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Herbert Hoover's role in the Great Depression
The great depression new deal dbq
Herbert Hoover's role in the Great Depression
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Recommended: Herbert Hoover's role in the Great Depression
In the wake of an economic crisis coined the Great Depression, many Americans struggled in President Herbert Hoover’s laissez-faire based government. This changed, however, with the election of Democratic candidate Franklin Delano Roosevelt, whose “New Deal” sparked the nation’s recovery from the depression, While Roosevelt’s deal may have benefitted many groups such as farmers and the unemployed, it posed as a deterrent to African American citizens.
One way FDR’s New Deal was successful was through the aid of farmers that had been affected by the overproduction of crops which was a major contributing factor in the depression.
According to the president in one of his famous “fireside chats”, Roosevelt states that the government would “pass legislation that will greatly ease the mortgage distress among farmers.” The positive effect of this act was obvious as many farmers struggled to make ends meet on housing. In addition to mortgage issues, the Agricultural Adjustment Administration (AAA), one of FDR’s many policies,”lowered the supply [going] to the market and the prices immediately went up.” The increasing crop prices allowed farmers to make more profit with less crops, fixing the overproduction issue that had dug farmers into a financial hole.
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Another group that benefitted from Roosevelt’s new legislation were the unemployed, who struggled in the faltering economy.
According to Gene Smiley’s “Recent Unemployment Rate Estimates for the 1920s and 1930s”, unemployment rates decreased drastically from its peak at 22.5 percent in 1932 to only 6 percent in 1941 during FDR’s presidency. Roosevelt addressed these changes in one of his fireside chats, stating that “we are giving opportunity of employment to one-quarter of a million of the unemployed.” While this may not seem like much of a difference at the time, the impact it had on the economy showed its effects years
later, While the New Deal may have seemed successful at face value, it did not bode well for citizens of color, specifically African Americans, One such instance of this is evident with the enactment of the AAA, where although it may benefitted white farm owners, “40 percent of all black workers made their living as sharecroppers and tenant farmers”, with almost all of them losing their jobs as they were deemed unnecessary. Economist David E. Bernstein states that “when New Deal policies forced wage rates above market levels, hundreds of thousands of these jobs were destroyed”. So while the unemployment rates of the general populace seemed to falter, the number of African Americans who had lost their employment skyrocketed, In addition to the loss of job opportunities, Roosevelt, in an effort to maintain his status with southern Democrats, “failed to support an anti-lynching bill and a bill to abolish the poll tax” that had plagued the black community for years before. This, coupled with the “repatriation” of Mexican-Americans exposes one of the few, but impactful flaws in FDR’s New Deal. So while the New Deal may have benefitted the majority of the nation, the effects on the minority went against the intended purpose of the legislation.
Through the AAA, Roosevelt proposed to pay farmers for cutting back on production or producing nothing at all. It was supposed to help increase farm prices by decreasing the supply. Now, the government has to deal with the existing surplus. The Roosevelt administration decided to destroy much of what had already been produced, as to create a shortage so farm prices would increase. About six million pigs were slaughtered and ten million acres of cotton were destroyed.
Coming into the 1930’s, the United States underwent a severe economic recession, referred to as the Great Depression. Resulting in high unemployment and poverty rates, deflation, and an unstable economy, the Great Depression considerably hindered American society. In 1932, Franklin Roosevelt was nominated to succeed the spot of presidency, making his main priority to revamp and rebuild the United States, telling American citizens “I pledge you, I pledge myself, to a new deal for the American people," (“New” 2). The purpose of the New Deal was to expand the Federal Government, implementing authority over big businesses, the banking system, the stock market, and agricultural production. Through the New Deal, acts were passed to stimulate the
The Great Depression was one of the greatest challenges that the United States faced during the twentieth century. It sidelined not only the economy of America, but also that of the entire world. The Depression was unlike anything that had been seen before. It was more prolonged and influential than any economic downturn in the history of the United States. The Depression struck fear in the government and the American people because it was so different. Calvin Coolidge even said, "In other periods of depression, it has always been possible to see some things which were solid and upon which you could base hope, but as I look about, I now see nothing to give ground to hope—nothing of man." People were scared and did not know what to do to address the looming economic crash. As a result of the Depression’s seriousness and severity, it took unconventional methods to fix the economy and get it going again. Franklin D. Roosevelt and his administration had to think outside the box to fix the economy. The administration changed the role of the government in the lives of the people, the economy, and the world. As a result of the abnormal nature of the Depression, the FDR administration had to experiment with different programs and approaches to the issue, as stated by William Lloyd Garrison when he describes the new deal as both assisting and slowing the recovery. Some of the programs, such as the FDIC and works programs, were successful; however, others like the NIRA did little to address the economic issue. Additionally, the FDR administration also created a role for the federal government in the everyday lives of the American people by providing jobs through the works program and establishing the precedent of Social Security...
In the midst of the greatest depression in the history of the United States, Franklin D. Roosevelt and his committees drafted The New Deal, consisting of policies which they hoped would help all declining facets of the nation at the time. The American people needed to heed a promising leader that would set plans to end the depression, a change from president Hoover who seemed to have no set plan for foe dealing with such economic crisis. The New Deal aimed to stimulate the economy, create jobs, and lift America out of the economic strife. The controversy amongst historians that surrounds the New Deal is whether or not it prospered in helping America out of a depression. David M. Kennedy argues that the New Deal did indeed serve its purpose, by implementing policies, which improved the economy as well as American lifestyle on a general level, in his piece What the New Deal Did. In New Deal Agricultural Policy: An Evaluation, Theodore Saloutos comes to the same conclusion as Kennedy, except focused on agricultural aspects of the New Deal that helped revive the economy. On the other hand, Harold L. Cole and Lee E. Ohanian use statistics to argue that the New Deal policies were the reason why the economy was unable to recover following the Great Depression in their piece, New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis. After examining all three articles, Cole and Ohanian’s findings seem to overpower the opinions of Kennedy and Saloutos, resulting in the conclusion that the New Deal policies did more harm than good for America.
During the 1920’s, America was a prosperous nation going through the “Big Boom” and loving every second of it. However, this fortune didn’t last long, because with the 1930’s came a period of serious economic recession, a period called the Great Depression. By 1933, a quarter of the nation’s workers (about 40 million) were without jobs. The weekly income rate dropped from $24.76 per week in 1929 to $16.65 per week in 1933 (McElvaine, 8). After President Hoover failed to rectify the recession situation, Franklin D. Roosevelt began his term with the hopeful New Deal. In two installments, Roosevelt hoped to relieve short term suffering with the first, and redistribution of money amongst the poor with the second. Throughout these years of the depression, many Americans spoke their minds through pen and paper. Many criticized Hoover’s policies of the early Depression and praised the Roosevelts’ efforts. Each opinion about the causes and solutions of the Great Depression are based upon economic, racial and social standing in America.
The Agricultural Adjustment Act had a major influence to farm families during the Great Depression. Federal programs aided in boosting farm prices, enriching soil and insuring a future in American farming. The AAA was a success because it kept life in a dying agriculture.
Through his many programs designed to help the economy, laborers, and all people lacking civil rights, President Roosevelt did not put an end to the Great Depression. However, he did adapt the federal government to a newly realized role of protector for the people. Perhaps Roosevelt’s greatest blunders occurred in his attempts to fix the economy. The Nation claimed that “some [of his programs] assisted and some retarded the recovery of industrial activity.” They went so far as to say that “six billion dollars was added to the national debt.”
Having gone through severe unemployment, food shortages, and a seemingly remiss President Hoover, the American people were beginning to lose hope. But sentiments began to turn as FDR stepped into office and implemented his New Deal programs. FDR and his administration responded to the crisis by executing policies that would successfully address reform, relief, and, unsuccessfully, recovery. Although WWII ultimately recovered America from its depression, it was FDR’s response with the New Deal programs that stopped America’s economic downfall, relieved hundreds of Americans, reformed many policies, and consequently expanded government power.
The New Deal was a series of programs meant to ameliorate the American economy and balance social inequality. The first step Roosevelt takes towards the goals of the New Deal was to close banks with a “bank holiday.” Roosevelt initiated this because citizens no longer felt comfortable leaving their hard earned money in the bank. After reopening banks, American citizens’ trust and money was back in the banks and money began flowing again all over America. After a head start to get money moving, Roosevelt sends a farming message by the name of Agricultural Ad...
The New Deal was a set of acts that effectively gave Americans a new sense of hope after the Great Depression. The New Deal advocated for women’s rights, worked towards ending discrimination in the workplace, offered various jobs to African Americans, and employed millions through new relief programs. Franklin Delano Roosevelt (FDR), made it his duty to ensure that something was being done. This helped restore the public's confidence and showed that relief was possible. The New Deal helped serve American’s interest, specifically helping women, african american, and the unemployed and proved to them that something was being done to help them.
The farmers of the Great Depression did benefit from “New Deal”. The New Deal was mainly focused one them and the government tried many ways and started many organizations to help them from being taken advantage of like they had been in previous years.
When Roosevelt took office, his main goal was to provide relief for the country. He thought there were three key elements to getting out of the depression: relief, recovery, and reform. As part of his relief program, he passed the Federal Emergency Relief Act which authorized half of a billion dollars for relief to be distributed through the states and municipalities. Roosevelt emphasized the two most controversial pieces of legislation which became the heart of the recovery program: the Agricultural Adjustment Act (AAA) and the National Industrial Recovery Act (NIRA). The main purposes of the AAA were to subsidize farmers while trying to reduce crippling agricultural surpluses. The AAA provided payments to farmers in return for agreements to cut down the acreage of their production. This would help get rid of the surpluses of food. However, the act was declared unconstitutional in 1936. But, in 1938, after several changes, a second Agricultural Adjustment Act was passed. The government also lent money to farmers to enable them to withhold crops from the market when ...
During World War I, England’s agricultural economy was badly damaged. This inconvenience for the English was a blessing to American farmers. Since the invention of the combine, and various other mechanical harvesting machines, American farmers could increase their crop yield. In turn they could export the extra crops to England for more money. Once England got back on it’s feet, American farmers could not find any exports for their crops. As they continued to produce more than the American people could consume, the prices of agricultural goods dramatically dropped. By the 1930’s many farmers were in serious need of help, with heavy farm loans and mortgages hanging over their head’s. Nothing had been done to help the farmer’s during The Hoover Administration. So in 1933 as part of Roosevelt’s New Deal, the Secretary of Agriculture, Henry Wallace devised a plan to limit production and increase prices. Which came to be known as the Agricultural Adjustment Act of 1933, also known as the AAA. The AAA was established on May 12, 1933 it was the New Deal idea to assist farmers during the Great Depression. It was the first widespread effort to raise and stabilize farm prices and income. The law created and authorized the Agricultural Adjustment Administration to: Enter into voluntary agreements to pay farmers to reduce production of basic commodities ( cotton, wheat, corn, rice, tobacco, hogs, milk, etc..), to make advanced payments to farmers who stored crops on the farm, create marketing agreements between farmers and middlemen, and to levy processing taxes to pay for production adjustments and market development. Basically the AAA paid farmers to destroy their crops and livestock in return for cash. In 1933 alone cotton farmers were paid $100 million to plow over their cotton crop. Six million piglets were slaughtered by the government after they bought them from farmers. The meat was canned and given to people without jobs. In order for this new bill to work there needed to be money to pay the farmers, this money came from the companies that bought farm products in the form of taxes. While it seemed like a good idea to pay farmers to cut back on crops to lowering the surplus and boost the economy, The Supreme Court found the Act unconstitutional in 1936.
During the 1930s, an epidemic like no other started to boil across the Great Plains. The Dust Bowl was an unfortunate period in areas across the Midwest that greatly affected many territories. This event occurred due to the lack of anything present in the ground combining with the high winds caused a serious of blinding dust storms. Unfortunately, this led to much the ruining of farms causing farmers to lose much of their crops in addition to sums of money. The New Deal would ultimately be established to help those farmers that lost everything through different programs. One of the most significant parts of this event is that it forced the United States government to get involved in farming throughout the Midwest.
To conclude, FDR had came up with very good ideas that would help the farmers and the starvation of many innocent