Posted: March 24th, 2023
Amongst all the serving presidents of America, Franklin Delano Roosevelt popularly known as FDR stayed in office for the longest period of the years of 1933-1945. Nonetheless, the 12 years of service to America saw him bring critical changes both socially and politically unlike all other presidents before him (Leuchtenburg 147). However, his tenure was not short of challenges which went beyond his control. Nevertheless, with his responsive tactics as a leader and the revolution of the New Deal, FDR became a defining figure in the United States history. On the other hand, President Ronald Reagan was the 40th president of America from 1981 to 1989. However, when he took office, America’s economy was in decline but he established a great vision of resolving the crisis of high taxation rates, unemployment, interest rates, and a lowered national spirit. With his high hopes and a small but specific plan, Reagan brought America’s economy back on the track (Leuchtenburg 581). Notably, both presidents are remarkable figures in the history of America, but their ideologies, approaches, and policies differed a great deal. Therefore, this study will evaluate the different policies and laws that were introduced during FDR’s tenure and how President Reagan’s administration redefined those strategies.
President Reagan and Roosevelt’s Philosophies on the Role of Government
President Roosevelt philosophy was that government was what the American people needed. Therefore, both the state and federal government’s responsibility was to regulate the economy by directly supporting the society (Leuchtenburg 146). In fact, FDR’s argument was that for the recovery of America’s economy, both the needy and wealthy needed to be considered. Consequently, he enacted policies where both economic groups would merge and become dependent on each other. Moreover, with his philosophy Roosevelt’s administration took directly to resolve the issues of the citizens instead of the local governments. Due to this approach, the relationship between the government and its people changed for the better with the New Deal cementing it further and upholding Roosevelt’s legacy (Freedman 95).
On the other hand, President Reagan’s philosophy was directly opposite to FDR’s rationale. In his inauguration speech, Reagan established that the government was not a solution to the American people instead it was the source of all the crises facing the US. Therefore, his argument was that the federal government needed to pave the way for the American people to resolve their economic problems. Indeed, after taking the oath of office, Reagan enacted policies which saw lowered taxes and controlled spending while the government regulations were minimized to help unleash the entrepreneurial spirit of Americans (Groom 100). In essence, Reagan believed that with the incentives to invest or build businesses it would result in job opportunities, tamed inflation, and reduced interest rates.
President Roosevelt and Reagans’ Policies towards Unions
During his tenure, FDR noticed that employees were being treated unfairly in their workplaces. Therefore, in a bid to resolve this problem, Roosevelt and Senator Wagner in 1935 lobbied the Senate to sign into law the National Labor Relations Act. According to this legislation, an independent board would be formed where they would enforce the rights of employees instead of arbitrating on them. As a result, employees under section 7 of the constitution were allowed to join and form unions (Freedman 99). In addition, workers were rightfully allowed to bargain collectively with their unions in an appropriate procedure. Consequently, with a board installed to make a ruling, most workers within the American commercial sector were represented and covered, thus their jobs were secured. In fact, FDR’s administration renewed national labor policies in America (Leuchtenburg 150).
On the other hand, President Reagan’s tenure in office saw the end of unions. Although he campaigned that the rights of a worker in private sectors should be upheld, his term in office confirmed that the union should adhere to the 1955 labor law. In this Act, it was stipulated that federal employees were not allowed to strike. Therefore, in 1981 when the Professional Air Traffic Controllers Organization (PATCO) industrial action took place, Reagan used his executive powers to sack nearly 13,000 employees and prohibit them from holding public office (Groom 92). With this kind of approach and backlash on workers, organized unions became an idea of the past in America. In fact, up to date, organized labor groups still face anti-union sentiments in the country (Leuchtenburg 585). Nevertheless, private sectors still use harsh stances and treat their employees as expendable due to the limitations facing the unions.
President FDR and Reagans’ view on Government Regulations
Upon assuming office, Roosevelt found unstable banking where almost a quarter of the sector had already failed. Therefore, to resolve this issue, FDR closed down all banks for a hundred days as a banking holiday in America. In essence, the forthcoming legislation was enacted in 1933 which was known the Glass-Steagall Act. In this enactment, it was provided that bank assets would be directed to safer and more practical use, ensure improved interbank control, and prevent diversion of funds into unimportant operations or for any other purposes (Freedman 94). Moreover, within this legislation, the Federal Reserve authority was expanded to ensure that they could regulate their member banks while a Federal Deposit Insurance Corporation was created as insurance for retail deposits to prevent the risk of failing banks.
While FDR’s administration built a fair and competitive economy, President Reagan chose to trample on them during his term (Leuchtenburg 160). Due to his philosophy of a lax nation without government oversight, the idea of lending became a wild enterprise. As a result, people stopped recognizing government regulations which were enacted to serve the interests of all businesses (Groom 94). Consequently, banks stopped managing savings and loans while their leaders invested the people’s money recklessly (Leuchtenburg 600). For instance, mortgage brokers started promoting sub-prime loans, deceived their home buyers, and passed fake documents to naive investors.
FDR’s and Reagans Taxation for the Rich
It is worth noting that the Wealth Tax Act was enacted in 1935 where Roosevelt’s intention was to promote wealth redistribution (Leuchtenburg 230). Nonetheless, in 1936 America agreed that all world war one veterans would be compensated 2 billion dollars, therefore, the need to raise the taxes. Consequently, in a bid to ensure equality, FDR enacted the Undistributed Profit Tax Act of 1936 where the rich saw their personal income taxes, corporate, estate, excise, and gift tax increase (Freedman 98). On the other hand, ordinary people’s taxes were raised in liquor products in their social security payrolls. Therefore, top earners were submitted to 100% tax on their incomes. Nonetheless, after heated debates, the taxes on the rich people’s income reduced to 94% but this was after ensuring that all loopholes of capital were exploited. As a result of taxation, Americans had less money to invest in business, thus leading to high unemployment rates.
While FDR upheld the idea of increased taxation on the rich people’s income, Reagan took to relieving their taxes. Concisely, after assuming office, Regan ensured to pass the Economic Recovery Act in 1981 where more than 25% of taxation were reduced from the American citizens. Further, in 1986 he initiated the enactment into law the Tax Reform Act which lowered tax rates by 15% for middle-class earners while the rate of the wealthy reduced by 28%. Due to Reagan’s policy investment plans, employment opportunities increased and national growth was realized (Groom 96). However, despite the vast benefits achieved by the middle and working class families America’s national debts increased considerably due to reduced taxation.
FDR’s Keynesian Economics and Reagan’s Supply-Side Economics
From the onset, Roosevelt’s idea was based on balancing the budget so as to instill confidence in business and the American market. However, when the Great Depression persisted, he was forced to embrace relief programs which were necessary despite the cost (Leuchtenburg 170). Eventually, the FDR’s administration was forced to embrace John Maynard Keynes theory of Keynesian economics. With Keynes theory of supply and demand, Roosevelt’s administration allowed the economy to balance itself. Consequently, jobs were created through programs such as the Civilian Conservation Corps as well as Works Progress Administration (Freedman 96). With these occupations, people were empowered financially a milestone that increased desire to spend, demands for goods, employment rates, and a balanced economy. Accordingly, the Keynesian economics established that individual freedom came from independence and economic security.
However, while Roosevelt fully embraced Keynesian economics, Reagan was more of the supply-side approach. With this theory, Reagan intuited that if people are allowed to keep more money, then they would have the incentive to increase their earned income. Nonetheless, the realization of this policy required cutting down on taxation (Groom 102). However, the optimism in this model was not seen immediately because America experienced a considerable recession in the period of 1981-1982. Consequently, the nation saw an increase in imports and a decrease in exports due to the inflated dollar on the international platform.
Policies Favoring Equality or Inequality in Both Roosevelt’s and Reagan’s Tenure
In a bid to respond to the Great Depression, Roosevelt embraced the New Deal where its superior principals included recovery, relief, and reforms. The aid idea, in particular, targeted the poor, unemployed, and the common man in America. Therefore, to curb unemployment, FDR created the Civilian Conservation Corp in 1933. As a result, young men got jobs as tree planters, public park builders, draining swamps, restocking fish in rivers, flood control projects, and other environment conservation works (Freedman 89). On the other hand, the emergency relief program was formed where federal money could be provided to the extremely needy people in society. In addition, other equalities upholding Acts were enacted into law, including the Agricultural Adjustment law in 1933, both the Federal Securities and National Housing laws in 1934, and the Social Security law of 1935 (Leuchtenburg 150).
Notably, President Reagan’s term introduced inequality in America, especially after the Supply-Side theory was popularized. However, living standard improved during his tenure but not as fast as it was in the 1950s. In fact, the reason for increased inequality was because of cutbacks in money transfers and all other transactions. Moreover, the initiative of changing tax policies led to greater wealth translating to inequality while poverty decreased leading to sufficient incomes (Groom 115). Another reason that widened the gap between the poor and the rich was the aspect of the busted spirit of organized labor groups that occurred in the 1981 PATCO saga.
FDR and Reagan’s Programs and their Impacts on Women
American women especially those in the working sector associate their benefits with the New Deal sparked during FDR’s tenure. In essence, it was the active role of Eleanor Roosevelt that advocated for social and economic rights of women which supported the American gender equality. She understood that women were suffering from the Great Depression, especially due to unemployment (Freedman 98). Therefore, Eleanor actively engaged in lobbying policy makers to consider the women in granting them employment opportunities in all relief programs formulated in FDR’s administration. Consequently, special programs were created for women where female leaders were the heads. In addition, women saw their wages equalized with that of men and they also benefited from the Fair Labor Relations Law which allowed them to form unions. Therefore, women pushed for standardized minimum wages and working hours as well as acquired top positions within the federal government (Leuchtenburg 190).
On the other hand, Reagan’s administration saw the introduction of policies that negatively impacted women. For instance, in 1984 he actively lobbied the Human life Amendment Act where it intended to ban abortion and some birth control initiatives. Further, Regan leadership offered little support to the Equal Employment Opportunity Commission in charge of the investigation, discrimination on gender basis at workplaces (Groom 109). Consequently, more women lost their jobs while the anti-equality judge Clarence Thomas failed to intervene on the pay gaps and sexual harassment cases existing in various jobs. In addition, Reagan refused to raise the minimum wage for low-level workers considering that most adult women were in this category (Leuchtenburg 590). Besides, to further diminish women’s rights the president lobbied for the enactment into law the family protection act in 1981 but the bill did not pass.
As it is evident from the discussion, both President Roosevelt and Reagan’s administration left a remarkable impact on the social, economic platform of America’s history. However, their landmark changes were influenced by their difference in ideologies during their leadership periods. Clearly, FDR was an advocate of an intervening government while Reagan was for an unrecognized administration. On the other hand, while FDR took to creating trade unions Reagan brought the end of active and organized labor groups in America. In addition, Roosevelt withheld that regulations in the banking and security sector were crucial to a fair and competitive economy. However, Reagan’s administration insisted that government regulations were unnecessary because they led to a disrupted economy. Additionally, FDR campaigned and enacted laws that supported progressive taxation to help pay off federal debts. Reagan’s term, on the other hand, saw charges reduced and especially those that affected the rich. Moreover, their economic approaches differed with Roosevelt embracing the supply and demand theory of Keynesian economics where equality prevailed considerably. Reagan consequently took a different approach that aimed at reducing taxes a method that encouraged and increased inequality in America. As per gender equality, FDR guaranteed that women were considered and even awarded top positions in his administration while Reagan and other anti-equality activists actively acknowledged gender inequality laws, especially in the health and employment sectors.
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