Download file to see previous pages...
The New Deal was a cycle of economic programs put into operation in the United States between 1933 and 1936. They were approved by the U.S. Congress during president Franklin Roosevelt’s first term. The programs were Roosevelt’s reaction to the Great Depression: historians call them “3Rs”. That is Relief, Recovery, and Reform: Recovery of the economy to standard levels, Relief for the broke and jobless, and Reform of the financial structure to thwart a duplicate depression. The New Deal shaped a political realignment making the Democratic Party the majority, with its foundation in open-minded ideas, large city machines, and the recently authorized labor unions and racial minorities (Leuchtenburg 12-21).
Most historians, such as Thomas A. Bailey, make a distinction between the “First New Deal” and the “Second New Deal”. A number of programs were announced unconstitutional, and some were revoked during the World War II. The First New Deal dealt with varied parties, from industry and farming to banking and railroads. This set of groups required assistance for economic recovery. The Second New Deal incorporated the Wagner Act to sponsor the Social Security Act, the labor unions, the Work Progress Administration relief program, and new programs to assist lessee farmers and immigrant workers (Johnson 15-20).
The Civil Works Administration was produced in 1933 to create jobs for the jobless. Its concern with high paying jobs in the construction field amounted to better expenditure to the federal government than was formerly expected. The Civil Works Administration ended in 1934 due to, in part, resistance to its cost. Federal Housing Administration was a government agency formed to fight the housing predicament of the Great Depression. The huge figure of unwaged workers united with the banking predicament created a scenario according to which banks retracted loans. The
...Download file to see next pagesRead More
According to the paper the New Deal had three goals: recovery from the depression, relief for affected individuals, and reform of the economic system. The New Deal changed the role of the national government, by expanding the power of the Federal Government and making it more responsible for the general welfare of the states.
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.
Keynes (2007) on other hand states that the free market is not always efficient and the government has a role to play in ensuring that the market is efficient. In the great depression of 1930 government did little to solve the crisis, this depression was characterized by a decline in international trade, a decline in product prices, reduced consumer expenditure and unemployment.
Through obligations and contracts, relationships are formalized and professionalized.
As a regulative body, government institutions provide procedures, standards that ensure the quality of business activities and outputs. It gives accreditation for processes, sanitation and safety- in which in this writer's opinion make business functions more efficient and economical.
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
implemented in two phases; the First New Deal intended to carry out emergency relief programs began in March 1933 and Second New Deal was implemented in 1935-36. Though a much-admired and longest serving President, Roosevelt increasingly got mired in controversy due to the New
tuation of not only our country, but the world as a whole is leaving people from across the globe, from Kandahar to Karachi anxious on how we shall overcome this financial calamity. While President-elect Obama and his incoming administration has big plans on how to jump start