The New Deal

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The New Deal In the early 1930's in the midst of the largest economic crisis our country has ever seen newly elected Democratic President Franklin D. Roosevelt was faced with the task of figuring out a way to pull our country out of the terrible depression that seemed to have no end. To rally the country and try and jump start the economy and the people from the apparent standstill that gripped the nation President Roosevelt implemented a plan that became known as the ‘New Deal’. The New Deal was America’s introduction to government entitlement programs. The era of President Franklin Roosevelt and the New Deal sparked change in the country that has left lasting effects on our economic, political and social behavior. The New Deal was not purely economically rooted. Roosevelt rather than basing his strategies on the rules of economics he implemented projects based on opportunity and practicality. The overall goal of the New Deal was to introduce America to a larger more expansive federal government which took control and provide services to assist the country out of the depression. The New Deal began with several programs some successful other not so successful, known as the “Alphabetical Agencies”. These programs and administrations were spread out over the first two terms of President Roosevelt which are seen as the ‘first’ and ‘second’ New Deals. The first New Deal began when Roosevelt entered office in 1932. He opened his New Deal with the Federal Deposit Insurance Corporation(FDIC), which is still in use today. At its inception, the FDIC insured bank saving up to $5,000 and there were also very severe regulations put upon the sale of securities on the stock exchan... ... middle of paper ... ...s Act, the Social Security Act was also enacted at this time two mainstays of our government even today. The political implications are along party lines. In the 1936 election, because of the New Deal certain groups became strongly aligned with the parties. The Democratic party became the party of labor groups, farmers, immigrants and urban ethnic groups from eastern Europe, African Americans and the South. The Republican Party found its support in the businesses and middle and upper class people in small towns and suburbs. Many of these political alliances continue today as a result of the New Deal. The New Deal also gave us our first and last President to serve 3 terms. FDR won three consecutive Presidency terms on the momentum of the New Deal and the ensuing war. The New Deal although seen as a short term failure by many has turned out to be a long time success.

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