New Deal Reforms

    While the nation spiraled into the Great Depression, President Hoover urged patience and self- reliance. He deemed the crisis "a passing incident in our national lives" and one that the federal government had no obligation to meddle with. In contrast, when President Franklin Roosevelt took office in 1933, he immediately tried to stabilize the economy and provide jobs to the quarter of the American population that was unemployed. During his both his terms, the government created a series of programs, mostly experimental, known as the New Deal. These reforms were aimed to restore the morale and prosperity of Americans, but most significantly changed the role of the federal government in the U.S. 

     In his inaugural address, Roosevelt promised to the American people that he would face the "dark realities of the moment" with haste. His speech ensured to the American people that Roosevelt was willing to take bold steps to solve national issues. The day after his inaugural address, he declared a four- day bank holiday to keep people from withdrawing money from the banks. Roosevelt's Emergency Banking Act then reorganized the banking system and closed banks that were bankrupt. He then urged Americans to put savings back. 

     Roosevelt had also encouraged Congress to take steps against prohibition. Congress ratified the 21st Amendment which ended prohibition and made it legal for Americans to purchase alcohol. This allowed for economic stimulation in the market. Then in May, Roosevelt signed the Tennessee Valley Authority Act which enabled the federal government to build dams along the Tennessee River to control flooding and generate hydroelectric power for people in the region. Congress also passed a bill that paid commodity (wheat, dairy, tobacco, corn) farmers to leave their fields fallow or unplanted to decrease surplus and raise food prices. The National Industrial Recovery Act then guaranteed workers the right to unionize and bargain with employers for higher wages and better working conditions. These were only some of the many laws that Roosevelt had passed and it was clear that Roosevelt was truly upholding his promises in the inaugural address. 

      Despite Roosevelt's efforts, the Great Depression continued brutally and unemployment still persisted. Roosevelt thus took on a Second New deal: a more aggressive series of federal programs. He created the Work Progress Administration to create/ provide jobs for the unemployed. Because the WPA could not compete with private industry, it focussed on government projects like post offices and bridges. Then, the National Labor Relations Act, or Wagner Act, created a board that would supervise union elections and prevent unfair employee treatment. And most importantly, the Social Security Act of 1935 had been passed, guaranteeing pensions to millions of Americans and unemployment insurance for dependent children and the disabled. 

    Though the New Deal eventually ended because of its numerous political setbacks and inefficiencies, it had changed the relationship between the president and the people. A new group of people that supported interventionist policies grew to include working people, African Americans, and left- wing intellectuals. 

Sources:

http://www.history.com/topics/new-deal

http://www.loc.gov/teachers/classroommaterials/presentationsandactivities/presentations/timeline/depwwii/newdeal/