Social Programs (Shaunnah Moreno)

Next, the effects of the Great Depression called for governmental intervention to render assistance to the United States failing economy. In order to accomplish this task, the Roosevelt administration came up with the concept of the Two New Deals between the years of 1933-1940. In theory, the concept of the New Deals was meant with good intentions, however: the disorganization of the first New Deal did little to nothing in creating change to social and welfare programs or labor reform.

For example, in 1933 the Agricultural Adjustment Act was passed to aid in the issue of supply versus demand of America's crop production. The AAA was established to pay farmers to produce fewer crops with the government increasing the price of food production. In 1935, the origins of this act were founded to be unconstitutional by the U. S. Supreme Court due to the fact that decreased food production meant less food for families who were already starving. As a result, reform to the AAA, gave ""acreage allotment" (the backbone of the crop reduction program) which helped the largest and best capitalized farmers. It did little for smaller farmers and led to the eviction and homelessness of tenants and sharecroppers whose landlords hardly needed their services under a system that paid them to grow less." (1)

Furthermore, it did not correct a primary concern of the Depression- the issue of "weakened consumer demands from decreased wages and unemployment."(2) After the failed attempts to strengthen the economy from the first New Deal, the second New Deal brought about a government controlled pension plan called the Social Security Act in 1935. This act enabled laborers to set up modest investment pension funds for their future. In addition, the National Labors Act of 1935 was established to prevent businesses from interfering with laborers forming unions to represent their rights as the working class. As a result, union representation brought about significant increases in wages for the working class which in turn boosted consumer spending.

In closing, the aftermath of the Depression brought about two approaches by the government that were both intended to create economic reform. The first approach failed as a result of working from the upper class to the lower class members of society whereas, the second approach of the New Deal created reform due to the fact that its policies targeted the working class first rather than the upper class.

Works Cited

Part II: War, Depression and War, 1914-1945 [PDF Document]. Retrieved from Online

History Class Website: http://iws.collin.edu/kwilkison/Online1302home/20th%20Century/DepressionNewDeal.html