Negative Effects Of The New Deal

The New Deal was a strategy to help bring the nation out of the Great Depression, started by Franklin D. Roosevelt in the 1930 's. It was a plan to bring the economic recovery, relief and reform to the nation. The New Deal included many different programs, some that gave a safety net to the elderly, programs that improved impoverished Americans to pay for feral writers project, rural electrification administration, and programs that put America back to work, enacted in the U.S. Without any specific plans of how to deal with the Great Depression when Roosevelt entered office he improvised as congress “listened” to many different voices. The origins of the New Deal was Roosevelts plan to appropriate federal emergency relief to highway projects

The positive element of it was it helped the banks which closed for 4 days due to the emergency banking act. Many of the banks did not reopen and were shut down; the secure banks were given public banking which allowed the country to regain trust in banks to store their money rather than a mattress. It also had a positive effect for farmers to not grow too much and let more land fallow; helping indebted farmers with their mortgage repayments. The agricultural adjustment act offered the government power to influence prices by destroying surplus while compensating the farmers for their lost

The civilian conservation corps helped which supplied conservation work for young unemployed men. The Federal emergency relief administration, gave loans to the states to operate the relief programs. FERA also gave state authorities one dollar for every three they spent on the homeless, their main goal was to alleviate household unemployment by creating new untrained jobs in local and state government. The civil works administration provided low priority work and low pay for unemployed people overall reduced unemployment.

Some of the negatives aspects of the New Deal were that it upset the balanced Federal budget which created huge deficit for the nation while at the same time failed to end massive employment. Many thought if he had went too far. Franklin Roosevelt program, according to Keynesian, called for massive government spending to stimulate the economy. Roosevelt was failing with large tax increases, so to take its place, sums of money were being borrowed to fund the program. Roosevelt ordered cuts in the government spending when he became worried about inflation when the economy showed a bit of