The New Deal

The New Deal


        During the 1930's, America witnessed a breakdown of the Democratic and

free enterprise system as the US fell into the worst depression in history. The

economic depression that beset the United States and other countries was unique

in its severity and its consequences.  At the depth of the depression, in 1933,

one American worker in every four was out of a job. The great industrial slump

continued throughout the 1930's, shaking the foundations of Western capitalism.

        The New Deal describes the program of US president Franklin D. Roosevelt

from 1933 to 1939  of relief, recovery, and reform. These new policies aimed to

solve the economic problems created by the depression of the 1930's. When

Roosevelt was nominated, he said, "I pledge you, I pledge myself, to a new deal

for the American people." The New Deal included federal action of unprecedented

scope to stimulate industrial recovery, assist victims of the Depression,

guarantee minimum living standards, and prevent future economic crises. Many

economic, political, and social factors lead up to the New Deal.  Staggering

statistics, like a 25% unemployment rate, and the fact that 20% of NYC school

children were under weight and malnourished, made it clear immediate action was

necessary.

          In the first two years, the New Deal was concerned mainly with relief,

setting up shelters and soup kitchens to feed the millions of unemployed.

However as time progressed, the focus  shifted towards recovery. In order to

accomplish this monumental task, several agencies were created. The National

Recovery Administration (NRA) was the keystone of the early new deal program

launched by Roosevelt. It was created in June 1933 under the terms of the

National Industrial Recovery Act. The NRA permitted businesses to draft "codes

of fair competition," with presidential approval, that regulated prices, wages,

working conditions, and credit terms. Businesses that complied with the codes

were exempted from antitrust laws, and workers were given the right to organize

unions and bargain collectively.  After that, the government set up long-range

goals which included permanent recovery, and a reform of current abuses.

Particularly those that produced the boom-or-bust catastrophe.  The NRA gave the

President power to regulate interstate commerce.  This power was originally

given to Congress.  While the NRA was effective, it was bringing America closer

to socialism by giving the President unconstitutional powers. In May 1935 the

US Supreme Court, in Schechter Poultry Corporation V. United States,

unanimously declared the NRA unconstitutional on the grounds that the code-

drafting process was unconstitutional.

        Another New Deal  measure under Title II of the National Industrial

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