Posts Tagged ‘Works Progress Administration’

Is FDR’s New Deal the answer?

Did President Franklin Roosevelt and his “New Deal” shorten the recovery from the Great Depression?  Was government intervention in the economy helpful or hurtful or both?  Some economists suggest the government manipulated market forces too much and actually prolonged the recovery. 

President Roosevelt put into effect his recovery plan immediately after his inauguration in 1933, calling Congress into a special 100-day session with a whirlwind of new programs.  He believed the recovery required what he called “government partnerships” with the private sector.  But, in his zeal to speed the recovery, some economists suggest he was wrong believing that competition inappropriately drove prices and wages down and that the government had to manipulate the economy to artificially force prices and wages up. 

FDR tried to help people

President Franklin Roosevelt would be proud of the help our government’s Small Business Administration provided Sun Valley area businesses following the Castle Rock Fire this year.  Although the fire did not damage any buildings, local businesses still suffered economic damage because of the fire.

Rather than just handing out money, the SBA set up a temporary office in Hailey, offering business owners low interest (4 percent) loans “for working capital for overhead needs that the business is not able to pay because of the fire … such as rent, payroll, and the like.”