1930's

During the 1930's American citizens witnessed a

breakdown of the Democratic and free enterprise

way of life. The government saw that the

free enterprise system was failing. The New Deal

increased the government's regulation and intervention

and the economic system, thus temporarily

abandoning the capitalism system and turning toward

socialism to find the answer. The answer...

the New Deal.

Socialism is usually thought of as a form

of government that advocates public ownership

and public control of wealth (Britannica Jr.

Encyclopedia 1980, p.231). In other words,

a socialistic government wants the wealth of

the nation spread out in such a way that the

money is equally distributed among the country's

citizens. Socialism is in favor

of tearing down the class structure and forming

a classless society. In this way, it was born out

of Marxism, whose founder was Karl Marx.

Leaders of the Communist Party of the Soviet

Union said that their country used socialism

as a major step towards "building communism".

However most socialist political parties in

democratic countries of the West rejected the

Communist idea of socialism. Socialists prefer

the government ownership of industries that are

vital to a country's welfare. These include the

coal, oil, iron, and steel industries. The

basic idea favored by all Socialists is the

public ownership and use of property in order

to extend the benefits of wealth more equally.

Many economic, political, and social factor lead

up to the New Deal. When staggering statistics

such as 25% unemployment, and the fact that 20%

of NYC school children were underwieght and

malnourished (World Book, p.200) hit the

White House, the government knew something had

to be done. With the economy at on all time

low people wanted change, Roosevelt's legislative

program represented a new way of government for

capitalism in America. Roosevelt first used the

term "new deal" when he accepted the

Democratic presidential

nomination in 1932. He

said "I pledge you, I pledge myself, to a new deal

for the American people." When Roosevelt became

President on March 4, 1933, business was at

a standstill and a feeling of panic hit the

nation (World Book, Vol.14, p.200). Roosevelt

responded with a controversial policy that rocked

the nation and what our nation stood for.

Roosevelt's New Deal programs aimed at three R's-

relief, recovery, and reform. The government

established short range goals that included

relief and immediate recovery, especially in the

first two years. They then set up long-range

goals which included permanent recovery and

reform of current abuses particularly

those that

produced the boom-or-bust catastrophe

(World Book, Vol.14, p.748).

The Congress authorized the National Recovery

Administration (NRA) in a daring attempt

to simulate a nationwide comeback. This scheme

...