How Government Intervention Affects People and the Economy
New Deal When Franklin Delano Roosevelt was inaugurated president, he promised a “”New Deal”” for the American people who had been suffering under the Great Depression.“It is common sense,” Roosevelt said, “to take a method and try it.If it fails, admit it frankly and try another, but above all, try something.
” The relief, recovery, and reform programs of the “New Deal” were Roosevelt’s attempt to try something. Some of the programs were unsuccessful, but others are still in place today.
Examining the “New Deal” programs can help one understand how government intervention affects people and the economy. Franklin Delano Roosevelt has tons of ideas that he thought would benefit everyone and possibly take us out of the depression. Not everyone agreed with his ideas and supported him but his ideas did help extremely. Roosevelt made the federal deposit insurance corporation and civil works administration for the first new deal and then the social security act and the Fair labor standards act in the second new deal that was later to come.
Although there were many more acts and things that he did to get American back to normal, these four I believe made a huge change and are still used today in our everyday life. The federal deposit insurance corporation was basically insurance for banks up to 100,000 dollars! During the depression banks were starting to close down because they were loaning money out before the depression that they did really have, so when everything went wrong and everyone decided to get their money out of the bank the banks didn’t have all the money that the people believed was rightfully theirs!
Roosevelt made sure that wouldn’t happen again by giving the banks insurance. Another part of the new deal was the civil works administration, which employed thousands of public workers. Now that the depression was happening tons of people didn’t have jobs, no one had money and no one knew what to do next. Roosevelt decided to give these people jobs not only to benefit those people it can also benefit the community! That was only part one of the new deal. The social security act was thought about and passed and is still used today!
Basically gave funds to disabled workers, elderly, widows and children. Which helped out a lot for the people that just didn’t have it. Last but not lease there was and the Fair labor standards act. Which set minimum wage at 40 cents an hour and a minimum amount of work hours, which was 40 hours a week, also banned child labor. All of these deals helped American a ton and still do today. Everything started to get on track after a little. Without Roosevelt’s ideas America would be a total different place today! He made changes that we needed and still do.