FDR's The New Economy: Stabilizing the Economy

Topics: Franklin D. Roosevelt, New Deal, National Industrial Recovery Act Pages: 10 (2803 words) Published: January 30, 2013
Roosevelt and the New Deal
Declining appeal of Hoover to the public led to the election of Franklin D. Roosevelt in 1932. Roosevelt’s extensive program to restore the economy made up the New Deal. Overall, these legislative measures dealt with assisting people financially, reform other systems and institutions, and recover the prosperity before the Depression. While not all were entirely successful, the various programs all contributed to the eventual, though gradual, recovery of the economy.

Age of the Radio: Radio reached its climax in the 1930s when millions of Americans listened to network news commentators, musical programs, and comedy shows. Also, the president and business companies utilized this resource to attract people, sell products, or to promote a political issue.

Fireside Chats: During the first hundred days of Franklin Roosevelt’s first term in office Roosevelt held informal radio conversations every so often that were dubbed "fireside chats." The topic discussed was the economy that had been plagued by the depression, and the means that were going to be taken in order to revive it.

Roosevelt, Eleanor: Eleanor Roosevelt is portrayed as a U.S. humanitarian and displayed her politics and social issues as a wife of Franklin Delano Roosevelt. She mostly fought for women and minority groups. Many of her books include the Universal Declaration of Human Rights and This Is My Story and On My Own.

Perkins, Frances, Secretary of Labor: Being the first woman to be appointed to a Cabinet position (1933-1945), Perkins was also a social reformer. During her term, Perkins strengthened the Department of Labor, pushed for a limit on employment age, and developed the CCC, the Social Security Act, and Fair Labor Standards Act (1938).

Brain Trust: The term brain trust refers to the individual people outside the Franklin Roosevelt appointed presidential cabinet that helped in the decision making process of the president. The men most known are: Raymond Moley, Rexford Tugwell, and Adolph A. Berle. Moley was conservative while Tugwell and Berle were interested in reform.

Keynesian economics: Keynes looked at the economy in a wider sense: macroeconomics. He theorized that the relationship between supply and demand was critical: when the demand doesn’t meet expectations there is unemployment and depression while if demand surpasses production inflation occurs. The solution is to have the government spend while maintaining low taxes and when there is demand that a tight budget should be created.

Pump-priming: Supported by Roosevelt, this theory pumped governmental money to the poor so they could buy products. This would increase sales and cause a demand for that product. This demand in turn will produce jobs for the poor. Now that the poor have jobs they have the necessary income to buy products and this cycle occurs again.

Deficit spending: The manner in which the government spends more than it receives is refereed to as deficit spending. This is done to stimulate the economy through the rise in government costs or due to the decrease of taxation. On the other hand, deficit spending is also seen as inefficiency of government spending.

Monetary policy, fiscal policy: The policy gave government control of the money supply and created a high economic rate to stabilized prices and wages. Fiscal policy is regulation of trade between domestic or foreign goods. Import duties are still possible, but fiscal policy makes an exception because its purpose is to raise revenue.

New Deal: In light of the Great Depression, FDR proposed a series of relief and emergency measures known collectively as the New Deal. Through these measures, FDR intended to revive the lost prosperity of the economy by reforming other institutions and programs, by relieving the plight of the people, and thus recover the nation’s wealth.

Hundred Days: Measures taken during Roosevelt’s first days in office, from Mar 9 to Jun 16, enabled FDR...
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