How Did Roosevelt Revive The Economy

FRQ With the great depression beginning in late 1929, the United States was stunned by the economic turmoil that was occurring and the inevitable decline that was still to come. Franklin Roosevelt won the presidency and had the weight of the American people and their welfare on his shoulders. He decided to implement the New Deal that promised the American population a way out of their despair. Among other ways, the government headed by Roosevelt attempted to revive the economy through the creation things such as the Social Security Act, the Securities and Exchange Commission, and the Agricultural Adjustment Act. The Social Security Act was really a brilliant idea by Roosevelt and his so called “Brain Trust”. Roosevelt was essentially planning
for the future because if a situation similar to the Great Depression were to happen again the government would be somewhat prepared. The Social Security Act created unemployment insurance so that if an insane amount of people were to lose their jobs again there would be some money available for them to use. This Act made it a requirement that tax payers pay it so that the government could take care of workers when they grew old. People were willing to buy into the system because it meant that they would get something out of the system too once they retired. The Act didn’t only include the unemployed and the elderly but also those who were no longer capable of working, the reason Roosevelt did this was so that the nations GDP could still benefit because those people who received this money would spend it and put it back out into the economy which would help it a great deal.
The second part was solely implemented by Roosevelt to stop such ordeals as the 1929 Stock Market Crash from ever occurring again. The SEC or the Securities and Exchange Commission sets standards for disclosure by publicly traded corporations. They work to protect investors from practices that could be aiming to take their money instead of sell them a good or service. In a way it is to protect the little guys from the big international Corporations that make the big bucks and are relatively careless with their money. The Agricultural Adjustment Act was another brilliant plot by Roosevelt to help pull the nations out of this economic crisis. In a sense it was paying farmers not to grow anything in order to reduce the surplus of crops. The surplus of crops made them dirt cheap because people felt like they were growing in abundance and easy to obtain. By paying the farmers they were still able to make a living, they could let the soil settle as well as raise the price of crops which would make the crop industry more profitable down the line. They were attempting to lower the supply and raise the demand creating a tremendous want for crops which gave farmers the ability to raise prices on their goods and people would be willing to pay for them because they were desperate.
Thanks to Roosevelt and his ingenious plan to help revive this nation in a time of need the country was able to pull itself out of this economic disaster. Roosevelt implemented the Social Security Act, the SEC, and the AAA, among many others in attempts to not only pull the nation out of this economic despair but also take preventative measures from it happening again in the future. Thanks to Roosevelt and his plan the economy was once again able to be stabilized and continue to grow throughout the years.