take certain actions. He did however, enact a couple tariffs, making the economic situation worse. Shanty-towns called “Hoovervilles” popped up everywhere and millions were unemployed. By 1932, unemployment was at 25%. The situation was dire. Unlike Hoover, Roosevelt, recognized the situation in America as catastrophic. During his second Inaugural Address, Roosevelt said, “In this nation I see tens of millions of its citizens–a substantial part of its whole population–who at this very moment are denied the greater part of what the very lowest standards of today call the necessities of life.” Franklin Roosevelt, a Democrat, was elected by a landslide in 1932 on the platform of a New Deal. Once in office, immediately, Roosevelt closed the banks, declaring a national bank holiday. He then worked on getting the Emergency Banking Act pushed through Congress. The night before a few select banks were set to reopen, Roosevelt started his infamous Fireside Chats. During these chats, he kept the people informed on what was happening within the government, he reassured the people, and restored the people’s trust in banking institutions and the government itself. During Roosevelt’s, “First Hundred Days,” he concentrated on providing long overdue and much needed help to the American public.
Several agencies were started to provide employment opportunities in severe economically disadvantaged areas, including the Tennessee Valley Authority, which built hydroelectric dams in the Tennessee River and the Civilian Conservation Corps worked on reforestation and conservation. There were two major programs started to stabilize the economy. The Agricultural Adjustment Administration raised agricultural prices by monetary incentives offered to farmers who voluntarily limited production. The National Recovery Administration suspended antitrust laws making it possible for businesses to create rules for governing prices, production levels, and conditions of employment. In return, businesses allowed workers to unionize, offered fair wages, acceptable working hours, and vanquished child labor. Unfortunately, the New Deal failed to provide most benefits to African Americans and women. Roosevelt, worried that his New Deal would lose credibility with the South if he pushed too hard for black equality. Although, Roosevelt appointed several women to important positions in his administration, the New Deal was written with the expectation that women would serve as homemakers. By 1940, the government been transformed, voter turnout had increased, the economy was turning around, and people saw the government as an ally; a reliable
entity .