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 presidental 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 particuarly 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



was to perform immediate relief with long range



recovery and reform. It was designed to assist



industry, labor, and the unemployed by setting



standards for prices, wages, and hours. It also



guaranteed the labor's right to organize unions



and to bargain collectively with employers through



agents of their own choosing (America The Glorious



Republic). The NRA gave the President power to



regulate interstate commerce. This power was



originally given to Congress. While the NRA was



effective it was bringing America closer to



socialism by giving the President unconstitutional



powers. The NRA was later ruled unconstitutional



by the Supreme court.







The Federal Emergency Relief Act (FERA) was the



first major effort of the new Congress to cope



with the millions of adult unemployed. The



main importance was immediate relief of economic



disaster rather than long range recovery.



This agency was founded in 1933 to



cooperate with the states in relieving hardships



caused by unemployment and drought.(Economic History



of the U.S., vol. 9). By letting the unemployed



draw unemployment payments, it



moved American society towards what has been called



"the Welfare State." The goal of this program was to bring



the unemployed to a higher financial level so that



the working class could survive in order to become



self-sufficient. This is an example



of socialist thinking because socialist policy



strives to insure the financial well-being of all



citizens.







The Depression was a major devastating factor



in America. Something different was needed to



pull Ameica out of this economic disaster.



Was FDR's New Deal the thing to do it?



The New Deal brought America one step closer



towards socialism. This step was temporilary



needed to pull the vast members of poor people



out of the Depression and back on their feet.





World Book Encyclopedia, Vol.14,



Britanica Jr Encyclopedia, Vol. 13,



Economic History of U.S Vol.9