How Did The New Deal Affect The Economy

During the glorious years of arts and music,the lost generation increased spending and enjoyed the prosperity of 1920’s by investing in stock markets and doubling their savings.Unfortunately,the luxury and comfort did not last through the harsh impacts of depression,which caused rapid changes,including unemployment,failure of businesses or banks and decline of international trade.As world’s largest economy slowly drifted into severe depression,President Franklin D Roosevelt was the only one, audacious enough to lead America through the extreme poverty.In the 1930’s,the institution of the New Deal policy aided in the recovery of the American economy.His actions for relief,recovery and reforms were followed by the great expanison of federal government’s role in the welfare and economy of the nation.Although,The U.S economy fared poorly even after enforcing several New Deal programs,It helped the country to function in the long term by providing temporary relief to the citizens and establishing certain
acts which still operates to this day.Most importantly, the New Deal policy gained the lost trust of the lost generation and gave them hope in the bright future of America.

Towards the extremity of stock market chaos,President Herbert Hoover, who believed in the cooperation of government and business leaders to boost economy, did ineffective works to stabilize American economy,which in turn, plummeted unemployment rates and made citizens lives even more miserable.On the other hand,Roosevelt's New Deal Policy assisted each groups of people,including African Americans and Immigrants to enjoy the benefits of federal government offered public works and funds from national youth administration (NYA) which is lead by an African American educator named Mary McLeod Bethune.Administration such as CCC and WPA also hired mexican immigrants and supported them with providing relief jobs.Clearly, then the New Deal of Roosevelt was way superior to Hoover’s plans for economic recovery because it offered partial assistance to the needy for a short period of time which tremendously calmed the consequences of the depression at the time. One of the greatest accomplishments of President Roosevelt's presidency is the fact that a few government agencies introduced by the New Deal of 1930, still exists today and plays a huge role in the affairs of present United States.Such agencies are the Farm Credit Administration, Federal Housing Administration and the Federal Deposit Insurance Corporation.FCA helps farmers with applying for loans and minimizes their financial problems.Now it is largest agricultural lender that sets regulations and monitors rural agriculture.FHA is another agency that provides mortgage insurances on loans from FHA approved lenders and insures over 34 million properties since 1934.Finally,the FDIC maintains privacy in the U.S economic system by protecting deposits in banks for at least $250,000 and decreases economic impacts during a bank failure.Today,banks such as Capitol City bank of Atlanta and Highland Community bank of Chicago has been taken over by FDIC on February 13th and January 23rd of 2015.These agencies still uphold their duties and objectives to become influential in modern American society. The New Deal policy did interfere in many peoples lives and gave them more opportunities to become too depending on the U.S government.However,government’s involvement was necessary for changing the previous mindsets of people regarding the irresponsibility and lack of stability of the government.Through the enforcement of the New Deal programs,citizens were actually trusting the government's ability to solve major future crises and became more