THE NEW DEAL

The New Deal

First and second New Deal

Introduction

The series of economic programs implemented in the United States of America between the years 1933 to 1966 are commonly known as the New Deal. It was passed by the U.S congress in the first tenure of the president Roosevelt, which lasted from the year 1933 to 1937.These programs were primarily focused and implemented to deal with the subsequent outcomes of the great depression. The historians called it the “3 R's” Reform, recovery and relief.

That is relief for the poor and unemployed people, recovery of the economy, and finally the reform for the financial structure and system in order to prevent from the repetition of the great depression in future. (Folsom, 2008) The New Deal resulted in the realignment of the political scenario and Democratic Party came into domination. The Republican Party opposed the New Deal and they interpreted it as an enemy of the economic growth and business development.

Discussion

The New Deal is further classified as “first and second New Deal”.

The first New Deal

The second deal

First New Deal

The First New Deal was introduced in the year 1933 and it attempted to provide the recovery from the consequences of the great depression through implementing different regulations of business and agriculture such as price stabilization, inflation, and public works. (Badger, 2002)The congress formed different emergency organizations few prominent ones are (FDIC) the federal deposit insurance corporation, (NRA) national recovery administration, the civilian conservation corps, (AAA) the agricultural adjustment administration and the public works administration. The congress also formed the Tennessee Valley Authority, farm relief, tightened financial and banking regulations. Later on the congress also expanded and modified these laws as well. Various Acts were also passed by the congress such as National Housing Act, Trade Agreements Act and different Currency Acts.

Second New Deal

The term Second New Deal is used by the historians and commentators in order to denote to the second phase of the New Deal programs by the president Franklin D . Roosevelt. In the year 1935 the president Roosevelt addressed to the congress and called for three key goals: the efficient use of the national resources, unemployment and illness, security against old age, and clearance of slums, as well (WPA) national welfare program was initiated in order to replace state relief efforts. The programs including redistribute income, power and health in the favor of poor people, farmers, old people and labor unions. The most significant programs included the National Labor Relations Act, social security, the Banking Act, braking up of the utility holding companies and rural electrification programs. Later on the Supreme Court ended few programs such as WPA, NYA, the programs for retails prices control, the resettlement administration, farm rescues, taxes on the rich and the coal stabilization. (Arthur, 2003)The second New Deal was strongly supported by the liberals in congress and they distributed the bonus bill of $ 1.5 billion among the 3 million World War veterans.

The New Deal success or a failure

In order to seek the answer ...