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Economic impacts of the new deal
The economic impacts of the new deal
The economic impacts of the new deal
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During the 1930’s, the agricultural dominant San Joaquin Valley was being built up by public works programs that brought it new dams and levees that many argued would prevent flooding and subsequently loss of life. However, they weren’t simply built for that reason alone, the valley had been suffering from the effects of the Great Depression, and experiencing a flood of Dust Bowl migrants looking for jobs. Therefore, they were built for economic stimulus and the valley’s residents were not happy about the sudden increase in spending and even tighter job market that came with having to accommodate the new settlers, which also resulted in tensions with the migrants. New Deal programs helped relieve the valley’s economic problems, and address …show more content…
the migrant crisis providing avenues to escape the squalor they lived in. The New Deal also went further by funding projects to build up valley infrastructure. Construction of levees and dams greatly benefited the valley’s irrigation systems and economy for the coming decades. The monetary costs of the New Deal were heavily outweighed by the many benefits it brought to the valley by alleviating economic woes, easing the migrant crisis, and building up the valley’s infrastructure The Depression in combination with crashing agricultural prices had a huge negative impact on the valley, since cutting back supply would have also negatively affected the largely agricultural economy. Like in many agriculture dependent parts of the country, huge drops in prices from the surplus caused demand for farm labor to be almost halved. Before the implementation of the New Deal, simply adjusting to the shifting economy would have overwhelmed the valley economy by leaving much of the workforce unemployed while waiting for prices to recover. The government would have to step in to relieve the situation as simply remaining out of the economy would have been disastrous. Unlike other parts of the country, the farms in the San Joaquin Valley were growing a variation of crops and were not as negatively affected as regions reliant on wheat, but the valley faced a migrant crisis unlike the other regions. Southwestern migrants impacted by the Dust Bowl and Depression flooded into California, the San Joaquin Valley being a popular destination attracting about 70,000 migrants, further worsening the demand for farm labor. Like in other parts of California, the valley too was influenced by xenophobic policies to deport immigrant groups such as Mexicans soon also shifted their views to the migrants. The scarcity of jobs caused tensions and hatred towards the migrants that even public libraries in Kern County banned The Grapes of Wrath. The New Deal alleviated many of the valley’s problems when it came into effect, public works stimulated the economy and also diversified the valley’s agriculture dominated economy. The programs also helped with the humanitarian crisis by employing them to cleaner working conditions, which also diffused the tensions with the locals worried about job scarcity. The government programs built up camps throughout the valley to house migrant families that worked as farm laborers. Even though the counties in the valley were reluctant to increase spending to accommodate the migrants, the federal governments hand in this helped circumvent this. The New Deal also went beyond economic stimulation by building up the valley with many projects involving infrastructure. In Kern County, the programs built East Bakersfield High School, the Central Fire Station, and buildings in Bakersfield High School. The programs gave the county lots of money to make the projects possible, with the fire station costing $120,000 in that time. The dams and levees built in the valley also heavily benefited the agriculture industry by improving their irrigation systems. Like everywhere else in the country, the programs also built roads where otherwise the valley would have been left with many impassible roads. The programs also tackled low agricultural prices, generally by subsidizing farmers to not grow and even destroy their surplus. The government encouraged the agriculture industry to form market cooperatives to regulate the flow of food production with the goal of increasing prices. These programs allowed production to be cut back for the long term good, while reducing the short term impact of not harvesting crops. The government created monopoly would inflate the prices in hopes that it would also later increase the demand for farm laborers. Ultimately, the programs would prevent people dependent on agriculture from being punished by changing demands for their goods. Social security programs also benefited the valley by providing economic aid to those in the valley who were too old in the valley and could not work. The benefits were also extended to hundreds of widows of social security beneficiaries in one instance in California, with an office located in Bakersfield to help with the process. The benefits allowed older people to retire, freeing up the supply in the workforce and further stimulating the valley economy with the money they received. The overall program provided families with safety nets to be able to support their elderly family members and children if a beneficiary died. The opinions during the implementation of New Deal programs widely varied in the valley, and was seen as either a huge success or failure. A candidate for a Bakersfield city ward campaigned in favor of the levees being built arguing the costs were justified as it would prevent damage and loss of life from future floods. Meanwhile, some prominent valley business owners were against the increased spending, blaming the aide for attracting migrants into the valley, and further causing economic damage. Others claimed that certain policies were passed to hurt businesses that were not cooperating with the policies of the New Deal. Criticisms of how people thought the New Deal was only teaching people to survive on borrowed money were often brought up in opinion sections of valley newspapers. Into the transition period into the Second World War, the country saw even bigger spending and stimulus, which resulted on policies similar to the New Deal on a wider scale. Despite most of the spending being on the industrial sector, the war also had a huge demand for agriculture to feed the armies overseas, which heavily benefited agricultural areas like the San Joaquin Valley. The larger unrestricted spending the war brought in, effectively brought most people out of unemployment, and kick started the economy back on track. The huge demand for labor actually resulted in a labor shortage that the valley and California in general had to use migrant labor to make up for it. The Second World War brought spending, which spent much more than New Deal policies confirmed these ideas to Keynesian economists when the country saw more government spending on a wider scale having a huge stimulus to the economy. Despite the differences in opinion on the success of the overall New Deal, most scholars recognize that it had far-reaching impacts that shaped future American economic policy.
Most acknowledge its affects having lasted even decades after New Deals projects happened. Some of the succeeding socials programs that were implemented in the following decades were inspired by New Deal era social programs. Even though some critics argue that the New Deal was a critical failure, and that only the war brought the country out of the Depression, proponents justify New Deal spending by pointing out the war did the same, but on a more massive …show more content…
scale. The impacts of the projects had far-reaching effects, ranging from recovering the valley’s economic output to pre-depression levels to saving hundreds of thousands of lives in the years after they were finished. The first levees constructed by public works programs in Kern County alone are estimated to protect about 400,000 lives today from flooding. The levees also have had long term economic value in which it had saved the county money from the damage the floodings would have caused. The projects also helped modernize the valley with projects such as the airport hangar built at the Kern County Airport, which was described to be as” One of the finest and largest of its type on the Coast." Further examples of modernizations made thanks to the public works programs in Kern alone include the construction of sewer systems in Arvin and Tehachapi. Thanks to the programs, the construction of the previous mentioned projects and much more were made possible because the funding of millions of dollars at that time would have been very unlikely in any other time or situation. Before the New Deal, the valley was stricken with the Great Depression, and a humanitarian crisis with southwestern migrants flooding the state in hope of jobs.
The eventual implementation of New Deal programs economically stimulated the valley and reversed falling agricultural prices, which resulted in more jobs diffusing social tensions with migrants over competition with jobs. The stimulus also included public work projects in the valley that built up infrastructure that had long term benefits such flood prevention, improved irrigation systems, and better roads, which resulted in improved economic output for the following decades. The short term effects also diversified the demand in labor needed for these projects, further alleviating the excess the flood of laborers that originally came for agriculture related jobs. The overall New Deal heavily benefited the valley, and discredited hands off approaches to the economy by fixing agricultural surpluses with a lesser impact on those who were living off that type of
work.
The era of the Great Depression was by far the worst shape the United States had ever been in, both economically and physically. Franklin Roosevelt was elected in 1932 and began to bring relief with his New Deal. In his first 100 days as President, sixteen pieces of legislation were passed by Congress, the most to be passed in a short amount of time. Roosevelt was re-elected twice, and quickly gained the trust of the American people. Many of the New Deal policies helped the United States economy greatly, but some did not. One particularly contradictory act was the Agricultural Adjustment Act, which was later declared unconstitutional by Congress. Many things also stayed very consistent in the New Deal. For example, the Civilian Conservation Corps, and Social Security, since Americans were looking for any help they could get, these acts weren't seen as a detrimental at first. Overall, Roosevelt's New Deal was a success, but it also hit its stumbling points.
The FDR administration responded well to the challenge of the Great Depression. The Depression was on a scale that had never been seen before, and required an unorthodox response. The administration responded with the New Deal, which had some very successful programs, such as the works programs, and other programs which failed miserably, such as the AAA. The New Deal also made the federal government much more involved with the lives of individual Americans, rather than people as a whole, which it had been. This is mostly the result of the works programs and social security where the government pays attention to the economic needs of specific workers and elderly people. As a result, the precedent of the welfare state was set and has remained to modern day.
As well as providing employment through massive works projects such as the Tennessee Valley Authority, which built dams to generate electricity. New deal programs provided emergency relief, reformed the banking system, and tried to invigorate agriculture and the economy. Many other programs were also put into place that were used to attempt to redistribute power and resources. 3. What is the difference between a'smart' and a'smart'?
The Great Depression of 1929 to 1940 began and centered in the United States, but spread quickly throughout the industrial world. The economic catastrophe and its impact defied the description of the grim words that described the Great Depression. This was a severe blow to the United States economy. President Roosevelt’s New Deal is what helped reshape the economy and even the structure of the United States. The programs that the New Deal had helped employ and gave financial security to several Americans. The New Deals programs would prove to be effective and beneficial to the American society.
In his presidential acceptance speech in 1932, Franklin D. Roosevelt addressed to the citizens of the United States, “I pledge you, I pledge myself, to a new deal for the American people.” The New Deal, beginning in 1933, was a series of federal programs designed to provide relief, recovery, and reform to the fragile nation. The U.S. had been both economically and psychologically buffeted by the Great Depression. Many citizens looked up to FDR and his New Deal for help. However, there is much skepticism and controversy on whether these work projects significantly abated the dangerously high employment rates and pulled the U.S. out of the Great Depression. The New Deal was a bad deal for America because it only provided opportunities for a few and required too much government spending.
The New Deal was a series of federal programs launched in the United Sates by President Franklin D. Roosevelt in reaction to the Great Depression. AAA- The Agricultural Adjustment Act of 1933 was established to raise the value of crops in America. Through tax implements on companies producing farm products, famers were paid subsidies to reduce agricultural production.
The Great Depression was one of America’s most trying times. It was the dark time following the good times of the Roaring Twenties. The Great Depression lasted from 1929 to the United States entry into World War II in 1941. The cause of the Depression was the panicked rush to get money out of the banks when the market crashed. When President Franklin D. Roosevelt was elected he created the New Deals to fight the Depression. It focused on relief, recovery and reform, setting out to fix the damage. Many people lost their jobs after the crash and were quickly losing their homes. Both of the New Deals had different programs to help America get back on its feet. Even though it wasn't a complete success, the New Deal did more good than bad because it significantly lowered unemployment rates, helped the Native Americans and helped feed millions of undernourished children. (Woodward, 4)
Assessment of the Success of the New Deal FDR introduced the New Deal to help the people most affected by the depression of October 1929. The Wall Street Crash of October 24th 1929 in America signalled the start of the depression in which America would fall into serious economic depression. The depression started because some people lost confidence in the fact that their share prices would continue to rise forever, they sold their shares which started a mass panic in which many shares were sold. The rate at which people were selling their shares was so quick that the teleprinters could not keep up, therefore share prices continued to fall making them worthless. Also causing many people to lose their jobs as the owners of factories could not afford to pay the workers wages.
For the economy the New Deal only provided short-term solutions and did not solve the underlying economic problems. Also the US economy took longer to recover than that of most European countries. When, in 1937, Roosevelt reduced the New Deal budget, the country went back into
Essentially, the New Deal did not work to include and employ as many people as it could or should have, even excluding major population types from any possible benefit from the programs. It failed to provide hard-working citizens with a steady job and food to eat. This question of whether or not the New Deal was a success has a substantial significance. If any country goes into a economic collapse like one of the Great Depression, one could use America’s experience as an example as to what steps should or should not be taken though such a time. Afterall, the importance of studying history is to learn from mistakes made in the
It would be erroneous to assume that Roosevelt’s New Deal policies did not change America—they did. Although most of the New Deal programs no longer exist today, there were some policies that were integral to the advancement of American society. The most notable of these was the Social Security Act of 1935. Social security helped expand the governmental role of the president and was the blueprint for future welfare programs.
...onger had any savings left to live off of. The New Deal program enhanced the lives of Americans during the Great Depression and changed the role of the federal government. Most historians agree that the New Deal was what helped alleviate many of the problems during the Great Depression and has been said to have ended the Great Depression.
The New Deal period has generally - but not unanimously - been seen as a turning point in American politics, with the states relinquishing much of their autonomy, the President acquiring new authority and importance, and the role of government in citizens' lives increasing. The extent to which this was planned by the architect of the New Deal, Franklin D. Roosevelt, has been greatly contested, however. Yet, while it is instructive to note the limitations of Roosevelt's leadership, there is not much sense in the claims that the New Deal was haphazard, a jumble of expedient and populist schemes, or as W. Williams has put it, "undirected". FDR had a clear overarching vision of what he wanted to do to America, and was prepared to drive through the structural changes required to achieve this vision.
The New Deal reforms transformed the government in the long run but failed to accomplish immediate recovery from the Great Depression, it was not until World War 2 that the economy recuperated completely. The reforms were a landmark in US history, for the first time the government interfered, for the prosperity of the people. Works Cited Foner. I am a fad. Give Me a Liberty.
... still be living in a time very similar to the Great Depression. However, the New Deal did help to solve America’s problems, it did not end the depression, unemployment, or poverty; it did provide a sense of security to American citizens, and insure hope in their country (“New Deal” 3).