Franklin Roosevelt instituted the New Deal during the Great Depression. It created governmental work projects such as the Tennessee Valley Authority and the Civilian Conservation Corps. TVA created hydroelectricity and flood control for the Tennessee Valley area and the Civilian Conservation Corps assisted with the creation of parks. Both of these projects created jobs where the private sector failed to do so. Roosevelt also created the Agricultural Adjustment Act, which helped farmers by creating price floors for their commodities by buying surpluses and encouraging farmers to create less through cash subsidies. This, along with conservation efforts, helped farmers in the Dust Bowl. Roosevelt also created the Social Security Administration in order to provide aid to the elderly and infirm and also to encourage these people to retire so that younger people could take their jobs.
After his inauguration, Roosevelt created a bank holiday so that the government could study the problem of failing banks more closely. He was influential in the passage of the Securities and Exchange Commission, which looked at unfair trade practices on Wall Street. Roosevelt's administration also passed a form of deposit insurance which insured bank deposits against bank insolvency.
Roosevelt's greatest legacy was his fireside chats in which he encouraged the American people to have faith in the economic systems of the United States. Throughout the Depression the unemployment levels never dropped below ten percent so, while the New Deal did not end the Great Depression, it did provide the people some relief and gave them the feeling that the government cared about the plight of the common man.
Friday, March 2, 2012
How did President Roosevelt help in the Great Depression?
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