What were the causes and long-term effects of the New Deal?

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There were several causes that led to the launching of the New Deal. Prior to the beginning of the Great Depression, a laissez-faire attitude existed regarding the involvement of the government in the economy. That approach didn’t work once the Great Depression began. The depression was so severe that it required a lot of government intervention in the economy.

Conditions in the United States had deteriorated since the start of the Great Depression. At one point, about 25% of the American workforce was unemployed. Many people had lost their savings when the banks failed and the stock market crashed. Many people either lost their homes or farms or were in danger of losing their homes or farms because they couldn’t pay their mortgages. The American people looked to the government to try to ease these very difficult situations.

One long-term effect of the New Deal is that people still believe the government should act as a safety net when tough times occur. Whether it is a natural disaster or a serious problem with the economy, people expect the government to act in these situations.

Another long-term effect of the New Deal is that some government programs that were created during the New Deal still exist today. People depend on Social Security for all or part of their income when they retire. People also depend on unemployment benefits when they lose their job. People rely on the Federal Deposit Insurance Corporation to protect the money in their savings accounts.

There were many factors that led to the start of the New Deal. There also were long-term effects associated with it that still exist today.

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