History Essay

Isabela Segoviano
Candice Badgero
U.S history
November 6, 2023
New Deal Essay
Herbert Hoover assumed the presidency during one of the most severe economic crises in
American history. The stock market crash of 1929 played a significant role in the country's
economic decline, marking the beginning of the Great Depression. By the autumn of 1929, the
stock market had lost nearly half of its value, leaving many Americans in dire financial straits.
The Long, Townsend, and Sinclair proposals offered hope to those seeking additional support
during these trying times, addressing the economic challenges brought on by the Great
Depression by providing pension plans, job opportunities for the unemployed, and solutions for
those facing income difficulties. These proposals aimed to fill the gaps left by the New Deal and
instilled optimism for economic recovery.
The stock market crash was a key event in the Great Depression, but it was not the sole cause.
As mentioned in Chapter 25 of our textbook, "On Black Tuesday, October 29, stockholders
traded over sixteen million shares and lost over $14 billion in wealth in a single day. To put this
in context, a trading day of three million shares was considered a busy day on the stock market.
People unloaded their stock as quickly as they could, regardless of the losses. Banks faced debt
and sought alternatives" (Chapter 25, The Great Depression). This excerpt illustrates the severe
financial drain on Americans. Between September 1 and November 30, 1929, the stock market
had lost over half of its value. This decline, as discussed in the book, was a critical factor in the
economic downturn.
When Franklin D. Roosevelt took office, he immediately implemented significant legislative
measures to address the ongoing crisis of the Great Depression. The nation was in dire need of
support, and Roosevelt's federal efforts laid the foundation for recovery. However, Roosevelt
faced criticism from his political opponents. While his plans offered promises and demonstrated
strong leadership, some Americans believed he was veering away from American values and
moving towards fascism and socialism (Chapter 25, The Great Depression). His critics aimed to
revert to a more passive government.
The proposals put forth by Long, Townsend, and Sinclair were rooted in the belief that
Roosevelt's New Deal did not adequately address the nation's pressing problems. These
proposals included Huey Long's Share Our Wealth program and Dr. Francis E. Townsend's
Townsend Plan, which had distinct ideas but shared common goals.
Firstly, all three proposals focused on providing pensions for elderly citizens, a group that
was among the most affected, particularly children and African Americans during that era. As
the textbook mentions, "They largely depended on their adult children to support them, adding to
families' burdens." (Textbook). Older Americans found it challenging to provide for themselves
and their families. The pension plans aimed to offer direct financial assistance with benefits not
only for the elderly but also for their family members. Specifically, the Townsend Act
concentrated on this issue, providing $200 per month to citizens aged sixty and older, with the
intention of the money being spent within thirty days. This injection of funds aimed to increase
overall spending in the economy through their purchases.
The rising unemployment rate was another critical issue. Unemployment had tripled within a
few months of the stock market crash. While the New Deal addressed unemployment problems,
additional job opportunities were seen as vital for economic recovery. The textbook also notes,
"gross national product declined by over 25 percent within a year, and wages and salaries
declined by four billion dollars" (Textbook). Upton Sinclair's "End of Poverty in California"
program, which promised job placements in specific areas, aimed to tackle this problem. With
the considerable increase in poverty resulting from the loss of jobs, these proposals would have
opened up numerous opportunities for employment. More job availability would allow more
people to find work, particularly those in poverty.
In a similar vein, Huey Long's program, "Liquidation of all large personal fortunes to fund
direct payments to less fortunate Americans," proposed providing $2,500 for workers and $5,000
for families, offering much-needed relief when used for productive purposes. This approach
could also enhance the nation's financial well-being. These programs directly targeted those in
financial distress by redistributing excess wealth from the rich to those in need.
Long, Sinclair, and Townsend believed that the New Deal did not fully address the urgent
needs of America. Their programs aimed to provide essential relief to those grappling with
economic and financial hardships. They highlighted the importance of creating jobs, distributing
money directly to those in need, and addressing the specific needs of vulnerable individuals. It is
no surprise that these proposals appealed to the average American, as they specifically targeted
critical issues during a challenging period.

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Isabela Segoviano

New Deal Essay

instilled optimism for economic recovery.

When Franklin D. Roosevelt took office, he immediately implemented significant legislative

revert to a more passive government.

overall spending in the economy through their purchases.

people to find work, particularly those in poverty.

critical issues during a challenging period.

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