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The New DealDuring the 1930s America witnessed a breakdown of the Democratic andfree enterprise system as the US fell into the worst depression in historyThe economic depression that beset the United States and other countrieswas unique in its severity and its consequences At the depth of the depressionin 1933 one American worker in every four was out of a job The great industrialslump continued throughout the 1930s shaking the foundations of Westerncapitalism The New Deal describes the program of US president Franklin D Rooseveltfrom 1933 to 1939 of relief recovery and reform These new policies aimed tosolve the economic problems created by the depression of the 1930s When Rooseveltwas nominated he said I pledge you I pledge myself to a new deal for theAmerican people The New Deal included federal action of unprecedented scope tostimulate industrial recovery assist victims of the Depression guarantee minimumliving standards and prevent future economic crises Many economic political andsocial factors lead up to the New Deal Staggering statistics like a 25 unemploymentrate and the fact that 20 of NYC school children were under weight and malnourishedmade it clear immediate action was necessary In the first two years the New Deal was concerned mainly with reliefsetting up shelters and soup kitchens to feed the millions of unemployed Howeveras time progressed the focus shifted towards recovery In order to accomplish thismonumental task several agencies were created The National Recovery AdministrationNRA was the keystone of the early new deal program launched by Roosevelt It wascreated in June 1933 under the terms of the National Industrial Recovery Act The NRApermitted businesses to draft codes of fair competition with presidential approvalthat regulated prices wages working conditions and credit terms Businesses thatcomplied with the codes were exempted from antitrust laws and workers were given theright to organize unions and bargain collectively After that the government set uplong-range goals which included permanent recovery and a reform of current abuses Particularly those that produced the boom-or-bust catastrophe
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