How Did The New Deal Stabilize The Economy
In 1933, during Franklin D. Roosevelt's Presidency, he created the New Deal. This New Deal was created to allow the federal government to help the United States during the Great Depression. During the first three months of his presidency the New Deal consisted of many different programs and acts to try and stabilize the economy and provide jobs to those who were unemployed. Roosevelt oversaw the passage of emergency relief programs, work relief programs, as well as banking reform laws. These programs were able to provide temporary jobs as well as providing short-term aid from the government. The main focus of the New Deal during the during the time was to reach economic stability as well as preventing incidents like the stock market crash of 1929 from occurring again. As time passed,
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in 1935, the New Deal began to focus on labor groups as well as unions. It created programs like the Social Security Act and programs to protect the labor unions. The New Deal changed the way the federal government interacted with the U.S. citizens. The government began to focus more on the people. It is a common misconception that the New Deal allowed solely the federal government to aid the American citizens. However, it was actually the states that aided the citizens by providing welfare to them. Today, I believe that there is no need for a New Deal in the United States.
Although the New Deal programs would aid to help alleviate economic issues, it was only for a short period of time.
The New Deal causes the United States to rely on the federal government. Which would be an issue today due to the fact that if the government shuts down the country would not be able to properly function even for a short period of time because they rely so heavily on the government. The entire goal of the New Deal is to save capitalism from collapsing. In order to be successful, the government would have to fall into socialism. This would mean socialism for the rich and capitalism for the poor. It would appear to be a good idea because it would allow the government to intervene providing things like banking reform laws to help stabilize the economy. However, this means that the bank is able to borrow federal government funds with nearly a zero-dollar interest rate but, everyone who is not a "big powerful bank" could not. They would have to pay extremely high interest rates that they could not afford. Another issue with this would be concerning taxation. Corporate taxes have extremely high-rates, however, a number of large corporations get to pay virtually
nothing. The New Deal focuses on the idea of maintaining capitalism. Capitalism causes many issues including: exploitation, inequality, monopoly power, and can be short-term. So, by enabling the New Deal programs, the United States would be temporarily fixing the problem and would continuously have to fix it. It is as if the United States' economic stability is like a hole in a bucket with water and the New Deal is the duct tape used to fix it. The duct tape is temporarily keeping the hole closed but, as the water soaks more into the tape, the tape will break and the water will spill out. The New Deal did not single-handedly get America out of the depression. The actual reason for America having the ability to get out of the depression was due to the next world war. There were great reductions in spending, taxes, and the encouragement of entrepreneurship at the end of World War II causing the Great Depression to officially come to an end. At the beginning of the war unemployment declined sending millions of young men to go off and fight in the war as well as the need for employees in the factories at home to produce goods for the war. The United States actually became more in debt during the war due to spending. The prices of goods at home skyrocketed and people were unable to afford to purchase them. This caused America's Congress to create a plan to fix these issues. They realized that if they increased the production rate the price of goods would eventually decrease. Congress decided to cut tax rates and began to encourage businesses to create jobs. In the end they were able to create a more balanced economy with lower taxes as well as reducing the unemployment rate. I believe this is the approach that today's government should take instead of the New Deal. They should focus more on balance than making more money by saving capitalism. Our society today is greatly focused on making money and often it consumes them. They need to focus more on what is best for the entire nation.
in 1935, the New Deal began to focus on labor groups as well as unions. It created programs like the Social Security Act and programs to protect the labor unions. The New Deal changed the way the federal government interacted with the U.S. citizens. The government began to focus more on the people. It is a common misconception that the New Deal allowed solely the federal government to aid the American citizens. However, it was actually the states that aided the citizens by providing welfare to them. Today, I believe that there is no need for a New Deal in the United States.
Although the New Deal programs would aid to help alleviate economic issues, it was only for a short period of time.
The New Deal causes the United States to rely on the federal government. Which would be an issue today due to the fact that if the government shuts down the country would not be able to properly function even for a short period of time because they rely so heavily on the government. The entire goal of the New Deal is to save capitalism from collapsing. In order to be successful, the government would have to fall into socialism. This would mean socialism for the rich and capitalism for the poor. It would appear to be a good idea because it would allow the government to intervene providing things like banking reform laws to help stabilize the economy. However, this means that the bank is able to borrow federal government funds with nearly a zero-dollar interest rate but, everyone who is not a "big powerful bank" could not. They would have to pay extremely high interest rates that they could not afford. Another issue with this would be concerning taxation. Corporate taxes have extremely high-rates, however, a number of large corporations get to pay virtually
nothing. The New Deal focuses on the idea of maintaining capitalism. Capitalism causes many issues including: exploitation, inequality, monopoly power, and can be short-term. So, by enabling the New Deal programs, the United States would be temporarily fixing the problem and would continuously have to fix it. It is as if the United States' economic stability is like a hole in a bucket with water and the New Deal is the duct tape used to fix it. The duct tape is temporarily keeping the hole closed but, as the water soaks more into the tape, the tape will break and the water will spill out. The New Deal did not single-handedly get America out of the depression. The actual reason for America having the ability to get out of the depression was due to the next world war. There were great reductions in spending, taxes, and the encouragement of entrepreneurship at the end of World War II causing the Great Depression to officially come to an end. At the beginning of the war unemployment declined sending millions of young men to go off and fight in the war as well as the need for employees in the factories at home to produce goods for the war. The United States actually became more in debt during the war due to spending. The prices of goods at home skyrocketed and people were unable to afford to purchase them. This caused America's Congress to create a plan to fix these issues. They realized that if they increased the production rate the price of goods would eventually decrease. Congress decided to cut tax rates and began to encourage businesses to create jobs. In the end they were able to create a more balanced economy with lower taxes as well as reducing the unemployment rate. I believe this is the approach that today's government should take instead of the New Deal. They should focus more on balance than making more money by saving capitalism. Our society today is greatly focused on making money and often it consumes them. They need to focus more on what is best for the entire nation.