Chapter+27-+Policies+in+America

Facing the world’s worst economic crisis and an increasingly hostile world FDR is now faced with some of the hardest problems a president has faced. With all the problems America had at the time, they just wanted to draw back and hide within themselves. Hence the isolationist policies of the time. But the changing world would not allow America to be isolationist for long. FDR handled Europe much differently than his predecessor (Hoover), who wanted to draw back and force the gold standard. Roosevelt did not agree with these policies and allowed the gold value to fall, to give American goods a chance in the world market. Roosevelt did attend a World Economic Conference in 1933, but most people could not come to a decision on what to do for the economic situation of the world. It took three years for the western world to come together to try and stabilize the western currencies. Roosevelt also let the issue of war debts die and had all the banks stop loaning to defaulted nations. He also believed in trade which led to the Reciprocal Trade Act of 1934, which lowered tariffs by 50% and recognized the Soviet Union. These actions by our new president helped boost the American economy, but not to pre-depression levels; it would take a world war to do that. ** American Foreign Affairs
 * __Depression Diplomacy__ ** [[image:http://fannity.com/wp-content/uploads/2009/02/fdr1-thumb.jpg align="left"]]

Throughout the Great Depression Era America wished for more trading partners such as the newly formed Soviet Union and third world countries in Latin America. When the Bolsheviks took control of Russia, the U.S. had a general mistrust of them and would not recognize the communist government. But in 1933 Roosevelt, seeing the loss of a potential large trading partner, agreed to recognized the Soviet Union. American trade did not gain popularity in Russia and both countries ended up with bitter feelings. Another try at helping boost the anemic economy was the untouched markets in Latin America. Roosevelt succeeded in creating a larger amount of imports/exports to and from Latin America, and helped extend influence and culture. This “Good Neighbor Policy” also improved relations. So now instead of military force to create influence, we are using economic pressure.

America expressed many changing views during the build up to World War II. From expanded our markets to draw back in a shroud of mistrust. Also taking drastic measures to save our economy such as not controlling gold standard and attempting trade with countries we may have not in better times. The acts and actions taken here in the crisis before WWII have shaped America to where we are today.

**