The New Deal refers to the banner of the programs by President Franklin Roosevelt unveiled in 1931. He was spreading an air of optimism and confidence to the people after the severe damage of the Great Depression. In a nutshell, the industrial enterprise had been paralyzed, agricultural sector had collapsed leaving farmers with no market, savings had sunk, unemployment soared high and the entire nation was literally on its knees. The economic catastrophes experienced had never been witnessed in America. Thus the New Deal was the president attempt to reshape the economy and its structure to curb the poverty that had engulfed the nation. The programs of the New Deal proved to effectively benefit the country, and the economic security they offered is still felt to date.
Agriculture was among the severely affected sectors. The New Deal signified a belief that if greater regulations were enforced, most of the problems the country was suffering were to be alleviated. This pegged a responsibility to Congress, for it was required to pass the agricultural adjustment Act (AAAA) so that the farmers could get relief (Patel, 2017). The agricultural sector was bigger then, representing 21% of the entire labor force and approximately 8% GDP. AAA of 1933 paid farmers so that they could lessen the cultivable land and also slaughter livestock to cater for the low income earners and the unemployed. To an administrator, it indicates that the government traded exchange value for use-value. Still, the income from the farm was increased by over 50% between 1932 and 1935.
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Millions of jobs were also created by the New Deal itself, tackling the unemployment problem. Notably, lack of work had sent most Americans to the bread lines that were witnessed in many states. People roamed the nation searching for food and employment s they hummed the refrain of a famous song that went “Brother, can you spare a dime?” Luckily, the public works projects that were in almost every county intervened offering work to the unemployed. These included the Civilian Conservation Corps (CCC) program that catered to youth aged 18 and 25.The youth could plant trees and conserve natural resources. Another program was the Civil Works Administration which employed people to repair the highways, dig ditches, and teach. This program lasted for a few months before its collapse after it was heavily criticized. In my opinion, the Roosevelt administration can be said to have dealt with the unemployment issue by creating programs that were based on work relief as opposed to welfare.
Another achievement of the New Deal was the protection of the bank deposits by the Federal government. The move ended the dangerous bank run trends and also monitored the stock market to give it a clear definition subsequently thwarting any future collapse. Additionally, the modification and expansion to the Social Security system with the aid of the Social Security Act that took place for the remaining part of the century made it a popular government program. While its goal was addressing unemployment that had hit double-digit and pervasive poverty, the program has lasted for 85 years. Despite its rather modest origins, it has remained the most extensive domestic program that the US government has administered.
In sum, the New Deal can be termed to have failed in its primary motive of ending depression because unemployment was still as high as 19% in 1939. However, the rate went to pre-Depression levels in 1943. What cured the nation of the woes of the Great Depression was the massive spending that ushered America to its entry to the World War II. Therefore, it was under the Roosevelt administration during the New Deal to Mid-Century that the role of the American Government grew than it had been witnessed in any era and also the government undertook its responsibility excellently and managed the economy.
References
Patel, K. K. (2017). The New Deal: a global history (Vol. 21). Princeton University Press.
