anddomestic workers, who happened to constitute the large majority ofblack employees in the economy. The New Deal programs mainlybenefited the whites and excluded the others, such as the non-whitesand the blacks in many aspects. For the workers, it formed a time inhistory the administration ever intervened to endorse the right oflabor, created the unions, as well as CBAs (collective bargainagreements).

Althoughthe programs did not offer much quality during this period, theycreated a sense of the imperfect democracy that existed in thesociety. America was able to identify different factors that affectedthe economy as well as the social state of the region. Over thedecades, the New Deal program received many critics andcontributions. Different authors around the globe evaluated thesanction of the New Deal programs and their effect on America.

TheNew Deal was significant in that it heightened the authority of thenational government leading to citizens looking to it for solutionsto endure the economic difficulties. It also formed the perpetualadministrative state and an administration having several kinds ofagencies. The agencies benefited farmers by telling them what theycould cultivate, informing the businesses how to function, andinstructing transport how to run. Agencies were created to influencethe different sectors of the economy. For instance, the FHA (FederalHousing Administration) together with the VHA (Veterans HousingAdministration) offered citizens low reasonably priced loans to thelow-income earners to buy homes. The New Deal renovated the role ofthe administration in the lives of citizens making the federalgovernment an active participant in their daily lives. While itbrought numerous benefits to the farmers and the elderly, it did notdeal with depression because despite the programs introduced, theunemployment rates were still very high (Foner, 2013).


Foner,E. (2013). Giveme liberty! An American history: Seagull Fourth Edition.U.S.A: W.W. Norton &amp Company.