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Evaluating the new deal - Essay Example

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Evaluating the New Deal Name: Institution: President Roosevelt won the 1932 elections his greatest challenge was the task of saving America from the depression. The new deal is a representation of Presidents Roosevelt’s plan to end the economic depression…
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Download file to see previous pages The recovery programs sort to strengthen the economy and the reform programs aimed at preventing future depressions. Kennedy just like many economists suggests that the new deal did target to saving capitalist system. It is evident that the first new deal was not that different from Hoover’s purpose and philosophy effort to end the depression. This is because both Hoover and Roosevelt sort support from the business community. However, Roosevelt’s administration approached their suggestions with importance and a greater willingness by exerting the full powers of the federal governments on the programs (Kennedy, 1999). The new deal targeted three goals relief, recovery, and reform. There were relief measures such as laws that set up programs that created jobs for thousands of young men. These jobs included tree-planting exercises, fire fighting services, and building dams to control floods. There was also a law that required the federal government to give money to states for helping the needy. The national industry recovery act was implemented to aid in economy recovery let us consider the National recovery administration supported by this law, which brought businesses, government and workers together. This program although it was not successful in regulating competition among businesses and preventing workers from organising unions, it changed business relationships. The laws that aimed at aiding economic recovery also supported programs such as the Tennessee valley authority that encouraged the government to spend heavily on large building projects like building public buildings, highways, and dams this created employment for Americans. The agricultural adjustments act was passed in 1933 the act targeted to increase prices of agricultural products to help farmers by reducing the production of farm produce (Kennedy, 1999). The new deal did manage to improve the circumstances for some Americans. The new deal managed to drop the unemployment figure. In order to achieve the goals set for the new deal the social security act of 1935 helped by supporting the provision of pensions for retired Americans. The law ensured that Americans who lost their jobs could access help from the federal government as stated in the unemployment insurance clause. The disabled and the needy also received government assistance. Although it is evident that not all Americans benefited from this law, but it did improve the lives of Americans in some way (Kennedy, 1999). Kennedy looks at the second new deal, which adopted an economic policy similar to a Keynesian model. The second new deal set up mass consumption based economy by motivating the masses capacity to consume. Economists argue that the second new deal targeted to restore the economy from bottom up. This deal is not as radical as the first deal this is because the second deal improved on a number of policies introduced in the first deal. According to Kennedy in the second new deal, the government spent funds in trying to turn non-consumers to consumers. The federal government continued to initiate projects that would create jobs for family breadwinners. This plan supported many families and increased consumer demand. The social security act of 1935 set up a federally guaranteed pension system, which became a safety net for retired workers this helped to increase consumer demand. There was also an improvement of the National labour relations act of 1935 where the law attempted to prevent the ...Download file to see next pagesRead More
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