President Roosevelt's New Deal

Consider this: Prior to the United States entry into World War II to fight the Axis powers, Americans were not on their feet. The United States was still reeling from the Great Depression of 1929. Unemployment, bank and home foreclosures, business failures and many Americans did not have enough money to put food on the table. In fact, the GDP (gross domestic product) fell by half between 1929 and 1932. Charities and churches were overwhelmed by the true influx of people in need.

President Hoover’s limited government belief did nothing to help the American people. It was not until the election of 1932, when the American people had some glimmer of hope that the United States would turn the economy back around into positive conditions. That hope

(Henretta, 2012) Sweeping changes in banking regulations, assistance in agriculture to farmers such as the AAA (Agricultural Adjustment Act), and low interest loans to manufacturing companies to start producing again (National Industrial Recovery Act, NIRA). Along with unemployment relief, the Civil Works Administration, the Public Works Administration, the Civilian Conservation Corps, and the Federal Housing Administration, these entities and programs were created to assist American back to the road to recovery. A retirement system was created for those who paid into the system of American, and protected those of the disabled and the blind. Social Security was instituted in 1935. Finally, to ensure that a depression such as the one in 1929 never occurred again, the Securities and Exchange Commission was created in 1934 to regulate stocks. Furthermore, the Banking Act of 1935 appointed a new Board of Governors for the Federal Reserve System, instead of the private banking institution to watch interest rates. (Henretta,

The GDP doubled, American businesses became profitable and farms grew. 3.8 million workers were hired by the United States government as defense contracts. Civilians were instructed by the Office of War Information to converse on certain raw materials and support patriotism. Roosevelt convinced the largest corporations in America to become of the war effort by building planes, tanks, ships and Jeeps. Corporations were given tax write-offs and incentives in order to participate in the War effort. In 1945, 70 percent of the nation’s output came from corporations. California became the winner in this production. Population grew over 50% during the war and one-tenth of federal dollars funneled through the Golden state. This core would become the military-industrial complex. (Henretta,