Between World War I and World War II the USA experienced a mixed development of their economy. On the one hand there was the economic prosperity in the 1920s and the epoch of reconstruction after 1933, as well known as the “New Deal.” But also very important to consider is the economic crisis, called the “Great Depression” between 1929 and 1935.
At the end of the 1920’s, there was an increase in prosperity in the United States. Especially this period was shaped by Jazz music, sports and technical breakthroughs. Also many Americans made money investments in stocks, and after the value of stocks rose steadily, a lot more people could afford the standard of good living, which contained to drive brand new and expensive cars and to attend movie theaters and sumptuous clubs.
When on Thursday, October 24, and on Tuesday, October 29 in 1929, the Wall Street stock market in New York collapsed, the “Roaring Twenties” were suddenly over within one week. Those two days are also called “Black Thursday” and “Black Tuesday”.
Table of Contents
1. Introduction
2. Franklin Delano Roosevelt
2.1. Roosevelt's early life with regard to his political career
2.2 Why Franklin D. Roosevelt became President in 1933
2.3 The election of 1932
3. Rough Times: The Great Depression and the New Deal
3.1. The Great Depression and portrayal of the two ideologies "New Nationalism" and "New Freedom"
3.2. Roosevelt's first hundred days in office
3.3. The New Deal
3.4. Measures of Roosevelt's New Deal
3.5. Consequences of Roosevelt's New Deal
4. Conclusion
Research Objectives & Core Topics
This paper examines the impact of the Great Depression on the United States and evaluates Franklin D. Roosevelt's strategic attempt to reorganize the national market through the implementation of his "New Deal" policy initiatives.
- Analysis of the economic shift from the "Roaring Twenties" to the Great Depression.
- Evaluation of Roosevelt's early life and political formation.
- Comparison of economic ideologies, specifically "New Nationalism" and "New Freedom".
- Documentation of specific legislative measures introduced during the first hundred days and the subsequent "Second New Deal".
- Assessment of the long-term economic and social consequences of the New Deal era.
Excerpt from the Book
3.2. Roosevelt’s first hundred days in office
From the very start Roosevelt made it clear that he advocated a renunciation from Hoover's laissez-faire policy so as soon as possible. This essentially meant a massive state intervention in the economy, which also contained to accept social responsibility and to eliminate the massive poverty. The Roosevelt policy will ultimately lead to a strengthening of governance, as well as a shift of governmental power to the federal government, away from the states. His eagerness to experiment [which critics later interpreted as stupidity, combined with great energy, to promote projects] is characterized in this quotation: "The only thing we have to fear, is fear itself."
First in short-term view the existing state of emergency had to be resolved. The most urgent task was a rapid reorganization of the banking and credit system. The main problem was seen in the “... declining faith in the business community and the market economy.”
In the medium-term, however, Roosevelt decided to mitigate the crisis by purchasing power increase: “Roosevelt embraced the ideas of advisers who believed that the fundamental problem of the Great Depression was under-consumption." The increase in purchasing power, therefore, is a viewpoint that you can find in almost all of Roosevelt's decisions to end the Great Depression.
In the long-term, many critics ignored that Roosevelt sought a consolidation of the social system of the United States. He laid the foundations for the industrial development of entire regions, such as with the Tennessee Valley Authority or he attempted specifically to raise the level of education with the College Student Aid Program.
Summary of Chapters
1. Introduction: Outlines the economic transition from the prosperous 1920s to the onset of the Great Depression and the necessity for the New Deal.
2. Franklin Delano Roosevelt: Details Roosevelt's biography, educational background, and political ascent to the presidency.
3. Rough Times: The Great Depression and the New Deal: Explores the economic crisis and the subsequent legislative and structural reforms initiated by the Roosevelt administration.
4. Conclusion: Synthesizes the historical significance of the New Deal as a government intervention and its effectiveness in restoring economic and psychological confidence.
Keywords
Great Depression, New Deal, Franklin D. Roosevelt, Wall Street Crash, Economic Reform, Hoover, New Nationalism, New Freedom, Market Intervention, Unemployment, Banking System, Social Insurance, Political History, American Economy, 1930s.
Frequently Asked Questions
What is the primary focus of this research paper?
This paper investigates the causes and consequences of the Great Depression and analyzes Franklin D. Roosevelt's "New Deal" as a political and economic strategy to reform the American market.
What are the central themes discussed in the work?
The work covers economic crisis, the transition between political administrations, the ideological differences regarding government market intervention, and the legislative implementation of social and economic reforms.
What is the research goal?
The primary goal is to illustrate how Roosevelt utilized the "New Deal" to lead the United States out of the "Great Depression" through massive governmental intervention and structural changes.
What scientific methods were employed?
The paper uses historical analysis and secondary source examination, evaluating political speeches, governmental documents, and academic historical narratives.
What is covered in the main body?
The main body examines Roosevelt's biography, the failure of Hoover's policies, the ideological shift from "New Freedom" to "New Nationalism," and specific measures such as the Works Progress Administration and the Social Security Act.
Which keywords best describe the paper?
Key terms include Great Depression, New Deal, Roosevelt, Market Intervention, Economic Reform, and Federal Policy.
How did Roosevelt's early life contribute to his later political decisions?
His education at Groton and Harvard, combined with his self-confidence and mentorship by Theodore Roosevelt, prepared him for a progressive political career and the development of his persuasive rhetorical skills.
What was the ideological difference between "New Nationalism" and "New Freedom"?
"New Nationalism," associated with Theodore Roosevelt, supported a powerful state to ensure justice, whereas "New Freedom," associated with Woodrow Wilson, advocated for limited state intervention and reliance on market-driven forces.
How did the "First New Deal" differ from the "Second New Deal"?
The "First New Deal" focused on immediate banking and industrial recovery, while the "Second New Deal" shifted towards long-term social welfare and structural maintenance, such as the Social Security Act.
Why does the author conclude that the New Deal was a success?
The author argues that while it did not fully return the economy to pre-1929 levels, the New Deal was a significant political and psychological success that restored public hope and established foundational government roles in social welfare.
- Arbeit zitieren
- Kevin Theinl (Autor:in), 2010, America’s Great Depression and Franklin D. Roosevelt’s attempt to reorganize the market with his New Deal, München, GRIN Verlag, https://www.hausarbeiten.de/document/179370
