The New Deal: Reform, Relief, and Recovery
"Many historians have boiled the goals of the New Deal down to three concepts: Reform, Relief, and Recovery. Watch the documentary clips and decide which of the three the New Deal emphasized.”
During the Great Depression, the country was facing the most severe economic turmoil it had ever seen. This was a worldwide issue as well. To make matters worse, there was no safety net in the country's economic system. Once city and state governments ran out of money, services like the police stopped. Much like the business cycle, the "boom and bust" of the free market system, shown by the country's tendency to have an economic panic every twenty or so, was volatile.
By 1932, the country was very much still in the Great Depression. In response, Roosevelt decided to have the government exercise powers it had never done before. Through the New Deal, Congress essentially let him take "wartime" powers, and he was able to prop up multiple industries. Though critics did feel like he was taking too much advantage of the situation, it is hard to deny that the New Deal alleviated the country of some of its economic problems.
Though the New Deal can be categorized into three concepts, relief was most emphasized by the deal. The other "R's", reform and recovery, played a role as well, but relief had an influence on almost every measure from the New Deal. Much of the first New Deal was centered on finding short term solutions. This was to ensure that the country could slow down its economic collapse. After all, the very first bill passed under the New Deal was the Emergency Banking Relief Act. By setting up a "banking holiday", Roosevelt prevented the massive withdrawal of money from the banks. This organization allowed for the country to start getting its foothold back. By taking the United States' economy off the gold standard and controlling inflation by buying gold at higher prices, Roosevelt implemented a combination of reform and relief to solve the situation. However, the reform, taking the U.S. off the gold standard, was centered around the idea of relieving the immediate situation: repairing the reputation of the U.S. dollar. One of the many other acts that demonstrated the government's role in providing relief was the Economy Act. It essentially said that government was responsible for managing the funds of the country. The Agricultural Adjustment Act specifically provided relief for farmers. This was especially important as food was still an important necessity during the Depression, and farmers needed to feel they could make a profit. The government paid farmers to limit their acreage in order control supply and demand. The Federal Emergency Relief Act was perhaps the most iconic act that provided immediate relief to states and their relief agencies.
Bills like the Social Security Act which the New Deal is known for creating did have aspects of relief to them. However, the Second New Deal's main goal was to solve the deeper problems of the depression and eventually helped the country return to its status as a superpower. As a result, they were centered around reform and recovery. All this would not have been possible though without the immediate relief provided by many of the first measures of the New Deal, since they slowed down the economic decline of the country and gave it the chance to "get back on its feet. "
Though the New Deal can be categorized into three concepts, relief was most emphasized by the deal. The other "R's", reform and recovery, played a role as well, but relief had an influence on almost every measure from the New Deal. Much of the first New Deal was centered on finding short term solutions. This was to ensure that the country could slow down its economic collapse. After all, the very first bill passed under the New Deal was the Emergency Banking Relief Act. By setting up a "banking holiday", Roosevelt prevented the massive withdrawal of money from the banks. This organization allowed for the country to start getting its foothold back. By taking the United States' economy off the gold standard and controlling inflation by buying gold at higher prices, Roosevelt implemented a combination of reform and relief to solve the situation. However, the reform, taking the U.S. off the gold standard, was centered around the idea of relieving the immediate situation: repairing the reputation of the U.S. dollar. One of the many other acts that demonstrated the government's role in providing relief was the Economy Act. It essentially said that government was responsible for managing the funds of the country. The Agricultural Adjustment Act specifically provided relief for farmers. This was especially important as food was still an important necessity during the Depression, and farmers needed to feel they could make a profit. The government paid farmers to limit their acreage in order control supply and demand. The Federal Emergency Relief Act was perhaps the most iconic act that provided immediate relief to states and their relief agencies.
Bills like the Social Security Act which the New Deal is known for creating did have aspects of relief to them. However, the Second New Deal's main goal was to solve the deeper problems of the depression and eventually helped the country return to its status as a superpower. As a result, they were centered around reform and recovery. All this would not have been possible though without the immediate relief provided by many of the first measures of the New Deal, since they slowed down the economic decline of the country and gave it the chance to "get back on its feet. "
Sources:
In Class Documentary
The New Deal – “Alphabetocracy” (Worksheet in Class)
This is a pretty good post. I think it's important to highlight that relief was in fact necessary before recovery and reform could happen in the Second New Deal, which is an argument you make. Furthermore, I wonder if you could also say that recovery or reform wouldn't have paved way for the other two R's; it was only relief alone that was the first step.
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