• Communication
  • Recreational

You are currently viewing Pros and cons of the new Deal

Pros and cons of the new Deal

  • Post author: admin
  • Post published: December 15, 2019
  • Post category: Government
  • Post comments: 2 Comments

In 1933, President Franklin gave his first response to the Great Depression. He introduced something that people refer to as the New Deal. This is simple was a series of programs that addressed recovering the economy after the prices started to inflate. The moves targeted agriculture, the youths, and the elderly. The new deal introduced many constraints and other regulations in the banking sector to recover the prices. Although many people thought that the New Deal is the way to go, others thought it has plenty of cons that would mean danger to the current economic situation.

1 . Confidence in the American economy -With so many things happening all at once in the American economy by this time, many people started to lose confidence in the economy but the New Deal brought measures to restore this confidence.

2 . People started to trust the banks with their money -Roosevelt reopened the banks but only those that were well organized. This made people start trusting the banks with loans and savings.

3 . Increased employment rate -as I had stated earlier, the New Deal targeted the youths and helped them greatly secure employment. For this reason, it dropped the unemployment rate from 25% to 14% in four years.

4 . Visible developments – The president made sure that the economy is stabilizing and so, many schools, hospitals, and roads were constructed. All these efforts benefited the economy and also created more opportunities for farmers to transport their produce.

5 . Capitalism was saved -Very few people expected that this can benefit the economy without killing capitalism. Though, with the New Deal, Capitalism was saved.

6 . Farmers benefited positively . The New Deal wanted to motivate the farmers to produce more. For this reason, the farmers were given seeds and fertilizers, and also roads were constructed to open farms and make it easy for them to transport their produce.

7 . Fireside chats- Roosevelt would address the nation via radio about his ideas . This way, he assured the people that his government would help in such situations.

8 . Trust between the employees and the employers -The New Deal restored the trust between the employees and the employers. The president was sympathetic towards the workers and hence employers had no option but to treat them better.

9 . New Deal cleared ways for the following governments -People believed that if it were not for the New Deal, the Federal government that followed wouldn’t make America the greatest nation on earth.

10 . Safety net -The New Deal was not socialism at all, but it provided a safety net for the groups that suffered the wrath of capitalism.

1 . Money wasting- although this series of programs helped the nation greatly, republicans accused the New Deal of wasting money. They believed that it encouraged overspending.

2 . Didn’t adhere to Laize Fairre -Many people believed that the New Deal went against the American way of life. They also noted that Franklin’s government interfered with the economy.

3 . It was unconstitutional -There were some claims from the Supreme Court that the New Deal was not constitutional. Though, we would expect this because the American tradition of Laize Fairre didn’t give the government any mandate to interfere with the economy.

4 . Higher taxes -some players in the economy resented paying very high taxes. They explained that the high taxes they paid were to wheel the New Deal.

5 . Crush between the unions and the employers -The Roosevelt respected and sympathized with the employees which gave unions more power to demand higher pays. This introduced a crush between the employers and the unions.

6 . It took so long to solve unemployment -The New deal took about 5 years to significantly reduce unemployment. This didn’t please some Americans.

7 . No significant results -People thought that the only way to deal with the Great Depression was the end of WWII so, thought that this was a wastage of money.

8 . Discrimination – many Americans thought that the New Deal discriminated against African Americans, women, and immigrants. This was evident because many jobs created were aimed at helping white men and especially Americans.

9 . The close relationship between socialism and the New Deal -Some Americans started comparing the New Deal with the works of Hitler. This is actually the reason why they thought its socialism.

10 . It leads Americans in the direction of command economy -Americans have never supported the Government’s interference with the economy. What this means is that many people thought that the Government is doing something wrong by interfering with the economy.

You Might Also Like

Read more about the article Pros and Cons of State Testing

Pros and Cons of State Testing

Read more about the article Pros and Cons of Feudalism

Pros and Cons of Feudalism

Read more about the article Pros and Cons of Mandatory Voting

Pros and Cons of Mandatory Voting

This post has 2 comments.

' src=

I came looking for an objective and balanced summary of the pros and cons of the New Deal. This generally is not. The pros are majority matter of fact and cons have majority qualifiers. Could have been a good straight forward assessment being more valuable to the reader. Other sites proved more helpful

' src=

Mike, you can send me your edited work. I will include it.

Leave a Reply Cancel reply

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

To log in and use all the features of Khan Academy, please enable JavaScript in your browser.

Course: US history   >   Unit 7

  • The presidency of Herbert Hoover
  • The Great Depression
  • FDR and the Great Depression

The New Deal

  • The New Deal was a set of domestic policies enacted under President Franklin D. Roosevelt that dramatically expanded the federal government’s role in the economy in response to the Great Depression.
  • Historians commonly speak of a First New Deal (1933-1934), with the “alphabet soup” of relief, recovery, and reform agencies it created, and a Second New Deal (1935-1938) that offered further legislative reforms and created the groundwork for today’s modern social welfare system.
  • It was the massive military expenditures of World War II , not the New Deal, that eventually pulled the United States out of the Great Depression.

Origins of the New Deal

  • relief (for the unemployed)
  • recovery (of the economy through federal spending and job creation), and
  • reform (of capitalism, by means of regulatory legislation and the creation of new social welfare programs). 2 ‍  

The First New Deal (1933-1934)

The second new deal (1935-1938), the legacy of the new deal, what do you think.

  • Franklin Roosevelt, " Address Accepting the Presidential Nomination at the Democratic National Convention in Chicago ," July 2, 1932. Full text courtesy The American Presidency Project, University of California, Santa Barbara.
  • See David M. Kennedy and Lizabeth Cohen, The American Pageant: A History of the American People , 15th ed. (Boston: Wadsworth, 2013), 754-277.
  • Eric Foner, Give Me Liberty: An American History (New York: Norton, 2005), 829. Emphasis added.
  • On industrial output, see Akira Iriye, American Foreign Policy Relations (1913), 119.
  • On Keynes, see Robert Skidelsky, John Maynard Keynes: 1883–1946: Economist, Philosopher, Statesman (New York: MacMillan, 2003.)
  • On Roosevelt's court-packing plan, see Burt Solomon, FDR v. The Constitution: The Court-Packing Fight and the Triumph of Democracy (New York: Walker & Co., 2003).
  • See David M. Kennedy, Freedom from Fear: The American People in Depression and War (New York: Oxford University Press, 1999), 131-287.

Want to join the conversation?

  • Upvote Button navigates to signup page
  • Downvote Button navigates to signup page
  • Flag Button navigates to signup page

Incredible Answer

American History Central

The New Deal — A Guide to FDR’s Plan for Relief, Recovery, and Reform

The New Deal was a series of programs and policies implemented in the 1930s by President Franklin Delano Roosevelt in response to severe economic and social issues in the United States.

President Franklin D. Roosevelt, 1944, Campaign Portrait

President Franklin D. Roosevelt in 1944. Image Source: FDR Presidential Library & Museum on Flickr .

New Deal Summary

The New Deal was a series of programs and policies implemented in the 1930s by President Franklin Delano Roosevelt — commonly referred to as FDR — in response to severe economic and social issues in the United States. Each New Deal program and policy fell into one or more of three areas, known as the “Three Rs” — Relief, Recovery, and Reform.

At the end of the Roaring Twenties, the 1929 Stock Market Crash triggered the Great Depression started when the stock market crashed in 1929. Starting in 1931, the southwestern Great Plains suffered from a severe drought, which led to massive dust storms. The area was called “The Dust Bowl” and thousands of people were forced to abandon their homes and move west. In the wake of these events, Roosevelt ran for President in 1932, promising a “New Deal” for Americans, and defeated incumbent Herbert Hoover.

Dust Bowl, Storm Over Texas Panhandle, 1936, LOC

Roosevelt was inaugurated on March 4, 1933. In his First Inaugural Address, he delivered the famous line, “The only thing we have to fear is fear itself.” FDR moved quickly to ease the effects of the Depression on Americans by passing New Deal legislation during “The First Hundred Days” of his Presidency.

FDR started by restoring faith in banks, which had suffered due to the stock market crash of 1929. A Bank Holiday was declared and Congress followed by passing the Emergency Banking Relief Act, which allowed the government to inspect the financial health of banks before allowing them to reopen.

The New Deal aimed to tackle unemployment by creating programs that provided job opportunities. The Civil Works Administration (CWA) and the Civilian Conservation Corps (CCC) employed millions of Americans to work on infrastructure projects, such as building roads, bridges, and schools. Other programs, like the Tennessee Valley Authority (TVA), developed hydroelectric power plants to bring electricity to communities where none existed.

Great Depression, Migrant Mother, Lange, LOC

The New Deal also addressed labor relations by passing the National Labor Relations Act — also known as the (Wagner Act). It protected the rights of workers, allowing them to join unions and engage in collective bargaining. The act also established the Fair Labor Standards Act, which set a minimum wage for workers.

The New Deal programs and policies created a significant expansion of the Federal government. They also redefined the government’s role in dealing with economic and social issues. The New Deal was controversial when it was implemented, and its legacy continues to be debated by historians, economists, and others. However, the significance of the New Deal and its impact on the United States during the era leading up to World War II cannot be denied.

New Deal, WPA Mural, Washington DC, LOC

What did the New Deal do?

This video from the Daily Bellringer provides an overview of the New Deal and its programs. It also touches on the controversy caused by the New Deal which was caused by the expansion of the Federal Government.

New Deal Facts

  • The name “New Deal” came from Franklin D. Roosevelt’s 1932 acceptance speech for the Democratic Party’s presidential nomination. In the speech, he said, “I pledge you, I pledge myself, to a new deal for the American people.”
  • The New Deal was designed to deal with the economic and social issues created by the 1929 Stock Market Crash, the Great Depression, and the Dust Bow.
  • On March 4, 1933, Franklin D. Roosevelt was elected President. He gave a speech on Capitol Plaza in Washington DC to 100,000 people. He said the “only thing we should be afraid of is fear itself.”
  • He took action right away by calling Congress into a special session known as “The Hundred Days,” during which legislation was passed to deal with the Depression and provide economic aid to struggling Americans.
  • In an effort to restore the public’s confidence in banks, FDR declared a Bank Holiday and Congress passed the Emergency Banking Relief Act.
  • The New Deal dealt with unemployment by creating programs like the Civil Works Administration (CWA) and the Civilian Conservation Corps (CCC), providing jobs for millions of Americans and improving the nation’s infrastructure.
  • The New Deal was followed by the Second New Deal, which included the National Labor Relations Act, the  Works Progress Administration, and the Social Security Act.
  • The New Deal also included labor-related legislation, such as the National Labor Relations Act (Wagner Act) and the Fair Labor Standards Act, which gave workers the right to join unions, negotiate collectively, and established a minimum wage.
  • The New Deal paved the way for the repeal of the 18th Amendment, which established Prohibition. The Beer-Wine Revenue Act of 1933 amended the Volstead Act by raising the amount of alcohol allowed to 3.2 percent and also levied a tax.
  • Social programs established by the New Deal are still in effect today, including Social Security and the “Food Stamp Plan.”

FDR, Fireside Chat, LOC

New Deal AP US History (APUSH) Terms, Definitions, and FAQs

This section provides terms, definitions, and Frequently Asked Questions about the New Deal and the Second New Deal, including people, events, and programs. Also, be sure to look at our Guide to the AP US History Exam .

The New Deal was a series of policies and programs implemented by President Franklin D. Roosevelt during the 1930s in response to the Great Depression. The New Deal aimed to provide relief to the unemployed and poor, promote economic recovery, and reform the financial system. The New Deal included programs such as the Civilian Conservation Corps (CCC), the Federal Emergency Relief Administration (FERA), and the National Recovery Administration (NRA). It also created numerous agencies and programs such as the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), and the Social Security Administration.

The second phase of the New Deal, which was enacted in 1935. The Second New Deal focused on providing economic security to Americans through the creation of Social Security and other welfare programs. It also included measures to stimulate the economy, such as the Works Progress Administration (WPA) and the National Labor Relations Act (NLRA). The Second New Deal was instrumental in helping to alleviate poverty and providing employment opportunities during the Great Depression.

FDR’s Alphabet Soup refers to the numerous programs and agencies created during Franklin D. Roosevelt’s presidency as part of the New Deal. These initiatives, often known by their acronyms, aimed to provide relief, recovery, and reform during the Great Depression. Examples include the CCC (Civilian Conservation Corps), the TVA (Tennessee Valley Authority), and the WPA (Works Progress Administration).

The New Deal was a series of economic programs and reforms enacted by President Franklin D. Roosevelt during the Great Depression. The New Deal sought to provide relief, recovery, and reform to the American economy. It included programs such as Social Security, the National Labor Relations Act (NLRA), and the Fair Labor Standards Act (FLSA). These programs were instrumental in helping to protect workers’ rights and providing employment opportunities during the Great Depression. However, the New Deal was controversial, with some arguing it was a “raw deal” for workers and others arguing that it helped to alleviate the suffering of millions of Americans.

The three Rs of the New Deal were 1) Relief for the needy, 2) Recovery of the economy, and 3) Reform of the financial system. Each of the New Deal Programs generally fell into one of these areas. The goal of the three Rs was to keep the United States from falling into another Economic Depression.

New Deal People and Groups

Herbert Hoover — Herbert Hoover served as the 31st President of the United States from 1929 to 1933. He faced the immense challenges of the Great Depression and was criticized for his belief in limited government intervention. Despite his efforts to address the crisis, Hoover’s presidency is often associated with economic hardships and the initial response to the Depression.

President Herbert Hoover, c 1928, Portrait, LOC

John L. Lewis — An American labor leader who was instrumental in the formation of the Congress of Industrial Organizations (CIO) in 1935. He was a key figure in the Second New Deal and helped to pass the National Labor Relations Act (NLRA). He was also responsible for leading several major strikes during the Great Depression, including the United Mine Workers strike of 1934. Lewis worked to protect workers’ rights and provide employment opportunities during the Great Depression.

Franklin D. Roosevelt — Franklin D. Roosevelt was the 32nd President of the United States, serving from 1933 to 1945. He was elected to the presidency during the Great Depression, and his presidency is closely associated with the New Deal, a series of policies and programs aimed at addressing the economic crisis and promoting economic recovery. He was re-elected for an unprecedented four terms and his leadership during the Great Depression and World War II solidified the role of the Federal government in the American economy and society.

Eleanor Roosevelt — The wife of Franklin D. Roosevelt and one of the most influential First Ladies in American history. She was an advocate for civil rights and women’s rights, and she used her position to promote social reform.

FDR’s Brain Trust — A group of advisors to President Franklin D. Roosevelt who helped him develop the New Deal. They included prominent academics and intellectuals such as Raymond Moley, Rexford Tugwell, and Adolf Berle.

New Deal Democrats —  New Deal Democrats were a faction within the Democratic Party during the 1930s and 1940s that supported Franklin D. Roosevelt’s New Deal policies. These Democrats supported increasing government intervention in the economy and expanding social welfare programs.

United Mine Workers — A labor union that was formed in 1890. The union was instrumental in the formation of the Congress of Industrial Organizations (CIO) in 1935 and led several major strikes during the Great Depression, including the United Mine Workers strike of 1934.

Hundred Days Congress — The Hundred Days Congress was a special session of the United States Congress that ran from March 9 to June 16, 1933. It was called in response to the economic crisis of the Great Depression and was used to pass a number of laws known as the New Deal. During this period, President Franklin D. Roosevelt proposed a series of sweeping reforms designed to provide relief for those affected by the depression, as well as to stimulate the economy. The Hundred Days Congress passed a number of laws, including the Emergency Banking Relief Act, the Glass-Steagall Act, and the National Industrial Recovery Act.

New Deal Events

1932 Presidential Election — The 1932 Presidential Election marked a pivotal moment in American history as the nation grappled with the Great Depression. It was primarily a contest between Republican incumbent Herbert Hoover and Democratic candidate Franklin D. Roosevelt (FDR). FDR emerged victorious, promising a “New Deal” to combat the Depression and implementing a series of reforms that fundamentally reshaped the role of the federal government.

FDR, First Inauguration, with Hoover, LOC

Bank Holiday — A bank holiday is a period of time during which banks are closed, usually by government order. In 1933, President Franklin D. Roosevelt declared a national bank holiday in order to address the banking crisis caused by the Great Depression. During the holiday, which lasted four days, the government examined the books of all banks and only those that were found to be sound were allowed to reopen. This action helped stabilize the banking system and restore public confidence in banks.

Fireside Chats — The Fireside Chats were a series of radio addresses given by President Franklin D. Roosevelt during his presidency. The chats were designed to provide the American people with information about the government’s policies and actions and to explain the reasoning behind them in plain language. The chats were informal and conversational in tone, and they were delivered from the White House, often in the evening, giving the impression that Roosevelt was speaking directly to the American people from the warmth and comfort of their own homes. The Fireside Chats were a powerful tool for Roosevelt to communicate with the American people, build public support for his policies and maintain public confidence during a time of economic crisis.

Great Depression — The Great Depression refers to the severe economic downturn that occurred in the United States and other countries during the 1930s. It was characterized by widespread unemployment, poverty, and a sharp decline in industrial production and trade—ultimately leading to a fundamental restructuring of the American economy and significant social and political changes.

Roosevelt Recession — A period of economic contraction that occurred during the Great Depression, starting in 1937 and lasting until 1938. It was caused by a combination of factors, including President Franklin D. Roosevelt’s decision to reduce government spending, an increase in taxes, and the Federal Reserve’s decision to raise interest rates. This resulted in a decrease in consumer spending and investment, leading to a decrease in economic activity. The Roosevelt Recession was a major setback for the New Deal and led to increased unemployment and poverty.

United Mine Workers Strike of 1934 — A major strike led by the United Mine Workers Union during the Great Depression. The strike was in response to wage cuts and other grievances. It lasted for several months and resulted in a victory for the miners, who were able to secure higher wages and better working conditions.

New Deal Programs

Agricultural Adjustment Act (1933) — A law passed by Congress in 1933 as part of the New Deal. The AAA was designed to help farmers by providing subsidies for reducing crop production and encouraging soil conservation. It also established the Agricultural Adjustment Administration (AAA), which was responsible for implementing the provisions of the act. The AAA was instrumental in helping to stabilize agricultural prices and providing economic relief to farmers during the Great Depression.

Civilian Conservation Corps (CCC) — The CCC provided employment for young men between the ages of 18 and 25, who were paid to work on conservation projects such as planting trees, building roads, and constructing dams. The CCC also provided educational opportunities for its workers, including classes in literacy, math, and vocational skills. The CCC was instrumental in helping to restore the environment and providing employment opportunities during the Great Depression.

New Deal, Civilian Conservation Corps, Company 818 Camp, Grand Canyon

Civil Works Administration (CWA) — An agency created by the Federal Emergency Relief Act of 1933 as part of the New Deal. The CWA was responsible for providing jobs to millions of Americans during the Great Depression. It provided employment in construction, repair, and maintenance projects such as building roads, bridges, and public buildings. The CWA was instrumental in helping to alleviate poverty and providing employment opportunities during the Great Depression.

Emergency Banking Relief Act (1933) — A law passed by Congress in 1933 which allowed the federal government to provide emergency loans to banks in order to stabilize the banking system. The act was part of President Franklin D. Roosevelt’s New Deal and was designed to restore public confidence in the banking system. It provided for the reopening of solvent banks, the reorganization of insolvent banks, and the establishment of a Federal Deposit Insurance Corporation (FDIC) to insure deposits up to $2,500. The act was instrumental in helping to stabilize the banking system during the Great Depression and restoring public confidence in banks.

Federal Deposit Insurance Corporation (FDIC) — An independent agency of the United States government created in 1933 as part of the New Deal. The FDIC provides insurance for deposits up to a certain amount in member banks, protecting depositors from losses due to bank failures. The FDIC also regulates and supervises financial institutions to ensure that they are operating safely and soundly. It is one of the most important financial regulatory agencies in the United States and has helped to restore public confidence in the banking system.

Federal Emergency Relief Act (1933) — A law passed by Congress in 1933 as part of the New Deal. The FERA provided federal funds to states and local governments to create relief programs for the unemployed. It also established the Civil Works Administration (CWA), which was responsible for providing jobs to millions of Americans during the Great Depression. The FERA was instrumental in helping to alleviate poverty and providing employment opportunities during the Great Depression.

Federal Housing Administration (FHA) — An agency created by the National Housing Act of 1934 as part of the New Deal. The FHA was responsible for providing mortgage insurance to lenders, which allowed them to make home loans with lower down payments and easier credit requirements. This helped to increase homeownership and provided jobs to thousands of Americans during the Great Depression. The FHA helped stabilize the housing market and provide employment opportunities during the Great Depression.

Glass-Steagall Act (1933) — The Glass-Steagall Act was a law passed by Congress in 1933 as part of the New Deal. It was designed to separate commercial and investment banking, and it prohibited banks from engaging in certain types of speculative investments. The act also established the Federal Deposit Insurance Corporation (FDIC), which provided insurance for bank deposits up to a certain amount. The Glass-Steagall Act helped restore public confidence in the banking system and prevent another financial crisis.

National Industrial Recovery Act (1933) —  The National Industrial Recovery Act (NIRA) was a law passed by Congress in 1933 as part of the New Deal. It was designed to stimulate economic growth by providing government assistance to businesses, setting minimum wages and maximum hours for workers, and establishing codes of fair competition. The NIRA also established the National Recovery Administration (NRA), which was responsible for enforcing the provisions of the act. The NIRA was eventually declared unconstitutional by the Supreme Court in 1935.

The Public Works Administration (PWA) — An agency created by the National Recovery Administration of 1933 as part of the New Deal. The PWA was responsible for providing jobs to millions of Americans during the Great Depression. It provided employment in construction, repair, and maintenance projects such as building roads, bridges, and public buildings. The PWA played an important role in helping to alleviate poverty and providing employment opportunities during the Great Depression.

New Deal, PWA, Bonneville Dam Construction, Oregon

The Tennessee Valley Authority (TVA) — An agency created by the Tennessee Valley Authority Act of 1933 as part of the New Deal. The TVA was responsible for developing the infrastructure and resources of the Tennessee Valley region, including hydroelectric power, flood control, navigation, reforestation, and soil conservation. It also provided jobs to thousands of Americans during the Great Depression. The TVA played an important role in helping modernize the region and providing employment opportunities during the Great Depression.

Second New Deal Programs

Committee for Industrial Organizations (CIO) — An organization formed in 1935 as part of the Second New Deal. The CIO was responsible for organizing workers into unions and bargaining collectively with employers.

Fair Labor Standards Act (1938) — An act passed in 1938 as part of the Second New Deal. The Fair Labor Standards Act was responsible for establishing a minimum wage, overtime pay, and other labor standards.

National Labor Relations Act (1935) — An act passed in 1935 as part of the Second New Deal. The NLRA was responsible for protecting the rights of workers to organize and bargain collectively with their employers. It also established the National Labor Relations Board (NLRB), which was responsible for enforcing the provisions of the act.

Social Security Act (1935) — An act passed as part of the Second New Deal. The Social Security Act was responsible for providing economic security to Americans through the establishment of a federal retirement program and other welfare programs. It also provided unemployment insurance and disability benefits.

Wagner Act — Also known as the National Labor Relations Act (NLRA), it was passed in 1935 as part of the Second New Deal. The Wagner Act was responsible for protecting the rights of workers to organize and bargain collectively with their employers. It also established the National Labor Relations Board (NLRB), which was responsible for enforcing the provisions of the act.

Works Progress Administration (WPA) — An agency created by the Emergency Relief Appropriation Act of 1935 as part of the Second New Deal. The WPA was responsible for providing jobs to millions of Americans during the Great Depression. It funded a variety of projects, including construction, infrastructure development, and arts and culture programs. The WPA was instrumental in helping to stimulate the economy and providing employment opportunities during the Great Depression.

More New Deal Terms and Definitions

21st Amendment — The amendment to the U.S. Constitution that repealed the 18th Amendment and ended Prohibition. The 21st Amendment was ratified in 1933 as part of the New Deal and allowed states to regulate the sale and consumption of alcohol within their borders. It also gave states the power to collect taxes on alcohol sales, which provided a much-needed source of revenue during the Great Depression.

Boondoggling — A term coined by President Franklin D. Roosevelt to describe wasteful government spending on public works projects. The term was used to criticize the New Deal programs, which were seen as a form of government waste and corruption. Boondoggling became a popular term during the Great Depression and is still used today to refer to any wasteful or unnecessary government spending.

Tennessee River Valley — The Tennessee River Valley refers to the region in the southeastern United States encompassing parts of Tennessee, Alabama, and Kentucky. It gained prominence during the New Deal era due to the establishment of the Tennessee Valley Authority (TVA), a federal agency tasked with developing the area’s water resources, controlling flooding, and promoting economic development through hydroelectric power generation and irrigation projects.

National Parks — National Parks are protected areas designated by the federal government to preserve and showcase the country’s natural, historical, and cultural heritage. These areas, managed by the National Park Service, offer opportunities for recreation, conservation, and education. Notable examples include Yellowstone, Yosemite, and the Grand Canyon. National Parks serve as significant landmarks and contribute to the nation’s tourism industry and environmental conservation efforts.

Why is the New Deal important?

The New Deal is important to United States history for several reasons:

1. Response to the Great Depression: The New Deal was a direct response to the economic crisis of the Great Depression, which was one of the most challenging periods in American history. It represented a major shift in the role of the federal government in addressing economic issues and providing relief to citizens.

2. Economic Recovery and Relief: The New Deal implemented a range of programs and policies aimed at stabilizing the economy, creating jobs, and providing relief to those affected by the Great Depression. It helped alleviate immediate suffering and provided assistance to millions of Americans through employment, financial aid, and social welfare programs.

3. Expansion of Federal Government Power: The New Deal marked a significant expansion of the federal government’s role in regulating the economy and addressing social issues. It introduced new agencies and programs, such as the Works Progress Administration (WPA) and Social Security, that had long-lasting impacts on American society and established a precedent for increased government intervention in the economy.

4. Transformation of American Society: The New Deal’s programs had a transformative effect on American society. It brought about improvements in infrastructure, public works, and conservation projects, enhancing the nation’s physical landscape. It also introduced labor reforms, such as the right to unionize and the establishment of minimum wage standards, which aimed to improve working conditions and workers’ rights.

5. Legacy and Long-Term Impacts: Many of the programs and policies initiated during the New Deal era had lasting impacts on American society. Social Security, for example, continues to provide financial security to elderly and disabled Americans. The New Deal also shaped the political landscape, as the Democratic Party under FDR gained support from various social groups and established a coalition that would dominate American politics for decades.

  • Written by Randal Rust

Roosevelt’s New Deal and Its Influence on the Society Essay

The global economic crisis of 1929-1933 has hit the U.S. with a particular force. It has sharply reduced the volume of production, which led to the breakdown of finances, caused widespread destruction and bankruptcy of industrial, commercial, and financial firms, not to mention mass unemployment. The total output of American industry in 1932, was only about 54%, compared to the pre-crisis, in 1929. The years of the crisis-affected one-fifth of all U.S. banks, every third worker was denied employment. Hundreds of thousands of farms were forcibly sold for non-payment of debts and taxes. America was in a pre-revolutionary situation and required radical change of the old way of life (Means 2013).

Roosevelt, the newly elected president, made a promise to the people to change the world. It was a statement that defined his presidency. With the close support of his advisers, who were nicknamed “The Brain Trust”, he conducted a thorough preparation of a positive social program, which included the actions of reforming the administrative and judicial authorities, issues of economic planning and legislative regulation of the economy. The set of anti-crisis measures for state regulation for the American economy during Roosevelt’s administration was called the “New Deal”. The main reforms have been carried out during the first “hundred days” of the presidency. Congress passed a large number of laws covering all aspects of social, economic and political life, which became crucial to society. The meaning of the policy of “New Deal” was described by Roosevelt in a speech to the voters, as elements of economic planning for a “more equitable distribution of wealth and goods and supplies, the essential elements of economic organization to the needs of the people” (Means 2013).

To combat the main problem—unemployment, as well as to improve the material conditions of the population, the New Deal has taken the following measures: direct aid to the unemployed, the introduction of unemployment insurance and public works. Since May 12, 1933, about 0.5 billion, was spent towards unemployment, provision of jobs and change of policies. Most of the unemployed receiving benefits, preferred public works. Based on recommendations of the NIRA, Public Works Administration (PWA) was established. The total amount of work performed by its projects was supported by 3.3 billion dollars. For political reasons, the Government paid special attention to the increase in employment among young people. In the spring of 1933, there were special camps created that provided the most necessities for the people. The first camp for unemployed youth established during 1933-1939, has taken about 2 million people under the age of 25 years. There was full support and provision for the whole duration of the stay. The law also stated that only men were able to take up the positions but this law was changed. The single women needed just as much support and so, by 1935, the administration started helping single mothers, as they needed much more help than the families who could have both parents working. To reduce social tension, it has been decided to organize a simple public work, not requiring significant capital expenditures. This took place in the winter of 1933-1934. These measures, in addition to their direct purpose, stimulated purchasing capacity, implementing inflationary mechanisms of the American economy. The measures have taken a positive impact on unemployment; by 1937 it had dropped to 7.7 million people. However, as a result of the second wave of the economic crisis that occurred in 1938, the number of unemployed increased again to 10.4 million. Measures to combat the crisis in agriculture, due to the fall of prices for the products, were reflected in the Bill of assistance to farmers, signed by Franklin D. Roosevelt, on 05/12/1933. Its main part was a law on the regulation of agriculture. The program was called the Recovery Administration Agriculture. The main task was associated with the rise in the relative price level of agricultural products; the corresponding pre-crisis level, as such, was taken in summer 1914. The fall in prices of agricultural products in 1934 was about 58% (Schlesinger 2003).

The “New Deal” of Roosevelt had, as we see, both positive and negative sides. The economy was restored. The construction of new factories helped people get away from unemployment. A new system of insurance provided more secure and reliable job placement and stability in the economy. The common man has become part of America’s economic pyramid. But in connection with the increasing prices of food and clothing there appeared a deficit. Not everyone could afford to diversify and provide what was needed for the families. But despite this unemployment and economic ruin, the problems were defeated by the second term of Roosevelt. He created the foundation of America’s economic might. No doubt a great politician Roosevelt and his “New Deal” played a significant and positive role in the life of every American.

Roosevelt was a great politician who was able to determine what people needed and what steps must be taken to provide the most opportunities and change for society.

Means, Bernard. Shovel Ready: Archaeology and Roosevelt’s New Deal for America. Alabama: University of Alabama Press, 2013.

Schlesinger, Arthur. The Coming of the New Deal. 1933-1935. New York: Houghton Mifflin Harcourt, 2003.

  • Chicago (A-D)
  • Chicago (N-B)

IvyPanda. (2022, February 3). Roosevelt’s New Deal and Its Influence on the Society. https://ivypanda.com/essays/roosevelts-new-deal-and-its-influence-on-the-society/

"Roosevelt’s New Deal and Its Influence on the Society." IvyPanda , 3 Feb. 2022, ivypanda.com/essays/roosevelts-new-deal-and-its-influence-on-the-society/.

IvyPanda . (2022) 'Roosevelt’s New Deal and Its Influence on the Society'. 3 February.

IvyPanda . 2022. "Roosevelt’s New Deal and Its Influence on the Society." February 3, 2022. https://ivypanda.com/essays/roosevelts-new-deal-and-its-influence-on-the-society/.

1. IvyPanda . "Roosevelt’s New Deal and Its Influence on the Society." February 3, 2022. https://ivypanda.com/essays/roosevelts-new-deal-and-its-influence-on-the-society/.

Bibliography

IvyPanda . "Roosevelt’s New Deal and Its Influence on the Society." February 3, 2022. https://ivypanda.com/essays/roosevelts-new-deal-and-its-influence-on-the-society/.

  • American Great Depression and New Deal Reforms
  • Roosevelt's New Deal and Joining World War II
  • Franklin Delano Roosevelt's Era
  • Franklin Roosevelt: The Evolution of an American Idea
  • Theodore Roosevelt and Woodrow Wilson in American Presidency
  • Ronald Reagan’s American Presidency and Revolution
  • Economy as the Beginning of Reagan’s Reforms
  • George Washington: The First President of the Great Free Country

Teaching American History

The Consequences of the Proposed New Deal

  • October 31, 1932

No related resources

Introduction

Herbert Hoover (1874–1964) was elected president in 1928 while the country was still experiencing the economic boom of the 1920s. A year after his election, the stock market crashed. A full-scale economic depression followed. The Hoover administration’s efforts to deal with the economic crisis and its effects had little success, diminishing Hoover’s support. As the 1932 presidential campaign drew to a close, Hoover took the opportunity to explain what he thought was at stake in the election. In a speech at Madison Square Garden in New York City, he fired back at his Democratic challenger, Governor of New York Franklin Roosevelt (1882–1945), who had announced “a new deal for the American people” in his acceptance speech at the Democratic convention. Hoover seized on proposals made by Democratic leaders in Congress, and Roosevelt’s own words from the Commonwealth Club address , to portray Roosevelt and the Democrats as dangerously irresponsible and committed to a philosophy at odds with that of the American Founders. The president reminded his listeners of the progress the nation had made in the previous thirty years, and while he admitted that the previous three years had brought considerable distress, he asserted that the system established by the Founders in the Constitution had proven capable of weathering the worst of the crisis. Roosevelt won the popular vote with 57 percent versus Hoover’s 39 percent, and won the electoral college vote 472 to 59.

Source: Gerhard Peters and John T. Woolley, The American Presidency Project , https://www.presidency.ucsb.edu/documents/address-madison-square-garden-new-york-city-2 .

This campaign is more than a contest between two men. It is more than a contest between two parties. It is a contest between two philosophies of government.

We are told by the opposition that we must have a change, that we must have a new deal. It is not the change that comes from normal development of national life to which I object or you object, but the proposal to alter the whole foundations of our national life which have been builded through generations of testing and struggle, and of the principles upon which we have made this nation. The expressions of our opponents must refer to important changes in our economic and social system and our system of government; otherwise they would be nothing but vacuous words. And I realize that in this time of distress many of our people are asking whether our social and economic system is incapable of that great primary function of providing security and comfort of life to all of the firesides of 25 million homes in America, whether our social system provides for the fundamental development and progress of our people, and whether our form of government is capable of originating and sustaining that security and progress.

This question is the basis upon which our opponents are appealing to the people in their fear and their distress. They are proposing changes and so-called new deals which would destroy the very foundations of the American system of life.

Our people should consider the primary facts before they come to the judgment—not merely through political agitation, the glitter of promise, and the discouragement of temporary hardships—whether they will support changes which radically affect the whole system which has been builded during these six generations of the toil of our fathers. They should not approach the question in the despair with which our opponents would clothe it.

Our economic system has received abnormal shocks during the last three years which have temporarily dislocated its normal functioning. These shocks have in a large sense come from without our borders, and I say to you that our system of government has enabled us to take such strong action as to prevent the disaster which would otherwise have come to this nation. It has enabled us further to develop measures and programs which are now demonstrating their ability to bring about restoration and progress.

We must go deeper than platitudes and emotional appeals of the public platform in the campaign if we will penetrate to the full significance of the changes which our opponents are attempting to float upon the wave of distress and discontent from the difficulties through which we have passed. We can find what our opponents would do after searching the record of their appeals to discontent, to group and sectional interest. To find that, we must search for them in the legislative acts which they sponsored and passed in the Democratic-controlled House of Representatives in the last session of Congress. We must look into both the measures for which they voted and in which they were defeated. We must inquire whether or not the presidential and vice presidential candidates have disavowed those acts. If they have not, we must conclude that they form a portion and are a substantial indication of the profound changes in the new deal which is proposed.

And we must look still further than this as to what revolutionary changes have been proposed by the candidates themselves.

We must look into the type of leaders who are campaigning for the Democratic ticket, whose philosophies have been well known all their lives and whose demands for a change in the American system are frank and forceful. I can respect the sincerity of these men in their desire to change our form of government and our social and our economic system, though I shall do my best tonight to prove they are wrong. I refer particularly to Senator Norris, 1 Senator La Follette, 2 Senator Cutting, 3 Senator Huey Long, 4 Senator Wheeler, 5 William Randolph Hearst, 6 and other exponents of a social philosophy different from the traditional philosophies of the American people. Unless these men have felt assurance of support to their ideas they certainly would not be supporting these candidates and the Democratic Party. The zeal of these men indicates that they must have some sure confidence that they will have a voice in the administration of this government.

I may say at once that the changes proposed from all these Democratic principals and their allies are of the most profound and penetrating character. If they are brought about, this will not be the America which we have known in the past. . . .

Now, our American system is founded on a peculiar conception of self-government designed to maintain an equality of opportunity to the individual, and through decentralization it brings about and maintains these responsibilities. The centralization of government will undermine these responsibilities and will destroy the system itself.

Our government differs from all previous conceptions, not only in the decentralization but also in the independence of the judicial arm of the government.

Our government is founded on a conception that in times of great emergency, when forces are running beyond the control of individuals or cooperative action, beyond the control of local communities or the states, then the great reserve powers of the federal government should be brought into action to protect the people. But when these forces have ceased there must be a return to state, local, and individual responsibility.

The implacable march of scientific discovery with its train of new inventions presents every year new problems to government and new problems to the social order. Questions often arise whether, in the face of the growth of these new and gigantic tools, democracy can remain master in its own house and can preserve the fundamentals of our American system. I contend that it can, and I contend that this American system of ours has demonstrated its validity and superiority over any system yet invented by human mind. It has demonstrated it in the face of the greatest test of peacetime history—that is the emergency which we have passed in the last three years.

When the political and economic weakness of many nations of Europe, the result of the World War and its aftermath, finally culminated in the collapse of their institutions, the delicate adjustments of our economic and social and governmental life received a shock unparalleled in our history. No one knows that better than you of New York. No one knows its causes better than you. That the crisis was so great that many of the leading banks sought directly or indirectly to convert their assets into gold or its equivalent with the result that they practically ceased to function as credit institutions is known to you; that many of our citizens sought flight for their capital to other countries; that many of them attempted to hoard gold in large amounts you know. These were but superficial indications of the flight of confidence and the belief that our government could not overcome these forces.

Yet these forces were overcome—perhaps by narrow margins—and this demonstrates that our form of government has the capacity. It demonstrates what the courage of a nation can accomplish under the resolute leadership of the Republican Party. And I say the Republican Party because our opponents, before and during the crisis, proposed no constructive program, though some of their members patriotically supported ours for which they deserve on every occasion the applause of patriotism. Later on in the critical period, the Democratic House of Representatives did develop the real thought and ideas of the Democratic Party. They were so destructive that they had to be defeated. They did delay the healing of our wounds for months.

Now, in spite of all these obstructions we did succeed. Our form of government did prove itself equal to the task. We saved this nation from a generation of chaos and degeneration; we preserved the savings, the insurance policies, gave a fighting chance to men to hold their homes. We saved the integrity of our government and the honesty of the American dollar. And we installed measures which today are bringing back recovery. Employment, agriculture, and business—all of these show the steady, if slow, healing of an enormous wound.

As I left Washington, our government departments communicated to me the fact that the October statistics on employment show that since the first day of July, the men returned to work in the United States exceed one million.

I therefore contend that the problem of today is to continue these measures and policies to restore the American system to its normal functioning, to repair the wounds it has received, to correct the weaknesses and evils which would defeat that system. To enter upon a series of deep changes now, to embark upon this inchoate new deal which has been propounded in this campaign would not only undermine and destroy our American system but it will delay for months and years the possibility of recovery. . . .

Now, to go back to my major thesis—the thesis of the longer view. Before we enter into courses of deep-seated change and of the new deal, I would like you to consider what the results of this American system have been during the last 30 years—that is, a single generation. For if it can be demonstrated that by this means, our unequaled political, social, and economic system, we have secured a lift in the standards of living and the diffusion of comfort and hope to men and women, the growth of equality of opportunity, the widening of all opportunity such as had never been seen in the history of the world, then we should not tamper with it and destroy it, but on the contrary we should restore it and, by its gradual improvement and perfection, foster it into new performance for our country and for our children.

Now, if we look back over the last generation we find that the number of our families and, therefore, our homes, has increased from about 16 to about 25 million, or 62 percent. In that time we have builded for them 15 million new and better homes. We have equipped 20 million out of these 25 million homes with electricity; thereby we have lifted infinite drudgery from women and men. The barriers of time and space have been swept away in this single generation. Life has been made freer, the intellectual vision of every individual has been expanded by the installation of 20 million telephones, 12 million radios, and the service of 20 million automobiles. Our cities have been made magnificent with beautiful buildings, parks, and playgrounds. Our countryside has been knit together with splendid roads. We have increased by 12 times the use of electrical power and thereby taken sweat from the backs of men. In the broad sweep real wages and purchasing power of men and women have steadily increased. New comforts have steadily come to them. The hours of labor have decreased, the 12-hour day has disappeared, even the 9-hour day has almost gone. We are now advocating the 5-day week. During this generation the portals of opportunity to our children have ever widened. While our population grew by but 62 percent, yet we have increased the number of children in high schools by 700 percent, and those in institutions of higher learning by 300 percent. With all our spending, we multiplied by six times the savings in our banks and in our building and loan associations. We multiplied by 1,200 percent the amount of our life insurance. With the enlargement of our leisure we have come to a fuller life; we have gained new visions of hope; we are more nearly realizing our national aspirations and giving increased scope to the creative power of every individual and expansion of every man’s mind.

Now, our people in these 30 years have grown in the sense of social responsibility. There is profound progress in the relation of the employer to the employed. We have more nearly met with a full hand the most sacred obligation of man, that is, the responsibility of a man to his neighbor. Support to our schools, hospitals, and institutions for the care of the afflicted surpassed in totals by billions the proportionate service in any period in any nation in the history of the world.

Now, three years ago there came a break in this progress. A break of the same type we have met 15 times in a century and yet have recovered from. But 18 months later came a further blow by the shocks transmitted to us from earthquakes of the collapse of nations throughout the world as the aftermath of the World War. The workings of this system of ours were dislocated. Businessmen and farmers suffered, and millions of men and women are out of jobs. Their distress is bitter. I do not seek to minimize it, but we may thank God that in view of the storm that we have met that 30 million still have jobs, and yet this does not distract our thoughts from the suffering of the 10 million.

But I ask you what has happened. This 30 years of incomparable improvement in the scale of living, of advance of comfort and intellectual life, of security, of inspiration, and ideals did not arise without right principles animating the American system which produced them. Shall that system be discarded because vote-seeking men appeal to distress and say that the machinery is all wrong and that it must be abandoned or tampered with? Is it not more sensible to realize the simple fact that some extraordinary force has been thrown into the mechanism which has temporarily deranged its operation? Is it not wiser to believe that the difficulty is not with the principles upon which our American system is founded and designed through all these generations of inheritance? Should not our purpose be to restore the normal working of that system which has brought to us such immeasurable gifts, and not to destroy it?

Now, in order to indicate to you that the proposals of our opponents will endanger or destroy our system, I propose to analyze a few of them in their relation to these fundamentals which I have stated.

First: A proposal of our opponents that would break down the American system is the expansion of governmental expenditure by yielding to sectional and group raids on the public treasury. The extension of governmental expenditures beyond the minimum limit necessary to conduct the proper functions of the government enslaves men to work for the government. If we combine the whole governmental expenditures—national, state, and municipal—we will find that before the World War each citizen worked, theoretically, 25 days out of each year for the government. In 1924, he worked 46 days out of the year for the government. Today he works, theoretically, for the support of all forms of government 61 days out of the year.

No nation can conscript its citizens for this proportion of men’s and women’s time without national impoverishment and without the destruction of their liberties. Our nation cannot do it without destruction to our whole conception of the American system. The federal government has been forced in this emergency to unusual expenditure, but in partial alleviation of these extraordinary and unusual expenditures the Republican administration has made a successful effort to reduce the ordinary running expenses of the government. . . .

Second: Another proposal of our opponents which would destroy the American system is that of inflation of the currency. The bill which passed the last session of the Democratic House called upon the Treasury of the United States to issue $2,300 million in paper currency that would be unconvertible into solid values. Call it what you will, greenbacks or fiat money. It was the same nightmare which overhung our own country for years after the Civil War. . . .

The use of this expedient by nations in difficulty since the war in Europe has been one of the most tragic disasters to equality of opportunity and the independence of man. . . .

Third: In the last session of the Congress, under the personal leadership of the Democratic vice presidential candidate, and their allies in the Senate, they enacted a law to extend the government into personal banking business. I know it is always difficult to discuss banks. There seems to be much prejudice against some of them, but I was compelled to veto that bill out of fidelity to the whole American system of life and government. . . .

They failed to pass this bill over my veto. But you must not be deceived. This is still in their purposes as a part of the new deal, and no responsible candidate has yet disavowed it.

Fourth: Another proposal of our opponents which would wholly alter our American system of life is to reduce the protective tariff to a competitive tariff for revenue. . . .

Fifth: Another proposal is that the government go into the power business. . . .

I have stated unceasingly that I am opposed to the federal government going into the power business. I have insisted upon rigid regulation. The Democratic candidate has declared that under the same conditions which may make local action of this character desirable, he is prepared to put the federal government into the power business. He is being actively supported by a score of senators in this campaign, many of whose expenses are being paid by the Democratic National Committee, who are pledged to federal government development and operation of electrical power. . . .

Sixth: I may cite another instance of absolutely destructive proposals to our American system by our opponents, and I am talking about fundamentals and not superficialities.

Recently there was circulated through the unemployed in this city and other cities, a letter from the Democratic candidate in which he stated that he would support measures for the inauguration of self-liquidating public works such as the utilization of water resources, flood control, land reclamation, to provide employment for all surplus labor at all times.

I especially emphasize that promise to promote “employment for all surplus labor at all times”—by the government. I at first could not believe that anyone would be so cruel as to hold out a hope so absolutely impossible of realization to those 10 million who are unemployed and suffering. But the authenticity of that promise has been verified. And I protest against such frivolous promises being held out to a suffering people. It is easy to demonstrate that no such employment can be found. But the point that I wish to make here and now is the mental attitude and spirit of the Democratic Party that would lead them to attempt this or to make a promise to attempt it. That is another mark of the character of the new deal and the destructive changes which mean the total abandonment of every principle upon which this government and this American system are founded. If it were possible to give this employment to 10 million people by the government—at the expense of the rest of the people—it would cost upward of $9 billion a year.

The stages of this destruction would be first the destruction of government credit, then the destruction of the value of government securities, the destruction of every fiduciary trust in our country, insurance policies and all. It would pull down the employment of those who are still at work by the high taxes and the demoralization of credit upon which their employment is dependent. It would mean the pulling and hauling of politics for projects and measures, the favoring of localities and sections and groups. It would mean the growth of a fearful bureaucracy which, once established, could never be dislodged. If it were possible, it would mean one-third of the electorate would have government jobs, earnest to maintain this bureaucracy and to control the political destinies of the country. . . .

I have said before, and I want to repeat on this occasion, that the only method by which we can stop the suffering and unemployment is by returning our people to their normal jobs in their normal homes, carrying on their normal functions of living. This can be done only by sound processes of protecting and stimulating recovery of the existing system upon which we have builded our progress thus far—preventing distress and giving such sound employment as we can find in the meantime. . . .

In order that we may get at the philosophical background of the mind which pronounces the necessity for profound change in our economic system and a new deal, I would call your attention to an address delivered by the Democratic candidate in San Francisco early in October.

Our industrial plant is built. The problem just now is whether under existing conditions it is not overbuilt. Our last frontier has long since been reached. There is practically no more free land. There is no safety valve in the western prairies where we can go for a new start. . . .The mere building of more industrial plants, the organization of more corporations is as likely to be as much a danger as a help. . . .Our task now is not the discovery of natural resources or necessarily the production of more goods, it is the sober, less dramatic business of administering the resources and plants already in hand . . . establishing markets for surplus production, of meeting the problem of under-consumption, distributing the wealth and products more equitably and adopting the economic organization to the service of the people. 7

Now, there are many of these expressions with which no one would quarrel. But I do challenge the whole idea that we have ended the advance of America, that this country has reached the zenith of its power and the height of its development. That is the counsel of despair for the future of America. That is not the spirit by which we shall emerge from this depression. That is not the spirit which has made this country. If it is true, every American must abandon the road of countless progress and countless hopes and unlimited opportunity. I deny that the promise of American life has been fulfilled, for that means we have begun the decline and the fall. No nation can cease to move forward without degeneration of spirit.

I could quote from gentlemen who have emitted this same note of profound pessimism in each economic depression going back for 100 years. What the governor has overlooked is the fact that we are yet but on the frontiers of development of science and of invention. I have only to remind you that discoveries in electricity, the internal-combustion engine, the radio—all of which have sprung into being since our land was settled—have in themselves represented the greatest advances made in America. This philosophy upon which the governor of New York proposes to conduct the presidency of the United States is the philosophy of stagnation and of despair. It is the end of hope. The destinies of this country cannot be dominated by that spirit in action. It would be the end of the American system.

I have recited to you some of the items in the progress of this last generation. Progress in that generation was not due to the opening up of new agricultural land; it was due to the scientific research, the opening of new invention, new flashes of light from the intelligence of our people. These brought the improvements in agriculture and in industry. There are a thousand inventions for comfort and the expansion of life yet in the lockers of science that have not yet come to light. We are only upon their frontiers. As for myself, I am confident that if we do not destroy our American system, if we continue to stimulate scientific research, if we continue to give it the impulse of initiative and enterprise, if we continue to build voluntary cooperation instead of financial concentration, if we continue to build into a system of free men, my children will enjoy the same opportunity that has come to me and to the whole 120 million of my countrymen. I wish to see American government conducted in that faith and hope. . . .

My countrymen, the proposals of our opponents represent a profound change in American life—less in concrete proposal, bad as that may be, than by implication and by evasion. Dominantly in their spirit they represent a radical departure from the foundations of 150 years which have made this the greatest nation in the world. This election is not a mere shift from the ins to the outs. It means the determining of the course of our nation over a century to come.

Now, my conception of America is a land where men and women may walk in ordered liberty, where they may enjoy the advantages of wealth not concentrated in the hands of a few but diffused through the opportunity of all, where they build and safeguard their homes, give to their children the full opportunities of American life, where every man shall be respected in the faith that his conscience and his heart direct him to follow, and where people secure in their liberty shall have leisure and impulse to seek a fuller life. That leads to the release of the energies of men and women, to the wider vision and higher hope. It leads to opportunity for greater and greater service not alone of man to man in our country but from our country to the world. It leads to health in body and a spirit unfettered, youthful, eager with a vision stretching beyond the farthest horizons with a mind open and sympathetic and generous. But that must be builded upon our experience with the past, upon the foundations which have made this country great. It must be the product of the development of our truly American system.

  • 1. George W. Norris (R-NE).
  • 2. Robert M. La Follette Jr. (R-WI).
  • 3. Bronson M. Cutting (R-NM).
  • 4. Huey Long (D-LA).
  • 5. Burton K. Wheeler (D-MT).
  • 6. William Randolph Hearst was a Democratic politician from New York, a subscriber to Progressive politics, and a newspaper publisher.
  • 7. Franklin D. Roosevelt’s Commonwealth Club Address, September 23, 1932.

Consequences of the Proposed “New Deal”

Letter from herbert hoover to simeon fess (1933), see our list of programs.

Conversation-based seminars for collegial PD, one-day and multi-day seminars, graduate credit seminars (MA degree), online and in-person.

Check out our collection of primary source readers

Our Core Document Collection allows students to read history in the words of those who made it. Available in hard copy and for download.

positive and negative effects of the new deal essay

The New Deal

Was the new deal a success.

The New Deal

The Great Depression began on October 1929 and became the worst economic crisis in US history. This economic crisis caused widespread poverty, record-breaking levels of unemployment, and uncertainty about the future. The Great Depression ushered in an era of fear and uncertainty into a formerly prosperous United States. Many credit President Franklin D. Roosevelt’s New Deal programs for the United States’ escape from their economic sinkhole. But, after years of New Deal programs designed to curb the federal debt, the United State’s economic situation was still as grim as the decade before. In 1933, President Franklin D. Roosevelt took office, making his number one priority the rehabilitation of the United States’ economy. Over the course of the next few years, FDR and the federal government instituted a multitude of government-sponsored programs all with the aim of restoring the American dream. While the New Deal looks to have been a prosperous and successful time, was it prosperous and successful to all? To better understand the New Deal, it must be investigated from all sides. Was it equal to both genders Equal to minorities? Equal to all socio-economic statues’? And was it as wildly accepted and celebrated, as it seems to be today? You will be exploring and deconstructing the New Deal through this site and the materials that is included within it. When you are done, you should be able to explain and deconstruct the New Deal, from multiple perspectives.

Editorial Cartoons

The first resource you can explore are Editorial Cartoons. These politically motivated cartoons depict the darker side of the New Deal. They portray a side of the American public during the New Deal that saw it as a savage and money-hungry government imposition as opposed to a positive and life-changing establishment. These cartoons serve as a visual representation of the New Deals’ opposition. They show the harsh reality that a multitude of Americans experienced due to the policies enacted by the New Deal.

While the editorial cartoons often appear as a more lighthearted jab at the New Deal, the written accounts from Americans at this time packs a solid punch. These people openly and honestly state their dislike and distrust of FDR and the New Deal, and shed a brand new light onto the subject at hand. These sources are excellent examples of multiple perspectives on a common (and often misunderstood) issue.

Photographs

Like all good things, pictures are said to be worth a thousand words. These photographs of men and women in direct protest to the New Deal speak worlds on the question of “was the New Deal fair and right for all.” Media has the power to sway opinions, it is powerful and direct, and nothing stirs emotions more than a well-positioned and powerful photograph. Photographs are small moments in time that can leave a deep seeded impression. Consider this idea as you further explore the website and gather information, leading you to understand the matter at hand from more that one lens.

Through analyzing and deconstructing the information from each tab, students will have the chance to unlock the mystery behind the New Deal by either creating a Venn-Diagram that compares and contrasts what you learned from the evidence on this site with what you are told in your textbook, or by embodying the mind of a middle class American citizen during the New Deal and writing an essay describing whether you believe that the New Deal was a positive or negative for America and the American people. 

positive and negative effects of the new deal essay

  • History Classics
  • Your Profile
  • Find History on Facebook (Opens in a new window)
  • Find History on Twitter (Opens in a new window)
  • Find History on YouTube (Opens in a new window)
  • Find History on Instagram (Opens in a new window)
  • Find History on TikTok (Opens in a new window)
  • This Day In History
  • History Podcasts
  • History Vault

Did New Deal Programs Help End the Great Depression?

By: Brian Dunleavy

Updated: September 10, 2018 | Original: August 13, 2018

The New Deal

Since the late 1930s, conventional wisdom has held that President Franklin D. Roosevelt ’s “ New Deal ” helped bring about the end of the Great Depression . The series of social and government spending programs did get millions of Americans back to work on hundreds of public projects across the country.

But in the 80 years since the Great Depression was formally declared over in June of 1938, historians and economists have continued to debate the true merits of the New Deal and whether, in fact, the radical government spending programs brought about the end of the biggest economic downturn in history.

Many New Deal programs established critical economic safeguards.

“The reforms put in place by New Deal, including encouraging the beginning of the labor movement , which fostered wage growth and sustained the purchasing power of millions of Americans, the establishment of Social Security and the federal regulations imposed on the financial industry, as imperfect as they were, essentially ensured there wouldn’t be another Great Depression after the 1930s,” says Nelson Lichtenstein , professor of history and director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara.

“And there hasn’t been. We’ve had a few close calls, but nothing like the Great Depression,” he says.

But, just because the United States hasn’t repeated the economic catastrophe of the Great Depression doesn’t mean the programs of the New Deal can take all the credit. Other factors were also at play—including the onset of a major world war. “It really could be argued World War II , which ultimately lowered unemployment and increased GNP through weapons production really played a much bigger role,” Lichtenstein says.

Still, as Dr. Lichtenstein notes, several programs created through the New Deal did have a lasting positive impact on the U.S. economy which was flagging throughout the 1930s, among them the Social Security Act , which provided income for the elderly, disabled and children of poor families. The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation , which effectively insured the savings of Americans in the event of a bank failure, which was all too common at the time.

The modern labor movement was born out of New Deal initiatives.

In addition, Lichtenstein notes, the National Industrial Recovery Act of 1933 was enacted to foster “fair competition” through the fixing of prices and wages and the establishment of production quotas, among other measures.

The subsequent National Labor Relations Act of 1935 allowed for collective bargaining and essentially led to the development of the labor movement in the United States, which protected workers’ rights and wages.

But New Deal programs alone weren’t enough to end the Great Depression.

According to Linda Gordon , professor of history at New York University, the Works Progress Administration , created in 1935, also had a positive impact by employing more than 8 million Americans in building projects ranging from bridges and airports to parks and schools.

Such programs certainly helped end the Great Depression, “but were insufficient [because] the amount of government funds for stimulus wasn’t large enough,” she notes. “Only World War II, with its demands for massive war production, which created lots of jobs, ended the Depression.”

positive and negative effects of the new deal essay

Sign up for Inside History

Get HISTORY’s most fascinating stories delivered to your inbox three times a week.

By submitting your information, you agree to receive emails from HISTORY and A+E Networks. You can opt out at any time. You must be 16 years or older and a resident of the United States.

More details : Privacy Notice | Terms of Use | Contact Us

ipl-logo

The New Deal: Positive Effects Of The Great Depression

Many people wonder what the New Deal really did for the American people. The New Deal was a series of national programs proposed by President Franklin D. Roosevelt. The New Deal programs happened during 1933-1938, right after the Great Depression. The New Deal had a very positive effect on the people of America by creating new jobs, gaining trust in banking systems, and getting freedom from the effects of the Great Depression. The New Deal had a positive effect on the American people by the jobs it created. “His administration also established the Civilian Conservation Corps (CCC), which employed millions of young men, mostly urban, to work in camps at national parks and forests on conservation and reforestation projects” (“New Deal”). This shows that the New Deal had a positive effect by creating jobs because this New Deal program helped surmount the very exorbitant unemployment rates. Now, all these men can get money from their new job. Another way this evidence shows that the New …show more content…

“The WPA taught 400,000 African American women and men to read and write” (Katz). This is a freedom from the effect of the Great Depression because now more African Americans can read and write, unlike when the Great Depression was happening. Again, this is a positive effect of the New Deal because now that these African American men and women can read and write, and they can now get a jobs. The Roosevelt Administration set up the Resettlement Administration to help poor farmers relocate to marginal lands by providing loans (“New Deal”). First, this is a positive effect of the New Deal because it helped poor farmers move to better land to grow better produce to make up for the lost from the Great Depression. Second, this is freedom from the Great Depression because the farmers got to try and make their money back. To conclude, the New Deal helped compensate for the effects of the Great

How Successful Was The New Deal Dbq

The New Deal included programs that would help average citizens find relief and provide recovery from the dire economic situation, helped farmers recover from foreclosures produce more crops and reduce the prices of crops for citizens and consequently expanded the role of gov’t because more people depended more on their gov’t in a time of need. The Great Depression started after the stock market crash of 1929, shortly thereafter companies started firing millions of workers (Document J) to save money because CEO’s are always greedy and always want to keep as much money as possible for themselves. FDR’s response to mass unemployment was to create agencies like the TVA (Document I) which employed unemployed workers in Tennessee for public projects such as bridges, roads, dams, parks etc. Anything that benefited the public was built so that people had jobs and were able to bring the economy out the depression.

New Deal Dbq

In 1933, newly inaugurated, President Roosevelt launched the New Deal, a plan that took action to stop the crisis of the Great Depression. Although, his plan to restore the economy and welfare of the people helped America in Many ways, it created controversy. The New Deal was a good deal because it decreased

Usa Capitalism Dbq

In addition, the New Deal also created works programs like the WPA which, “Created jobs for millions of unemployed people constructing roads, hospitals, parks, and many other projects”(Kantor’s Website). These works programs provided men with jobs so they could receive paychecks to feed their families. Even though the salary was at an all time low, anything helped, and the parents were just glad to be able to provide hot lunches for their kids. The New Deal policies allowed families to get back on their feet and relieve some of their

New Deal Dbq Essay

The New Deal helped clean up the mess of the stock market crash and helped stabilize banks but The New Deal didn’t just save those things it saved this American Democracy as we know it, We see many examples of this in document 3 when we see all the actions that took place like granted emergency loans to banks or even the employment of 8 millions people, but the greatest of this was when they established 40 cents minimum wage and 40 hours in the work week. The New Deal millions of jobs and hosted public works projects that reached most every county in the nation. Abuse of the stock market was more clearly defined and monitored to prevent collapses in the future. In less than a decade The New Deal gave jobs to many in every country, state, and city in the world, and because of its effects Franklin Roosevelt was known as one of the greatest presidents we have ever had, but we could also say that World War 2 ended the Great Depression and to this day we as people never want our stock market to crash as badly as it

“New Deal was President Franklin D. Roosevelt’s program to pull the United States out of the Great Depression in the 1930’s. The New Deal did not end the Depression. However, it relieved much

Hoover's Response To The New Deal

Britain had been less dreadfully affected by the Great Depression but Britain 's industrial and export sectors continued to be seriously depressed until World War II. By 1931 many other countries had already been affected by the Depression. Almost all of the nation 's looked to protect their domestic production by imposing tariffs, increasing current tariffs, and placing quotas on foreign imports. The outcome of the restrictive measures put into place were to tremendously decrease the volume of international trade. The nation 's economic health slowly worsened as the president and business leaders attempted to convince the citizenry that rehabilitation from the Great Depression was imminent.

Franklin D. Roosevelt: The Most Significant Long-Term Effect Of The New Deal

8- Franklin D. Roosevelt and this New Deal fundamentally transformed America and created a debate that we see played out every day in America 's national politics: big government Democrats vs limited government Republicans. AS a read through this section, I found a plethora of government agencies that were established with the New Deal and just about every aspect of American lives were affected. Everything from labor, segregation, American Indian citizenship to women’s rights. However, to answer the question, “what is the most significant long-term effect of the New Deal ?”

The Forgotten Man Amity Shlaes Summary

Roosevelt New Deal plan also helped businesses to recover from the Depression loss. Shlaes mentioned in 1934, “Business has recovered half its depression loss, only 30 percent of the Depression unemployed has been put to work” (Shlaes 262). Also, to help recovery from the Great Depression, the New Deal offered social insurance; “Social Security seemed a gift on a scale most American would never have expected a president to be able to offer” (Shlaes 255). The Great depression impacted the Americana government in a way that the government had to change, reform and became more cautious of economic situations.

The programs created by the New Deal satisfied the needs of citizens, even though several thought Roosevelt was overstepping his power. Roosevelt’s administration was not very effective in ending the Great Depression, however, some of the programs did help relieve

The New Deal was successful because of gave jobs to many jobless people and ending the banking crisis. A newspaper article said that U.S banks are unstable. People go to the bank to get their money. The banks don’t have enough money to give to everyone. Police are called in to keep peace.

The Great Depression Research Paper Outline

The New Deal also opened soup kitchens were the unemployed could go to get a free meal. The New Deal also managed banks so the banks couldn’t spend money that they didn’t even have, and it also helped end the depression and helps prevent new ones from happening in the

Was The New Deal Successful Essay

Was the New Deal successful or unsuccessful for the United States of America? Overall the New Deal had a more positive impact the negative impact. The New Deal created many new opportunities and did many great things for America. There are many reasons to help contribute to the fact that the New Deal was successful.

Franklin D. Roosevelt's Devastating Effects Of The Great Depression

When the stock market crashed in 1929, millions of Americans lost their jobs and were dumped into deep poverty. In 1933, Franklin D. Roosevelt was elected president by the biggest landslide in history as he was seen as a "new hope" after millions blamed the previous president, Hoover, for the economic downturn. In Roosevelt 's first one hundred days in office, he initiated The New Deal in order to relive, recover and reform the nation. Despite facing criticism from businesses, division among political parties and creating a deficit for the nation the workings of the New Deal were exponentially beneficial short-term and long-term. The constructive effects included providing jobs with better conditions for numerous people, the addition of

Eleanor Roosevelt And The Great Depression

It was created to regain American capitalism and to reinvigorate the nation 's faith in democracy. The New Deal gave social and economic guarantees to citizens which helped to redefine the relationship between them and the federal government. While it didn’t revive America from the Depression, it did help. It created a feeling of social justice and economic security among the

New Deal Turning Point

How far was the New Deal a turning point in US history? The New Deal was made in response to a set of policies by Franklin Delano Roosevelt (FDR) to combat issues caused by the global financial meltdown of 1929, initiated by the Wall Street Crash. This decade long historic financial downturn has been identified as the Great Depression (1929-1939). The New Deal focused on what people refer to as the ‘three R’s’:

More about The New Deal: Positive Effects Of The Great Depression

Related topics.

  • Federal Deposit Insurance Corporation
  • Works Progress Administration
  • Search Search Please fill out this field.

The First 100 Days

The second new deal, a weak recovery, fiscal stimulus, the bottom line, the economic effects of the new deal.

positive and negative effects of the new deal essay

Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications.

positive and negative effects of the new deal essay

October 29, 1929, or " Black Tuesday ," marks the day the U.S. stock market came crashing down, initiating the most severe economic crisis in U.S. history, now known as the Great Depression . By 1933, gross domestic product (GDP) per capita in the U.S. had fallen 47%, and the average unemployment rate had risen from 3.2% to 25%.    

Amid this economic contraction, Franklin Roosevelt campaigned for the U.S. presidency on the promise of a “ new deal ” for the American people. He won the 1932 election by a landslide and began a series of reforms that, while reducing income inequality failed to pull the economy out of its depressed state—it would take the Second World War for that to finally happen.

Key Takeaways

  • The New Deal of the 1930s helped revitalize the U.S. economy following the Great Depression.
  • Economists often credit the New Deal with shortening the length and depth of the depression, while others question its impact on an otherwise weak recovery.
  • Ushered in by Franklin D. Roosevelt, the New Deal was an enormous federally-funded series of infrastructure and improvement projects across America, creating jobs for workers and profits for businesses.
  • Today, the legacy of the New Deal remains with programs like Social Security still in place.

Upon taking office in 1933, Roosevelt went straight to work on implementing reforms he hoped would stabilize the economy and provide jobs and financial relief to the American people. In his first 100 days in office, he put into effect many major laws, including the Glass-Steagall Act and the Homeowners Loan Act.   He also implemented a number of job creation schemes like the Federal Emergency Relief Act (FERA) and the Civilian Conservation Corps (CCC).

The most significant piece of legislation, however, was the National Industrial Recovery Act (NIRA). Roosevelt believed economic recovery depended upon cooperation at the expense of competition, and consequently, the NIRA was specifically designed to limit competition while allowing both prices and wages to rise.

The act allowed for industries to form a cartel, under the condition these industries would raise wages and allow for collective bargaining agreements with workers. The NIRA stayed in effect until 1935 when it was ruled by the Supreme Court to be unconstitutional.  

The Supreme Court repealed the NIRA because of its suspension of antitrust laws and the tethering of collusive activity with the payment of higher wages. Strongly disagreeing with the new ruling, Roosevelt managed to get the National Labor Relations Act (NLRA) passed in 1935, which, while re-instituting antitrust legislation, did strengthen a number of labor provisions. And in practice, the government largely ignored the new antitrust laws.

Under the NLRA, workers had even greater power to engage in collective bargaining and demand higher wages than under the NIRA. The new act also prohibiting firms from engaging in discriminating among employees based on union affiliation, forcing them to recognize the rights of workers in government and company unions alike. The National Labor Relations Board (NLRB) was established to enforce all aspects of the NLRA.

Following the passing of the NLRA union membership rose from about 13% of employment in 1935 to about 20% in 1939.   While doing much to improve the bargaining power of the average worker, which in conjunction with a number of tax rate increases on top incomes helped to reduce income inequality, the NIRA and NLRA failed to pull the U.S. economy out of its depressed state.

While the economy had somewhat recovered, it was far too weak for the New Deal policies to be unequivocally deemed successful. In 1933, at the low point of the contraction, GDP  per capita was 47% below the trend before the stock market crash of 1929, and by 1939, it was still 17% below that trend.  

The unemployment rate in 1939 was still at 17% and would remain above pre-Depression levels until 1943.  

For some economists, the weakness of the recovery is a direct result of the Roosevelt government’s interventionist policies. Harold L. Cole and Lee E. Ohanian argue that the anti-competitive policies of linking collusive practices to higher wage payments made the recovery much worse than it should have been. For them, unemployment remained high because of the increased bargaining power of unionized workers and the high attendant wages.  

Ultimately, Cole and Ohanian argue the abandonment of these anti-competitive policies coincides with the strong economic recovery of the 1940s.  

While the economy did experience a strong recovery during the 1940s, a different school of thought would argue this strength was due to the massive fiscal stimulus brought about by an increase in government spending for the war effort. This more Keynesian perspective would argue the policies implemented by Roosevelt were far too small to enact a fiscal-stimulus-led economic recovery.

It is a misconception to think that the New Deal was a time of great expansionary fiscal policy. Many of the New Dealers were quite fiscally conservative, which is why the social programs they instituted were coupled with significant tax increases. They believed that debt-financed spending, the likes of what the British economist John Maynard Keynes was proposing, posed more of a threat than a stimulus to the economy.

Philip Harvey argues Roosevelt was more interested in addressing social welfare concerns than creating a Keynesian-style macroeconomic stimulus package.   In 1932, Roosevelt deemed the task he faced was, “not discovery or exploitation of natural resources, or necessarily producing more goods,” but “the soberer, less dramatic business of administering resources and plants already in hand…of distributing wealth and products more equitably.”  

The primary concern was not increased production and economic activity, which coupled with fiscal conservatism, guaranteed any increase in social spending would be far too small to kick-start a reeling economy. With this view, it would take the increased spending from the war effort to give the economy the boost it badly needed.

The New Deal policies implemented by Roosevelt went a long way in helping to reduce income inequality in America. But with regard to the task of reviving an economy in crisis, the New Deal is considered by many to have been a failure.

While debates continue as to whether the interventions were too much or too little, many of the reforms from the New Deal, such as Social Security , unemployment insurance, and agricultural subsidies, still exist to this day. If anything, the legacy of the New Deal is that it has helped to create greater equality and welfare in America.

Federal Reserve Bank of St. Louis. " Gross Domestic Product Per Capita ."

U.S. Bureau of Labor Statistics. " Labor Force -- Estimating Methods ," Page 51.

Franklin Delano Roosevelt Presidential Library and Museum. " 100 Days of Action ."

National Archives Catalog. " United States. National Industrial Recovery Act of 1933. 6/16/1933 - 5/1935 ."

National Bureau of Economic Relations. " Trade Union Membership, 1897 - 1962 ," Page 2.

U.S. Bureau of Labor Statistics. " Labor Force, Employment, and Unemployment, 1929 - 1939: Estimating Methods ," Page 51.

University of Chicago Press. " New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis ."

Wall Street Journal. " How Government Prolonged the Depression ."

The Review of Black Political Economy. " Learning from the New Deal ."

Scott J. Hammond, Kevin R. Hardwick, and Howard Leslie Lubert. " Classics of American Political and Constitutional Thought: Reconstruction to the Present ," Page 407. Hacket Publishing, 2007.

  • Depression in the Economy: Definition and Example 1 of 14
  • What Is Economic Collapse? Definition and How It Can Occur 2 of 14
  • Business Cycle: What It Is, How to Measure It, the 4 Phases 3 of 14
  • Boom And Bust Cycle: Definition, How It Works, and History 4 of 14
  • Negative Growth: Definition and Economic Impact 5 of 14
  • The Great Depression: Overview, Causes, and Effects 6 of 14
  • Were There Any Periods of Major Deflation in U.S. History? 7 of 14
  • The Greatest Generation: Definition and Characteristics 8 of 14
  • A History of U.S. Government Financial Bailouts 9 of 14
  • Understanding Austerity, Types of Austerity Measures, and Examples 10 of 14
  • The New Deal: Meaning, Overview, History 11 of 14
  • The Economic Effects of the New Deal 12 of 14
  • Gold Reserve Act of 1934: Meaning, History 13 of 14
  • Emergency Banking Act of 1933: Definition, Purpose, Importance 14 of 14

positive and negative effects of the new deal essay

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

preview

The Positive And Negative Consequences Of The New Deal

While the New Deal helped Americans recover after the Great Depression ,Americans today are dealing with both good and bad consequences of Roosevelt's deal today.Therefore it was the most impactful event from that era. The New Deal created programs that gave poor, unemployed citizens an opportunity for a source of income,which people were desperate for.The Civilian Conservation Corps (CCC) created 3 million jobs for young men.Economic Security Act of 1935 took elderly people out of poorhouse that the government provide.once that act was put in place the baby boomers could support the elderly that used the checks.That act later became known as Social Security .Roosevelt then created the Fair Labor Standard Act which helped create fair wages and hours.the great Depression was the stock market crash so Security and exchange Commision came into existence to regulate the stock market. …show more content…

All the negative and positive impacts helped create the society that we live in today.If the New Deal never happened the world that we live in would be drastically

1850: The Rise Of Industrial Capitalism In America

Roosevelt created the New Deal. Roosevelt, former Progressive, want to radically reform Industrial Capitalism. The New Deal was Roosevelt economic policy to help fix the economy and fix the problems of Industrial Capitalism. Like the Progressives, the New Deal wanted Government to have more control over the economy .The New Deal adopted a “deficit spending” type of economy; this wanted the government to have more control over America’s money. To help stabilize the economy the New Deal created the monetary reform. This end the gold standard created and gave the government more control over the economy. The Mellon Plan created during the Roaring twenties was destroyed, giving the government more money. The New Deal was also able to created more jobs for people in America. The Civilian Conservation Corps and the Works Progress Administration help to employ more people. Also the legalizing of unions help to improve work conditions for the workers. Even though The New Deal was effective at helping workers by creating more jobs and stabilized the monetary system, Industrial Capitalism still had

The Pros And Cons Of The New Deal

The New Deal was good because it provided Americans with hope, jobs, and government assistance during a time when American citizens could not help themselves. The Great Depression caused the US to fall apart economically, and the New Deal was put in place to try to fix the economy. President Roosevelt thought this was the best way to fix the economy, and it was. But that doesn’t mean it was perfect. It also doesn’t mean it worked. While many good things came from the New Deal, many bad things came out as well. But the good outweighed the bad, and the New Deal began the journey out of the Great Depression.

The New Deal was a necessary program out in place which helped the nation and expanded the role of the government in a positive way. The nation was struggling in effect of the Great Depression and going through a hard time, and the New Deal helped the country out of it. Alone, the citizens of the United States would have never been able to pull themselves out of this mess, but the government stepped in and helped to fix the nation. The benefits of the New Deal can best be summed up with the three R’s: relief, recovery, and reform.

World War II: The New Deal

As soon as Franklin Roosevelt came to power, he was quick to react to the countries needs. The text states, “Swift legislation regulated the stock market and the banking system, improved the agricultural economy, and introduced a social security program” (“Great Depression”). Franklin Roosevelt was swift in recognizing the problems facing the country and attempted to solve the issues. His legislation focused on securing the economy and beginning to built back up the trust between the government and the American people. It was successful, to an extent. People did begin to trust the government again but economic decline would not stop immediately. There were signs of progress; From 1933 to 1938 the economy experienced growth. Unemployment fell and national income increased (Jeffries). This statistic shows that New Deal reforms had some positive impact on the economy. They also succeeded in restoring confidence to the average person which was extremely important at the time. This statistic does not, however, reflect that this growth was very small relative to the growth experienced during World War II. New Deal policies failed to ever achieve enough economic growth to push the nation out of the depression. Another cornerstone of the New Deal was its campaign to make life more safe. The New Deal worked to make life less risky, and in a sense it did through acts

President Franklin D. Roosevelt New Deals

The Great Depression was an economic and social blow to the American people, people were out of job, food, money and homes while society turned everyone against each other it was everyman for himself. President Franklin D. Roosevelt new deals were effect in providing jobs to the men of the families starting from the oldest to the youngest men in the family. The New Deal improved both the economic and social lives of the American people.

New Deal Dbq

When the Great Depression occurred the U.S. and the American nation was thrown into complete chaos. Herbert Hoover established a ”hands off” policy which left the American people poor, homeless, and unemployed. Then FDR decided to intervene and take the U.S. out of the Great Depression with the New Deal idea which was a set of policies set in place to pull Americans out of the Great Depression. The policies help many and were very successful in getting American citizens back on their feet. One example of the impact of the New deal on American people was it employed many people. Including providing jobs for young men which also gave food clothing. The CCC cared for nearly 2.5 million young men. Many more bills employed many people under CWA and WPA. The program also provided food for many malnourished children and nursed them back to health. Last of all the New Deal offered recovery to many poor in debt farmers. These beneficial bills were very successful in pulling the U.S. out of the Great Depression and leading them to a new better life with the New Deal.

During the Great Depression Franklin Roosevelt enacted the “New Deal”, which was a series of government programs that helped the american people, this New Deal was the best thing that could have been done to help the American people who were struggling during the Great Depression, thus making it a good deal. The New Deal worked wonders in the US in terms of fixing the damage done during the Great Depression. This along with WW2 brought the US out of the worst economic depression that the country had ever faced. Despite the tragedies and the hardships that our nation was facing, The WPA, social security, and the AAA(agricultural adjustment act) helped this mighty nation persevere and remain unmoved by such a tragedy.

How Successful Was The New Deal Dbq

Franklin D Roosevelt jumped into action to save the economy the 1930s. In Doc A, he said “we are giving opportunity of employment to one-quarter of a million of the unemployed, especially the young men…” (Doc A). This shows that the New Deal created jobs so people could get paid and ended the Depression. In Doc E, it shows that in 1937, the unemployment rate had increased down to 9.1% compared to the 22.5% it was before FDR took office (Doc E). This shows that the New Deal succeeded in providing work. Besides providing jobs, the New Deal gave Americans faith in their government.

To fix the umemployements, the Federal Emergency Relief Administration provided money to give to states for relief programs such as the public works administration did by creating construction projects. The Civil Works Administration gave jobs to Americans during the winter of 1933-1934 by using construction projects. The Civilian Conservation corps gave jobs in outdoor works, planting trees, etc. The Federal Housing Administration helped regulate interest rates for mortgages. So, people wouldn’t lose their homes. After the first New Deal that focused on the economy, here was a second New Deal that focused on social justice and safety. Therefore, the Wagner Act and Social Security Act was passed. The Wagner Act focused on workers having the right to join unions without consequences and the Social Security Act to give pensions to retired workers and compensation to unemployed and disabled workers. The impacts of the New deal was that there was a more organized labor that had increased and organized workers in industries. Women in the New Deal still had to face bias views on how women were inferior to men. For example, women were still paid less than man but Elanor Roosevelt changed the image of how the First Lady should act because she always aided her husband, FDR. The FDIR is still used in banks today, people can still join unions in their jobs, women are not consider inferior and

Dust Bowl Research Paper

The concept of the The New Deal was to get the USA citizens back on track, Roosevelt stabilized the banks,by the four day bank holiday. He also Conservation Corps, which tried to employ men and women, this act was also 0ne of the most successful.

The New Deal made by President Franklin Delano Roosevelt was a big success and brought America out of the Great Depression. The New Deal was a set of laws and organization that were brought into America during Roosevelt first one hundred days in office. The New Deal got many people jobs and saved banks from closing. Overall The New Deal get America back on its feet again.

The New Deal was not a good deal. It interfered with the economic lives of American people and did not help the United States out of the Great Depression. The government was getting too much power and congress was approving this. Furthermore, the efforts that President Franklin Delano Roosevelt put in to relieve the poor made our national debt skyrocket and did not help us come out of the Great Depression. We were not truly out of the depression until the 1940s, during World War II when more jobs were created.

The New Deal help created jobs and money to a lot of people in the 1930s. The New Deal created jobs by “creating the Works Progress Administration (WPA) to provide jobs for unemployed people” (history.com/topics/new-deal). This administration gave jobs to millions

After the prosperous 1920’s, America headed into what would be none as the Great Depression. The economy crashed and the standard of living for majority Americans was the lowest it has ever been before. America needed a hero, and fortunately, Franklin Delano Roosevelt was elected into office in 1933. He immediately began working on ways to get out of the depression, and he came up with what would be known as the New Deal. The New Deal was praised for how it treated problems involving unemployment, poverty, and other concerns. It did things such as make new jobs, through the WPA (Works Progress Administration) and CCC (Civilian Conservation Corps). By creating new jobs, people were helped physically, mentally and socially. After the Stock Market

The amount of people without jobs during the time of the Great Depression was a big problem. Unemployment was reduced 25% from the level in 1932 of 15 million people because of the New Deal. FDR had given the American people renewed faith and hope. The New Deal had saved America from dictatorship and more importantly, protected the American democracy. Programs such as the CCC, FERA, PWA, and WPA had helped by trying to decrease the amount of unemployed people. Some programs that were created had greatly help reform the nation, such as the SEC and the FDIC. These were long term and permanent programs that had a huge part of solving major problems during the Great Depression. The SEC had reformed the stock market and the Securities Act and Securities and Exchange Commision made sure the Wall Street Stock Market could never crash again. The FDIC had insured people’s money in banks and continues to do so today. The programs that were created by President Franklin Roosevelt had really helped many, especially those who were unemployed, homeless, poor, or disabled. The SSA had set up a national insurance plan that provided old age pensions, unemployment benefit, and financial support for the handicapped. Although unemployment didn’t end until the start of WWII, it did decrease a lot. President Franklin Roosevelt’s New Deal was successful in solving the major problems of the Great

Related Topics

  • Great Depression
  • Franklin D. Roosevelt
  • United States
  • Social Security
  • President of the United States

Home — Essay Samples — History — The New Deal — Success Of The New Deal In The United States

test_template

Success of The New Deal in The United States

  • Categories: The New Deal

About this sample

close

Words: 908 |

Published: Sep 1, 2020

Words: 908 | Pages: 2 | 5 min read

Works Cited

  • Badger, A. (2013). The New Deal: The Depression Years, 1933-1940. Ivan R. Dee.
  • Brinkley, A. (2009). The Unfinished Nation: A Concise History of the American People. McGraw-Hill.
  • Kennedy, D. M., Cohen, L., & Bailey, T. A. (2010). The American Pageant: A History of the Republic. Cengage Learning.
  • McElvaine, R. S. (1993). The Great Depression: America, 1929-1941. Times Books.
  • Nash, G. B. (2014). The American People: Creating a Nation and a Society. Pearson Education.
  • Roosevelt, F. D. (1933). Inaugural Address.
  • Roosevelt, F. D. (1935). Message to Congress on Unemployment Relief.
  • Rosen, E. T. (2014). Franklin D. Roosevelt and the New Deal: 1932–1940. Routledge.
  • Singleton, J. A. (1996). The Tennessee Valley Authority: A Case Study in Successful Federalism. University of Oklahoma Press.
  • US Social Security Administration. (n.d.). Social Security History. Retrieved April 22, 2023, from https://www.ssa.gov/history/

Image of Dr. Charlotte Jacobson

Cite this Essay

Let us write you an essay from scratch

  • 450+ experts on 30 subjects ready to help
  • Custom essay delivered in as few as 3 hours

Get high-quality help

author

Prof. Kifaru

Verified writer

  • Expert in: History

writer

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

3 pages / 1167 words

3 pages / 1353 words

2 pages / 991 words

6 pages / 2599 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on The New Deal

The 32nd President of the United States and serving the longest in American history, Franklin Delano Roosevelt (FDR) has been called a great leader, humanitarian, skilled politician, and self-confident. The American people were [...]

U.S. History. (n.d.). HISTORY. Retrieved December 23, 2020, from 3.

The New Deal was a series of programs and policies implemented by the US government in response to the Great Depression, with the aim of providing relief, recovery, and reform in various aspects of society.In conclusion, the New [...]

The New Deal was a series of programs and policies implemented by the federal government during the Great Depression aimed at providing relief, recovery, and reform to the American people. The New Deal was championed by [...]

The new deal of the 1930s was seen as the radical action needed during the depression to help American people and the American economy. However, some people criticized it for not being radical enough as it didn’t help all [...]

In our world, the government will often want people to see the good things in their country instead of the details including poverty, racial discrimination, social and economic issues, and so much more. During the Great [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

  • Instructions Followed To The Letter
  • Deadlines Met At Every Stage
  • Unique And Plagiarism Free

positive and negative effects of the new deal essay

IMAGES

  1. HOW TO WRITE AN ESSAY: (using the New Deal prompt) 1

    positive and negative effects of the new deal essay

  2. ≫ Franklin D Roosevelt Presidency during the Great Depression: New Deal

    positive and negative effects of the new deal essay

  3. PPT

    positive and negative effects of the new deal essay

  4. PPT

    positive and negative effects of the new deal essay

  5. New Deal Essay

    positive and negative effects of the new deal essay

  6. PPT

    positive and negative effects of the new deal essay

VIDEO

  1. Positive & Negative Effects of GLOBALIZATION 🌍🗺️🗾

  2. Ian Dehner Unit 5: New Deal Essay US History II Dr. Mastopoulos

  3. new deal essay video

  4. POSITIVE & NEGATIVE EFFECTS OF ONLINE GAMES

  5. The Positive and Negative Effects of Late Marriage

  6. The Positive & Negative Effects Food Has On The Body For Longevity

COMMENTS

  1. History Grade 11

    The First Hundred Days. When analyzing the legacy of the "New Deal", it is important to understand that there were two phases of the deal, namely the "First New Deal" and the "Second New Deal". The First New Deal consisted mainly of the first three months of Roosevelt's presidency and is referred to as the "hundred days". [5]

  2. New Deal

    What were the causes and effects of the New Deal, the ambitious domestic program of U.S. President Franklin D. Roosevelt during the 1930s? Learn about the main goals, achievements, and criticisms of this historic initiative that aimed to provide relief, recovery, and reform to the American people during the Great Depression.

  3. Pros and cons of the new Deal

    4. Higher taxes -some players in the economy resented paying very high taxes. They explained that the high taxes they paid were to wheel the New Deal. 5. Crush between the unions and the employers -The Roosevelt respected and sympathized with the employees which gave unions more power to demand higher pays.

  4. The New Deal (article)

    The First New Deal began in a whirlwind of legislative action called " The First Hundred Days .". From March through June 1933, at Roosevelt's behest, Congress passed legislation aimed at addressing the banking crisis, unemployment, and weak industrial performance, among other problems, through an "alphabet soup" of new laws and agencies.

  5. New Deal, Summary, Facts, Significance, APUSH, Ultimate Guide

    The New Deal was a series of programs and policies implemented in the 1930s by President Franklin Delano Roosevelt — commonly referred to as FDR — in response to severe economic and social issues in the United States. Each New Deal program and policy fell into one or more of three areas, known as the "Three Rs" — Relief, Recovery, and ...

  6. New Deal

    New Deal, domestic program of the administration of U.S. Pres. Franklin D. Roosevelt (FDR) between 1933 and 1939, which took action to bring about immediate economic relief as well as reforms in industry, agriculture, finance, waterpower, labour, and housing, vastly increasing the scope of the federal government's activities. The term was taken from Roosevelt's speech accepting the ...

  7. The Impact of Franklin D. Roosevelt's The New Deal on America

    Negative Effects Of The New Deal Essay The New Deal, implemented by President Franklin D. Roosevelt in response to the Great Depression, is often praised for its positive impact on the American economy and society.

  8. Roosevelt's New Deal and Its Influence on the Society Essay

    The "New Deal" of Roosevelt had, as we see, both positive and negative sides. The economy was restored. The construction of new factories helped people get away from unemployment. A new system of insurance provided more secure and reliable job placement and stability in the economy. The common man has become part of America's economic ...

  9. New Deal

    The New Deal was a series of programs and projects instituted during the Great Depression by President Franklin D. Roosevelt that aimed to restore prosperity to Americans.

  10. The New Deal: an Analysis of Its Impact on American Society

    The New Deal was a series of programs and policies implemented by the federal government during the Great Depression aimed at providing relief, recovery,... read full [Essay Sample] for free ... Negative Effects Of The New Deal Essay. ... is often praised for its positive impact on the American economy and society. However, it is essential to ...

  11. The Consequences of the Proposed New Deal

    Introduction. Herbert Hoover (1874-1964) was elected president in 1928 while the country was still experiencing the economic boom of the 1920s. A year after his election, the stock market crashed. A full-scale economic depression followed. The Hoover administration's efforts to deal with the economic crisis and its effects had little ...

  12. The New Deal

    These photographs of men and women in direct protest to the New Deal speak worlds on the question of "was the New Deal fair and right for all.". Media has the power to sway opinions, it is powerful and direct, and nothing stirs emotions more than a well-positioned and powerful photograph. Photographs are small moments in time that can leave ...

  13. Did New Deal Programs Help End the Great Depression?

    Franklin D. Roosevelt's New Deal. Since the late 1930s, conventional wisdom has held that President Franklin D. Roosevelt 's " New Deal " helped bring about the end of the Great Depression ...

  14. The 'New Deal' Influence on Americans' Life

    Negative Effects Of The New Deal Essay The New Deal, implemented by President Franklin D. Roosevelt in response to the Great Depression, is often praised for its positive impact on the American economy and society.

  15. The New Deal: Positive Effects Of The Great Depression

    The New Deal programs happened during 1933-1938, right after the Great Depression. The New Deal had a very positive effect on the people of America by creating new jobs, gaining trust in banking systems, and getting freedom from the effects of the Great Depression. The New Deal had a positive effect on the American people by the jobs it created ...

  16. The Economic Effects of the New Deal

    The Economic Effects of the New Deal. October 29, 1929, or " Black Tuesday ," marks the day the U.S. stock market came crashing down, initiating the most severe economic crisis in U.S. history ...

  17. The Positive And Negative Consequences Of The New Deal

    The New Deal created programs that gave poor, unemployed citizens an opportunity for a source of income,which people were desperate for.The Civilian Conservation Corps (CCC) created 3 million jobs for young men.Economic Security Act of 1935 took elderly people out of poorhouse that the government provide.once that act was put in place the baby ...

  18. The New Deal: Effectiveness and Impact on The USA

    The New Deal provided minimal financial benefit to Americans, despite having promised them of such. A 2003 article by the CATO Institute blamed the infrastructure of the program: as it was funded by increasing federal taxes (primarily excise taxes on everyday items), any benefits citizens earned through the New Deal were immediately taken back by the government.

  19. What are the positive effects of FDR's New Deal?

    Expert Answers. The New Deal was a series of legislation passed beginning at the height of the Great Depression, in order to provide relief for the poor and stimulate the economy. The Great ...

  20. What are some negative aspects of the New Deal?

    Quick answer: The New Deal, while giving people hope, had significant negative aspects. It upset the balanced Federal budget, created a massive deficit, and failed to end high unemployment. It ...

  21. The New Deal and Its Impact on America

    In Franklin D. Roosevelt's first 100 days in office, he developed & implemented The New Deal in 1933. This was the main agenda for Roosevelt, and he felt that was the most important thing to be done. The job market was in a bad state, and the poverty rate was at all-time high. So, implementing a plan like was the best thing at this point for ...

  22. The Great Depression and The New Deal

    Negative Effects Of The New Deal Essay The New Deal, implemented by President Franklin D. Roosevelt in response to the Great Depression, is often praised for its positive impact on the American economy and society.

  23. Success of The New Deal in The United States

    Get custom essay. Overall, The New Deal provided temporary relief that did not impact America in a healthy way, pushing the United Stated $22 billion dollars into debt. People were not truly able to recover, 15 million people were still unemployed with the fruitless attempts to help the economy and morale of Americans.