Discuss The New Deal And Programs To Cure The Great Depression
The fall of the Wall Street stock market in October 1929 followed by the Great Depression was one of the biggest economic downturns and a significant event of the twentieth century. The obstacles and impediments that the Americans suffered during the Great Depression were so harsh and severe that they are considered to be the most awful in the history. The next many years saw reduced spending by the consumer, less investments and a dramatic increase in unemployment as organizations went on give pink slips to their employees.
When Franklin D Roosevelt took over as the President of the Unites States of America, the country was suffering from one of the biggest economic crisis. To combat this crisis President Roosevelt initiated the “New Deal”. The New Deal was altogether a volley of programs to move out of the worst economic downturns. It was the outcome of the think tank “Brains Trust” who was the chosen set of Roosevelt’s advisor. The most crucial of the New Deal program was the Banking Act, 1933 which made a considerate effort to bring back the faith of American people in the banking system and to reinforce the faith of people that there money was safe; Federal Deposit Insurance Corporation was established. Other significant programs were the establishment of the Works Progress Administration (WPA), the Agricultural Adjustment Administration (AAA) and the most significant measure was the establishment of Social Security Act which led to the formulation of the old-age pensions and unemployment compensation. The most appreciated benefit of the New Deal program was that it brought back the faith of a low spirited population. Roosevelt made extensive use of media specially the radio to reach the American people as he worked vigourously towards making the economy move out of the Great Depression.
The critiques of New Deal program claim that the measures taken by Roosevelt did not completely suffice for reducing the worst affect of the Great Depression, they enforced that it increased government intervention in the economy and also failed to address the issue who had their genesis from economic and political structure of United States. It was also enforced that New Deal simply maintained the status quo and reduced the right of labor unions and gave a boost to the industrial monopolies. Roosevelt went beyond simply tinkering with programs to end the Great Depression but also created brand new associations that worked for the economy and it also saw the birth of new programs, for instance Social Security which are there till date. Nevertheless, to mention, the bombing of Pearl Harbor and the start of the Second World War stimulated the American industry and ended The Great Depression.