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.
In 1935, he passed the 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) and the Social Security Act, creating a Social Security system, which provided a social safety net: retirement pensions, unemployment insurance, and assistance to disabled individuals and their families.