Category: Franklin Roosevelt

Introduction

After the inauguration in 1933, Franklin D. Roosevelt urgently took the course for the new deal, that was aimed to overcome the consequences of the Great Depression. It was the series of economic and social programs that were planned for the period 1933 to 1936. The First New Deal, which took place in 1933, included the banking reforms (including the reformation of the Banking Law), the emergency relief programs, work relief plans, agricultural reforms, and industrial reform. The plan also included the refuse from the gold standard.

A “Second New Deal”, that took place in 1935-1936 included labor union maintenance. The necessity to support the society, and expand the Security reasoned the issuing of the Social Security act, the promotion of the programs for farmers, including migrant workers. The New Deal ended with the beginning of World War Two when the other national priorities appeared.

It should be emphasized, that the New Deal provided the essential shift in external and internal politics in the US. The changes also touched upon the price regulation and the control of agricultural production. The New Deal is regarded to be the beginning of the further complex social programs and wider acceptance of trade unions.

Prerequisites of the New Deal Implementation

The crash of the stock market in 1929 first was regarded as the beginning of the end, as it provided complex problems in the economy of the United States but it is not considered as the only cause of the Great Depression. The stock market crash just made the holes in the superficial prosperity of the United States more obvious. As the causes of the downfall in the economy were complicated, the solution to the multifaceted scenario confronted by the Americans was also complex enough. (Barnanke 2004).

American people sought to search for the reasons and responsible elements for the economic collapse. While one part of the American citizens regarded President Hoover as the major player in economic downfall, others blamed bankers, businesspersons, and brokers- “the three B’s”- as responsible for the collapse. However, a group of people or a single individual cannot be accused of the reasons for the Great Depression. To understand the mechanism of the New Deal by President Roosevelt and its impact on the economy, it is pertinent to highlight the circumstances prevailing at that time as well as the economic conditions of that era.

A major phenomenon existing at that time was the unequal distribution of income. Despite the continuous rise in wages, there was an inequality in income. The incredible accumulation of wealth in the hands of just a few individuals eventually meant that sustained economic prosperity was much reliant upon lavish expenditures and the high investment of the wealthy group. As such, during economic downfall and the market crash resulted in a fall in investment and spending.

On average two banks closed every day during 1923 1929. Still, up to the crash of the stock market in 1929, the country’s inevitable affluence supported and covered the potentially destructive flaws in the banking system of the United States of America. (Barnanke 2004).

The nation was transformed into a creditor nation from a debtor nation as a consequence of World War I. The victorious Allies as well as the defeated Powers, in the outcomes of the war, owed more money to the United States as compared to foreign countries. The Republican government during the 1920s persisted on gold bullion payments but the supply of gold in the world was limited. Moreover, at the end of the 1920s, most of the gold supply in the world was controlled by the United States. However, high tariffs along with protectionism resulted in keeping foreign goods away from U.S.

The unemployment rate increased from 4% to 25% from 1929 – 1933. The manufacturing and production rates were reduced by approximately a third. The falling of the prices caused the deflation of the currency rates that complicated the repayments of debts. The crisis mainly touched the farming, agriculture, and industry, while the white-collar service sectors were not so severely touched.

The essence of the New Deal

The New Deal approach essentially increased the involvement of the government in economic affairs. The Depression aggravated during the months before Roosevelt’s inauguration. Farm foreclosures, bank failures, and factory closings increased. Moreover, the level of unemployment soared. As such President, Roosevelt confronted the greatest economic crisis in the history of the United States since the Civil War.

A ‘New Deal’, pledged by Franklin D. Roosevelt in his election campaign and the inaugural address, focused on alleviating emergencies and supporting the recovery of the economy. Roosevelt provided swift actions to implement his New Deal. He closed banks for some time to end panic in the depositors. He collaborated with a special Congress session in the phase of the first 100 days. The purpose was to pass recovery legislation for establishing alphabet agencies like ‘Agricultural Adjustment Administration (AAA) and ‘Civilian Conservation Corps (CCC). The main intention was to create employment opportunities, especially for the younger generation. Different other agencies supported labor and businesses. Moreover, they also provided security to depositors of banks, subsidized payments of a farm as well as home mortgages, and ensured regulation of the stock market. That was aimed to support and increase the overall employment level. The measures adopted and policies implemented under the New Deal approach revived the confidence in the nation’s economy. Direct relief saved people from starvation. However, the measures in New Deal involved government heavily in a direct way especially in the domain of economic and social life. The minimum working time standards were established, and the minimum wage was fixed. (Smilely, 2003).

Most of the significant institutions and laws that shape the basis of the U.S. contemporary financial system take their origin in the period of the New Deal. Legislation of the New Deal extended the authority of the Federal government in agriculture, public welfare, and banking.

During the 1930s, the American economy reached its bottom and experienced the stage of depression with unemployment soaring. A common fear existed that the economic and social basis of American society was facing a breakdown. Belief in the capitalist market was shattered as millions of unemployed people search for desperate ways to ensure their families’ subsistence.

President Roosevelt, as per his pledge to restore economic activities and transform the economy from Depression to prosperity embarked on a variety of exceptional experiments in the year 1933. These exclusive experiments in the cover of the ‘New Deal’ altered the relationships between the economy, businesses, banks, and the government. It also changed the nature of coordination among local, state, and federal governments.

The focus of the New Deal was the payment of billions of dollars for the funds for supporting work relief jobs. Moreover, it is also intended to provide relief to American citizens throughout the nation without any discrimination. For the first time in the history of the United States, the Federal government intervened in the economic activities by assuming the responsibilities of supporting the poor and unemployed. The New Deal by President Roosevelt revolutionized the economy. It also supported welfare spending in the short term as well as long term. At the most fundamental level, the relief programs of the New Deal accomplished the basic aim of providing seriously-needed income to individuals with no apparent prospects and opportunities for private employment.

As it was emphasized, Roosevelt’s New Deal may be segregated into two parts; the ‘First’ New Deal; and the ‘Second’ New Deal. The key aim of the ‘First’ New Deal was restoring the economy from the top. In 1933 ‘The Agricultural Adjustment Act’ entered its first phase, which acknowledged the long-sustained principle that low level of prices in the farm was the consequence of overproduction. Therefore, the government searched for ways to stimulate high prices by making payments to produce at low level.

The period of the Second New Deal ranges from 1935 to 1940 and focused to restore the economy at the bottom line. It endeavored to end the Depression through distinctive ways including spending at the base of the economy where funding by the government attempts for transforming non-consumers to become consumers again. ‘The Works Progress Administration’ was an enormous program of federal jobs aimed to employ unemployed breadwinners to strengthen the comfort and welfare of their families along with stimulating consumer demand. (Powell, 2004).

The Social Security Act in 1935 established and ensured a moderate worker-funded pension system guaranteed by the Federal government. Social Security proved to be successful in performing as a safety net for elderly workers and stimulating consumer demand. The impact of the National Labor Relations Act in the year 1935 was massive as it guaranteed the collective negotiation rights for American workers. A significant instance of the ‘Second’ New Deal was its endeavor to restore and reinstate the economy of the United States from the bottom up.

New Deal Analysis

Roosevelt is regarded by most historians and experts as a pragmatic politician but not as an idealist or intellectual. New Deal served as a precedent for the Federal government to assume a primary role in the social and economic affairs of the nation. (Sowell, 2007) The New Deal catalyzed the extension of activities by trade unions in different industries including rubber, automobiles, and steel. Comprehensive programs and institutions that seem indispensable in the modern economy were established.

The Agriculture Adjustment Act was created to support American farmers by sustaining prices and restricting overproduction. ‘Civilian Conservation Corps’ was designed and operated under the supervision and control of the army. The Securities and Exchange Commission was aimed to supervise the affairs related to the stock market. The Federal Deposit Insurance Corporation’s major objective was to guarantee to pay out the deposits at banks. The Social Security System was established to provide pensions to old-age citizens based on their prior contributions.

FDR’s New Deal had practically supported improving the general standards of lives suffered from the disastrous effects of the Great Depression. Further the programs of the New Deal served as a precedent, particularly for the federal government to assume a primary role in the social and economic affairs of the nation.

The New Deal regulations and principles took their origin from the ideas, offered only in the 20th century. All these ideas and the entire program were innovative. However, some historians consider6, that some principles (like Antimonopoly traditions) were innovated by Thomas Jefferson and Andrew Jackson. It is argued, that monopolies were a negative financial impact, as they produced waste and undermined competence. However, the anti-monopoly commission never had essential power during the implementation of the New Deal course. The National Recovery administration took the ideas from Woodrow Wilson’s administration policies. This agency advocated the techniques, that were used during World War I. Nevertheless, the rest (and the most) of the ideas were first originated in the 1920s: these are the efforts to harmonize the financial system by creating cooperative relations, and the principles of banking system regulation.

Roosevelt created the system that is currently called the Brain Trust: it is a group of advisers that are claimed to assist in the recovery efforts. The solutions, taken by these advisers are generally more extensive for the economic regulation.

It is necessary to emphasize, that the New Deal also faced some conservative opposition. The opposition groups were predominantly formed by the democrats and called the Old Right. Though, there were also the Republicans.

The New Deal in the context of the Great Depression

As it has been emphasized, the starting point of the Great Depression was the Stock Market crash, which led to the financial crisis, the increase of the unemployment rates, and, consequently to the bankruptcy of farmers and industrialists. Soon, after the inauguration, Franklin Roosevelt proclaimed the implementation of the New Deal and started regulating the consequences of the crisis. The fact is that he killed two birds with a single stone: to restore and expand the infrastructure on the continent he claimed, that all unemployed agreed to work on the buildings of roads, connecting Eastern and Western parts of the USA. This decision was backed by the setting of the standards of minimal working days and minimal salary. Originally, the necessity to restore the infrastructure was not the highest, however, this decision may be regarded as rather rational, taking into account the increasing bankruptcy rates.

The farmers were granted the receiving of long-term credits in the order they could restore their farms and buy the necessary equipment. The fact is that the restoration of the banking system did not take much time, as only the hugest and the most stable banks left working after Roosevelt decided to close all the banks for some time: this looked like the natural selection, as most banks could not bear the inactivity period. The farmers got their credits and started restoring the agricultural sector.

It is stated, that the white-collar service sector was not severely hurt by the Depression, and the financial crisis, however, it also experienced essential troubles. To grant work for the white-collars, Franklin Roosevelt started creating different committees, and every committee was devoted to some particular problem or sphere. However, the committees also required financial support. Thus, the Work-Relief Agency got up to $11 billion for the period 1935-1943, and WPA provided up to 8 million jobs for this period.

As for the effectiveness of the New Deal, it should be mentioned, that historians express no doubt, that it helped to overcome the Great Depression. The economists, in their turn, are not so certain, and some of them argue, that it only worsened the Depression. Thus, the survey showed, that 51% of the economists agreed on the effectiveness of the New Deal. As for historians, 73% agreed.

The creation of the New Deal Coalition was the necessary step for overcoming the Depression crisis. It consisted of poor labor people, mainly the white southerners. They perfectly knew what people wanted from the presidential administration, and were able to formulate these requirements for the following law projects. The fact is that the people that entered this coalition were not professional financial experts, law experts, or even social workers. They were just the representatives of the masses, that is why this coalition is the subject of numerous arguments.

Conclusion

The New Deal promised by Roosevelt to the Americans was aimed at ending depression. In the early days of his presidency, the administration of Roosevelt initiated a passage of different laws related to banking reforms, relief programs for lifting emergencies along different other agricultural and work relief programs. (Mcelvaine, 1993) FDR’s New Deal practically supported improving the general standards of lives suffered from the disastrous effects of the Great Depression.

Moreover, in the long run, the programs of the New Deal served as a precedent, particularly for the federal government to assume a primary role in the social and economic affairs of the nation. (Sowell, 2007) It could be concluded, based on arguments presented in the paper, that FDR’s New Deal was successful in pulling the economy from Great Depression and has a perpetual impact on the economy of the United States.

References

Barnanke, B (2004) Essays on the Great Depression. Princeton University Press.

Bernanke has included a collection of essays in his book. He is a scrupulous and careful econometrician in his argumentative discussion about the decline of the economy after the Great Depression. He has provided a complete overview of the macroeconomics of the Great Depression.

McEclvaine, R (1993) The Great Depression: American 1929-1941. Three Rivers Press.

Robert McEclvaine’s description of the cultural shock and economic collapse brought by the Great Depression is presented in the book. The author has stated the responses of Roosevelt and Hoover that shaped the modern-day anticipations of the role played by the federal government in the daily routine lives of people. The book specifically deals with the events after World War I and events involving U.S in World War II.

Powell, J (2004) FDR’s Folly: How Roosevelt and His New Deal Prolonged the Great” Depression Three Rivers Press.

Jim Powell focuses on the effects of major policies implemented by Roosevelt. Powell has portrayed the sketches of the major players also. He has discussed the Social Security System about unemployment and the phenomenon of higher taxes as well as new labor laws along with their impact.

Smilely, G (2003) Rethinking the Great Depression. Ivan R. Dee, Publisher.

Gene Smiley has endeavored to link the events of the Great Depression with overproduction, inequality of wealth, and speculation in the stock market. These along with some other causes led to the New Deal implementation. These events have been investigated and their effects have been presented in the book.

Smith, Jean (2008) FDR. Random House Trade Paperbacks.

Smith is a renowned and independent biographer. He has magnificently presented a biography of one of the significant Presidents of the United States. Scores of articles and books have already been written about Roosevelt but the expressive blend of the complex life of FDR has been presented in an elaborative way

Sowell, T (2007) Economic Facts and Fallacies. Basic Books.

Thomas Sowell in economic Facts and Fallacies has attempted to expose some of the famous fallacies regarding economic issues and has included many beliefs disseminated in the mass media by politicians. Sowell has published popular and scholarly articles on economics and some interesting facts and figures about Great Depression.

Zelizer, J. E. (2000). The Forgotten Legacy of the New Deal: Fiscal Conservatism and the Roosevelt Administration, 1933-1938. Presidential Studies Quarterly, 30(2), 331.

Julian Zelizer aimed to analyze the New Deal Approaches from the viewpoint of the current economic affairs and difficulties. The book entails the analysis of the origins of the New Deal approaches, studies the innovations, and offers the comparison with the contemporary approaches.

The New Deal

• Was initiated by Franklin Delano Roosevelt;
• He was the 32nd president of the United States;
• He governed from 1933 to 1938;
• His administration inherited the devastation of the great Depression;
• The great depression commenced in 1929 with the stock market collapse.

Economic Objectives of the New Deal

The strengthening of the economy though:

• The empowerment of the American people;
• Dealing with the devastation of the great depression through immediate relief;
• Supporting workers;
• Boosting agriculture;
• Boosting the production of electrical power;
• The generation of jobs for the people;
• Encouraging spending so as to stir up the economy;
• Prevent bank panic;
• Restore stock market confidence;
• Protect American industries from total collapse;
• Uphold the emerging economic authority of the United States.

The ills the New Deal Sought to Heal

The Strategy Identified To deal with The Economic Concerns of the Time

Putting cash in the pockets of Americans (The Equivalent of President Bush and President Obama’s Stimulus Package).

Government funding for massive projects in various areas such as electric energy, water and irrigation, and industry in general.

Direct support for workers, professionals and farmers.

Twelve Major New Deal programs

• Federal Emergency Relief Administration (FERA);
• Public Works Administration (PWA);
• Agricultural Adjustment Administration (AAA);
• Tennessee Valley Authority (TVA);
• Civilian Conservation Corp (CCC);
• Federal Deposit Insurance Corporation (FDIC);
• National Recovery Administration (NRA);
• Works Progress Administration (WPA);
• Rural Electrification Administration (REA);
• National Youth Administration (NYA);
• Wagner Act;
• Social Security Act.

Federal Emergency Relief Administration (FERA)

Was created as the Emergency Relief Administration in 1932 by President Herbert Hoover.

It was given the new name under president Roosevelt in 1933 .

The purpose was to give grants to states to help women start self help projects.

It was replaced by the Works Progress Administration (WPA) in 1935. which also ended in 1943.

Civilian Conservation Corp (CCC)

• This was established in the 31st of March 1933.
• This was FDR’s first month in office.
• The CCC provided work opportunities mainly for unskilled youth.
• The major work was construction of buildings and working in national parks.
• The program ended on the 30th of June 1943.

Works Progress Administration (WPA)

It replaced the federal Emergency Relief Administration in 1935 (Taylor 21).

The aim was to create jobs for the people (Taylor 20).

By the time it was ended in 1943,close to eight million jobs had been created by the WPA.

Public Works Administration (PWA)

• Created in response to the great Depression in 1933 by the National Industrial Recovery Act.
• It concentrated on heavy spending in public works such as bridges and roads so as to trigger industrial growth.
• It ended in 1939.
• Below: Fort Peck –Montana, one of the largest dams in the planet resulted from PWA.

Agricultural Adjustment Administration (AAA)

• Created in 1933 to pay farmers to produce less and raise crop value.
• Was amended in 1938 to include new changes that outlawed taxing crop processors.
• The agency still exists.

Tennessee Valley Authority (TVA)

• Created on the 18th of May 1933.
• Main objective was to control flooding along the Tennessee River and generate electric power.
• The project still exists.
• Below: Wilson Dam-First to be built under the TVA.

Federal Deposit Insurance Corporation (FDIC)

• Established in 1933.
• Aim was to provide security for deposits for member banks.
• It still exists for the same purpose.
• More duties include supervision of certain financial institutions.

The Wagner Act

• Enacted in 1935 under the sponsorship of Senator Wagner. It is also called the National Labor Relations Act.
• It was formed to protect workers on private firms from being mistreated.
• It was amended in 1947 and it still exists.
• Below: FDR sings the Wagner Act 19 1935.

The Social Security Act

• Enacted in 1935 with the aim of protecting the old, needy families, the disabled and the unemployed.
• It has been amended but it basically remains the same. Medicare and Medicaid are part of the act currently.
• It still exists.
• Below: First beneficiary of Social Security-Ida Fuller.

The National Recovery Administration (NRA)

• Formed in 1933.
• Declared unconstitutional in 1935 by the US Supreme Court.
• It died in 1935, but most of its provisions reappeared in the Wagner Act.
• Below: First NRA Director, Mr. Hugh Johnson.

National Youth Administration (NYA)

• Formed as part of the WPA in 1935.
• It’s aim was to offer work study programs for high school and college students.
• It died in 1943.
• Below: NYA Guidance session.

Rural Electrification Administration (REA)

Was created by an executive order in 1935 by FDR and approved by the Rural Electrification Act of 1936 (Brown 19).

The aim was to spearhead the electrification process of rural America (Brown 34).

It worked hand in hand with TVA and other New Deal Job creation ideas and achieved massive success. It was abolished in 1994 and its place was taken by the Rural Utilities Service.

Works Cited

Brown, Deward. Electricity for Rural America: The Fight for the REA (Contributions in Economics and Economic History).New York: Greenwood Press,1980.Print.

Taylor, David . Soul of a People: The WPA Writers’ Project Uncovers Depression America New York: Wiley & Sons, 2009.Print.

www.en.wikipedia.org

The United States was in the middle of the Great Depression when Roosevelt was elected. The banking system was in crisis, and almost a quarter of the workforce was unemployed. Salaries and wages for those still employed reduced drastically as the production did. President Roosevelt’s New Deal’s focus was to offer instant economic relief and bring about reforms to stabilize the economy. Therefore, the New Deal in Tennessee included public work administration, agriculture adjustment administration, civilian conservation corps, Tennessee recovery authority, national recovery administration, and the work progress administration.

The government agency decided to reduce unemployment and improve the purchasing power via the building of public building structures and highways. Being governed by the national industrial recovery act, the PWA was established by Roosevelt and controlled by his internal secretary’s governing body. During his tenure, the PWA used much money to build its educational structures, city halls, public health structures, law courts, sewage disposal, bridges, roads, and subways.

In the United States’ history, the New Deal’s strategy was to redeem agriculture development during the Great Depression and war by limiting farm output, declining export surpluses, and increasing cost. The Agricultural Balance Act was a compilation farm-relief bill exemplifying the structures of the great national farm corporations. The act aimed to restore the prices for agricultural produce to a point equal to purchasing power. However, the product credit corporation with agriculture storage and loan plan was implemented to enable price-aiding loans and purchase certain products.

Moreover, the Deal was established to advance farmers’ living standards, regulate rain overflows, advance navigation, and produce electrical power alongside the Tennessee River and its streams. The Tennessee River was prone to floods, and navigation was interfered with by a sequence of shoals. Therefore, the United States Congress authorized a bill implementing the Tennessee Valley Authority, TVA, hence incorporating all the events of different government agencies in the region and locating them under one’s governance. Consequently, a massive plan of constructing dams, flood-regulating projects, and hydroelectric generating stations was started. Therefore, the combination of a wide range of certain powers with a view of social accountability to the area made TVA essential as an example of natural resource planning.

Further, Roosevelt implemented the Deal was to fuel business recovery via just-exercise codes during the great depression and war. The National Recovery Administration, NRA, was a vital component of the NRA act. It allowed the president to incorporate industry board codes to eradicate unjust trade exercises, implement minimum and maximum wage hours, combat unemployment, and assure the workforce’s rights to bargain collectively.

Another great importance of the New Deal was to offer aid for several victims of the war and Great Depression and preserve their self-respect and skills. The economy would, in turn, be fuelled by the increased purchasing power of the newly recruited employees with a broad monthly salary. I see many similarities with today when the government establishes a project to improve a place’s livelihoods. Still, the set goals are not achieved, like the New Deal in Tennessee. The effects of the Great Depression never disappeared, unemployment continued, and farmers continued to face many challenges, and famine struck the place. Sometimes, the prevailing situation is beyond the ability of the government to eradicate the problem at once.

In conclusion, the election of Roosevelt seemed like a solution to the impacts of the Great Depression. In his 100 days, he passed legislation to pay commodity farmers to boost the prices. The New Deal improved the Tennessee River’s navigability, offering flood regulation, improving Agriculture, commerce, and industry, operating hydroelectric power stations, reducing unemployment, and constructing highways. However, the Deal could not overcome the challenges of the Great Depression.

Franklin Roosevelt confidently won the US presidential elections in November 1932 – he became president-elect. In the interval between the election and Roosevelt’s inauguration, the American banking system completely collapsed, and the world economy collapsed even more. From 1932-1933, both in the world in general and in the United States in particular, sentiments in favor of a dictatorial form of government were growing. Observing the regimes of Hitler, Mussolini and Stalin from the outside, many in America called for their imitation. Roosevelt believed that the government not only can but must achieve the subordination of private interests to collective interests. He considered it possible to replace the struggle of selfish interests with the cooperation of the parties. He also believed that economic life in the early twentieth century was characterized by critical imbalances that deprived a significant portion of the population of their livelihoods. The discussion below will address the question of the New Deal went too far in providing aid to Americans or not far enough.

The image of Franklin Delano Roosevelt is of great importance for the economic history of the United States, including its symbolic meaning. The period from 1929 to 1941, including the Great Depression and the New Deal, is undoubtedly one of the most important in American history. For economists, historians and political scientists, it is not so much what Roosevelt did. Specifically, that is important, but rather the fact that his New Deal is viewed in most cases as the ultimate argument in favor of state regulation of the economy (Powel, 2003). Modern economists and historians cite the Great Depression as a textbook example of what laissez-faire politics can lead to.

One hundred days – this was the name of the surge in legislative activity that was observed at the beginning of Roosevelt’s presidential term. During this period, Roosevelt sent 15 letters to Congress and, in turn, signed fifteen new laws. Such presidential activity was unprecedented and unsurpassed in the history of the United States – where the confrontation between the president and Congress has a long political history.

By May 1933, none of the many emergency measures provided positive stimulus to the US economy: the net effect of budget cuts and tax increases was clearly deflationary. Realizing this, Roosevelt began looking for funds to stimulate industry. At the same time, industry representatives were unable to agree on what steps should be taken. The president himself at that moment had nothing to offer to fight unemployment (Long, 1934). And Roosevelt instructed several groups at once, who knew nothing about each other’s activities, to prepare proposals for a bill on the restoration of industry.

Statistics have revealed other aspects of the impact of depression. Thus, faced with an uncertain future, young people postponed or canceled their plans to marry: the rate of new alliances fell by 22%. There are fewer children in married couples – by 15% compared to 1929. Despite the efforts of the New Deal, the unemployment rate never fell below 14% in the 1930s. The average over the decade was 17%. The Great Depression was not replaced by the New Deal: the new political program only slightly softened the ongoing economic crisis.

Throughout 1935, Roosevelt saw danger to his reform program, a program he believed was financially sound and politically cautious. By that time, the president had been preparing for a new reform campaign for over a year, and the attacks on the New Deal were the reason for its implementation. And this new policy, centered on security, has fundamentally changed the role of the federal government in the lives of ordinary Americans.

The Emergency Relief Appropriation Act of 1935 is a significant law; the presidential administration has requested an unprecedented amount of authority and the largest allocation in American peacetime history: $ 4 billion in new funds. Roosevelt resolutely refused to distribute financial or food aid to the unemployed since it caused the spiritual and moral decay of the nation; the president compared such aid to a drug. At the same time, he suggested that work fostered a sense of self-esteem in a person and clarified that the proposed measures would help to employ approximately 3.5 million unemployed.

Social security has become a key part of the new reform agenda. The idea of getting rid of unnecessary workers “- especially those over 65 years old – gradually found more and more supporters. The system of government-guaranteed old-age pensions was moving from the field of marginal economic thought to a priority direction. Until late 1932, the American Federation of Labor continued to insist on direct negotiation of benefits between worker and employer (Long, 1934). The United States was virtually the only modern industrialized country without a nationwide social safety net. Wisconsin alone had an unemployment insurance program created in 1932.

The president’s insistence that the workers themselves should do their part created potential litigation risks, as the constitution did not give Congress the authority to engage in the insurance business. A sophisticated payout system, in proportion to previous earnings, was borrowed from the private insurance model as more acceptable to American society. The problem of people approaching retirement age remains (OpenStax, 2021). Workers who are already 45 years old did not have the technical ability to form significant reserves for their retirement. In 1939, all indicators of the state of the economy were worse than in 1929, which meant a complete failure of the interventionist programs of the New Deal of Roosevelt. He prolonged the Great Depression, did not bring America out of it. Many supporters of Roosevelt acknowledge the ineffectiveness of his programs, continuing to believe that the New Deal programs contributed to the creation of social policy. If the goals of these programs are the growth of the welfare of the poor and the general growth of the welfare, then Roosevelt also failed to achieve them.

For example, although unemployment decreased during this time due to an increase in the number of military personnel nevertheless, the total number of unemployed and military personnel remained at the same level. At the same time, the distribution of gasoline, tires, coffee, milk, cheese, canned food, footwear, meat, sugar, and typewriters by coupons was introduced. This situation can hardly be called an increase in prosperity (Powel, 2003). It should not be forgotten that prices during a war are not market prices. They are set by the state, so the GDP indicator during a war does not say anything. The GDP was recalculated on the basis of market prices, and its decline from 1941 to 1943 was obtained.

Thus, Congress sharply cut government spending, which became a source of growth in investment, consumption and entrepreneurial activity. Keynesian fears that the American economy in peacetime will face massive unemployment and an epidemic of violence did not materialize. Hence, Roosevelt could have been prolongated and enhanced his policy in order to achieve success.

References

OpenStax. (2021). U.S. Web.

Powel, J. (2003). Tough questions for defenders of the New Deal. CATO Institute. Web.

Long, H. P. (1934). Every man a king and Share our wealth. The American Yamp Reader. Web.

Introduction

Although interpretations of such a term as a progressive person may differ substantially, not solely from culture to culture, but even from one individual to another, there are certain overlap points. Specifically, the vast majority would agree that progressive people advocate for innovative ideas and frequently insist on adapting the rules that regulate the life of the society to recent trends. In political terms, progressivism is a movement that seeks to provide every member of society with a possibility to grow, self-actualize, and accomplish his or her goals. This paper examines and comments on the progressive ideology that President Theodore Roosevelt offered, notably presents its basic concepts, analyzes its goals, and describes its achievements.

Main body

It is worth noting that, according to Roosevelt, a progressive person is optimistic by definition. This means expecting the most favorable scenarios in every situation and never ceasing to search for possible improvements (Kakwata, 2017). In addition, the key role of the progressive lies in addressing the problems of the other, for which reason they are to remain enthusiastic and inspiring under any circumstances. A collective image of a progressive individual, therefore, involves a readiness to change society for the better through equality initiatives, free services, and other useful solutions.

On the contrary, anti-progressive people apparently are those who oppose the above way of development. Such a definition, however, is excessively generalized, which encouraged President Roosevelt to enhance it with certain specifications. Simply stated, he characterizes the anti-progressive as those who do not care about their surroundings (DeWitt & Pearson, 2017). For instance, such individuals do not accept any forms of cooperation with authorities for completing essential tasks since they do not want to be under control.

One of the most common megatrends in the modern world is eco-friendliness, improving as well as maintaining which presupposes a range of necessary reforms. Roosevelt most probably would classify those who support environmental initiatives as progressive and those who do not agree as anti-progressive. While the former insists on controlling the emissions of toxic waste and other solutions that can reduce water and air pollution, the latter speculates on why this is impossible. Another illustrative example is the debate on same-sex marriages, of which the anti-progressives normally disapprove and express this through interfering with gay pride, promoting anti-gay legislation, and others.

It is quite apparent from the above that the major peculiarity of anti-progressive individuals is the lack of desire to reconsider their conservative worldviews and adapt to new rules. Cheung & Bauer (2021) highlight that such behavior can weaken democracy by compromising equality and preventing the population from developing. The task of progressivism, meanwhile, is to enable it, which causes an ideological conflict between the two sides inevitably. For instance, large corporations frequently focus on profit but tend to neglect the well-being of the laborers, which behavior is quite normal in the opinion of the anti-progressives but unacceptable to their opponents.

In the above case, a progressive decision is any that targets improving working conditions. According to Roosevelt, it is more effective to implement the appropriate measures at a state level than individually, due to which the right to rule should belong exclusively to the government (DeWitt & Pearson, 2017). The President mentions not welcoming the regulations that particular powerful individuals set among the main goals of progressivism, which actually makes his view of this ideology quite similar to that of communism.

Generally, Roosevelt states that the progressive movement seeks to provide safety and prosperity for ordinary people. This is a complex and multi-dimensional task whose completion requires covering all major areas of public life, specifically, the educational, health care, transportation, social, economic, and political sectors. Thus, a well-known initiative of progressivists lies in banning packed food that contains harmful preservation drugs to improve public health (Kirchhelle, 2020). It resulted in the food inspection act that regulated the content of chemicals in products.

The given an example is one of the brightest but doubtlessly not the only. Roosevelt proclaims that progressivism actually helped the United Stated develop into a democratic society, which means conducive working environments, reasonable payments, and equal distribution of resources (DeWitt & Pearson, 2017). Another contribution to the empowerment of ordinary citizens by improving their financial capacity was the reduction of taxes. Finally, progressivists introduced new methods and approaches in science, hence promoting its modernization.

Summary

To summarize, President Theodore Roosevelt apparently was adept at such an ideology as progressivism, which he saw as a focus on positive changes to the most important spheres of social life. The opponents of innovative solutions, according to him, are possible to label anti-progressive, as they interfere with improvements and development. Considering the latter fact, the President regarded popularizing government-set rules as the main responsibility of progressivists since such an approach allows for minimizing individual regulations. This, in turn, favors equality and well-being of the ordinary population, providing which is the primary task of the movement. The examples that the paper involves as illustrations of the theoretical assumptions improve the demonstrativeness and allow for a broader perspective on the topic.

References

Cheung, D., & Bauer, J. N. (2021). Greed, Self-Interest and Business Ethics–A Comparative Discussion of Gandhi and Novak. Journal of Religion and Business Ethics, 4, article 2.

DeWitt, B. P., & Pearson, S. A. (2017). The progressive movement: A non-partisan comprehensive discussion of current tendencies in American politics. Routledge.

Kakwata, F. (2017). The progressive Pentecostal conception of development within an African context of poverty. Stellenbosch Theological Journal, 3(1), 159-183. Web.

Kirchhelle, C. (2020). Pyrrhic progress: The history of antibiotics in Anglo-American food production. Rutgers University Press.

Theodore Roosevelt was one of the youngest American presidents known for his progressive ideas and the desire to change society, addressing the existing distrust and helplessness. The decision to promote progressive ideas was not spontaneous, and he saw the movement as the possibility to protect the real rule of humans (Roosevelt, 1912). The characteristics of a progressive are the intention to stand for social justice, achieve good for all people, and improve the environment in which individuals should grow and develop. Being a progressive means being optimistic about every initiative and participating in problem-solving processes. There is no need to hide behind or keep silent but to act and become passionate about changes and transformations.

Despite the desire to support progressive thoughts, there are also some examples of anti-progressives. Roosevelt (1912) called them the people with narrow vision and little sympathy. Anti-progressives are never stirred by the mistakes or failures made by other people (Roosevelt, 1912). Individuals who are consumed by their selfishness are not able to appeal to conscience. Everything they can do is to support oppression and use reforms that work for the leaders’ success, not the public one. The activities varied from employees’ exploitation to the promotion of capitalism that bounded society and imposed limitations on creativity and progress.

Roosevelt wanted to make people believe in his ideas and goals. Thus, he described progressivism as the movement that aimed at underling the real rules and freedoms of society. It was high time to deliver justice and equality by explaining the worth of power and development. Following his rules, multiple achievements can be revealed, including the ability to select leaders through open and free voting. Addressing the areas of politics, social welfare, and decision-making relevance, progressives can succeed as the movement and Roosevelt as the leader. As soon as people analyze their options, they can make policies and laws to improve different aspects of their life.

Reference

Roosevelt, T. (1912). Who Is a Progressive? Web.