How did the New Deal fix the Great Depression?
The aggregate effect of the myriad New Deal programs implemented during the 1930s during the presidency of Franklin D. Roosevelt was to help lift the United States out of the depths of the Great Depression. Such programs as the establishment of the Civilian Conservation Corps and the Civil Works Administration, both of which were designed to decrease the ranks of the unemployed, the creation of the Federal Deposit Insurance Corporation, which was instrumental in reestablishing public confidence in the disgraced banking sector by protecting bank deposits up to a certain limit, creation of the Federal...
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Franklin D. Roosevelt developed the New Deal in order to fix the damage caused by the Great Depression. FDR was a progressivist and an optimist. He believed that the government can and should help you directly.
The New Deal had 3 key ideas:
- Relief for the destitute
- Foster economic recovery of farms and businesses
- Reform the federal governments role in the federal economy
The New Deal can actually be broken down into two phases. Phase one being a focus on relief and recovery and phase two being a focus on security.
Some of the most important acts implemented by the New Deal and their impact are as follows:
- NRA: National Recovery Act - this act work =ed with business leaders to establish standards for prices, outputs, and working conditions
- AAA: Agricultural Adjustment Act - The goal was to decrease supply and demand, an because of this sharecroppers and farmers will get fired.
- TVA: Tennessee Valley Authority - provided electricity to areas that previously didn't have it, this meant that the government was competing with private companies.
- FHA: Federal Housing Administration - this insured millions of mortgages and built low-rent housing, but it only insured segregated communities.
- WPA:Works Progress Administration - employed people to work on infrastructure
- Wagner Act - gave people the right to unionize and choose their organization, made firing and blacklisting union organizers illegal, and assigned National Labor Relation Board to overseas elections.
- Social Security Act - this act was not directly connected to the nation's recovery, but would prove to be very important as well as nearly impossible to push out. (Hence why it is still an Act today.)