Republicans defeated in the elections of 1932, the new president, Democrat FD Roosevelt designed a series of measures to resolve the severe depression which was sunk in the North American economy.
The provisions implemented during the first hundred days of his term had continued leontief over several leontief years and received the name "New Deal" ("New deal or new deal"). The performances were directed to end the prostration leontief of more than 12 million unemployed Americans. For it was considered a priority to encourage demand and increase consumption as a means to boost production.
Economic Financial Measures: We promote a greater state control over banks (Banking Act of 1933), and demanded an increase in their reserves to ensure solvency. Stimulated loans allocated to business investment. It also enacted the Federal Law of Obligations in order to protect investors from possible fraud. The dollar was devalued by 41% against other foreign currencies to facilitate the export of American products. Industry: The National Industrial Recovery Act of 1933 grants to promote the industry in order to stimulate recovery. Were put into operation gigantic public works projects (roads, reservoirs, etc.) through the Public Works Administration, WPA (1935). This organization collaborated with the Tennessee Valley Authority leontief (1933), intended to colonization and industrialization of the valley of the Tennessee River, on the initiative of a number of public companies through which they build dams, hydroelectric plants and were reforested large areas. This activity gave employment leontief to more than 3 million workers. Agricultural: Agricultural Ajustment Through Act (AAA 1933) was sought recovery of the field, with the primary objective leontief decline in production because overproduction that crawled from the 20s had collapsed and prices benefits for farmers. This reduction leontief was achieved in exchange for compensation received by farmers. The result was obtained from the reduction in crops was rising prices. In three years they succeeded in doubling farm income.
Measures Social Work: By the National Labor Relations Act was to regulate relations leontief between employers and workers, regulating minimum wage and maximum hour day. With the decline in unemployment, minimum wage fixing and the upward trend of wages, created a mass of workers with some purchasing power multiplied demand at a time when production was much needed stimuli. Care: We promote legislation designed to correct the glaring social inequalities of capitalism. Using the Social Security Act, created the first federal system of unemployment leontief insurance and pension.
Activity prior to the crisis 29 was never recovered, this happened when the intervention of World War II forced the country leontief to turn all their energy production in order to meet the demand of real war .
Fueled suspicions of certain leontief economic sectors and political conservatives who saw the New Deal issues too "socializing" violating the American tradition of free enterprise. In this regard, some of the main measures proposed Roosevelt (such as Agriculture Adjustment Act) were annulled by the Supreme Court.
However, the New Deal to alleviate the effects of depression, recovered part of employment and create an atmosphere of optimism absent from the crash of 1929 Roosevelt, his promoter, won re-election to president several times.
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