Did the New Deal policies during the period 1933-1941 in the USA bring about a recovery in the American economy?

Authors Avatar

Did the New Deal policies during the period 1933-1941 in the USA    bring about a recovery in the American economy?

   In my opinion the New Deal policies had definitely brought about a recovery in the American economy but some minor regions of economy had still struggled to fully recover even with government’s help.

   Roosevelt has introduced very many different organisations and each of them dealt with a single problem. The most important ones were The Agricultural Adjustment Administration and the National Recovery Administration. The AAA helped the farmers by setting quotas and reducing farm productions in order to force prices upwards. The AAA has certainly helped farming which was a vital part of the economy. The NRA improved working conditions and set fair wages and sensible levels of production, this gave money for workers to spend without overproducing.   Franklin D Roosevelt sad in his inauguration speech that “Our greatest primary task is to put people back to work”. In the period from 1933 to 1937 when the New Deal budget was cut the percentage of total labour force unemployed fell by ten per cent which was not a lot compared to Europe’s rate of recovery. When the unemployment went down the money people earned began to bring back life to the nation’s trade and business, more customers appeared in the shops and therefore shopkeepers , farmers and manufacturers began to benefit from the money the government was spending on work for the unemployed.

Join now!

The reason why the Second new deal was introduced was because there were too many critics around blaming Roosevelt for doing too little when Europe is recovering much quicker. To tackle this problem he introduced new laws and the most significant aspects were the Wagner Act which forced all employers to allow trade unions to operate in their companies and to let them negotiate with employers for better pay and conditions. The Social security Act set up a scheme of unemployment insurance. The employers and workers had to make small contribution to a special fund each week so when the ...

This is a preview of the whole essay