Roosevelt did not let the decision on the Agricultural Adjustment Act stop him from implementing additional legislation that moved the New Deal forward. He continued to meet with members of his administration, while for the most part ignoring Congress, to draw up programs supposedly designed to rid the nation of its economic problems. This is how the vast majority of programs were put together. It was, for all intents and purposes, a dictatorial process.
The primary solution to the Depression was known as "pump priming". Simply put it was more and more government spending. Indeed as a youngster in high school and then college, I vividly recall teachers and professors preaching that the Federal government was the only facility that had access to tremendous amounts of money that could now be used to pay for all these wonderful programs espoused by the Roosevelt Administration.
Recovery went on at an enormous price. The National Industrial Recovery Act spent $3.3 billion through the Public Works Administration or PWA later to be know as the WPA. These two organizations were supposed to end unemployment but that did not happen. Then there was the Tennessee Valley Authority. Working with Republican Senator George Norris, FDR put together the largest government owned industrial enterprise in our history. The first impulse is to say TVA was a good thing. Was it? Why wasn't this effort carried out by private industry? Why didn't we give incentives to public power companies to do this job? Most importantly how happy were those folks, already in poor economic condition, about TVA and the loss of their homes and livelihoods?
In the economic arena Roosevelt moved in 1933 to regulate the banks and in 1934 put into place the Securities and Exchange Commission to regulate Wall Street the epicenter of capitalism. However, a major and extremely controversial move was taken under Executive Order 6102 which took all the gold owned privately and turned it over to the US Treasury. Declared by many to be unconstitutional, FDR claimed that he had the power to do this under the 1917 War Powers Act. The ability of Americans to own gold was finally reinstated under President Ford in 1934.
While many would say that all these programs were wonderful, they did not end the Depression. There were consequences for all these programs in that Peter was robbed to pay Paul. In order to keep his campaign promise of cutting the federal budget, Roosevelt had to make cuts and he did so in a rather harsh but not unusual manner. He cut benefits to veterans by 40% and cut the military budget overall a tactic that would soon prove to be costly but one still practiced to this day. Over 500,000 veterans and their widows were removed from the pension rolls and had benefits cut. The salaries of Federal workers were cut as were the budgets of the military and navy. Spending was reduced on education and research and little was done to assist science until World War II began. However, he did sign an Executive Order in April of 1933 that ended Prohibition because much as politicians today view gambling, FDR was convinced he could acquire lots of money from taxing alcohol.
FDR and the Democrats had tremendous success in the 1934 Congressional election. Roosevelt gained larger majorities in the House and Senate. This in turn allowed him to move forward and continue the nationalization of our government with the consolidation of power in the hands of the central government. As for the people, they were going to pay more for less, move toward becoming wards of the state and pay no attention as everything from charity to education fell within the control of the Federal government.
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