New deal
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Publicado: 2 de junio de 2010
Assessment of the New Deal
Due to the weaknesses of the economy of the Twenties (unequal distribution of wealth, overproduction, easy credit), the USA entered a period of recession that was firstevidenced by the Wall Street Crash of 1929. The crisis was first tackled by the Republican Hoover, who, faithful to the policy of laissez-faire, responded with modest and insufficient remedies, andlater by the Democrat F. D. Roosevelt who implemented the New Deal. This social and economic plan did not succeed in completely solving the problems brought about by the Depression, but it did help toalleviate the crisis and also left an important legacy in the US history.
The period after the Wall Street Crash was called the Great Depression and it was characterized by bankruptcy, poverty,unemployment, changes in family life, and the proliferation of shanty towns (“Hoovervilles”). Americans blamed President Hoover for not taking measures strong enough to relief people’s hardships. So, in1932, when elections took place, they turned to the Democrat candidate Franklin Roosevelt, who believed in an active government. Before the elections he had formed a Brain Trust of professionals andspecialists who came up with the New Deal. The first New Deal aimed at Recovery (make industry and trade recover, restore confidence and give jobs to people). The second New Deal aimed at Reform (createthrough legislation the conditions to prevent another crisis).
At the core of the New Deal was the concept of Pump Priming or deficit financing which consisted in pouring federal money tostimulate the economy. The New Deal created an interest group democracy because there seemed to be something for everybody. Some of the most important acts of the first New Deal were the AgriculturalAdjustment Act, whose aim was to avoid overproduction by paying farmers to limit their production and the National Industrial Recovery Act (NIRA) which established codes of fair competition to regulate...
Due to the weaknesses of the economy of the Twenties (unequal distribution of wealth, overproduction, easy credit), the USA entered a period of recession that was firstevidenced by the Wall Street Crash of 1929. The crisis was first tackled by the Republican Hoover, who, faithful to the policy of laissez-faire, responded with modest and insufficient remedies, andlater by the Democrat F. D. Roosevelt who implemented the New Deal. This social and economic plan did not succeed in completely solving the problems brought about by the Depression, but it did help toalleviate the crisis and also left an important legacy in the US history.
The period after the Wall Street Crash was called the Great Depression and it was characterized by bankruptcy, poverty,unemployment, changes in family life, and the proliferation of shanty towns (“Hoovervilles”). Americans blamed President Hoover for not taking measures strong enough to relief people’s hardships. So, in1932, when elections took place, they turned to the Democrat candidate Franklin Roosevelt, who believed in an active government. Before the elections he had formed a Brain Trust of professionals andspecialists who came up with the New Deal. The first New Deal aimed at Recovery (make industry and trade recover, restore confidence and give jobs to people). The second New Deal aimed at Reform (createthrough legislation the conditions to prevent another crisis).
At the core of the New Deal was the concept of Pump Priming or deficit financing which consisted in pouring federal money tostimulate the economy. The New Deal created an interest group democracy because there seemed to be something for everybody. Some of the most important acts of the first New Deal were the AgriculturalAdjustment Act, whose aim was to avoid overproduction by paying farmers to limit their production and the National Industrial Recovery Act (NIRA) which established codes of fair competition to regulate...
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