The author of “Reflation and Relief” elaborates on the key details of Frederick Roosevelt’s initiatives and reformation that led to the nation’s upbringing after the Great depression. The economic downfall became the worst time for many Americans due to the lack of jobs and money circulation. During a time of high unemployment rate and low GDP President Roosevelt started by adjusting the banking system days after taking office. The Banking act of 1933 increased federal reserve power and allowed banking regulation. The author says “ if the fall of the commodities cannot be checked, we may be forced to an inflation of our currency”. Roosevelt would have to cut dollars loose from gold by raising interest rates and making the act of borrowing money more expensive. By reducing the circulation of dollars’ convertibility to gold, the USA and other Latin American nations can maintain a gold reserve. If money would have been easy to borrow then there would have been more investment and more jobs around but The system’s bankers chose the gold standard over the relief of domestic troubles and Americans had to suffer for a short period.
The 1933 Emergency banking act required Americans to turn in their gold into the federal reserve and prevent them from having gold in large amounts. The 1933 Civilian conservation corps was also put in place for young men with no experience who are looking for jobs. A couple of months later FDR also passed the( FERA) Federal Emergency Relief Administration which directly worked on struggling Americans who necessitated cash relief and jobs. I believe that FDR’s initiatives and reformation did create an impact on the American people during a time when they required government assistance for survival and its long-term effect. The New deal, which was a series of laws passed by FDR either became “the worst thing the Roosevelt administration has done” or “ The greatest Accomplishment”. Although the increase of jobs rised even more at the start of the war, laws passed by FDR during the great depression did eventually change the way the banking system is managed today.
4/4