The New Deal

1 The New Deal The Great Depression of 1929-1939 left the U.S. economy weak, leading to further deterioration of living standards. Unemployment, poverty, and social crimes increased. The event caused drastic changes in output, economic growth, and spending. The Great Depression sparked major economic changes to remedy the situation. The fundamental shift in the 1930s regarding the federal government's role to help people in economic hardship included the introduction of the New Deal and social programs.

President Franklin Delano Roosevelt initiated the New Deal in 1933 to address a wide range of economic issues impacting the U.S. economy at the time. First, he wanted to stabilize the crumbling economy. One of the early measures that were taken, which lasted for a long, was the introduction of agricultural subsidies to cushion farmers from the effects of the economic crisis. Roosevelt’s government enacted the Agricultural Adjustment Act to protect farmers suffering from economic challenges with subsidies to lower the cost of production1. The program ensured that farmers were able to produce goods at competitive prices.

Buy this excellently written paper or order a fresh one from ace-myhomework.com

1

Jennifer Delton. 2021. "Beyond the New Deal Order: U.S. Politics from the Great Depression to the Great Recession". The New England Quarterly 94, no. 4 (2021): 607-609. doi:10.1162/tneq_r_00925.

2 The government also created the Civilian Conservation Corps (CCC), which created employment for the young and single to work on government land. Initially, the program targeted people 18 and 25 to work on public lands, access roads maintenance, parks, and forests.

The program later included people aged 17-28. It ran from 1933 to 19422. The employment helped to ease unemployment, and economic hardship low-income families were facing. The federal-funded jobs through the scheme guaranteed the young people a source of income, which contributed to stabilizing the population's purchasing power. The CCC was critical in protecting millions of Americans rendered jobless by the Great Depression. The economic crisis, the private sector was hard-hit, which left it without the capacity to employ people3. The federal government had to step in and create temporary employment to save the economy from collapsing.

Consequently, the CCC was explored to address unemployment and dwindling purchasing power.

Another important measure that the federal government took was establishing the Federal Emergency Relief Act (FERA) to allow the federal government to give grants to states. The grants were used to fund salaries for civil servants and local soup kitchens. The program employed about 20 million people and used $3.1 billion, mainly on grants. The FERA program lasted between 1933 and 19354. As a result, state governments could keep their employees in employment and offer relief support to the poor. The pro-poor programs included giving relief food to the population in dire need of help. In addition, families that could not feed their families were supported through regular food donations.

Jennifer Delton. 2021. "Beyond the New Deal Order: U.S. Politics from the Great Depression to the Great Recession". The New England Quarterly 94, no. 4 (2021): 607-609. doi:10.1162/tneq_r_00925.

3 Jennifer Delton. 2021. "Beyond the New Deal Order: U.S. Politics from the Great Depression to the Great Recession". The New England Quarterly 94, no. 4 (2021): 607-609. doi:10.1162/tneq_r_00925.

4 Priscilla Ferguson Clement and Elna C. Green. 2005. "The New Deal and Beyond: Social Welfare in the South since 1930". The Journal Of Southern History 71, no. 2 (2005): 493. doi:10.2307/27648798 2

3 Moreover, the federal government enacted the Fair Labour Standards Act, guaranteeing a 40-hour work week. The law helped eligible persons to receive employment, saving much of the low economic class from economic hardships. The Act also set the hourly minimum wage to ensure that employers do not exploit employeesl5. People suffering from hardships had no jobs, which left them vulnerable to exploitation. In this respect, the government found it imperative to protect the low-income earners from unscrupulous employers.

The federal government came up with projects such as bridges, roads, and painting. The federal government also came up with the Works Progress Administration (WPA) to cushion millions against unemployment. The program guaranteed millions of Americans employment opportunities in many public works projects.

The Repercussions Food programs exist in the U.S. to take care of families that cannot feed themselves. The origin of these programs is Franklin Roosevelt's New Deal, which was the federal government's response to cushion people in economic hardship from the adverse effects of the Great Depression that hit the U.S. in 1929-1939. The New Deal resulted in the introduction of welfare programs, a new development that shapes the government's response to poverty.

The government had to increase taxes to finance loans. The government increased its expenditure beyond the revenues, leading to the growth of the government debt. The Debts problem would have been managed if the government had avoided social programs initiated under the new deal. Unmanaged public debt affects interest rates on loans and local borrowing6.

It can restrict investment by limiting access to credit.

Ibid Priscilla Ferguson Clement and Elna C. Green. 2005. "The New Deal and Beyond: Social Welfare in the South since 1930". The Journal Of Southern History 71, no. 2 (2005): 493. doi:10.2307/27648798 5 6

4 The political impact of the New Deal included the change in the Americans' belief about the responsibility of the government. The citizen’s thinking changed, leading to an idea that it was the state's duty to ensure that the national economy and their welfare were good7. In case of any crisis, the public expected the government to step in and protect them from adverse effects.

The government control over the economy also increased due to the New Deal. For example, the supply of money was impacted by government policies to curb the effects of the Great Depression in the 1930s8. In addition, the price controls and subsidies on agriculture underlined the power of the Federal Government in controlling the economy9. In essence, the developments marked the surge in the Federal government's influence.

Furthermore, due to the New Deal, the federal government introduced deficit spending, a development that is maintained to date. As a result, the government spends beyond its revenues, leading to dependence on loans to finance the deficit. The government would borrow when it feels that there is a need to spend, but the raised revenue is not enough10. Therefore, the national debt becomes an issue in governance.

In conclusion, the most vital programs in the U.S. marked the shift in the federal government's roles that came in the 1930s to support those hit by economic hardship were initiated under the New Deal. The programs include the CCC, AAA, FERA, and WPA. These programs provided those hurt by depression with jobs, food, and credit needed to survive the economic depression. The CCC offered jobs to the young and singles, protecting them against unemployment. Farmers received subsidies under the AAA to enhance and maintain production.

FERA was used to give grants to state governments, which were used to maintain the civil Ibid Brooke L. Blower. "The New Deal: A Global History". Journal Of American History 103, no. 4 (2017): 1015-1016 9 Priscilla Ferguson Clement and Elna C. Green. 2005. "The New Deal and Beyond: Social Welfare in the South since 1930". The Journal Of Southern History 71, no. 2 (2005): 493. doi:10.2307/27648798 10 Ibid 7 8

5 servants in employment and support welfare programs for the poor. President Roosevelt initiated these programs to shield all persons suffering from severe economic hardships from being overwhelmed by the crisis. The welfare programs led to heavy government spending beyond limits, which resulted in deficit expenditure. The public looks upon the federal government's support to protect it from a bad economy.

6 Bibliography Blower, Brooke L. "The New Deal: A Global History". Journal Of American History 103, no.

4(2017): 1015-1016.

Clement, Priscilla Ferguson, and Elna C. Green. 2005. "The New Deal and Beyond: Social Welfare in the South since 1930". The Journal Of Southern History 71, no. 2 (2005): 493. doi:10.2307/27648798.

Delton, Jennifer. 2021. "Beyond the New Deal Order: U.S. Politics from the Great Depression to the Great Recession". The New England Quarterly 94, no. 4 (2021): 607-609. doi:10.1162/tneq_r_00925.