More about the New Deal
The step of "Relief" was to provide temporary help to the unemployed Americans who were suffering from the economic crisis. An example of this would be the Social security Act, enacted in 1935. This provided financial security to retired citizens, those who were without jobs, people living with disabilities, and dependent mothers with children. For the unemployed, the Social Security Act entitled them to Welfare checks for a period of time or until they found a job. Under the Social Security Act provided the retirees gained a monthly pension. Taxes and money collected from workers' paychecks went toward this, so that the elderly would no longer have to live in poverty because they could no longer work.
The step of "Recovery" was designed to help the economy "bounce back" from the Depression. The Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) were started by the government for this purpose. They provided millions of jobs building roads, schools, airports, hospitals, parks and dams. By employing the unemployed, people had money to buy services and products again, therefore putting money back into the economy.
The last step was "Reform". The Reform stage consisted of creating and enforcing new laws and regulations for companies and industries that contributed to the Depression as well as others in order to prevent a repeat of the Depression. The Securities and Exchange Commission was created to regulate Wall Street and the stock market exchanges. This agency prevented the banks and corporations from abusing the stock market and from committing illegal financial activities. This in turn protected the investors who would have otherwise suffer consequences such as losing money.
The step of "Recovery" was designed to help the economy "bounce back" from the Depression. The Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) were started by the government for this purpose. They provided millions of jobs building roads, schools, airports, hospitals, parks and dams. By employing the unemployed, people had money to buy services and products again, therefore putting money back into the economy.
The last step was "Reform". The Reform stage consisted of creating and enforcing new laws and regulations for companies and industries that contributed to the Depression as well as others in order to prevent a repeat of the Depression. The Securities and Exchange Commission was created to regulate Wall Street and the stock market exchanges. This agency prevented the banks and corporations from abusing the stock market and from committing illegal financial activities. This in turn protected the investors who would have otherwise suffer consequences such as losing money.
Arguments against the New Deal
-It made the government too large and powerful.
-It taught the citizens to be overly dependent on the government.
-It interfered with the free market and businesses too much.
-Conservatives argued that it didn't work because unemployment rates were still high over the course of the 1930's.
-It taught the citizens to be overly dependent on the government.
-It interfered with the free market and businesses too much.
-Conservatives argued that it didn't work because unemployment rates were still high over the course of the 1930's.
Arguments for the New Deal
-It resulted in needed balance Capitalism and Socialism. (lack of regulations and overly regulated)
-Unemployment rates are always slow to fall after a depression, but the New Deal did help over a longer period of time.
-It helped GDP levels rise quickly.
-It helped suffering people return to normal lives with their necessities such as a home, food and clean water.
-Unemployment rates are always slow to fall after a depression, but the New Deal did help over a longer period of time.
-It helped GDP levels rise quickly.
-It helped suffering people return to normal lives with their necessities such as a home, food and clean water.