The New Deal, a Socialist Program That Saved Capitalism Instructor name Date The era of the New Deal in America is perceived by many to be primarily a social and works program designed to alleviate suffering caused by the Great Depression and confined to the 1930’s…
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President Roosevelt (FDR) in conjunction with other supporters of the New Deal within the government looking for effective methods to renovate the country’s economic well-being considered two options. One, they could create programs from the bottom-up by creating federally funded jobs and issuing widespread welfare benefits therefore forming social contracts with the working class including labor unions and racial minorities or two, they could provide businesses the unregulated freedom to correct the market via expansion which, theoretically, would creating additional jobs, put money in people’s pockets and stimulate the economy. This is a fundamental economic debate that continues to this day. Contrary to prevailing historic perceptions, the nation was not moving towards socialism. The New Deal actually symbolized the capitalist cultural structure. Its policies continued the separation between what was deemed the ‘worthy’ poor, typically widows and their children and what were considered the ‘unworthy’ poor, which meant almost everyone else, who were ignored. The First New Deal (1933 to1934) unquestionably slanted governmental policies in the direction of large corporations. The policies of the Second New Deal, beginning in 1935, appeared to be less pro-‘big business,’ but in practice continued to sustain the idea of top-down (trickle-down) economic growth. Later during this second stage of reform, the federal government began to focus on stronger regulations on business and antitrust enforcement but ultimately, large corporations maintained influence on critical decisions involving production, pricing and investment capital. Additionally, the government assisted business by restricting competition much to the disappointment of “New Dealers” in Washington. “Rather than attempt to regulate businesses, New Deal advocates wanted to greatly increase the size and control of the government so that it could act as a counterbalance to private sector industries” (Yantek, 2003). When FDR took office; the government was comparatively simple in construction with functions principally limited to administrative necessities. After his reign, government had been changed into a multifaceted organization. Opponents then as well as now contend his administration began the era of an obtrusive federal government, controlling business operations and impeding on people’s civil liberties. “It is no exaggeration to say that he took the government when it was a small racket and made a large racket out of it” (Higgs, 1998). FDR, as he repeatedly argued, restored hopefulness to the people of American following their deep descent into misery resulting from the Great Depression and that his New Deal policies “saved capitalism.” Harry Truman attempted to complete the FDR’s concept of the New Deal by implementing the ‘Fair Deal’ following World War Two. It is often referred to as the “Third New Deal.” (Yantek, 2003) The primary mission of FDR’s New Deal program was to save the American version of capitalism. He was continually attempting to convince business leaders of this commitment to this mission while soliciting their support. He told industrialists who was against his policies that the New Deal was essential for the ‘farsighted conservative.’
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According to this leader, the country was in dire need of a new approach that would minimize the variations that were existent in the society. In this context, therefore, it is justified to argue that one of the major reasons behind the formation of the capitalism ideologies in the a socialist state arise from the need to put in place market reforms that would see to it that all persons are able to acquire funds that would make them comfortable in the tough economic times.
These reforms were produced in order to counter the Great Depression experienced by US during the period of 1929 to 1939. Body The purpose of the First New Deal was to consolidate and save the institutions that were already functional in US; this deal came into being because the president believed in the Keynesian theory which stated that government spending should increase while a country is experiencing hardships.
Some of these policies fell under the New Deal which was challenged for not being effective. As a result of this, Franklin Roosevelt came up with a number of new policies that came to be known as the Second New Deal and various issues as pertains to the new deal will be the focus of discussion in this paper.
During this time, President Roosevelt did support every plan suggested by his advisors, and in turn, congress supported the programs projected by the president. The new deal aimed at achieving three targets, relief, recovery and reform. Relief programs aimed at lessening the suffering experienced by the American people.
There is no denying the fact that President Roosevelt lost no time in fulfilling his promise of the New Deal, once he got elected. New Deal primarily signified a series of reforms initiated by President Franklin D Roosevelt aimed at ameliorating the diabolical impact of the Great Depression on the American economy.
Although Collier could not win congressional backing for his most radical proposals, the Indian Reorganization Act of 1934 dramatically changed policy by allowing tribal self-government and consolidating individual land allotments back into tribal hands. Collier set out his vision for what became known as the "Indian New Deal" in this 1934 article from the Literary Digest.
Karl Marx and Fredrick Engels (1847) argued that the development of societies toward capitalism seen historically shows the rise to power of the bourgeoisie in monopolizing the means of production, and thus leading to the oppression of the proletariat. It is inevitable that these oppressed classes will become conscious of their status and will eventually stage a revolution against the ruling class; the end state of which being communism.
It represented a significant shift in both the political and domestic policy of the US, with results such as increased federal government control over the money supply and the economy as a whole (Chandler 1970). The New Deal was based on the three R's: relief for the unemployed, recovery for the economy, and reform to prevent another depression (Ashby 2005, p.
The Government formed programs to help alleviate a country suffering from severe economic depression following the stock market crash of 1929 and was not principally concerned from which ideological faction the ideas originated. President Roosevelt (FDR) along
very was of the economy to recover to ordinary levels; and Reform of the financial system not to recur another depression (Henretta, Brody, Fernlund and Benjamin p187).
The New Deal caused political repositioning in the United States. It made the Democratic Party a majority
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