In “Reflation and Relief” by Rauchway, talks about the New Deal enacted by Franklin Roosevelt and how it caused the growth of the American economy, decreased the percentage of unemployment, and saved Capitalism, it aided industries in increasing their output and profits. FDR announced to stop gold transitions in nation’s banks to create inflation to help the economy regain its power and he closed all banks for 4 days to inspect the accounts.
During the Great depression, people were facing unemployment problems, so the congress established many administrations to help the government and community. As an example, the CCC,which FDR believed in to help unemployed men aged from 18 to 25 who matched some terms like being single, in a good health condition, and an American citizen to join programs to improve forests, build parks and bridges. Also, the FERA played a significant role by providing grants to the states to support established projects and works there.
On the other hand the PWA and CWA weren’t that effective and had a weak effect on unemployment, despite spending large amounts of money (the PWA’s purse contained $3.3 billion) which made Roosevelt worried and nervous that the government spends money more than it gets and he also didn’t want Americans to depend directly on the federal government for relief programs, “Roosevelt conceded the necessity of a national work relief program, but he did not want it to “ become a habit with the country.” (Page 7). It was easier for him and for the government to just distribute money to those in need, but he believed that people shouldn’t get money that easily, they should work and receive money in the form of the result of their diligence. So, the relief programs as CCC, WPA, and FDR were aiming to fight the Depression and help unemployed Americans who were suffering, thus, to think of themselves as respectable and useful citizens