11/17/2014
FDR

Long-term effects:
Relief; Recovery;

Social security

Infrastructure – basic physical building blocks of a functional society
The government began investing in the nations infrastructure as a part of FDR’s plans. Up until now railroads etc. had only been made by private companies. The philosophy of the government after the new deal is either jobs are done by the state on a local level or private. However we see the government getting involved with the infrastructure before in WWI, but the difference between that is it was during wartime therefore making it a more temporary value. When FDR implements it, he does it in a way to incorporate it into the philosophy of the government.

Federal subsidies & agriculture
The government began Paying people to pave over roads and kill livestock and destroy crops.

Unions regain strength

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Short-term effects:
Reform;

Getting people work
How does one get people back to work when 13mil+ are unemployed?
They had to begin printing more money, which leads to deficits spending. This goes exactly against the idea of a balanced budget. However this was the only viable option to get the economy running again. The value of money began going down and prices went up, but at least it was circulating again.

Stabilizing banks

Helping the farmers
This began as an immediate effort, and eventually became long-term

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ECONOMY
When prices begin going down, what happens?
This can be good, however mainly only for the consumer. Production will begin to go down. This is what’s bad though, because the moment cash stops circulating, things stop being made, and jobs are lost.

FDR himself isn’t personally against a balanced budget. In fact, he was quite for it. He even tried to go back to that I ’38, but the country wasn’t ready and was sent into a mini-recession. The government must however do deficit spending when the time is right.

When you create huge projects that are designed to give people work you’re solving one of the biggest problems a country faces. The federal government began taking responsibility for employment, a stark contrast to the old government values. Wait but this is socialism? So critics would mainly accuse FDR of being a communist. This is certainly not anti-capitalist, though, in fact it supports capitalism as much as possible.

By 1932 Hoover is no longer seen as someone who can solve problem. What is Roosevelt’s main accomplishment early on? Restoring the government’s confidence within itself.
FDR is someone we know as a politician. He agreed with everyone he spoke with as an effort to woo them,