Fdr's Contribution To The Great Depression

FDR was a leader for his time. He deserves credit for navigating the U.S. through the depths of the Great Depression of the 1930’s. According to FDR,what he realized was that the Government needed to be a positive actor in stimulating opportunities where there were none. His actions brought relief to the country and helped reformed the U.S. economic system for decades to come. He did this against the reflexive instincts of the opposition conservatives. The traditional view of economic cycles was that ‘boom and bust’ were simply realities that needed to be accepted. The famous exchange when told by the conservatives that the economy “will work itself out in the long run”, the famous reply was, “People don’t eat in the long run, they eat every day.”.
FDR “experimented” extensively with the American economy.
His administration was responsible for the Glass-Steagall Act that forced banks to divest, or separate, from securities operations, commercial banking and investment management (note the Glass-Steagall Act was repealed in 1999 and was a major cause for the major recession of 2008 and also was one of the main issues that contributed to the Great Depression). FDR implemented the FDIC to re-instill confidence in the banks. He moved the U.S. of the Gold Standard to help stop price deflation.
He put people back to work. The WPA employed about 8.5 million Americans over its seven-year history. The Rural Electrification Program provided loans to local cooperatives that took electricity to 90 percent of rural homes by 1939. The TVA (Tennessee Valley Authority) brought jobs and electric power to seven states. The very popular CCC addressed the problem of jobless young men. This work gave them pride in themselves and their country. Their projects changed the landscape of America over duration of the program.
The Social Security Act of 1935 assured retirees a pension and benefits for the unemployed and is still with us
today.
Ironically, FDR, and many of his supporters, wanted to include healthcare in the Social Security Act of 1935. This was supported by many groups including, AFL-CIO, the American Nurses Association, National Association of Social Workers and others. It’s major opponent was the AMA concerned about physician compensation. It was left out of the act due to the risk of losing support for it in it’s entirety.
In 1933, unemployment rate ~25 percent. By 1940 it was down to 10%. During FDR’s first term, GDP grew at an annual rate of about 9 percent. The GDP grew about 11 percent annually after 1937-38.
The Great Depression did not end because conservatives worked to slash spending to balance the budget. It ended due to an enormous fiscal stimulus. In other words, government borrowing, taxing and spending. FDR’s programs and the financing of World War II led the U.S. out of the Depression. The debt rose from $43 billion in 1940 to $258.7 billion in 1945. In 1944, ` Unemployment fell to 1.2 percent. When compared with today the national debt was 121% of GDP vs 95% today. And, the economy was healthy.
FDR’s call for, “bold, persistent experimentation” was appreciated by Americans. He was elected for an unprecedented four terms.