New Deal

The government's active intervention in the liberal economy is of epochal significance in American history. The economic recession, which began on October 24, 1929 with the stock market crash in New York, spread across the United States, and it escalated into a series of global crises. Despite the desperate measures to prevent then-President H. Hoover (1929-1933), prices continued to plunge, dropping the gross national product (GNP) to 56% of the 1929 level by 1932, and causing a spate of As a result, the number of unemployed has increased day by day to 13 million.

The 1932 presidential election came amid such a severe recession that the Democratic Party nominated Roosevelt, then governor of New York, for the presidency, who had been making solid progress in overcoming the recession. Roosevelt defeated the Republican candidate and won the presidency by promising a new policy aimed at rebuilding the economic community, saving the poor and anxious people - a "new deal for the forgotten." After his election, Roosevelt convened a special assembly in March 1933 to legislate aggressive recession measures within a special session called the "100 Days of June 16" as an important bill in the government proposal.

It is famous that a group of progressive scholars and experts, or brain trust, was appointed in the economic and legal fields of the president's close aides in the preparation of the New Deal bill. In this way, the main policies legislated in 1933 were as follows. 1 The Emergency Banking Act was enacted to provide a substantial loan to banks that could be redeemed, thereby rescuing banks from financial panic to normalize banking services. 2 The gold standard system was abolished and the management currency law was introduced to strengthen the government's regulatory power against currencies. 3 The Agricultural Adjustment Act was enacted to promote the relief of farming. This was intended to recover the balanced price by eliminating overproduction by limiting production of major agricultural products and preventing the fall of agricultural prices. In addition, the government attempted to save farmers by providing financial aid to them. 4 The National Industrial Rehabilitation Act was enacted. This contained excessive competition by requiring each industrial sector to draw up a fair competition protocol, which was meant to ensure stable employment and wages for workers by recognizing production restrictions and price agreements and securing adequate profits, while also recognizing workers' right to unite and collective bargaining while also promising minimum wage and maximum working hours regulations. 5 The Tenessi River Basin Development Corporation was established. This was also a landmark policy in that it was a power production project by the government, with the aim of implementing comprehensive regional development by building multi-purpose dams for development and dimensional irrigation of the region. 6 The Volunteer Corps for Conservation of Resources and the Federal Temporary Relief Bureau were established. It was established as a relief for the unemployed and needy by government funds, and was also an attempt by the federal government to help local governments with relief efforts.

The 34-year mid-term election was a manifestation of public support for the New Deal, but with the economic recovery, criticism of the New Deal policy from the big capitalists grew. At the beginning of his 33-year presidency, Roosevelt was poised to win the support of the whole-class people, including big capitalists, but from this point on, he felt the need to turn around in a way that put priority on the welfare of workers, farmers and urban dwellers. Thus, the National Labor Relations Act and the Social Security Act, enacted in 35, were representative policies that showed such a transition.

The National Labor Relations Act was enacted as an alternative to the National Industrial Reconstruction Act, which was ruled unconstitutional by the top court, which was the basis for establishing the protection policy of workers with the Fair Standard Act enacted in 1938, and the Social Security Act provided for unemployment insurance, aged child care, and subsidies for the poor and the disabled, and provided the basis for establishing the social security system. Roosevelt, who was reelected president for 36 years, made it clear that New Deal's directional transition was "not to make the rich richer, but to enrich the poor."

The New Deal achieved many achievements by actively implementing a relief policy, which was aimed at relief, rehabilitation, and reform, and realizing the functions of the federal government and the expansion of the president's authority. The New Deal also experimented with new policies to rebuild American capitalism and a society that was crippled by the Great Depression. The traditional American laissez-faire was abandoned, government control was exercised, and economics of J.M.K. was accepted to modify American capitalism. And the seven-year-long New Deal is significant in historical significance, as it was established as a permanent system of the United States, not just as an economic policy, but also as a political and social force as a whole.