In 1932, the Democratic Party candidate Franklin D. Roosevelt was elected president, but in the months before his election the depression had worsened (factory closings, farm foreclosures, bank failures, & soaring unemployment), facing the greatest crisis in American history since the Civil War. His leadership was crucial in addressing the crisis, as he undertook immediate action through a series of programs, policies & reforms known as the New Deal, to immediately (1) relieve the unemployed, (2) recover business & agriculture, and (3) reform the economy's long-term infrastructure (the three R's).
- Relief: immediate relief measures to provide jobs, food
& financial assistance to those in need (the unemployed).
- Recovery programs aimed at business & agriculture.
- Reform: reform the underlying system to avoid repeating an economic disaster like this ever again.
- Wagner Act (National Labor Relations Act) , to prevent employers from firing workers if they joined a labor union (protecting workers' rights to form labor unions). Thus, it strengthened labor rights by guaranteeing workers the right to unionize and collectively bargain.
- Social Security Act, created a Social Security system, which provided a social safety net: (1) A pension system for retirees (funded by payroll taxes). (2) Unemployment insurance for those who lost their jobs, and (3) Aid for disabled individuals and dependent children.