Jobs Bill Vs New Deal PT 2

                                                            Jobs Bill Vs New Deal PT 2

By: Ella Williams

In the first blog, I spoke about the causes of the Great Depression and I wanted to point out the parallels between our present state vs. our past.  In the book of Ecclesiastics it speaks about that there is nothing that has not happen before and there is nothing new under the sun.  America came close to a repeat of the Great Depression. 

On Monday, October 6, 2008, the market experienced eight consecutive trading days of negative movement starting on October 1, 2008.  The table below shows the decline of the Dow Jones Industrial Average from October 1st through October 10th.

America was facing a stock market crash, the banks were failing and there was nothing being manufactured in America and our financial system blew up after Lehman Brothers Holdings Inc was one of the fourth largest global financial banks in America.  Due to stock lost and bad investments the company filed for bankruptcy and some believe this was the beginning of the hell America began to face.

Unlike President Hoover ideology; Bush made attempt to try and stop the failing economy by bailing out the banks without stipulation to keep America from going in to a free fall.

When President Obama came into office he walked into a messed left by President Bush, Republican congress and Administration. Doesn’t this share a familiar to Obama’s inheritance of a large failing economy? In 1933 President Roosevelt walked into a mess left by the republican President?  President Roosevelt believed that the Government needed to take steps to help Americans to get back on their feet and here are the programs he came up with to help bring America out of the Great Depression.

1. CCC - Civilian Conservation Corps

The Civilian Conservation Corps was created in 1933 by Franklin D. Roosevelt to combat unemployment. This work relief program had the desired effect and provided jobs for many Americans during the Great Depression. The CCC was responsible for building many public works and created structures and trails in parks across the nation.

2. CWA - Civil Works Administration

The Civil Works Administration was created in 1933 to create jobs for the unemployed. Its focus on high paying jobs in the construction arena resulted in a much greater expense to the federal government than originally anticipated. The CWA ended in 1934 in large part due to opposition to its cost.

3. FHA - Federal Housing Administration

The Federal Housing Administration was a government agency created to combat the housing crisis of the Great Depression. The large number of unemployed workers combined with the banking crisis created a situation in which banks recalled loans. The FHA was designed to regulate mortgages and housing conditions.

4. FSA - Federal Security Agency

The Federal Security Agency established in 1939 had the responsibility for several important government entities. Until it was abolished in 1953, it administered social security, federal education funding, and food and drug safety.

5. HOLC - Home Owner's Loan Corporation

The Home Owner's Loan Corporation was created in 1933 to assist in the refinancing of homes. The housing crisis created a great many foreclosures, and Franklin Roosevelt hoped this new agency would stem the tide. In fact, between 1933 and 1935 one million people received long term loans through the agency that saved their homes from foreclosure.

6. NRA - National Recovery Act

The National Recovery Act was designed to bring the interests of working class Americans and business together. Through hearings and government intervention the hope was to balance the needs of all involved in the economy. However, the NRA was declared unconstitutional in the landmark Supreme Court case Schechter Poultry Corp. v. US. The Supreme Court ruled that the NRA violated the separation of powers.

7. PWA - Public Works Administration

The Public Works Administration was a program created to provide economic stimulus and jobs during the Great Depression. The PWA was designed to create public works and continued until the US ramped up wartime production for World War II. It ended in 1941.

8. SSA - Social Security Act

The Social Security Act was designed to combat the widespread poverty among senior citizens. The government program provided income to retired wage earners. The program has become one of the most popular government programs and is funded by current wage earners and their employers. However, in recent years concerns have arisen about the viability of continuing to fund the program as the Baby Boom generation reaches retirement age.