How Did The New Deal Improve The Economy

Crixtin Rosario
D03943549
Prof. Coriat
7/30/14
The New Deal America during 1929 to 1933, suffered a huge economic catastrophe known as the Great Depression, due to the stock market crash. Many Americans were driven into poverty, became unemployed, and were without sufficient income. Franklin Roosevelt, decided to establish the New Deal to make economic improvements for Americans to establish financial and social security. The first step in the New Deal was the relief program. The New Deal started with the Civilian Conservation Corps, and the Works Progress Administration to help the unemployed. The CCC was established particularly for jobless single young males between the ages of eighteen and twenty-five. The CCC provided several jobs
It trained and educated people to learn a new skill and also how to apply those new abilities. The WPA focused on public projects, such as The Federal Art Project. Under this program thousands of posters, prints, sculptures, paintings, drawings, and murals were produced, which were then, in turn, loaned to schools, libraries, galleries, and other institutions (Wilkinson). The WPA gave Americans something to do instead of just sitting around. Although it was a great relief program, it costs the government millions of dollars to fund these relief programs and were shut down in 1943. The next step of the New Deal was the recovery program. This program restored the economy back to where it was before the Great Depression. The first step in the recovery program was the Agricultural Adjustment Act. This act regulated the supply and demand of farm goods. For instance, when farmers had an overproduction of food such as dairy products or crops, the AAA compensated farmers to destroy excess livestock or crops in order to raise market prices. As a result, farmers made easy profits, but consumers faced higher prices for these goods. In addition, many people were against this act because they disagreed with the
This program took measures to prevent an economic depression and protect the unemployed. During the 1930s, many banks closed due to the stock market crash. People’s life savings within the banks were wiped out, and an extraordinary amount of Americans did not have the money to survive. This epidemic drastically increased the unemployment rate and drove many Americans into poverty. A quarter of the workforce was unemployed as businesses in every sector of the economy closed their doors (Noll). Therefore, the Federal Deposit Insurance Corporation was established following the Great Depression to guarantee Americans up to two thousand five hundred dollar in case of another bankruptcy. Furthermore, Roosevelt proceeded to push the Fair Labor Standards Act. Its purpose was to regulate work hours, set minimum wages and define work criteria. Roosevelt fought congress to pass laws to stop child labor and set work standards. Taking advantage of child labor in periods of business depression along with decreased earnings and extending the hours for the lowest paid workers will have negative effects on purchasing power (Grossman). After Roosevelt faced congress numerous times, congress finally passed the FLSA in 1938. The FLSA set work guidelines such as a thirty five to forty hours of work a week and a minimum wage of twelve to fifteen dollars. Also, youths under sixteen years old were not allowed to be employed. In