Interest group democracy
From The Art and Popular Culture Encyclopedia
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Interest group democracy was an attempt by the American President Franklin D. Roosevelt to create broad support for the New Deal by giving major interest groups at least part of what they wanted. In addition to aiding bankers, farmers, corporations, and the unemployed, Congress enacted legislation to helping homeowners, stock investors, and the railroads.
Implementation
The Home Owners Refinancing Act provided two billion dollars to refinance home mortgages facing foreclosure. The Federal Housing Administration (FHA) was created to help new home buyers secure low interest mortgages. The FHA encouraged bankers to lower their interest rates by guaranteeing repayment of home mortgage loans. The Securities Act of 1933 required stockbrokers to provide investors with full information about new stock issues. The Emergency Railroad Transportation Act enabled bankrupt railroads to reorganize.
Results
Roosevelt's approach to solving the nation's economic problems produced modest results. The number of unemployed fell from 13 million in 1933 to 11.4 million the following year. Farm income rose about 50% although it remained well below its 1929 level. Industrial production and wages in manufacturing slowly moved upward. But despite these indications of progress, the nation remained caught in the grip of the worst economic depression in its history.
See also
