Honors History Blog #3

The New Deal is a series of economic programs implemented by the United States Congress, under 32^nd President of the United States, Franklin Delano Roosevelt. These programs were a response to the Great Depression, with goals of relieving to poor and unemployed, recovering the economy to normal levels, and reforming the country’s financial system in order to prevent a repeat depression. The New Deal represented a major transfer in political and domestic policy in the United States, and ultimately resulted in a long-lasting increase in Federal government regulations in the economy. Some programs included in the New Deal were the Wealth Tax Act, in which inheritance taxes were increased in an attempt to redistribute the wealth, and the Federal Writer’s Program, which gave jobs to writers, musicians, artists, and theatre personnel. Acts such as these were successful in stimulating the economy after the previous financial crisis, and, if implemented correctly, similar acts could be helpful in stimulating today’s economy.

One such act that I believe could be utilized today in an attempt to stimulate the economy today, during the time being heralded as ‘The Great Recession’, would be the Economy Act. This act, drafted by Budget Director Lewis Williams Douglas and passed on March 14^th, 1933, was proposed to balance the Federal budget. This was attempted by cutting the salaries of government employees and cutting the pensions to war veterans by fifteen percent – the result of these cut was a saving of $500 million per year. If a similar program was enacted today, maybe not to such a high degree, millions of dollars could be saved, and the country could become less in debt.

Another act that could have the potential of helping the economy of today would be the Works Progress Administration. This program hired single women, widows, or women with disabled or absent husbands, usually in jobs pertaining to sewing or the arts. By giving jobs to those who would otherwise have had a difficult time sustaining themselves and their families, the economy was stimulated, and, as intended, relief was given to the poor and unemployed. If a program such as this one was initiated today, there could be a boost in the economy. An act like the Works Progress Administration nowadays could be aimed towards not just women, but anyone who has a higher need for a job, such as a single parent.

If acts similar to either of the ones listed above were enacted today, perhaps we could pull out of this ‘Great Recession’ in a way like we did the Great Depression.