On October 29, 1929 marks the official opening of the Great Depression. During 1933, the unemployment rate in United State reached 25%; it was not until the second quarter of 1933 where the US economy started to reclaim. President Franklin D. Roosevelt formed the foundation of the New Deal within the First Hundred Days when he came into power. To determine the New Deal Program’s role during the Great Depression, the sources used in this investigation include: The Great Depression and the New Deal by Robert F. Himmelberg, and Depression Decade: From New Era through New Deal, 1929-1941 by Broadus Mitchell. There will also be a discussion involving World War II’s role in ending the economic crisis. A journal article “The Reality of the Wartime Economy” by Horwitz, Steven and McPhillips, Michael J. will help disperse the theories behind Second World War.
As a response to the calamity of the Great Depression, President Roosevelt sets forward the New Deal, a series of federal plans that began in 1933. It includes four primary goals: economic revival, job creation, public works investments and civic uplift. The First and Second New Deal have tremendous force during the Great Depression and extend its influences even up until the mod epoch.
Though unorthodox, the First New Deal had generated a degree of economic restoration back to the United States thus relieving the public need. There were various acts in help make the First New Deal to become a success, including National Industrial Recovery Act (NIRA) and Emergency Banking Relief Act. The former measure was a key number in the New Deal’s program, which Roosevelt himself called it "'the most important and far-reaching legislation ever enacted by the American Congress.'". The NIRA guaranteed workers’ privileges and standards: such as the union rights, minimum wages and maximum work hours. National Recovery Administration allowed business flourished and "provoked unregulated production, at low wages … Prices and profits rose faster than wages." Nevertheless, when the agency began to waver: the unemployment rate increased, productions ceased and the workers protested with their rights.
During the famous First Hundred Days, the Emergency Banking Act was the initial to come out of President Roosevelt’s program. This measure empowered the government to close banks that were closed to collapse and reopened when readied. With this new act, the general public was no longer afraid and regained confidence in the banking system. "The tendency to hoard cash diminished rapidly, panicky withdrawals ended, money returned to checking and savings accounts, and the banking system stabilized."
Despite the economic recovery caused by the First New Deal, the Great Depression continued. So in 1935, Roosevelt launched the Second New Deal, this time more aggressive than ever. The Second New Deal included Works Progress Administration (WPA) and National Labor Relations Act or Wagner Act. Most of the measures released...