preview

How Did The New Deal Stabilize The Economy

Decent Essays

Were the Roosevelt Administrations and the New Deal Effective in Overcoming the Great Depression and Rebuilding the U.S. Economy?
From the 1930s to World War II in 1939, the Great Depression influenced Americans in many ways. The stock market crash is largely considered to be the main cause of the depression. Every American was affected in some way. In America, the Roaring 20’s encouraged people to buy stock with margins, which are stocks bought on loans. When the market crashed, people went into debt causing the economy to plummet because many people lost their life savings. For many reasons, the Great Depression is considered to be the worst time for America’s economy. President Roosevelt created the New Deal to help stabilize the economy. However, President Roosevelt and his New Deal programs were not effective in overcoming the Great Depression and rebuilding the U.S. economy.

The New Deal programs were not effective in overcoming the Great Depression because it still caused many people to live on the streets without the basic needs …show more content…

Spending money on several different programs, most of which had little effect on the Great Depression is proved by National Recovery Administration, among several other failures. NRA failed to improve the economy, though it spent a great deal of government money (Textbook, page 778). Another example is provided by the number of programs. After the first New Deal plan failed, President Roosevelt created the second New Deal plan. Even the second plan didn’t fully stop the Great Depression. There were over 27 programs, which is over the number necessary (Document 11). As so many aspects of the Great Deal didn’t work but cost a great deal of money. Even though it is clear the New Deal was ineffective, some still claim it was a successful idea, they are sadly

Get Access