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What was Roosevelt's New Deal? Detailed answer

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What was Roosevelt's New Deal?

By the beginning of the 1930s. The USA became the recognized economic center of the capitalist world, the personification of technological progress.

But the economic crisis of 1929-1933. convincingly demonstrated that the "unique" system of American private enterprise, which quite recently seemed almost a role model for the political and business elite of other Western countries, was on the verge of economic and moral bankruptcy.

In the country, industrial production fell by almost 1929% from 1932 to 50, and about 13 million people lost their jobs. Social problems have become more acute. The depth of the crisis and its worldwide scale required the adoption of emergency and large-scale measures.

During these years, the Republican Party was in power in the United States. President Herbert Hoover advocated the principles of individualism and liberalism, which implied the non-interference of the state in business affairs.

But the crisis led to the bankruptcy of the ideology of "solid individualism." This allowed the Democrats led by Franklin Delano Roosevelt to come to power during the unfolding election campaign of 1932. The state of emergency called for extraordinary measures. President F. Roosevelt proposed them in the form of the New Deal. The name "new course" became the essence of the policy, which was filled with real content only during the so-called "100 days" period of reforms in March-June 1933, when the new president pushed a whole package of laws through Congress.

The essence of these laws was the incredible scale of state regulation of the economy for America and the capitalist world.

The president's first measures were stabilization of the banking system and organization of assistance to the unemployed, the creation of appropriate government agencies to provide assistance on a federal scale, in states and municipalities. For these purposes, the Emergency Federal Relief Organization was created, which appropriated $500 million for distribution to those in need. An important measure was the implementation of a program called the Civilian Reserve Corps. As part of this program, the unemployed, especially young people, were placed in special camps where they received shelter, food, and clothing. They were engaged in public works: landscaping parks, building roads, bridges, etc.

Among the activities carried out during the first phase of the New Deal were laws regulating agricultural relations, aimed at increasing farmers' incomes by increasing the prices of their products.

The central link in the legislation of the first 100 days was associated with the regulation of industrial relations. The fundamentals of the policy of the new administration were reflected in the Industrial Recovery Act (NIRA), adopted in the summer of 1933. It consisted of three parts. The first part provided for the introduction of "codes of fair competition". It was a forced restriction of competition. At the same time, prices and production volumes were determined taking into account the size of the market, which made it possible to sell the manufactured products. The balance between the volume of production and the volume of the consumer market has become the starting point for the industry to emerge from the crisis.

The second section of the NIRA regulated relations between entrepreneurs and workers. One of the articles of the law provided for the recognition of trade unions, the right of workers to negotiate and conclude collective agreements with employers on conditions of employment and labor. In 1935, based on the articles of the NIRA, the Labor Relations Act was adopted, which recognized the principles of collective bargaining practice as a national policy of the United States and a mechanism for regulating the conflicting interests of workers and entrepreneurs.

The third part of anti-crisis measures provided for large allocations for public works and the construction of state industrial, military and other facilities.

F. Roosevelt's proposals after overcoming the crisis caused a wave of protests from entrepreneurs. The big press also took up arms against F. Roosevelt. However, in 1936, F. Roosevelt was again supported by voters, he assumed the presidency for a new term.

Author: Irina Tkachenko

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