Was The New Deal A Success Or Failure Essay

Was the New Deal a success or a failure

The Great Depression was a most severe economic downturn in the country. The first long term cause of the depression was agriculture. This caused the depression because farmers over-produced during World War 1 in order to feed Europe for their large demand of money, but the prices of those crops dropped 40% after the war. Farmers lost their farms and the banks can’t get back the money that they loaned to them. The second reason that caused the depression was buying on margin. People buy a share with only a 10% deposit and banks loaned people the rest of the 90%, this led to the depression because lots of people buying on margin but they don’t have the ability to settle the debt. This lead to the collapse of the stock market which triggered the great depression. In 1928, Hoover was elected president. He believed advocated for rugged individualism, which was people should succeed through their own efforts and take care of their own families without government handout. He also pushed for voluntary cooperation, which was people working together to

The program FERA was a relief program meant to send money directly to families. More specifically, it only giving out money and it won’t help the economy because people won’t go to work if the government keep providing relief to them. This proves the New deal was a failure because the program only sent money to families but it is not a long-term solution. The program, Public Works Admin was a relief program meant to provide public jobs to unemployed people. More specifically, those public jobs included constructing roads and bridges can be considered as “making jobs”. This proves the New Deal was a failure because it will increase the government expenditure and the jobs provided were only temporary which means people would lost their jobs