Sample Essay on Economic Effects of the New Deal
The Great Depression was a challenging period for the American society and the world general. It is a term that described the social, economic and political situation in the United States after the 1929 financial mishap. Fortunately, US president Franklin Delano Roosevelt came up with the New Deal program that helped come up with great policies that helped the country and the economy to recover greatly by the end of 1930s. What caused the depression has been creating a lot of debates since time immemorial among historian and economist and many have tried to figure out what were the core economic effects of the New Deal.
The New Deal enacted in between 1933 and 1938 was a series of economic, social and governmental reforms that aided greatly restore many money bring projects in American and surrounding areas. Using the New Deal programs, President Roosevelt was able to create great policies, agencies and standards that made it easy to alleviate the many economic problems that have been facing the American people. The president Roosevelt government addressed the problem by making the government the core player in implementing its policies. This marked the first time the government has taken part in the day-to-day working of the economy.
Popular and most regarded to histories make it clear that the New Deal was a success in America and a great antidote to the great depression. The Roosevelt government funded a variety of programs that helped develop the economy of the country. For instance, the public works Administration [PWA] handed out grants to build civil infrastructure that were widely needed in the nation while the Federal emergency relief administration [FERA], the Civil work Administration [CWA] and the Works Progress Administration [WPA] provided the state and local government with funds relief to help build and maintain infrastructure in the nation.
Farm programs were also formed through the New Deal initiative and made it easy to increase agricultural output. New deal agencies also loaned funds to state and local governments, farmers, banks and homework in order to provide liquidity. The Federal Housing Administration also provided the federal government better ways of housing the citizens by insuring home improvements and providing matchless mortgage loans.
The New Deal had exceptional impact on the economy as more jobs were created and many Americans came in large numbers to get income or make a living. Creation of employment within the nation by the respective agencies presented an opportunity to make more revenues and increase production. This also meant that there was enough money in the market for trade and any other kind of financial deal. There New Deal also had an impact on art as it established funding for artistic who later played a great role in the growth of the economy.
The government suspended the gold standard making it hard to export gold except if under license of the treasury. This made it easy for the dollar to float freely on foreign exchange markets with no any guaranteed price in gold. This increased the amount of money in circulation to the level that the American economy needed. When the Securities Act of 1933 was enacted, it became essay to regulate the stock market and prevent corporate abuses that could affect the economy. Through the New Deal, the nation was able to overcome the Great Depression without undermining the capitalist system, it was also easy to conserve natural resources and create a better balance between agriculture, labor and industry.
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