In October 1929, there was an unexpected event that had consequences for the whole world economy, the collapse of the New York Stock Exchange, also known as the Crack of 29 (the collapse of the system occurred on a Thursday and since then it received the name The Black Thursday “The Black Thursday”). Before long, the US economy began to falter, and in 1932, President Franklin Delano Roosevelt, a Democratic president who occupied the White House after a twelve-year Republican stint, was elected. New Deal
The New Deal denomination comes from Rooselvet’s presentation at the July 1932 Democratic convention held in Chicago. His speech as a candidate for the presidency had a suggestive title: “A New Deal”, in Portuguese “a new deal”.
Roosevelt’s proposals were intended to restore the nation’s confidence and boost the economy
The New Deal consisted, in the first place, in the correction of the financial system . In this way, measures were adopted to regulate banking operations, investments and the granting of credits. To achieve this goal, bankers were required to guarantee bank deposits and, on the other hand, laws were drawn up for bankers to act under government supervision, thus establishing a commission to regulate the stock market. New Deal
All of this had one primary objective: to avoid the speculation that had sparked the Crack of 29. In a nutshell, it can be said that Roosevelt cleaned up Wall Street.
To gain the trust of citizens Roosevelt relied on radio
In their messages, they detailed the measures of the New Deal and the population was forced to take an active attitude towards the financial reforms.
His words had effect, as after his first radio speech there was a notable increase in profits for the banks (for the first time since Crack of 29, the banks had sufficient funds).
One of the first decisions taken was the legalization of alcohol consumption. With this measure, he put an end to the prohibition established during the dry law. Legalization also acted against mafias.
the social dimension
To control the prices of agricultural products of first need a law was passed the three A (Agricultural adjustement Act and Agricultural Adjustment Act in Portuguese). Complementarily, farmers received facilities to access bank loans. New Deal
In order to support uprooted youth, a nature conservation plan (CCC, Civilian Conservative Corps) was organized.
Homeowners were given facilities so that they could apply for bank loans (the construction sector was also boosted with this law).
Citizens played an important role
Not all measures had a legislative character, in fact, civil society was actively activated. Thus, to combat the despair of unemployed people, in some cities, Unemployed Councils were formed that provided food and clothing (these organizations had a socialist inspiration and also organized citizen actions to prevent evictions).