Tuesday, December 10, 2019

What is new deal? How supreme court was attacking it, and how people still using it?

 
 After the period of the Great Depression, when the complete collapse of the stock market  began, the value of most shares fell sharply, businesses closed, banks failed, the value of money decreased and millions of people lost their jobs, in 1931 the new president Franklin Roosevelt built the way out of the economic crisis. He was determined to introduce effective changes known as New Deal.


     The New Deal was an effective, innovative program of economic recovery. Roosevelt declared a “Banking holiday” to end runs on the banks  and created new federal programs, each of which was aimed at regulating a certain program. For example, the AAA (Agricultural Adjustment Administration) stabilized farm prices and thus saved farms, The TVA (Tennessee Valley Authority) provided jobs and brought electricity to rural areas for the first time, The Congress of Industrial Organizations (CIO) organized large numbers of black workers into labor unions and so on. However not everybody approved of his reforms.  On "Black Monday," May 27, 1935, the Supreme Court struck down a basic part of Roosevelt's program of recovery and reform. It affirms that Congress had delegated excessive authority to the President. Six months later the Supreme court declared a New York state minimum wage law unconstitutional. Roosevelt tried to influence the court and introduce justices more sympathetic to his policy. His plan was to add one new member for every judge over 70 and to introduce a new pension program. The Supreme Court accused Roosevelt of attacking the separation of power, considering him dictator. Finally he won the battle and the Court upheld the Wagner Act and approved a Washington state minimum wage law, proving that its position to New Deal softened.
       All in all Under President Roosevelt the federal government took on many new responsibilities for the welfare of the people.
       Even though the New Deal didn’t lead to the full economic recovery, it made a big contribution to its development. The Great Depression ended only with the World War II, when millions of jobs in defense and war industries were created. From 1933 until 1941, President Roosevelt’s New Deal programs and policies created a new political coalition that included white working people, African Americans and left-wing intellectuals. Moreover, more women entered the workforce. This coalition broke apart over time, however, many New Deal programs such as Social Security, unemployment insurance, and federal agricultural subsidies are still up to date.

https://www.history.com/topics/great-depression/new-deal
https://www.fdrlibrary.org/great-depression-new-deal
https://www.thoughtco.com/new-deal-programs-still-in-effect-today-4154043
https://web.stanford.edu/class/e297c/poverty_prejudice/soc_sec/hgreat.htm
http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtid=2&psid=3450

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