Emergency Bank Act example essay topic

Franklin Roosevelt's "optimism and activism that helped restore the badly shaken confidence of the nation" (pg. 467 Out of Many), was addressed in the New Deal, developed to bring about reform to the American standard of living and its low economy. It did not only make an impact during the Great Depression. Although, many of the problems addressed in the New Deal might have been solved, those with the long lasting effect provide enough evidence to illustrate how great a success the role of the New Deal played out in America's history to make it what it is today. Although, the growth of business was booming and consumption was extremely high during the 1920's employers failed to equally distribute the benefits to its industrial workers who got the short end of the stick and did not see any profit from productivity.

Since there was no law at the time established on how many hours a person was to work and get paid, employers would overwork and underpay the laborers. This became a major problem because it brought about high unemployment rates, which for laborers, the shortage of jobs meant strong competition among each other for finding and keeping a job, and low wages, which brought down consumption. Several of the policies created to specifically help the jobless during that time were, Emergency Relief Appropriations Act (1935) run by the Public Works Administration (PWA), designed for the construction of public building, roads, dams and other projects. Federal Project No. 1, also run by PWA, gave jobs to writers, musicians, and artist".

The idea was to provide jobs and thus, stimulate the economy through increased consumer spending". (pg 469 Out of Many) The most benefited policies created through the New Deal for employment, one, the Social Security Act (1935), provides "old-aged pensions and unemployment insurance. A payroll tax on workers and their employers were created a fund from which retirees received monthly pensions after age sixty-five". (pg 470 Out of Many) Second, National Labor Relations Act (1935), also known as the Wagner Act, gave Americans the right to form a union and bargain with their employers for better pay and working conditions. Third, and the most important one of all Fair Labor Standard Act (1938), it established a minimum wage and maximum hours for an employee. Roosevelt's first order of business as President was to put a halt on the banking system.

Congress passed the Emergency Bank Act, which gave him leeway to all banking transactions and foreign exchange. Here is where he saw a major problem with the Banks, seeing as they were "revealed to be involved in stock manipulation, illegal loans and tax evasion" (pg 467 Out of Many), causing many banks to go bankrupt and leaving customers with no money in their accounts. Several of the banks saved from bankruptcy through the Emergency Bank Act were reopened but "only under licenses from the Treasury Dept. and provided for greater federal authority in managing failed banks... by mid March 90% of the banks were opened" (pg 467 Out of Many). Banks started to regain the trust of the people, which made them feel more at ease to deposit money into the system. The Federal Deposit Insurance Corporation (FDIC), which insures deposits in banks just incase the bank were to fail, and the costumer would be left with nothing in their pocket. This is a policy that still remains present, and is also another prime example of a long term effect illustrating the New Deals success.

Industrialization also helped in destroying natural resources and damaged the environment. Refiners and steel mills spewed oil into rivers and smoke into the atmosphere. In 1933 the Civilian Conservation Corps was instituted to help in conservation of water, timber, and soil. This policy was not as effective as first planned out, since it was abolished in 1942, but just like all the other policies with little effect it provided jobs and an opportunity for the working man to get back out in the work field and get a bit of self worth, knowing they are out there trying to support their family with whatever little given to them. The New Deal did indeed neglect to challenge big business which is mainly why many of the policies created were not as effective and did not help end the Industrialization's greatest problem, the Great Depression, which continued until the United States entry into World War II, which helped to stimulate the economy. But in the short-run the New Deal did alleviate despair and brought about hope to the American people.

However, the long-term effects of the Deal do make up for minimal benefits made during the Great Depression because of their profound importance in today's society.