The New Deal

The New Deal

When the great depression hit America, the country was left in devastation. Due to the

Hoover Administration's slow reaction in responding to the depression, many had lost their hope

for the future. Then Franklin Roosevelt came up during 1932 elections. During his campaign,

Roosevelt found his slogan: "The New Deal," a name that would become a symbol of one of his

greatest achievements.

Many people had asked, what caused the Great Depression? Some blamed on the Great

Crash. Economists say that the Great Crash did damage the economic system in some ways, but

it did not necessarily cause the depression. It was the weak economic structure at the time that

may have triggered the tumbling down of the economy.

Other factors causing the Great Depression includes the over-expansion of businesses

to gain more profit. In fact, as businesses over-extended themselves, produced too much

products, customers could not keep up with the expansion, since their wages did not increase

much. Many desperate customers, wanting to buy "on-time" with their limits income, plunged

into the world of credit. Further, the whole economic system was dictated largely by jumbo

corporations, the government, most of the time, stayed out of the system.

Responding to the Great Depression, President Herbert, during 1931-32 believed that

private charities had run out of all funds. Some went bankrupt shortly afterwards. Also, many

major cities also went bankrupt. And what they are thinking did not work.

Hoover turned to businessmen for answers by promising that they will always maintain

full employment, wages, and prices. He then tried lowering the income taxes. Ho...

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...the interstate commerce

and the New Deal sided too closely with workers and farmers. Despite of the problems that the

New Deal left for the future presidents to solve, the New Deal did brought many good things to

the American Society. Although not everybody will experience the American Dream, some did

have the chance after the New Deal era, especially during and after the economic boom of the

World War II. A continuation of the progressive tradition. Although, the New Deal failed to

save America out of the Depression. It sought to "clean up" and tried to improve the country for

that reason it has left a long lasting legacy for the future.

Suggested Readings,

A Narrative History by George B Tindall and David E Shih.

The New Deal and the problem of Monopoly by Ellis W Hawley (1966)

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