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How Did The New Deal Affect The Economy

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The Great Depression was a worldwide economic crisis that caused significant social unrest, unemployment and poverty. The New Deal policies were implemented in succession to Hoover’s inadequate policies to provide relief, recovery and reform to the United States in response to the ensuing Great Depression by President Franklin D. Roosevelt. These policies had a significant impact on decreasing the effects of the Great Depression but it did not end the Great Depression. It was effective in providing relief to the American economy by revitalising banks, restoring hope and confidence in the American people and putting millions of Americans with jobs through the New Deal’s series of programs and policies, however, there were many failures that …show more content…

At the height of the Great Depression in 1933, almost 25% of the American population was unemployed as a consequence of low consumerism and businesses closing down. Despite the catastrophic economic crisis, Hoover did not take significant steps to address unemployment and poverty. As a result, millions of Americans were left jobless and homeless. In response, the alphabet agencies implemented by Franklin D. Roosevelt in 1933 significantly improved the stability of the US economy through its recovery programs. The implementation of The Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) in 1933, put millions of unemployed Americans to work on public infrastructure projects, while the National Recovery Administration (NRA) helped to stabilise wages and prices in various industries. These programs provided much-needed assistance to millions of people and helped to stimulate economic growth. Similarly, historian Alan Brinkley dictates in "The End of Reform: New Deal Liberalism in Recession and War", that the New Deal was a "transformative" period in American history that fundamentally altered the relationship between the government and the American people. Brinkley argues that the New Deal's emphasis on government intervention in the economy facilitated the way for the modern …show more content…

The departure of Roosevelt’s policies and programs from Hoover’s resulted in partial success in terminating the Depression However, it was the US entry into World War II that was highly effective in ending the Great Depression. The government's increase in spending, expansion of industrial production, and creation of new jobs led to a significant boost in economic growth and the revival of manufacturing industries. The war effort also provided critical support to US allies and helped to stabilize the global economy. Although it was the onset of World War II that ended the Great Depression, the New Deal’s policies and agencies did play a significant role in inhibiting some of the effects of the New

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