HOW DID THE AMERICAN GOVERNMENT DEAL WITH THE CRISIS OF CAPITALISM? GREAT
DEPRESSION
In 1932 Franklin Delano Roosevelt a Democratic Party candidate won the
presidential elections. Roosevelt won the elections by making a pledge “I pledge you
I pledge myself to a New Deal for the American People” The new deal was a dream
to the Americans as Roosevelt promised them the reopening of the economy and
employment.
The reopening of the banks. Therefore Roosevelt created a number of government
agencies which would provide the people with jobs and a better life. The aims of the
new deal was marked by the “three Rs” namely RELIEF: aimed at providing
immediate relief to the people who were deeply affected by the Great depression,
RECOVERY: aimed at recovering the economy and getting back the people to work,
and REFORM: which was introduced to check the flexibility of economic system and
prevent another Great Depression from happening in the future.
IN WHAT WAYS DID THE NEW DEAL CHALLENGE CAPITALIST ECONOMIC THINKING?
The government closed all banks and opened only banks which were financially
strong. The government also passed laws to control business practices. The
government borrowed money monies to create projects, and employment as a
results more people were employed on these development projects which were
focused on flood control, building of schools, hospitals, and bridges. The government
subsidies the farmers in order to reduce their productions. This alone was to reduce
surplus and stabilizing prices. Tennessee Valley Authority (TVA). The aim of the TVA
was to help the poorest farming regions by building dams, planting trees, restoring
eroded farmlands. TVA was criticised for competing with private entities.
Roosevelt introduced the National Recovery Administration (NRA). The NRA was set
up to minimize wages, to ban child labour so as draft code of prices. NRA
recognised trade unions. The New Deal introduced old pension grants and
unemployment insurance, child welfare, poor benefits and health benefits. The NEW
DEAL was criticised for being to much socialist as people began to depend on social
grants. However the New deal succeeded in restoring the economy and stabilizing
the prices. Most people were employed through Government agencies.
DEPRESSION
In 1932 Franklin Delano Roosevelt a Democratic Party candidate won the
presidential elections. Roosevelt won the elections by making a pledge “I pledge you
I pledge myself to a New Deal for the American People” The new deal was a dream
to the Americans as Roosevelt promised them the reopening of the economy and
employment.
The reopening of the banks. Therefore Roosevelt created a number of government
agencies which would provide the people with jobs and a better life. The aims of the
new deal was marked by the “three Rs” namely RELIEF: aimed at providing
immediate relief to the people who were deeply affected by the Great depression,
RECOVERY: aimed at recovering the economy and getting back the people to work,
and REFORM: which was introduced to check the flexibility of economic system and
prevent another Great Depression from happening in the future.
IN WHAT WAYS DID THE NEW DEAL CHALLENGE CAPITALIST ECONOMIC THINKING?
The government closed all banks and opened only banks which were financially
strong. The government also passed laws to control business practices. The
government borrowed money monies to create projects, and employment as a
results more people were employed on these development projects which were
focused on flood control, building of schools, hospitals, and bridges. The government
subsidies the farmers in order to reduce their productions. This alone was to reduce
surplus and stabilizing prices. Tennessee Valley Authority (TVA). The aim of the TVA
was to help the poorest farming regions by building dams, planting trees, restoring
eroded farmlands. TVA was criticised for competing with private entities.
Roosevelt introduced the National Recovery Administration (NRA). The NRA was set
up to minimize wages, to ban child labour so as draft code of prices. NRA
recognised trade unions. The New Deal introduced old pension grants and
unemployment insurance, child welfare, poor benefits and health benefits. The NEW
DEAL was criticised for being to much socialist as people began to depend on social
grants. However the New deal succeeded in restoring the economy and stabilizing
the prices. Most people were employed through Government agencies.
