New Deal

New Deal
source
Administration	Franklin D. Roosevelt administration
Start date	1933
End date	1938

New Deal was a series of programs, projects, and reforms implemented by Franklin D. Roosevelt during the Great Depression, with the goal of providing relief, recovery, and reform to those affected by the Wall Street Crash of 1929 and the subsequent economic downturn, which was also influenced by the Dust Bowl and the Banking Act of 1933. The New Deal was shaped by the ideas of John Maynard Keynes, Woodrow Wilson, and Theodore Roosevelt, and was implemented through a series of laws, including the National Industrial Recovery Act and the Social Security Act, which were passed by the United States Congress with the support of Harry Hopkins and Frances Perkins. The New Deal also drew inspiration from the Progressive Era and the Federal Reserve System, and was influenced by the policies of Herbert Hoover and the Reconstruction Finance Corporation.

Introduction

The New Deal was a response to the widespread poverty, unemployment, and economic instability of the Great Depression, which had a devastating impact on the lives of Milton Friedman, John Kenneth Galbraith, and millions of other Americans, including those living in Shantytowns and Hoovervilles. The program was designed to provide immediate relief to those in need, while also implementing long-term reforms to prevent similar economic crises in the future, as envisioned by Franklin D. Roosevelt in his First Inaugural Address and supported by Eleanor Roosevelt and the National Recovery Administration. The New Deal was influenced by the ideas of John Dewey, Thorstein Veblen, and Upton Sinclair, and was shaped by the experiences of the Bonus Army and the Farmers' Holiday Association. The program also drew on the expertise of Paul Samuelson, Simon Kuznets, and other economists, who worked with Henry Morgenthau Jr. and the Federal Emergency Relief Administration to develop and implement the New Deal policies.

Background

The New Deal was preceded by a series of economic crises, including the Wall Street Crash of 1929 and the Banking Crisis of 1933, which led to widespread unemployment, poverty, and economic instability, as described by John Steinbeck in The Grapes of Wrath and experienced by Dorothea Lange and Walker Evans in their documentary work. The program was also influenced by the Progressive Era and the Federal Reserve System, which had been established by the Federal Reserve Act of 1913 and was led by Benjamin Strong and Marriner Eccles. The New Deal drew on the ideas of Woodrow Wilson and Theodore Roosevelt, who had both advocated for greater government intervention in the economy, as seen in the Federal Trade Commission and the Antitrust Division of the United States Department of Justice. The program also built on the experiences of the Reconstruction Finance Corporation, which had been established by Herbert Hoover to provide loans to banks and other financial institutions, and was influenced by the policies of Andrew Mellon and the Treasury Department.

Programs and Policies

The New Deal included a wide range of programs and policies, including the Civilian Conservation Corps, the Works Progress Administration, and the National Recovery Administration, which were designed to provide jobs, training, and economic stimulus to those affected by the Great Depression. The program also included the Social Security Act, which provided a safety net for the elderly, the unemployed, and the disabled, as well as the Federal Deposit Insurance Corporation, which insured bank deposits and helped to restore confidence in the banking system, as advocated by Carter Glass and Henry Steagall. The New Deal also included the Agricultural Adjustment Administration, which provided support to farmers and helped to stabilize agricultural prices, as well as the Tennessee Valley Authority, which provided cheap electricity and helped to develop the region's economy, as envisioned by David Lilienthal and Harold Ickes. The program also drew on the expertise of Rexford Tugwell, Adolf Berle, and other economists, who worked with Henry Morgenthau Jr. and the Treasury Department to develop and implement the New Deal policies.

Implementation and Impact

The New Deal was implemented through a series of laws and executive orders, including the National Industrial Recovery Act and the Social Security Act, which were passed by the United States Congress with the support of Harry Hopkins and Frances Perkins. The program was also influenced by the Supreme Court of the United States, which upheld the constitutionality of key New Deal laws, including the National Labor Relations Act and the Fair Labor Standards Act, as seen in the cases of Schechter Poultry Corp. v. United States and West Coast Hotel Co. v. Parrish. The New Deal had a significant impact on the economy and society, helping to reduce unemployment, poverty, and economic instability, as described by John Kenneth Galbraith in The Great Crash, 1929 and experienced by Milton Friedman and other economists. The program also helped to establish a new role for government in the economy, as seen in the Federal Reserve System and the Securities and Exchange Commission, which were established by the Securities Exchange Act of 1934 and were led by Joseph Kennedy and Ferdinand Pecora.

Criticism and Legacy

The New Deal was criticized by some, including Herbert Hoover and Alf Landon, who argued that it was too expensive, too bureaucratic, and too intrusive, as seen in the Republican Party platform of 1936. The program was also criticized by Ludwig von Mises and other economists, who argued that it was based on flawed economic theories and would ultimately lead to inflation, stagnation, and decline, as described in The Road to Serfdom. However, the New Deal is also widely regarded as a highly successful program that helped to alleviate suffering, stimulate economic recovery, and establish a new role for government in the economy, as seen in the Employment Act of 1946 and the Full Employment and Balanced Growth Act of 1978. The program's legacy can be seen in the Great Society programs of the 1960s, the War on Poverty, and the Affordable Care Act, which were all influenced by the ideas and policies of the New Deal, as described by Lyndon B. Johnson and Barack Obama.

Conclusion

The New Deal was a significant program that helped to alleviate suffering, stimulate economic recovery, and establish a new role for government in the economy, as seen in the Federal Reserve System and the Securities and Exchange Commission. The program's legacy can be seen in the Great Society programs of the 1960s, the War on Poverty, and the Affordable Care Act, which were all influenced by the ideas and policies of the New Deal, as described by John F. Kennedy and Bill Clinton. The New Deal also drew on the expertise of Paul Samuelson, Simon Kuznets, and other economists, who worked with Henry Morgenthau Jr. and the Treasury Department to develop and implement the New Deal policies, as seen in the Council of Economic Advisers and the Congressional Budget Office. The program's impact can still be felt today, as seen in the Social Security Administration, the Federal Deposit Insurance Corporation, and the Tennessee Valley Authority, which continue to play important roles in the economy and society, as described by Ben Bernanke and Janet Yellen. Category:United States history