Roosevelt's 'Hundred Days' Plan
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Explain why Roosevelt began his presidency with a ‘Hundred Days’ plan.
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Roosevelt began his presidency with a 'Hundred Days' plan due to a combination of external economic crises and political circumstances. The period between his election in 1932 and his inauguration in March 1933 saw the economic depression in the United States worsen significantly. This deepening economic impact created an urgent need for action as soon as Roosevelt took office. The severity of the situation demanded immediate and decisive measures to address the crisis.
Moreover, Roosevelt's election victory in 1932 had provided him with a substantial level of popular support. Recognizing the challenges posed by the US Constitution's separation of powers and other political obstacles, Roosevelt understood that he needed to leverage his popularity to overcome these barriers to effective governance. By swiftly implementing a comprehensive plan of action within his first 100 days, Roosevelt aimed to capitalize on his political capital and push through bold, transformative policies to address the country's economic woes.
One of the initial actions taken by Roosevelt during his 'Hundred Days' was the temporary closure of all banks for four days. This move was aimed at stabilizing the banking system, conducting thorough audits, and reinstating public confidence in the financial sector. The Emergency Banking Relief Act facilitated this process and allowed only financially stable banks to reopen, thus restoring faith in the banking system.
Additionally, the Banking Act of 1933 was a crucial piece of legislation that addressed the speculative practices and vulnerabilities that had led to the 1929 stock market crash. Key provisions of this Act included a federal guarantee of bank deposits, separation of commercial and investment banking activities, and enhancements to the Federal Reserve's regulatory powers. These measures were aimed at preventing future financial crises and ensuring the stability of the banking system.
Furthermore, Roosevelt's administration prioritized providing relief to those most affected by the economic downturn through programs such as the Federal Emergency Relief Administration, which funded state-run welfare initiatives. By injecting substantial sums of money into these programs, Roosevelt sought to create a safety net for the most vulnerable members of society and alleviate the widespread suffering caused by the Great Depression.
In conclusion, Roosevelt's decision to launch his presidency with a 'Hundred Days' plan was driven by the urgent need to address the deepening economic crisis and leverage his political mandate to implement bold reforms. Through a combination of decisive actions, legislative measures, and relief programs, Roosevelt sought to stabilize the economy, reform the financial sector, and provide support to those in need during one of the most challenging periods in US history.
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Explain why Roosevelt began his presidency with a ‘Hundred Days’ plan:
- Although elected in November 1932, Roosevelt was not inaugurated until March 1933, and in that time the economic depression in the United States had deepened and its impact worsened. Therefore, taking action was the priority as president.
- As well as objective external factors which required urgent action, there were also political reasons for acting so quickly. His election gave Roosevelt a store of popularity, which he could use to overcome the obstacles to effective government presented by the US Constitution, and especially the separation of powers. As a result, Roosevelt saw the need to take drastic action in his first 100 days.
- His first action was to close all the banks for four days. This was designed to stabilise the system and allow for an audit of all banks. Only once deemed to be credible under the Emergency Banking Relief Act were banks allowed to reopen.
- The Banking Act of 1933 sought to deal with the speculative anarchy, which had played a key role in the 1929 Crash. This included a federal guarantee of all bank deposits (temporarily $2500 per accountholder, rising permanently to $5000 from July 1934), separation of commercial and investment banking, and strengthening of the Federal Reserve's ability to stabilise the economy.
- The Federal Emergency Relief Administration pumped $500 million into state-run welfare programs (supplied $3.1 billion by the time of its closure in December 1935). FDR recognised the need for a support system for the poor. Accept any other valid responses.