Need help with some history/economics homework... Roosevelt and the New Deal?

Question

What were the three goals of the New Deal and what actions were taken by Roosevelt to attain these goals?

Answer 1

Roosevelt's New Deal programs aimed at three R's- relief, recovery, and reform. The government established short range goals that included relief and immediate recovery, especially in the first two years. They then set up long-range goals which included permanent recovery and reform of current abuses particuarly those that produced the boom-or-bust catastropheThe Depression was a major devastating factor in America. Something different was needed to pull Ameica out of this economic disaster. The New Deal brought America one step closer towards socialism. This step was temporilary needed to pull the vast members of poor people out of the Depression and back on their feet.

Answer 2

The New Deal was aimed at:

1.  Halting the financial crisis and restoring the banking system from near collapse.

2.  Bringing the economy back to full employment.

3.  Establishing safeguards against future economic crises.

With regard to 1) -  The FDR administration declared a series of bank holidays while he pushed deposit insurance legislation through Congress.  This ensured depositors that their money was insured in the event of a bank failure, which helped prevent further bank runs (a self-fulfilling prophecy).  There were also reserve requirements and discount lending introduced by the Federal Reserve to make banks stronger and provide emergency lending in times of trouble.

As for 2)  -  The first attempt to bring the economy back was the NIRA (National Industrial Recovery Act) which sought to prop up jobs and businesses by regulating wages and prices.  It failed miserably and was eventually thrown out by the Supreme Court.  The second part of the recovery plan included public works, especially the WPA or Works Progress Administration.  Unemployed workers were hired en masse to build highways, bridges, museums, and reconstruct damaged city neighborhoods.  This was quite successful - by the end of 1936 under WPA programs, unemployment was falling rapidly and the depression seemed to be easing.  (Unfortunately in 1937 many of the programs were cut back dramatically, sparking another panic and return to depression)

3) - Economic Stability.  By providing unemployment insurance, Social Security, and using monetary policy, the government could ensure that when a recession hit, people were not just thrown out in the cold.  The unemployed and elderly would still have some source of modest income to buy necessities, and this income would be spent, which would keep the economy from dipping too low.  This continues to the current day - remember the stimulus rebates given out this year to try and avoid a recession?  They probably weren't enough but they certainly helped some...

There is also a fourth goal that was improved upon int he 1930s.  More programs to assist the hungry and the homeless.  And especially the Wagner Act, which established the right to organize labor unions and bargain collectively for better hours and wages.  This fourth goal - a stronger social contract - was not explicitly part of the New Deal, but in many ways it was the most important one in building the postwar middle class and the narrower gap between rich and poor that existed from the late 1930s until the 1980s.