Roosevelt began the New Deal.
In the first presidential election after the Depression began, Americans elected Franklin Delano Roosevelt (1882-1945). At first glance, Roosevelt seemed an unlikely leader for such a grave crisis. Yet he proved to be a dynamic and effective president.
Born into a wealthy New York family, Roosevelt had held several positions in state and
As a result of his long ordeal, Roosevelt underwent what a "spiritual transformation . . . Having been to the depths Ihe problems of people in trouble."
national government. In 1920, he ran unsuccessfully for vice president. Suddenly, in 1921, he was stricken with polio and paralyzed. After months of effort, he regained the use of his hands and arms. Next he struggled to walk. Eventually, wearing braces, he was able to take a few steps. Then he resumed his political career. In 1928, he was elected governor of New York.
Roosevelt's confident manner appealed to millions of Americans who felt bewildered and betrayed by the Depression. "If you have spent two years in bed trying to wiggle your big toe," he said, “every thing else seems easy.”
As president, Roosevelt immediately began a program of relief, recovery, and reform that he called the New Deal. Large public works projects helped to provide jobs for the unemployed. New government agencies gave financial help to businesses and farms. The Social Security Act of 1935 provided insurance for the elderly and the disabled. For the first time, the United States government spent large amounts of public money on welfare and relief programs.
Roosevelt and his advisers believed firmly in the capitalist free-enterprise system. However, they also believed that government spending was the best way to create jobs and start an economic recovery. They were willing to spend more money than the government raised through taxes creating a national debt.
Franklin
Deitino Roosevelt in 1936
The New Deal strategists also took steps to remove some of the economic problems that had caused the Depression. Fot example, the new Securities and Exchange Commission regulated the workings of the stock market. The banking system was reorganized, and the federal government insured bank deposits up to $5,000.
Roosevelt's policies were widely popular. He won reelection in 1936 and 1940. (He was the only American president to be elected to a third term.) Yet recovery from the Depression was slow. Unemployment in the late 1930's remained around 14 percent. National income, while on the rise, was still wcJl below its 1929 level.
While the New Deal reformed America's economic system, Roosevelt's strong leadership preserved the country's faith in its democratic political system. Taking office at a time of grave national crisis, Roosevelt made a special point of explaining liis policies to the American people. He became the first president to make frequent use of the radio, broadcasting informal speeches known as "fireside chats." His compassionate style, democratic values, and refonn programs established Roosevelt as a leader of democracy in a world that was increasingly threatened by ruthless dictators.
From Roosevelt's inaugural address: This great nation will endure as it has endured, will revive, and will prosper. The only thing we have to fear is fear itself.