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History US - Essay Example

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World War II succeeded in creating the complete economic recovery that the New Deal has pursued with more limited success because of differences in federal spending and socio-economic changes. The New Deal was only successful in relatively stabilizing the economy and decreasing…
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History US

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The New Deal provided numerous economic programs that stabilized the economy through giving support in banking and finance, unemployment, and agriculture. In banking and finance, President Franklin D. Roosevelt offered significant credit facilities to industry and agriculture. The Federal Deposit Insurance Corporation (FDIC) also insured savings-bank deposits up to $5,000. Moreover, to reduce unemployment that affected 13 million Americans, Roosevelt created job-stimulating programs. The Civilian Conservation Corps (CCC) was a program that gave mostly conservation jobs to young men between 18 and 25 years of age (IIP Digital, 2008). The Public Works Administration (PWA) gave employment to skilled construction workers for different medium- to large-sized projects, among other programs (IIP Digital, 2008). In addition, to improve agricultural revenues, the Congress passed the Agricultural Adjustment Act (AAA) in 1933. It gave economic relief to farmers by increasing crop prices through paying farmers a subsidy to reimburse them for deliberate cutbacks in production (IIP Digital, 2008). Despite these job and financial programs, the New Deal did not restore the Gross National Product (GNP), consumption levels, and employment rates to pre-Depression years (West, n.d.).
World War II created complete economic recovery because of greater federal spending that improved employment rates both for men and women and for whites and colored people. Military spending by the federal government jump-started the economy, increasing GNP, consumption levels, and employment rates more than the New Deal did. By 1943, California’s aircraft and shipbuilding industries hired 243,000 and 280,000 people correspondingly, and tens of thousands worked in plants in Pacific Northwest (West, n.d.). In Seattle, the Boeing Company’s sales of aircraft in 1944 reached ten times that of the total city’s industries five years before (West, n.d.). With bustling ...Download file to see next pagesRead More
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