The New Deal- FDR in the USA

from: odhiambo okecth

Friends,

As we approach 50 Years of our Independence next Year, we need to sit up and take stock of where we have come from, what we have achieved and where we are heading to.

We all know we have failed to achieve almost all the Independence Goals, and nothing is in the works to be a deliverable flagship programme that we can rally to as a Nation come1st June 2013. We have lost the fight against poverty, disease and ignorance.

We have failed to develop an Educational Curriculum that we can be proud of as a Country. We have failed to give water to all our people. We have failed to avail affordable electricity to Kenyans. We have failed to provide affordable housing to our people. We have failed to build good roads for our people. We have killed the only Rail Transport we had.

And we have failed to manage our Waste.

These were some of the thought processes we discussed with Mtumishi Orina Cyprian Nyamwamu this afternoon over a cup of Tea.

This thought process of a Kenya with nothing to show case at 50 made us look at how the Americans resolved some of their problems which, apparently were similar to what we are currently facing. During the Reign of Franklin D Roosevelt in the 1930s, he came up with The New Deal- something that is a kin to our very own Vision 2030.

The difference between The New Deal and Vision 2030 is really glaring. While Vision 2030 is largely anchored on the future, on the Political, Social and Economic Pillars and developing time frames that we might not achieve, The New Deal was based on the Present. And it worked. And that was in the 1930s.

Under the Emergency Banking Act/Federal Deposit Insurance Corporation (FDIC), FDR shut down all of the banks in the nation and Congress passed the Emergency Banking Act which gave the government the opportunity to inspect the health of all banks. These measures reestablished American faith in banks. Americans were no longer scared that they would lose all of their savings in a bank failure. Government inspectors found that most banks were healthy, and two-thirds were allowed to open soon after. After reopening, deposits had exceeded withdrawals.

Under the Federal Emergency Relief Administration (FERA) led by Harry Hopkins, a former social worker, this agency sent funds to depleting local relief agencies. Within two hours, $5 million were given out. Mr. Hopkins believed that men should be put to work and not be given charity. His program also funded public work programs. This programme revitalized many deteriorating relief programs.

Under the Civil Works Administration (CWA), the public work program gave the unemployed jobs building or repairing roads, parks, airports, etc. The CWA provided a psychological and physical boost to its 4 million workers.

Under the Civilian Conservation Corps (CCC), the environmental program put 2.5 million unmarried men to work maintaining and restoring forests, beaches, and parks. Workers earned only $1 a day but received free board and job training. From 1934 to 1937, this program funded similar programs for 8,500 women. The CCC taught the men and women of America how to live independently, thus, increasing their self esteem.

The Indian Reorganization Act of 1934 ended the sale of tribal lands and restored ownership of unallocated lands to Native American groups. The outcome was obviously positive for the Native Americans.

The National Industrial Recovery Act (NIRA) of June 1933 was enacted due to the decline in the industrial prices in 1930s that caused business failures and unemployment. The NIRA was formed in order to boost the declining prices, helping businesses and workers. The NIRA also allowed trade associations in many industries to write codes regulating wages, working conditions, production, and prices. It also set a minimum wage. The codes stopped the tailspin of prices for a short time, but soon, when higher wages went into effect, prices rose too. Thus, consumers stopped buying. The continuous cycle of overproduction and underconsumption put businesses back into a slump. Some businesses felt that the codes were too complicated and the NRA was too rigid.

The Public Works Association (PWA) launched projects such as the Grand Coulee Dam on the Columbia River. This was one of the best parts of the NIRA.

The Federal Securities Act of May 1933/ Securities and Exchange Commission (SEC) required full disclosure of information on stocks being sold. The SEC regulated the stock market. Congress also gave the Federal Reserve Board the power to regulate the purchase of stock on margin. This was critical for the long-term success for businesses.

The Tennessee Valley Authority (TVA) (May 1993) helped farmers and created jobs in one of Americas least modernized areas. Reactivating a hydroelectric power plant provided cheap electric power, flood control, and recreational opportunities to the entire Tennessee River valley.

The Works Progress Administration (WPA) 1935-1943 provided work for 8 million Americans. The WPA constructed or repaired schools, hospitals, airfields, etc. This decreased unemployment.

The Farm Security Administration (FSA) loaned more than $1 billion to farmers and set up camps for migrant workers.

The National Labor Relations Act (Wagner Act) legalized practices allowed only unevenly in the past, such as closed shops in which only union members can work and collective bargain. The act also set up the National Labor Relations Board (NLRB) to enforce its provisions.

The Fair Labor Standards Act of 1938 banned child labor and set a minimum wage. This law was a long awaited triumph for the progressive-era social reformers.

The Social Security Act established a system that provided old-age pensions for workers, survivors benefits for victims of industrial accidents, unemployment insurance, and aid for dependent mothers and children, the blind and physically disabled. Although the original SSA did not cover farm and domestic workers, it did help millions of Americans feel more secure.

Now, this is a sure indictment on our part as Kenyans. As we move to our 50 Years of Independence, what do we really want to celebrate as a Country on the 1st June 2013?

One thing I am sure we can achieve if we put our minds together is a Clean Kenya.

Odhiambo T Oketch,
Executive Director,
The Clean Kenya Campaign-TCKC,
Tel; 0724 365 557,
Blogspot; http://kcdnkomarockswatch.blogspot.com
Website; www.kcdnkenya.org
An Initiative of KCDN Kenya

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