Blog Post #4: Rauchway’s “Reflation and Relief”

The reading titled “Reflation and Relief” by Rauchway explores the importance and impact of Franklin Delano Roosevelt’s presidency. Specifically in Chapter 4 of the reading, it scrutinizes the benefits of what FDR’s presidency brought, yet it also features the downfalls that came along with it. Between 3-4 years prior to FDR’s presidency was the start of the Great Depression, an occurrence beginning in October 1929 following the crash of the stock market, later coming to an end in 1939. (History.com Editors, 2009) As supported in the reading, the Great Depression ultimately led to a downfall in the US economy: “When Franklin Delano Roosevelt took the oath of office as president for the first time on March 4, 1933, every moving part of the American economy had evidently broken. Banks, farms, factories, and trade had all failed.” The results being: a lack of employment, overproduction due to stocks and demands being unmet, housing prices facing a downward slope and more. With the concern and panic rising in society, Roosevelt taking office in 1933 took matters into his own hands. (page 1) 

While running for office, Roosevelt sparked the phrase “New Deal,” which did not guarantee any promises but the phrase was liked by a majority so he kept it as is. Overall, a method of how Roosevelt ran his presidency. “The Roosevelt agenda grew by experiment: the parts that worked, stuck, no matter their origin.” One act in association to the New Deal was the banking holiday which took place just two days after Roosevelt took office. Roosevelt requested approval for what is known as the Emergency Banking Act. He kept in mind the goal to resolve the banking failure at the time. The act resulted in closing of banks for four days to reorganize the system, some banks remained closed while others reopened in hopes of improving the economy. In addition to the banking issues at the time, Roosevelt used the Trading with the Enemy Act to further assist the bank failures by enforcing more banking laws. (page 1 & 2) One in particular method mentioned by Rauchway, “To inflate the currency, Roosevelt would have to cut the dollar loose from gold…” (page 3)

Other than resolving the banking failures during the Great Depression, Roosevelt made an attempt to resolve unemployment rates that were at an all time low. Roosevelt made it a priority to help America back on its feet, assisting men in the age range of 18-35 to find work. Roosevelt used funding towards housing to help bring back up the housing prices that were facing a downward slope. His message from assisting with Americans’ employment and fundings being that he didn’t want the Americans to rely on the government, especially if the results were that the government were giving more than they received. (page 5 & 7) 

In conclusion, Rauchway’s reading “Reflation and Relief” was a great refresher on what I’ve learned before regarding the Great Depression and Franklin Delano Roosevelt’s presidency. Overall, the reading summarized the highlights of what Roosevelt did but also included the not so successful plans he enforced. FDR ran office to help solve the issues arising and was mainly successful through it all. I mainly focused on Rauchway’s highlights of FDR’s presidency and successful plans because they were more impactful towards the economy but the ones that didn’t go as plan were still important because it showed great efforts in what FDR did for America.