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FDR’s Strategy: Combatting the Great Depression with the New Deal

FDR and his Philosophy: What was Franklin Delano Roosevelt’s plan to end the <a href="https://twq.ygn.mybluehost.me/american-history-lessons/the-great-depression/" data-internallinksmanager029f6b8e52c="14" title="Great Depression">Great Depression</a>?

FDR and his Philosophy: What was Franklin Delano Roosevelt’s plan to end the Great Depression?

The Great Depression, which began in 1929 and lasted for about a decade, was a period of unprecedented economic hardship in the United States. Millions lost their jobs, homes, and savings, leading to widespread despair and societal upheaval. As the nation grappled with this economic catastrophe, Franklin Delano Roosevelt (FDR) emerged as a beacon of hope, promising a “New Deal” for the American people. Elected as the 32nd president of the United States in 1932, Roosevelt inherited a country on the brink of collapse. His approach to tackling this monumental challenge was rooted in his unique philosophy and belief in the active role of government as a force for good. This essay delves into FDR’s philosophy, exploring the foundation and strategies behind his ambitious plan to pull America out of the Great Depression.

Background

Franklin D. Roosevelt’s Early Life and Influences

Franklin Delano Roosevelt, born on January 30, 1882, in Hyde Park, New York, hailed from a privileged background, with family roots dating back to the earliest days of American history. His formative years were shaped by private tutors, travels abroad, and a general immersion in elite circles. This early life could have isolated him from the realities faced by everyday Americans, but personal challenges, most notably being stricken with polio in 1921, profoundly influenced his empathy and understanding of human suffering. His struggle to regain mobility, while never fully successful, endowed him with a resilience and determination that would prove pivotal in his leadership during the nation’s hardest times.

Efforts to Combat the Great Depression Before FDR’s Tenure

When the stock market crashed in October 1929, Herbert Hoover was the incumbent president. Initially optimistic, Hoover believed that the economy would naturally recover, relying on voluntary efforts from businesses and local charities to aid those affected. By 1931, with the Depression deepening, Hoover’s administration took more direct actions such as initiating public works projects and establishing the Reconstruction Finance Corporation (RFC) to provide loans to struggling businesses. However, these measures were often criticized as being too little, too late. By the time of the 1932 presidential election, unemployment had skyrocketed, banks were failing at an alarming rate, and public sentiment was overwhelmingly against Hoover’s perceived inaction. This climate paved the way for Roosevelt’s election and the promise of a more interventionist approach.

The New Deal

Overview and Breakdown of the New Deal

Upon taking office in 1933, Franklin D. Roosevelt recognized the dire need for immediate and aggressive action. Coined as the “New Deal,” his series of programs, public work projects, financial reforms, and regulations aimed to provide relief to the unemployed, spur economic recovery, and reform the financial system to prevent another depression. Broadly, the New Deal can be categorized into three “R’s”: Relief, Recovery, and Reform.

Major Programs Under the New Deal

Civilian Conservation Corps (CCC)

Established in 1933, the CCC was designed to provide jobs for young men while also addressing environmental concerns. Participants, often referred to as “CCC boys,” worked on projects related to forestry, soil conservation, and infrastructure development in national parks. In exchange, they received food, shelter, and a modest wage, a portion of which was sent directly to their families.

Agricultural Adjustment Act (AAA)

The AAA aimed to raise agricultural prices by offering farmers subsidies to reduce crop output. This reduction in supply, it was hoped, would increase demand, leading to higher prices and thus providing farmers with a greater income. The act had its critics, particularly due to the destruction of crops and livestock during a time when many were going hungry, but it did achieve its goal of raising farm incomes.

National Industrial Recovery Act (NIRA)

Enacted in 1933, the NIRA sought to stimulate industrial recovery. It encouraged businesses to set wage and price agreements, which would, in theory, increase purchasing power and reduce cutthroat competition. The Public Works Administration (PWA), a major component of NIRA, funded large-scale public works projects to stimulate employment and economic activity.

Works Progress Administration (WPA)

One of the most notable New Deal agencies, the WPA was established in 1935 to tackle unemployment by creating jobs across various sectors, from construction to the arts. The WPA is credited with building or improving a vast number of roads, bridges, schools, and other public facilities, and also supported artists, writers, and musicians, leading to a cultural renaissance during this bleak period.

Social Security Act

Passed in 1935, this landmark legislation established a system of old-age pensions and unemployment insurance. Designed to provide a safety net for the elderly and the unemployed, the Social Security Act laid the foundation for the modern welfare state in the U.S., emphasizing the government’s responsibility to ensure the well-being of its citizens.

Philosophical Foundations of FDR’s Approach

Pragmatism: Adapting Solutions Based on Results

One of the hallmarks of Roosevelt’s approach was his pragmatism. FDR was less tied to ideological purity and more focused on what worked in practice. If one method failed to produce results, he was willing to try another. This experimental approach, often described as “bold, persistent experimentation,” allowed for flexibility and adaptation in response to the evolving challenges of the Depression. Rather than adhering to a fixed economic doctrine, FDR’s policies were shaped by real-world outcomes and feedback, ensuring that the government’s approach remained dynamic and responsive.

Role of the Government: FDR’s Belief in Active Government Intervention

Roosevelt’s philosophy marked a significant departure from the laissez-faire attitudes that had dominated the U.S. government’s approach to the economy. FDR firmly believed that in times of crisis, the government had not just the ability, but the responsibility, to intervene and provide direct relief. This belief was rooted in his conviction that the government could act as a force for good, balancing out the excesses and inequalities of the free market, and protecting its most vulnerable citizens.

Protection of the “Common Man”: Ensuring the Welfare of the Majority

Roosevelt’s policies were driven by a desire to uplift the “common man.” In the face of growing economic disparity and suffering, FDR championed the cause of the everyday American. His focus was on creating jobs, ensuring fair wages, and providing social safety nets. This approach was not just about economic recovery; it was about ensuring that the recovery benefited the many rather than the few.

Promoting Fairness in the Economy

FDR’s reforms, particularly in the financial sector, were aimed at creating a fairer economic system. By regulating banks, setting up the Securities and Exchange Commission to oversee the stock market, and implementing various consumer protections, Roosevelt aimed to prevent the kind of speculative excesses that had contributed to the Depression. His philosophy was rooted in the belief that a fair economy was not only morally right but also more stable and sustainable in the long run.

Controversies and Criticisms

Arguments Against the New Deal: Ineffectiveness, Socialism, and Constitutional Concerns

While the New Deal was a lifeline for many, it was not without its detractors. Some critics argued that the New Deal was ineffective or even counterproductive. They believed that the myriad of government programs and regulations hindered the natural recovery process of the free-market system. Others, particularly from the business community, saw the New Deal’s interventions as creeping socialism, arguing that they impinged on individual liberties and freedoms. Additionally, some of the New Deal’s programs faced legal challenges, with critics asserting that they overstepped federal authority and infringed upon states’ rights.

Economic Arguments: Prolonged or Alleviated the Depression?

The economic impact of the New Deal remains a topic of debate among historians and economists. Some contend that the New Deal, with its massive public spending, was essential in pulling the country out of the Depression. They argue that it provided the necessary stimulus to boost demand and jump-start the economy. On the other hand, there are those who believe that the New Deal’s policies, especially its regulations and labor laws, may have prolonged the Depression by creating uncertainties in the business environment and discouraging investment.

Impact on Minorities and Marginalized Groups

While the New Deal provided relief to millions, it often fell short in addressing the needs of minorities and marginalized groups. Many New Deal programs either excluded or discriminated against Black Americans, Native Americans, and other minority groups. Women, too, often found themselves sidelined, with many New Deal jobs reserved for men. These oversights are significant blemishes on the New Deal’s legacy and highlight the limitations and blind spots of FDR’s approach.

Legacy and Long-term Impact

How FDR’s Policies Reshaped American Government and Society

The New Deal, despite its criticisms and shortcomings, undeniably transformed the role of the federal government in American life. Before the 1930s, the U.S. government played a relatively limited role in the daily lives of its citizens and in economic affairs. Roosevelt’s policies expanded this role, establishing the precedent that the government should actively intervene during economic crises and work to ensure the welfare of its citizens. This philosophical shift has influenced countless policies and decisions in the decades since, from the Great Society programs of the 1960s to the government’s response to the 2008 financial crisis.

The New Deal’s Impact on Future Economic Policies and Social Welfare

The New Deal laid the foundation for America’s modern welfare state. Programs like Social Security, which provides financial support for the elderly, disabled, and survivors, have become cornerstones of American social policy. The principle that the government has a duty to ensure some basic level of economic security for its citizens is now deeply embedded in the national psyche. Moreover, the regulatory frameworks established during FDR’s tenure, from banking regulations to labor rights, have shaped the direction of American economic policy and set standards for fairness, accountability, and consumer protection.

Perception and Influence on Subsequent Leaders

Roosevelt’s leadership style and the New Deal’s emphasis on direct government intervention have served as both a model and a cautionary tale for subsequent leaders. While many admire FDR for his decisive actions and compassionate policies, others caution against the expansion of governmental power. Nevertheless, Roosevelt’s ability to communicate, connect with the public, and rally the nation in the face of adversity remains a gold standard of presidential leadership. Future presidents, regardless of party, have often found themselves measured against FDR’s towering legacy, especially during times of national crisis.

Conclusion

The Great Depression stands as one of the most challenging periods in American history, a time when the very fabric of society seemed on the verge of unraveling. In this context, Franklin Delano Roosevelt’s leadership and the sweeping reforms of the New Deal represent a decisive response to unprecedented adversity. While not without its criticisms and controversies, the New Deal reshaped the American political landscape, redefining the role of the federal government in the lives of its citizens.

FDR’s philosophy, grounded in pragmatism, a belief in the positive role of government intervention, and a commitment to the common man, drove the New Deal’s myriad policies and reforms. These foundational beliefs not only guided the nation through its darkest economic hour but also left a lasting legacy that continues to influence American policy and politics. Whether one views FDR’s approach as the salvation of the American system or an overreach of governmental power, it’s undeniable that his leadership during the Great Depression has left an indelible mark on the United States.

As we reflect on this pivotal era, we are reminded of the resilience of the American spirit and the potential for visionary leadership to guide us through the most challenging times. FDR’s tenure and the New Deal, with all their complexities and nuances, serve as a testament to the enduring capacity of the nation to innovate, adapt, and progress in the face of adversity.

Class Notes and Outline: What was Franklin Delano Roosevelt’s plan to end the Great Depression?

As we have seen the Great Depression had a devastating impact on the American economy and the American people. President Hoover believed, basically, in waiting things out. As result of Hoovers inactivity America turned to a new, dynamic leader: Franklin Delano Roosevelt. Today we will discuss his basic strategy for improving the economy.

I. Franklin Delano Roosevelt

A. Early Years

1. Raised in upper class family in Hyde Park N.Y.

2. Attended Harvard and Colombia

3. Lawyer then active in NY politics

4. 1912 – Assistant Sec. Of Navy

5. 1918 Narrowly won Governorship of NY,

6. 1920 – VP Candidate with James A. Cox

7. 1921 – Contracted Polio, lost use of legs. This deeply effected
Roosevelt. Now he truly knew what human suffering was all about. He could identify. He was also a fighter and a winner. He overcame his handicap and this later would inspire Americans during the depression.

8. 1930 Reelected Governor of New York State – His innovative
programs gained national attention and were eventually called the Little New Deal – NY Model

9. Ran for Pres. In 1932 – Used song: “Happy Day’s Are Here Again.Pledged to America; “I Pledge to you, I pledge myself, to a new deal for the American people!

B. What did Roosevelt do when he got elected?

1. Inauguration Speech: Told America “We have nothing to fear but fear itself!” He wanted to inspire optimism and hope. He did not want America paralyzed by fear. He was a man of action.

2. Appointed the “Brain Trust” – These were a group of brilliant social, economic and political thinkers who comprised Roosevelt’s cabinet. He surrounded himself with the best, not just political allies and supporters.

-Harry Hopkins – Social Worker and the architect of much of the New Deal.

-Henry Morgenthau

-Louis Lowe

-Cordell Hull

-Frances Perkins – Sec. of Labor and first female in the cabinet.

-Sam Rosenman

-Raymond Moley

-Rexford Tugwell

3. First Hundred Days – For the first hundred days of his administration Roosevelt and his Brain Trust where a whirlwind of activity. Legislation was introduced and passed at a furious pace as Congress mostly acted as a rubber stamp. Roosevelt called Congress into session and asked for executive power to wage war against poverty and pessimism. He said he wanted a power “as great as the power that would be given me if we were in fact invaded by a foreign foe.” At first he ordered a bank holiday, which closed every bank in the nation and stopped people from withdrawing all of their money. This ended the panic. He then signed legislation called the Emergency Banking Act. This closed all of the insolvent lending institution and only reopened the solvent ones. While many lost money at least the panic was eased.

B. What was Roosevelt’s underlying philosophy?

1. Keynesian or “pump priming” economics. Based on the beliefs of economist John Maynard Keynes it held that money should be invested in the people, the working class. Then spending would increase with new money in circulation. As spending increased it was expected that businesses would expand to meet the new demand and hire new workers. This would spur on more spending and more growth. This plan was the opposite of the Republican plan ascribed to by Hoover and earlier leaders. They had believed in supply side or “trickle down” economics. In this philosophy money was to be invested at top, in business. Then businesses would expand, hire new workers and this in turn would spur on spending and further economic growth.