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The New Deal Pros And Cons

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During class, one of the worst economic eras in the history of the United States, the Great Depression, was discussed. Because of the Great Depression, millions of Americans suffered from unemployment, poverty, and desperation. As President Hoover was incapable of handling the depression, the country elected Democrat Franklin Roosevelt in the 1932 election with the hope of a “miracle”. Responding to the Great Depression, President Roosevelt soon formulated a recovery program known as the New Deal. Apparently, the New Deal marked the beginning of a powerful federal government; however, the reforms were bound to be controversial. Nonetheless, based on our study, it was my contention that the New Deal was beneficial to the United States both in the short term and in the long term. First of all, as the country was in need of immediate actions, the New Deal programs were vital and necessary. In the 1930s, the main economic problem was the vicious cycle between underconsumption and overproduction (Manchester). As Franklin Roosevelt stated in his first inauguration, government had to create jobs and raise average wages. For instance, the Civil Works Administration was established in 1933, providing 4 million jobs to workers directly. …show more content…

Even though the New Deal greatly expanded the power of the government, it created a safety net which continued to aid many people today. For example, Social Security, the largest program of the second New Deal, supplied old-age insurance for retirees and for disabled; it kept million Americans out of poverty (Neises). Additionally, the Federal Deposit Insurance Corporation continued to insure individual banking accounts up to 250,000 dollars today. The FDIC increased citizens’ confidence in the banking system (Danzer et al, 488-494). To sum up, without the programs of the New Deal, people would suffer a substantial amount more in times of

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