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

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Last updated: November 14, 2019

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.

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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 worker became unemployed he could use these money to help him out until he finds another job.This has increased people’s confidence in the government and also when the banks opened in 1933 with people’s money protected. Although the New deal policies seem to be successful there were some opponents because a programme such as New Deal was unheard of in American History. One of the opponents of Roosevelt was Huey Long who thought that the New Deal was not doing enough to help the poor who were mainly black Americans and the poor in farming areas.The biggest opponent was the Supreme Court. When in May 1935 the government appealed to the Supreme Court the Court ruled that the government had no right to prosecute the company. The Court sad that NRA was unconstitutional.

After the Supreme Court had been shaken by Roosevelt’s actions and was less obstructive in the future. All of Roosevelt’s opponents interrupted him in continuing his plan but they have not stopped him.The New Deal policies restored the faith of the Americans in their government; The New deal has set tone for future policies for government to help people; during the period form 1933 to 1941 the New Deal handled billions of dollars but there was no corruption scandals which ruin the economy; Black Americans were introduced to society as its part. The industry had also benefited a lot from the policies. The NRA and Second New Deal measures strengthened the position of labour against the large American industrial giants.Trade unions were supported by the government which helped to stabilise the economy. Many of Franklin D Roosevelt’s experiments were failures.

The New Deal was one of his experiments and he sad that if 75 per cent of them produced beneficial results he would be satisfied. My point f view is that the New Deal policies were one of those successful. I think that The New Deal policies have helped American economy to recover much quicker but the turning point and the complete end of depression only came when America joined the Second World War in 1941.

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