The stock market crash of 1929 helped launch the United States and many other nations into the worst economic depression in history. The severity of the Great Depression called for federal government programs to protect the general welfare of citizens. The New Deal programs created by Franklin D. Roosevelt provided the framework for the welfare state that still serves as a basis for American public policy.
All aspects of American society suffered during the Great Depression. By 1932, there were thirteen million people unemployed. There was no security for the millions who lost all of their savings in the bank failure or stock market crash. Volunteer organizations attempted to help the needy, but their resources were simply not adequate (Madaras and SoRelle 218). Hope seemed non-existent. Americans had never seen such a severe depression. They could not look to history for guidance. The New Deal was Roosevelt’s attempt to restore the economy. His willingness to act decisively and experiment with new policies set him apart from previous presidents. He often said, “I have no expectation of making a hit every time I come to bat. What I seek is the highest possible batting average”(Tindall and Shi 1238).
Relieving the widespread distress was another major priority of the new administration. Roosevelt once remarked, “ The test of our progress is not whether we add to the abundance of those who have much. It is whether we provide enough for those who have too little” (Tindall and Shi 1241). Congress’ first step in accomplishing this goal was the creation of the Civilian Conservation Corps (CCC). The CCC was designed to give work to unmarried young men aged eighteen to twenty-five. The Federal Emergency Relief Administration (FERA) gave money to states in the form of grants. The money was then handed out to relief clients in the form of direct cash payments. The types of relief offered during the first New Deal were temporary. There were no entitlements; once the money was gone it was gone.