Explain Why Was The New Deal Wrong
Why the New Deal was Wrong
Many times decisions are based on emotions and not on facts. Being able to look at a situation objectively is necessary in order to make judgments. The provisions of the New Deal sound kind and generous at first but did they really benefit the country? During the Great Depression, the Federal Government took a more active role in the economic, political, and social problems centering around the Great Depression which culminated in the creation of the New Deal. Observing the effects of the new deal reveals major flaws in the theory of big government, but the story starts way back before the great depression with President Herbert Hoover.
President Hoover was a republican from West Branch, Iowa. When he took office in 1928 the economy was already booming. The reduction of taxes by previous administrations allowed for businesses to expand and create new products and services. However, right in the middle of Hoover’s term something terrible happened. The stock market crashed. Over the course of just a few days, the market dropped 25% in value. The reason behind the crash is unclear and experts can't point to one specific event that caused …show more content…
The country was dying by inches. It was dying because trade and commerce had declined to dangerously low levels; prices for basic commodities were such as to destroy the value of the assets of national institutions such as banks, savings banks, insurance companies, and others. These institutions, because of their great needs, were foreclosing mortgages, calling loans, refusing credit. Thus there was actually in process of destruction the property of millions of people who had borrowed money on that property in terms of dollars which had had an entirely different value from the level of March, 1933. That situation in that crisis did not call for any complicated consideration of economic panaceas or fancy plans. We were faced by a condition and not a
Many times decisions are based on emotions and not on facts. Being able to look at a situation objectively is necessary in order to make judgments. The provisions of the New Deal sound kind and generous at first but did they really benefit the country? During the Great Depression, the Federal Government took a more active role in the economic, political, and social problems centering around the Great Depression which culminated in the creation of the New Deal. Observing the effects of the new deal reveals major flaws in the theory of big government, but the story starts way back before the great depression with President Herbert Hoover.
President Hoover was a republican from West Branch, Iowa. When he took office in 1928 the economy was already booming. The reduction of taxes by previous administrations allowed for businesses to expand and create new products and services. However, right in the middle of Hoover’s term something terrible happened. The stock market crashed. Over the course of just a few days, the market dropped 25% in value. The reason behind the crash is unclear and experts can't point to one specific event that caused …show more content…
The country was dying by inches. It was dying because trade and commerce had declined to dangerously low levels; prices for basic commodities were such as to destroy the value of the assets of national institutions such as banks, savings banks, insurance companies, and others. These institutions, because of their great needs, were foreclosing mortgages, calling loans, refusing credit. Thus there was actually in process of destruction the property of millions of people who had borrowed money on that property in terms of dollars which had had an entirely different value from the level of March, 1933. That situation in that crisis did not call for any complicated consideration of economic panaceas or fancy plans. We were faced by a condition and not a