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In many ways, the United States' Government intervenes in our economy.In this type of society, these interventions can regulate certain industries but can sometimes become unconstitutional.For instance, the court case Schecter v United States, which took place in 15, showed that the government abused its power when it tried to inform business owners how to run their business.The Supreme Court ruled that it was unconstitutional to do this.The main problem with this case resulted from Franklin Delano Roosevelt's New Deal program.
After getting elected President in 1, Roosevelt's proposition to get the nation back into an economic balance after the wretched Stock Market crash was this New Deal idea.FDR took the initiative to undertake this project, rather than allowing congress and the rest of the government to help.This program was taking place all around the United States, ranging from Tennessee to Oregon to Texas.Roosevelt developed the "100 Day Plan" which was to reconstruct the economy after the market crash ("The Great" 1).This plan was to give direct relief to the poor and to show the public that he was serious about this and was not using it just for a political advantage.In the future, as the project progressed, one of the main goals was land reclamation to prevent deforestation and to promote hydropower."President Franklin Roosevelts plan to get the U.S. out of the Great Depression, known as the New Deal, can be grouped into the so-called three Rs recovery, relief, and reform" ("Recovery" 1). The recovery part referred to the recovery of industry through crops and business cooperation.This was basically an end to America's policy of laissez faire and a start of new things to come in America."The previous government policies of laissez faire (leaving things as they are or simply leaving things to market forces) were replaced by much more government control and intervention" ("Roosevelt's" 1).The New Deal was based to boost the economy.While it didn't turn the economy around, it did stop the recession."When President Roosevelt took office in 1, he feverishly created program after program to give relief, create jobs, and stimulate economic recovery for the U.S. These programs were called 'alphabet soup' as well as the 'New Deal'" ("Successes" 1).Roosevelt wanted to give the Americans something to look forward to as they try to get out of their economic slump.
In order for Roosevelt's plan to work, he developed more than thirty organizations to help.He used these organizations to employ more Americans and to get them upbeat in reviving the economy.One organization he created was the Tennessee Valley Authority (TVA).This was a 1 experiment in regional development ("FDR's" 1).This program was used to build hydro-dams.The organization had to use coal power to create and run these dams.This caused an unintended consequence in acid rain, pollution and landslides.This was a good idea and helped the land get fertilized and maintain a constant stream of water, but it also caused a monumental environmental disaster.The TVA tried to give jobs to the poor and to improve this terrible region, but the unintended consequence made this not really work.Another organization he developed was the Civil Works Administration (CWA).This group promoted industry and cheap labor by using immigrants from Mexico ("FDR's" 1).They would pay them minimal amount of money to do the job of American citizens so the Government could save money.In the long run, the unintended consequence was that the citizens were angry because of having their jobs taken away from them for people who wouldn't need that much money."This public work program gave the unemployed jobs building or repairing roads, parks, airports, etc" ("Successes" 1).One more organization that the New Deal included was the Agricultural Adjustment Agency (AAA).This group would go out and buy a section of the farmer's land and make sure that that section is not used for crops.FDR did this so there wasn't anymore overproducing and not as much competition to outsell the neighboring farmer ("FDR's" 1).An unintended consequence of this was some underproducing of certain crops and some mad farmers.One last organization that developed because of the New Deal was the Federal Deposit Insurance Corporation (FDIC).When this was discovered in the early 10's, this reassured Americans' faith and trust in banks ("FDR's" 1).At that time, your money was insured up to $5,000.Today, your money is insured up to $100,000.Clearly can see an economic increase in the 70-year difference.This organization opened the door to more banks and more economic-based groups.All of the unintended consequences that were mentioned were all negative.Simply, the reason behind this was because the idea of the organizations were for the better, but as time progressed, whether it was pollution or angry farmers, something had to give and begin to decrease in popularity.
Other than the organizations from the New Deal, FDR made some other additions to help the economy of the United States at that time.One adjustment he made was the 0th Amendment, which was called "Lame Duck."This called for shortening of the periods between new members of the Congress, as well as the President and Vice-President ("Grolier" 1).Roosevelt also was in office for the Economy Act, which called for eliminating some of the benefits for the World War I veterans.The main reason for this was to save money, which the country desperately needed at that time.Roosevelt was also in office for the 1st Amendment, which appealed the 18th Amendment about prohibition of alcohol.Roosevelt presented this to the nation as a good idea because if people wanted alcohol, they would have to pay the money for it, plus the heavy tax that was put on it, by Roosevelt.These are some other changes that Roosevelt made in addition to the New Deal that improves the economy at that time.
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The New Deal was presented by Roosevelt and approved by the nation.Before FDR, the economy was struggling and the public was up for anything that could remotely help out the economy and their well-being.The lasting effect from this was major organizations founded, citizens' trust in banks and the government, and most importantly, getting the economy back to where it was before the Great Depression.If I were a politician at that time, I would have to support this very democratic idea.The government needs to intervene in the economy of the United States, in order to keep a stable economic state.Without government intervention, whether it be 100% control or minimal help, this country would not be where it is at today, being a superpower amongst the world.
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