The New Deal

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What are the successes and failures of the New Deal?

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The New Deal can be considered a success in that its reforms prevented future economic depressions. It also provided important temporary relief to Americans in the 1930s that kept millions from experiencing total ruin. Its failures were that it did not end the Great Depression. Several of its laws and programs were struck down by the Supreme Court. It also failed to help minorities and bring unemployment to acceptable levels.

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The avowed purposes of the New Deal were Relief, Recovery and Reform. Among its successes were the institution of Social Security, the creation of the Federal Deposit Insurance Corporation, as well as the Tennessee Valley Authority, and restoration of confidence in the banking system. It gave people hope at a time when there was little, and gave people work at a time when it was most needed. Minimum standards for labor and public welfare were established; and middle class families were helped to keep their homes, savings and farms. Additionally, the government assumed responsibility for insuring the nations economic and social stability.

The New Deal did not end the Great Depression; it only provided relief during the worst days of that dark time. Several of its programs, including the Agricultural Adjustment Act and the National Recovery Act were declared unconstitutional by a very unfriendly Supreme Court.  Additionally, the institution of Keynesian economic policies upset the federal budget and greatly increased the federal debt. Finally, the New Deal did little for minorities. Fearful of offending Southern Democrats, Franklin Roosevelt segregated most New Deal Programs and exempted domestic help from the Social Security program.

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What were the achievements and failures of the New Deal?

There are at least two major achievements of the New Deal.  First, it helped to reduce the severity of the Depression.  Unemployment dropped after the New Deal began.  More people who were unemployed got assistance to make their lives less harsh.  Second, it helped set up a system that would improve the American economy in the long run.  It did this through such things as Social Security and the Tennessee Valley Authority.

However, the New Deal was not a complete success.  Most notably, it failed to end the Depression.  The US economy did not return to full strength until the start of WWII in Europe led to more production in the US.

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