The New Deal was the title that US President Franklin D. Roosevelt for the programs and promises he pursued in 1933-1938. It aimed to give relief to the poor, reform the financial system, and recover from the economic degradation caused by the Great Depression…
24). This period was also the start of complex social programs and signaled the wider acceptance of trade unions in the United States.
The New Deal policy was triggered by the initial crash for the US stock market, which occurred on October 24, 1929 followed by October 29 "Black Tuesday" in which the stock market fell even more than it had the week before. These events catapulted into a worldwide economic depression (Chandler 1970). This economic depression was manifested in the US through a 4 percent to 25 percent increase in unemployment incidence, alongside reduction of manufacturing output by approximately a third. Due to deflation of currency values, prices fell, making the repayment of debts much harder. The drop in values of the mining, lumber, and agriculture industries caused these items to drop as well. The impact of the depression was however not as severe in white collar and service sectors.
"Throughout the nation men and women, forgotten in the political philosophy of the Government, look to us here for guidance and for more equitable opportunity to share in the distribution of national wealth I pledge myself to a new deal for the American people. This is more than a political campaign. It is a call to arms."
Roosevelt formed the "Brain Trust," a group of academic advisers whose formation was aimed at assisting in his recovery efforts. Extensive government intervention in the economy was sought instead of allowing laissez faire to run its course (Chandler 1970). Some vocal conservative opposition attacks were faced by the New Deal, such as the American Liberty League led by democrats, particularly the 1924 and 1928 presidential candidates John W. Davis and Al Smith. There was also a large group of New Deal opponents called "Old Right," led by politicians, intellectuals, writers, and newspaper editors (Chandler 1970).
This first New Deal of 1933 had goals of short-term recovery programs based on the assumption that the federal government headed by Roosevelt can solve the financial problems. Some of the policies promoted and implemented by the Roosevelt government are banking reform laws, emergency relief programs, agricultural programs, and work relief programs (Chandler 1970). Many organized liberal groups gained much of what they demanded, except the Socialist Party, which was practically destroyed. The First New Deal was described as a mixture of self-contradiction, experiment, and pragmatism (Chandler 1970). Eventually, the economy recovered form the low point of 1932, sustaining the improving until 1937 when the Recession of 1937 regained the 1934 levels of unemployment. Economists and historians disputed the concept of the New Deal being responsible for the economic recovery (Chandler 1970).
The New Deal was critiqued by several historians and Barton Bernstein spoke of the so-called 'conservative achievements' of liberal reform due to its inadequacies. Howard Zinn also gave considerable emphasis to flaws, limits, and conservative stances but failed, among others, in providing theoretical framework for understanding the New Deal (Foner 1997, p. 143). ...
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(The New Deal Essay Example | Topics and Well Written Essays - 3000 Words)
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In effect, the New Deal was about increased federal control over the national economy, greater powers for trade unions, and a wider network of social welfare measures (Edsforth). It was President Franklin Roosevelt after accepting the president ship in 1932, first used the term, ‘New Deal’, in its contextual sense, and promised new welfare measures for the people of the United States (Edsforth, 1).
This is evident with Franklin D. Roosevelt’s address to the commonwealth club in 1932 preceding the ongoing presidential battle that actually not only highlighted his move towards the establishment of an activist form of government but also very subtly made derisive remarks at the incompetency of Republican government in making equitable distribution of wealth.
During this time, President Roosevelt did support every plan suggested by his advisors, and in turn, congress supported the programs projected by the president. The new deal aimed at achieving three targets, relief, recovery and reform. Relief programs aimed at lessening the suffering experienced by the American people.
There is no denying the fact that President Roosevelt lost no time in fulfilling his promise of the New Deal, once he got elected. New Deal primarily signified a series of reforms initiated by President Franklin D Roosevelt aimed at ameliorating the diabolical impact of the Great Depression on the American economy.
Manufacturing output plunged by approximately one third. Prices everywhere fell, making the burden of the repayments of debts much harder. Heavy industry, mining, lumbering, and agriculture were hard hit.
The end of the wartime boom gave rise to the discussion and argument over peace treaties and the decision of the country to the League of Nations. The United States was filled with disillusionment as the people are increasingly engaged in "strikes, riots, and growing fear of radicals and terrorists" (The Presidential Election of 1920 1).
Admittedly, liberal historians argue that Roosevelt restored hope and self-respect to tens of millions of desperate people, built labor unions, upgraded the national infrastructure and saved capitalism in his first term when he could have destroyed it and easily nationalized the banks and rail roads
Liberal historians argue that Roosevelt restored hope and self respect to tens of millions of desperate people, built labor unions, upgraded the national infrastructure and saved capitalism in his first term, when he could have destroyed it and easily nationalized the banks and rail roads
very was of the economy to recover to ordinary levels; and Reform of the financial system not to recur another depression (Henretta, Brody, Fernlund and Benjamin p187).
The New Deal caused political repositioning in the United States. It made the Democratic Party a majority