The New Deal's Positive Effects on the U.S. Economy Essay example

Submitted By Ryan-Brooks
Words: 671
Pages: 3

Ryan Brooks
Mrs. Segal
Did the New Deal end the Great Depression?
The New Deal had a heavy positive effect on the U.S. economy. In the 1930’s there was a constant increase in the country’s GDP, showing that it increased economic activity. Before Franklin D. Roosevelt took office, the government virtually had no power compared to today. Known as the New Deal, FDR reimagined the scope of federal power, implementing responsibilities such as regulating the stock market and providing relief payments such as welfare. While in office, FDR created a minimal standard of living, believing that America was too wealthy to allow millions to suffer from depressions like such. FDR once said, "I pledge you, I pledge myself, to a new deal for the American people.” Under the New Deal, policies were made that protected worker’s unions, created a minimum wage, unemployment compensation, and worker safety laws, promoting the rights of workers and motivating people to keep jobs. The New Deal also ensured farmers work by providing farmers with emergency loans to prevent from losing farms. During the 20’s and early 30’s, crop prices fell significant and devastated many farmers. Also, the New Deal guaranteed them with a parity which adjusted crop prices to where farmers would always make a profit. Aside from providing benefits such as welfare and social security, the New Deal created the FDIC which prevented people from losing money when banks closed as such in the height of the depression. The reason people infer that the Great Depression ended in the beginning of WWII is because the New Deal provided fiscal simulation and showed that it was working and it just needed more spending and time. As a result of the New Deal and the policies within it, Americans could now once rely on the federal government to assist them in hard economic times like the Great Depression. Many of the political ideas have carried throughout American history and still benefit suffering Americans today.
The only thing that the New Deal did was prolong the Great Depression and hinder a needed business recovery until WWII came and jobs were created by men enlisting. The labor policies created by the New Deal made it more expensive for companies to hire, increasing unemployment. Before the New Deal, unemployment was at 17% before sky rocketing to over 20% during the new deal. At the height of the depression under the New Deal, one in four Americans were unemployed, which is a very significant increase in such as small amount of time. Not only did the New Deal heavily increase unemployment, it tripled the tax burden in 7 years (1933-1940). Policies such as the