The Pros And Cons Of The New Deal

In the 1930’s, many Americans were going through a very difficult financial time. With the Great Depression at its peak, many citizens felt as if there was not enough being done for the economy, especially after President Hoover’s end of presidency. Many claimed that the issue was too far gone, and some, such as Upton Sinclair, would even go so far as to call it “permanent” (Sinclar, 1934). Although the New Deal had started to become implemented after President Roosevelt’s Inauguration in 1933, widespread economic relief was still needed in every state around the United States even at this time in 1934. This essay will explain the various proposals to fix the American economy and why many Americans wanted these plans in addition to the New

Democratic candidate Upton Sinclair called for the state to front significant capital in land and machinery in order for these unemployed people to provide for themselves with their own two hands. A reason why this was a popular plan is because it laid the foundation for these people to provide for themselves. Through this plan, there would be no recurring service that the tax payers would have to pay for in order to support others. The goal of the plan itself was to release the burden of millions off of Americans who already pay taxes on their income, so that they would have more to take home to their family. To front the capital needed to get this program started, Sinclair proposed a “Cooperative System”. This system proposed a tax on large companies and utilities that had an actual value of $250,000. This tax would raise the money needed to implement EPIC without hurting any other aspect of the American economy or taking jobs away from employed Americans. In order to employ even more Californians’, Sinclair proposed to send 50,000 unemployed persons to the central valley in order to bring irrigation and power, much similar to some of FDR’s New Deal plans. Overall, Sinclair’s plan was extremely attractive due to the little to no cost or effort from the average taxpayer. The program would pay for itself with the

Francis Townsend and was a bill proposed in the House of Representatives. This bill aims to firstly hand out a pension of $200 to any citizen 60 and up. Similar to modern day Social Security, this portion of the bill aims to release the burden that the elderly have on the population as a whole. Because of their relative inability to work, it would be beneficial if that large portion of population could still contribute fiscally, which brings around the second portion of the bill. This part places a 2 percent tax on all good, commodities, and services in the United States. The President would be allowed to raise and lower the tax as he or she thinks with an Executive Order. This plan gained traction due to the fact that once your are 60, you not only do not have to work, but you are prohibited as long as you receive the pension. Because of this, many people, old and young alike liked this plan because it can free up jobs for younger people who need the work, and releases older people from having to work to support themselves. For older people, it means that they can rest after working their whole life instead of doing potentially difficult labor on their bodies, while freeing up valuable and much needed jobs for younger people. The plan also pays for itself with the percent sales tax, which boosted the plans attractiveness due to the economic state of the country at the