The New Deal Analysis

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The Marxist Economics maintains that unrestrained market economies inevitably lead to extreme wealth inequality, which becomes unstable and collapses in boom and bust cycles, as which was printed on the text books. A compelling and convincing case is the big depressionGreat Depression. From 1929 to 1933, manufacturing output decreased by one third. Thousands of stockholders lost large sums of money. Banks and business closed their doorswent bankrupt, and people lost their jobs, homes, and savings. Price fell by 20%, causing a deflation which made the repayments of debts much harder. Unemployment in the U.S. increased from 4% to 25%. Additionally, one-third of all employed persons were downgraded to working part-time on much smaller paychecks. In the aggregate, almost 50% of the nation’s human work-power was going unused. Upon accepting the 1932 Democratic nomination for president, Franklin.D.Roosevelt promised “a new deal for the American people”, encompassed the proposals offered by a wide spectrum of groups. From March 9 to June 16, Congress passed a series of significant laws to provide relief for victims of the depression, to recover economy, to reform financial, business, agriculture, and industry. Among them was the public works program to prime the pump and cut unemployment, the PWA ( Public Works Administration ), organized and provided funds for the building of public infrastructure. Not only did the projects offer job opportunities to the unemployed, also but they also improved the environment through reforestation and flood control, which reclaimed millions of hectares of soil form erosion and devastation. As is noted by one authority, Roosevelt’s “ New Deal” was “literally stamped on the American landscape”. The depression did not ended through the New Deal. Nonetheless, the New Deal laid the substance foundation for World War Two and preserved the democratic system of America. The New Deal represented a significant shift in politics and domestic...
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