Tuesday, July 5, 2016

How successful was the New Deal in solving the problems of the Depression and restoring American prosperity?

The New Deal did save the American banking system, as declaring a bank holiday was essential to keeping the surviving banks open. New banking reforms such as the FDIC and the Glass-Steagall Act helped ensure that such a bank run would not happen again. The Fair Labor Standards Act removed children from the workplace and ensured a minimum wage. The Dust Bowl was largely affected by the Agricultural Adjustment Act, in which farmers were paid to not produce. Conservation was also touted through the Civilian Conservation Corps. The Tennessee Valley received jobs, flood relief, and electricity through the Tennessee Valley Authority Act. That said, despite all of these programs, the New Deal did not end the Great Depression; in fact, right before the onset of World War II in 1939, there was even a "Roosevelt Recession." Unemployment never dropped below ten percent during the period; in 2018, economists view ten percent unemployment rates as being too high. Sharecropping and thus generational poverty still existed all over the South. Social Security did allow for some jobs to be freed up as the elderly went home to enjoy retirement, but not many jobs were added. Franklin Roosevelt's greatest contribution during this period was to demonstrate that the government was willing to get involved. His optimism, heard through his fireside chats, helped guide the United States. While some were definitely helped by the New Deal, World War II did more to help the American economy as a whole.

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