Impact of new deal on the
Impact of new deal on theNew Deal is a program created by Franklin Delano Roosevelt during the Great Depression to counteract various effects of it. New Deal created many agencies and legislation to help the United States pull itself out of the Great Depression. Some of these agencies have tremendous effect even today.
When Roosevelt was elected as the president, he faced many problems such as banking failure and unemployment. Almost immediately, he called on Congress and began what is known as Hundred Days Congress. During this period of time, many legislation was passed to help banks recover, create jobs for the unemployed, and set up many agencies to help these causes. National Recovery Administration and Public Works Administration were created to help industries, labor, and the unemployed. Glass-Steagall Act created Federal Deposit Insurance Corporation. Unemployment Relief Act created Civilian Conservation Corps which hired many uniformed young men to do public works such as fire fighting and reforestation. Agriculture Adjustment Act also helped to solve overproduction of crops. Tennessee Valley Authority (TVA) was created, which would build dams and power plants and in many other ways salvage a vast impoverished region. This agency was heavily criticized, although it did provide jobs for the unemployed and once completed, it would supply cheap source of electricity. The New Deal shifted more toward reform in 1935-1936. New Deal during this time is known as the second New Deal. Major second New Deal measures included Social Security Act, National Housing Act which created Federal Housing Administration, and Works Progress Administration. "...between 1935-1941 the WPA employed an annual average of 2,100,000 workers, including artists and writers, who built or improved schools, hospitals, airports, and other facilities by the tens of thousands" (Mortimer, p115). However even the great New Deal had to end sometime. Culmination of the New Deal was triggered by "court packing" of Roosevelt. The Supreme Court was very conservative at the time and was declaring many New Deal laws unconstitutional. Roosevelt tried to neutralize the court by proposing to the Congress to permit him to appoint up to six new justices, thus giving the court a liberal majority. Roosevelt was opposed furiously even by his Democrats-dominated Congress. He further lost more prestige when the United States plundered into sharp recession. By the time New Deal was over in 1939, it had permanently expanded the role of federal government, particularly in economical regulation, resource development and income maintenance.
Contrast to what people believe, New Deal did not end the Great Depression. However, through New Deal, Roosevelt sought to solve the immediate problems that threatened the United States. Author Kenneth S. Davis states, "...New Dealers pointed out that relief- not economy- had been the primary object of their multi-front war on the depression." ( Davis, p147) Although long term goal of New Deal was to end the depression it...
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