Roosevelt's New Deal Changed the Government Like Never Before

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Roosevelt’s New Deal was a policy that was meant to help put an end to the hoovervilles and end the Great Depression. The New Deal would do this economically through programs such the AAA and the SSA. Secondly the New Deal was also effective socially by using programs such as the WPA and the CCC. Thirdly the New Deal initiated a change in the federal government like no other policy before.

The New Deal changed many things economically when President Franklin D. Roosevelt first enacted it in 1933. The New Deal put into play a policy known as the Agriculture Administration Act. This Act established the Agriculture Adjustment Administration also known has the AAA. The aim of the AAA was to raise prices on commodities through the use of artificial scarcity. What this mean is that the Agriculture Adjustment Administration would pay farmers through subsides to produce a certain allotment of produce and livestock. Also the AAA would use subsides to pay the farmers to leave land idle or to let bountiful crops rot or to slaughter livestock and discard it. What this would end up doing is bring produce price to a given parity level, and the point of this was so that the farmers surplus was reduced, and that the farmers got a fair exchange price in relation to the given parity level. In the end even though the AAA raised farm incomes considerably since 1933 prices remained well below the 1929 peak. In fact the original AAA didn’t even provide anything for the sharecroppers, tenants, or farm laborers, this end up leading to mass unemployment in the farm industry. This mass unemployment would have been seen in the graph Unemployment of Non-farm Workers in Percentages and Numbers. (J) But even though the farmers were doing better who or what wo...

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...ally made there own rules. But when the stock market crashed it was fairly clear that they were going to need something to help build the economy back up again. President Hoover didn’t consider this because it was thought that it would give the government too much power. Others fear this also and it can be seen in a letter written to Senator Robert Wagner. (B) Even though Franklin D. Roosevelt’s New Deal was risky and it made it seemed to have a lasting affect though most of its programs failed. You can also see how it changed the role of the government now a day by how certain banks are insured for up to $250,000 per person per bank, and Federal Deposit Insurance Corporation or FDIC made this possible. Another instance you can see how the federal government change is by how it setup regulations on the stock market through the U.S Security and Exchange Commission.

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