The Effects of the New Deal The Great Depression plunged the American people into an economic crisis unlike any endured in this country before. The depression put millions of hardworking individuals into poverty, and for more than a decade neither the free market nor the federal government was able to restore prosperity. Many people who lived through the Depression often saw themselves as the survivors of a terrible battle; in for the rest of their lives many feared losing their money and property again. There were some people who even bought land whenever they could afford it so that if the
Depression returned, they would have somewhere to live. The Great Depression effected Americans socially, economically and politically. The Depression provided the drive for President Franklin D. Roosevelt New Deal. The New Deal was made to help the economy and also help Roosevelt politically. The New Deal forever changed the relationship between the government and the American people. Franklin D. Roosevelt promise of a “new deal” gave hope to millions of impoverished Americans during the Great Depression, but the intractability of the economic situation left much of his pledge unfulfilled (Bills, p. L).
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Roosevelt hoped that the New Deal would provide relief, reform, and recovery to save capitalism in America. Roosevelt promised bills and programs for Congress to consider instead of waiting for Congress to act. The New Deal did not end the Depression but it did provide many Jobs for Americans. The government still was not spending enough money to Jumpstarted a hindered economy. In the sass’s, World War II changed everything. To fight in the war the government had to purchase guns, tanks, ships, airplanes, and other military equipment. The defense industry hired many people, who then had more money to spend.
The U. S. Economy had started growing again. The new Deal made relief payments, served school lunches, and ran a program providing pensions. The programs were a response to the Great Depression and focused on the 3 RSI, relief, recovery, and reform. The relief for the unemployed and the poor, the recovery for the economy to return back to normal, and the reform to reform the financial system to prevent a repeat of the Depression was what the or’s stood for. Although many New Deal programs were temporary emergency measure, others lingered long after the return of prosperity (Bills, p. 228).
Many of the New Deal programs were most commonly known by their initials. Some programs aimed at helping farmers, like AAA (Agricultural Adjustment Administration). While others attempted to help control unemployment by hiring people for various projects such as the ICC (Civilian Conservation Corps) and the WAP (Works Progress Administration). Despite Ford’s best effort the Great Depression continued. The nation’s economy continued to fall, unemployment persisted, and people grew angry and more desperate. In 1935 Roosevelt launched a Second New Deal which was more a more aggressive series of deader programs to help the economy.
He created the WAP to provide Jobs for the unemployed. The WAP projects weren’t allowed to compete with private industry, so they focused on building things like post offices, bridges, schools, highways and parks. The WAP also gave work to artists, writers, theater directors and musicians. The WAP also employed many white collar workers such as doctors that had previously lost work (Fonder, 773). In July’s, the National Labor Relations Act, also known as the Wagner Act, created the National Labor Relations Board to supervise onion elections and prevent businesses from treating their workers unfairly.
Many of the New Deals programs still exist today. The Social Security Act created an income assistance system, health coverage, and social services for Americans (Fonder 774). Old age pensions were given to the retired, but were paid for by taxes (Fonder 775). The Wagner Act created the National Labor Relations Board (NELL) oversees labor unions. It also investigated disputes between management and labor. After the bank holiday of 1933, the Federal Deposit Insurance Corporation (FIDE) was created. The FIDE insures bank deposits up to 100,000. It replaces the deposits of individuals if the bank closes.
A federal agency called the Securities and Exchange Commission watches the stock market; to make sure companies follows fair practices for trading stock. The New Deal produced a political realignment, making the Democratic Party the majority. The Republicans were split, with conservatives opposing the entire New Deal as an enemy of business and growth and liberals accepting some of it and promising to make it more efficient. In 1936 the term liberal was usually interpreted s supporters of the New Deal, while conservatives were considered opponents of the New Deal.
Many people believe that there were two New Deals, the first one being for the economy survival, such as railroads, banking and farming. The second new deal is looked at as more liberal and controversial. A liberal in polices favor governments action to bring about social and economic reform. A conservative favors fewer government controls and more individual freedom in economic matters. Some New Deal programs are so popular that everyone supports them. For example, either party wanted to end Social Security, even though the system was in trouble.
The system might run out of money in the future because the amount that people pay in through payroll taxes today does not completely pay for pensions. People were grateful for Roosevelt because they felt like Hoover was not doing anything to help them recover from the Depression. Roosevelt kept many of the Americans spirits up and was friendly and honestly wanted the best for them. Roosevelt was much different from other presidents. As stated earlier, Roosevelt promised bills and orgasm for Congress to consider instead of waiting for Congress to act.
He meant business! The New Deal was a great success in that it improved the federal government’s role in economic affairs. FDA was able to maintain democratic means in America unlike the other countries. His major goals were to create a series of programs designed for relief, recovery, and reform. The New Deal set forth many plans to fix the banking system, provide Jobs while fixing up nature and provided welfare. The New Deal didn’t completely solve the problems that America faced after he depression; however, it did solve a few problems.