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PinkMonkey Online Study Guide-World History
14.6 Methods to alleviate the effects of Depression
President Hoover tried to relieve the misery of
the people affected by Depression. He introduced voluntary relief
programs to provide employment. Later, he formulated a program of
providing credit to railroads and financial institutions. These
laws became part of the Reconstruction Finance Corporation Act (1932),
which was passed by the Congress. These measures did not gather
much support from the people. The condition of the people only worsened
as the Depression continued.
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Exhibit 14.3
Depression
In the election of 1932, Franklin Roosevelt, the
Democrat candidate gained victory over the unpopular Hoover. Franklin
Roosevelt tried to revive the economy by helping the clogged banks
within weeks of becoming President. Then, with the help of the Congress,
he inaugurated the New Deal under the principle of 3Rs-namely: Relief,
Recovery and Reform.
Under Roosevelt, the Congress passed a series of
Acts:
The Agricultural Adjustment Act (AAA)-aimed to
restore the purchasing power of farmers.
The Tennessee Valley Authority (TVA) was set up
to reorganize the economy of a depressed country in consultation
with the people.
These Acts, along with the National Industrial
Recovery Act (to regulate Industry) and the Civil Works Administration
(CWA) to provide jobs to people proved to be quite popular with
the people. By the time, America was to enter the second phase of
the New Deal Program, the 2nd World War broke out.
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