Changing Political Thinking, Research Paper Example

The United States experienced a culmination of two major events that enabled it to pull out of the great depression. The first and most significant event was the Second World War. World War II was an industry-intensive war. Numerous facets of industry, especially mining of metals and the production of weaponry, boosted the U.S. economy by creating employment opportunities for the young and unemployed. The second was the expansion of public works and federal bureaucracy by the Roosevelt administration. This considerably increased employment opportunities. These reforms, labeled “The New Deal”, marked Roosevelt’s presidency and a shift in American politics since then. Roosevelt’s new deal transformed political ideology from a big-business centered philosophy to a people-centered philosophy shifting from the false premise that had considerably affected the American economy.

Upon his inauguration, President Roosevelt instigated a flurry of legislative motions that sought to rescue the sinking American economy (Smith). In his strategy, President Roosevelt sought to alter the foundation of American political ideology by transforming the manner in which the country perceived the economy, the functions and roles of institutions, businesses and individuals. Roosevelt employed a three-pronged strategy to help achieve his ultimate goal of different political ideology.

First, the president sought to seek an urgent solution to the banking crisis. Since the start of the depression in 1929, banks experienced an exodus of customers and their deposits, termed the Bank Runs. Banking and other financial institutions had experienced extended period of growth and stability (Smith). The banks had created a general fallacious notion that the banks were invincible to collapse. When it became apparent to the general public that banks could not honor the deposits they had, panic nationwide caused an exodus of customers who sought to withdraw all their savings. To restore confidence in the banks, Roosevelt immediately called for a Bank Holiday upon his inauguration. During this break, he passed the Emergency Banking act of 1933 that lent the banks emergency funds to honor their deposits and stop the exodus. This was later replaced by a more permanent solution, the Deposit Insurance Corporation (FDIC).

Further, to ensure that confidence in the financial institutions, he instigated the creation of a number of strategies to check and regulate the activities within financial markets. He prompted the creation of the Securities and Exchange Commission to regulate and check the securities markets. This institution was intended to reform the market by checking and avoiding the development of a speculative bull market. Speculative bull markets were responsible for the collapse of banks in the 1920s (Katznelson).

Secondly, Roosevelt considerably came under pressure for his initial policies that sought to strengthen the functions and importance of big businesses within the economy. After considerations, he employed a liberal approach that sought to redistribute power within the economy. He abandoned the conservative approach that would lead to the creation of regulated monopolies between government, organized labor and big businesses.

The Roosevelt administration, together with members from the Liberal wing developed a number of relief programs and institutions. These institutions and programs were designed to alleviate the effects of the great depression and pull the economy from the gutter of dawning poverty. The Worker Progress Administration (WPA) program sought to increase employment within the economy by engaging in labor-intensive projects between 1935 and 1941 (Smith). The program employed more than 8 million individuals during the time, and dealing in over 200,000 projects and spending over $11 million in the process (Smith). This program sought to eliminate the power that big businesses had, and shift power to government, which represented the people. Big businesses slowly begun losing their role as the center and core of the economy.

Thirdly, Roosevelt sought to create a number of reforms that would shift general ideology held on the role of big businesses in the success and development of the economy. The organized labor bill of rights sought to balance the power that big businesses have by giving government the backing to unionize. This act gave unions the power to organize peaceful boycotts and strikes with the backing of government. As a result, unions realized a triple growth in their membership, altering the premise that big businesses played the central role in the economy. The social security act was an integral pillar in shifting political ideology. The social security act sought to provide sustenance for the vulnerable in the society. This was achieved through the retirement insurance plan and the unemployment insurance plan that would be run between the federal and state governments (DiBacco, Mason and Appy 575).

Before the great depression, political ideology had stipulated that big businesses are at the center of the economy. Political office holders were either owners of big businesses or were strongly affiliated to big businesses. As such, political ideology centralized the economy on big businesses. Roosevelt’s reforms balanced the power held by big businesses, concentrating investment in the workers within the economy. He shifted from the premise of the vitality of big businesses to the economy and postulated workers were the most important component of the economy. The success of the New Deal was not necessarily the economic impact that it had, but the social impact that left. It transformed American political ideology permanently as the institutions and programs created exist presently.

Personal Reflection

The Roosevelt reforms embodied in the New Deal has considerably affected numerous American lives including my own. The concentration on these reforms and initiatives on infrastructure considerably helped and influenced my grandfather’s life. Through these programs, he was able to purchase a truck that was used to haul asphalt to road construction sites during the time. This played an important role in allowing him to have a huge family at the time. The Roosevelt reforms have become a part of American political ideology as some of the programs and institutions exist presently. One of the most important is the unemployment insurance program. This program considerably assisted after losing employment that had initially been consistent for 12 years. This considerably helped in sustaining my family.

In conclusion, the United States experienced a culmination of two major events that enabled it to pull out of the great depression. The expansion of public works and federal bureaucracy by the Roosevelt administration played an integral role in pulling the economy out of the depression. The success of President’s Roosevelt relief and reform initiatives significantly shifted American political ideology. While the initial political objectives were to support big businesses in order to help the economy to recovery, pressure from the liberal wing caused the president to shift the ideology on the economy. His introduction of reforms and initiatives shifted power from big businesses to the labor force.

Works Cited

DiBacco, Thomas V, Lorna C Mason and Christian G Appy. History of the United States. Evanston: McDougal Littell, 1997. Print.

Katznelson, Ira. Fear itself : the New Deal and the origins of our time. New York: Liveright Publishing Corporation, 2013. Print.

Smith, Jason S. A Concise History of the New Deal. New York: Cambridge University Press, 2014. Print.